Question 1

When two variables in a graph are related to a third, changing the third causes

Accepted Answer

A)  either a shift or a movement in the curve but more information is needed to determine which occurs. 
B)  a movement along the curve. 
C)  no change in the curve because the third variable isn't on the axes. 
D)  a shift of the curve. 
E)  None of the above answers is correct. 
A)  either a shift or a movement in the curve but more information is needed to determine which occurs. 
B)  a movement along the curve. 
C)  no change in the curve because the third variable isn't on the axes. 
D)  a shift of the curve. 
E)  None of the above answers is correct. D

Question 2

A normative statement: i. can be tested as to whether it is true or false.
Ii) is considered negative.
Iii) depends on a person's values.

Accepted Answer

A)  i only 
B)  iii only 
C)  i and iii 
D)  ii and iii 
E)  i, ii and iii 
A)  i only 
B)  iii only 
C)  i and iii 
D)  ii and iii 
E)  i, ii and iii B

Question 3

When Ferrari decides to produce 1,200 '360 Modenas' each year, Ferrari is answering the ________ question.

Accepted Answer

A)  why 
B)  for whom 
C)  scarcity 
D)  how 
E)  what 
A)  why 
B)  for whom 
C)  scarcity 
D)  how 
E)  what E

Question 4

If the change in y = -4 and the change in x = 2, there is

Accepted Answer

A)  a negative relationship between y and x. 
B)  a relationship between x and y, but more information is needed to determine if it is a negative or positive relationship. 
C)  a positive relationship between y and x. 
D)  an independent relationship between y and x. 
E)  no relationship between y and x. 
A)  a negative relationship between y and x. 
B)  a relationship between x and y, but more information is needed to determine if it is a negative or positive relationship. 
C)  a positive relationship between y and x. 
D)  an independent relationship between y and x. 
E)  no relationship between y and x.

Question 5

Proponents of cuts to income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

Accepted Answer

A)  the opportunity cost of working is negative. 
B)  the marginal cost of each additional work hour is not important to most workers. 
C)  workers are irrational. 
D)  workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
E)  workers make decisions based on the social interest. 
A)  the opportunity cost of working is negative. 
B)  the marginal cost of each additional work hour is not important to most workers. 
C)  workers are irrational. 
D)  workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
E)  workers make decisions based on the social interest.

Question 6

Which of the following is a positive statement?

Accepted Answer

A)  Everyone should have some knowledge of economics. 
B)  Social security must be reformed. 
C)  Taxes on petrol should be lower so that petrol is more affordable for the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  The rich should pay more in taxes. 
A)  Everyone should have some knowledge of economics. 
B)  Social security must be reformed. 
C)  Taxes on petrol should be lower so that petrol is more affordable for the poor. 
D)  If we reduce welfare payments given to the poor, they will find jobs. 
E)  The rich should pay more in taxes.

Question 7

-In the diagram above, which figure(s) show(s) an inverse relationship between the variables?

Accepted Answer

A)  Both B and C 
B)  Only C 
C)  Only D 
D)  Both A and C 
E)  Only B 
A)  Both B and C 
B)  Only C 
C)  Only D 
D)  Both A and C 
E)  Only B

Question 8

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Yet, Adam still decides to go skiing.

Accepted Answer

A)  He loses a total of $120 per day, so his decision is irrational. 
B)  Adam is definitely making a decision that is in the social interest. 
C)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
D)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
E)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. 
A)  He loses a total of $120 per day, so his decision is irrational. 
B)  Adam is definitely making a decision that is in the social interest. 
C)  Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. 
D)  His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. 
E)  The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision.

Question 9

-In the diagram above, which figure(s) show(s) no relationship between the variables?

Accepted Answer

A)  Only D 
B)  Only B 
C)  Both B and C 
D)  Both A and B 
E)  Both A and C 
A)  Only D 
B)  Only B 
C)  Both B and C 
D)  Both A and B 
E)  Both A and C

Question 10

-The figure above shows a

Accepted Answer

A)  slope. 
B)  cross-section graph. 
C)  time-series graph. 
D)  scatter diagram. 
E)  trend diagram. 
A)  slope. 
B)  cross-section graph. 
C)  time-series graph. 
D)  scatter diagram. 
E)  trend diagram.

