1, Suppose that exchange rates are currently such that you can exchange 1 US dollar for 1.22 Australian dollars.

If the RBA lowers the target cash rate, and there are no other changes, then which of the below would be the most likely outcome?

Group of answer choices

A, 1 US dollar now exchanges for 1.22 Australian dollars

B, 1 US dollar now exchanges for 1.36 Australian dollars

C, 1 US dollar now exchanges for 1.14 Australian dollars

2. The table below gives the domestic demand and domestic supply schedules for turnips.

Price

Quantity Demanded

Quantity Supplied

$2

100

40

$3

80

50

$4

60

60

$5

40

70

$6

20

80

If this market was opened to international trade, with a world price of $2 and a tariff of $1, then the tariff revenue would be _____

Group of answer choices

A, $240

B, $80

C, $60

D, $30

3. The table below shows how many minutes two accountants, Renju and Sebastian, take to complete an Individual's Tax Return and a Business Activity Statement (BAS) respectively.

Minutes to complete one Tax Return

Minutes to complete one BAS

Renju

20

40

Sebastian

12

30

Based on the above numbers, which of the following is true about the completion of Individual's Tax Returns?

Group of answer choices

A, Renju has absolute advantage, and Sebastian has comparative advantage

B, Renju has both absolute advantage and comparative advantage

C, Sebastian has both absolute advantage and comparative advantage

D, Renju has comparative advantage, and Sebastian has absolute advantage

4. The table below shows the demand and supply schedules for onions.

Price ($)

Quantity Demanded (units)

Quantity Supplied (units)

10

0

200

8

60

160

6

120

120

4

180

80

2

240

40

Suppose the government imposes a $4 price floor on onions, what would the quantity traded in the market then become?

Group of answer choices

A, 180

B, 120

C, 100

D, 80