Question

Q20:One reason why economists do NOT consider GDP the perfect measure of well-being of a society is because

		GDP is not adjusted for pollution.
		GDP is adjusted for the increase in crime rates.
		GDP includes the value of leisure.
		GDP cannot account for inflation.

Q21:

Which of the following is true about the Open Market Operations (OMO) conducted by RBA?

		When the RBA buys government or treasury bonds from commercial banks, it aims at decreasing the monetary base.
		When the RBA removes treasury bonds from circulation, it will increase the reserve amounts of commercial banks.
		When the RBA sells government or treasury bonds to commercial banks, it aims at decreasing current interest rates to meet the target cash rate.
		The RBA adjusts the demand of money by conducting OMO.

Q22:

Targeting the inflation rate in Australia

		is part of the RBA's fiscal policy.
		is not part of the RBA's monetary policy.
		reduces uncertainty in the economy.
		makes it harder for workers to negotiate wage contracts.

Answer 1