Multiple Choice help (1 Viewer)

[datacore]

What is a non-inflationary method of financing a federal government budget deficit

A increasing the base rate of GST
B reducing expenditure on social services
C Instructing the Reserve Bank to print more money
D Selling new government securites in domestic financial markets

What is a major microeconomic objective of the ACCC's competition policy

A perfct competition in markets
B monopolistics competiton in markets
C Workable competition in markets
D Deregulation of all markets

How would the construction of a supersonic rail link by a French company between Sydney and Canberra be recorded in Australia's balance of payments

A debit on the current account
B credit on the current account
C debit on the capital and financial account
D credit on the capital and financial account

Thanks
an explaination would be nice as well, but not necessary

 

[Jago]

2nd one: C, because perfect competition is not always desirable (economies of scale)

3rd one: i originally thought it would be D, but seems to be more suited to the income section of the CA, so A.

i really can't answer the first question as i suck at topic 4 really hard and i haven't got to absorbing my notes yet.

 

[d_a_n_z]

i think 1=d

 

[biscuit]

I think the 3rd one is D, because there will be an increase in investment into the Aus economy, because the company is spending money on capital purchases to do with the construction

 

[biscuit]

First one is tricky- its not A or C

I'm thinking its D because; if they sell CGS's there will be a decrease in cash/liquidity in the cash market and thus there will be a higher cash rate/interest rates --> reduce economic activity, reduce demand-pull inflation --> non-inflationary

i'm probably wrong though, cause B also sounds right

 

[datacore]

thanks for the help so far

for 1, i was deciding whether it was b or d
2 - C
3 - i dunno whether we're paying for it, or we're getting it as investment

 

[Haku]

This is 100% correct, though i hope.

1. D
2. C
3. A

 

[Jago]

q3 seems to be a "contract", they're not going to get a % of all profits

Edit: for 1, selling govt securities would reduce the money supply in the economy and thus avoid inflation. so it seems to make sense.

 

[Haku]

don't they get income from the construction though? that would be a debit in CA right?

and it did not say if it is a lease or contract or what ever.

 

[Jago]

Yes nosadness i believe so.

 

[Haku]

Jago, you got any case study essay u written on comp?

i did mine a few days ago and it read like a report, look like history report and sound like one. can i see someones as an example?

 

[mattchan]

Q1) D (Cant be B, cause thats not a method of financing a budget)
Q2) C
Q3) A (The French dudes are actually building the rail, not investing, so its kind of like buying a rail network?)

 

[Jago]

yeah i do, but it's basically the one in the leading edge model answers. same country and everything.

actually, it's exactly like the one in the booklet. almost word for word

 

[Vampire]

i rekon d, c, a

 

[datacore]

awesome, thanks for the help

 

[Haku]

yeah i do, but it's basically the one in the leading edge model answers. same country and everything.

actually, it's exactly like the one in the booklet. almost word for word

lol, nice one.

 

[know_it_all]

you have to be careful with question 3 because it refers to the asset
as opposed to returns created by the asset
so it wouldnt be correct to say its a debit on the CA