Question 11

'As the price of petrol increases, fewer people buy cars that are petrol guzzlers.' A graph showing this relationship would

Accepted Answer

A)  be a vertical line. 
B)  have a direct relationship. 
C)  be a horizontal line. 
D)  have a negative slope. 
E)  have a positive relationship. 
A)  be a vertical line. 
B)  have a direct relationship. 
C)  be a horizontal line. 
D)  have a negative slope. 
E)  have a positive relationship.

Question 12

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his email. What is the opportunity cost of attending the concert for John?

Accepted Answer

A)  Attending a movie 
B)  Answering his email 
C)  Studying for an economics exam 
D)  Going to the concert because that is what John chose to do 
E)  Attending a movie, studying for an economics exam, and answering his email 
A)  Attending a movie 
B)  Answering his email 
C)  Studying for an economics exam 
D)  Going to the concert because that is what John chose to do 
E)  Attending a movie, studying for an economics exam, and answering his email

Question 13

Which of the following is a macroeconomic topic? i. China increases interest rates to slow its economic growth.
Ii) Parliament lowers tax rates to try to lower the unemployment rate.
Iii) Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

A)  ii and iii 
B)  i and iii 
C)  iii only 
D)  i and ii 
E)  i only 
A)  ii and iii 
B)  i and iii 
C)  iii only 
D)  i and ii 
E)  i only

Question 14

Correlation means:

Accepted Answer

A)  other things remaining the same. 
B)  'after this, therefore because of this'. 
C)  'on the margin'. 
D)  a natural experiment has been conducted. 
E)  the tendency for the values of two variables to move in a predictable and related way. 
A)  other things remaining the same. 
B)  'after this, therefore because of this'. 
C)  'on the margin'. 
D)  a natural experiment has been conducted. 
E)  the tendency for the values of two variables to move in a predictable and related way.

Question 15

Which of the following is a microeconomic issue?

Accepted Answer

A)  The unemployment rate soars in Spain. 
B)  The Brazilian economy experiences rapid economic growth. 
C)  Inflation skyrockets in Russia. 
D)  The price of petrol increases in the United States this year. 
E)  The Australian government cuts taxes to combat a recession. 
A)  The unemployment rate soars in Spain. 
B)  The Brazilian economy experiences rapid economic growth. 
C)  Inflation skyrockets in Russia. 
D)  The price of petrol increases in the United States this year. 
E)  The Australian government cuts taxes to combat a recession.

Question 16

'Lower ticket prices would lead to more people attending football games.' This statement is a:

Accepted Answer

A)  statement that confuses marginal cost and sunk cost. 
B)  macroeconomic statement. 
C)  normative statement. 
D)  positive statement. 
E)  statement assessing the social interest versus the private interest. 
A)  statement that confuses marginal cost and sunk cost. 
B)  macroeconomic statement. 
C)  normative statement. 
D)  positive statement. 
E)  statement assessing the social interest versus the private interest.

Question 17

In making your decision whether to spend a week on the Gold Coast during the mid-semester break, you compare all the other activities you could undertake. As a result, you

Accepted Answer

A)  are making a choice on the margin. 
B)  limit the cost and the benefit you can gain. 
C)  are not making a rational choice. 
D)  must have made a choice in the social interest. 
E)  do not face an opportunity cost. 
A)  are making a choice on the margin. 
B)  limit the cost and the benefit you can gain. 
C)  are not making a rational choice. 
D)  must have made a choice in the social interest. 
E)  do not face an opportunity cost.

Question 18

Economics is best defined as the social science that studies

Accepted Answer

A)  how choices made in the social interest must conflict with choices made in the self-interest. 
B)  how a person can get everything he or she wants. 
C)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. 
D)  the reason money exists. 
E)  the way to eliminate choices in our decisions. 
A)  how choices made in the social interest must conflict with choices made in the self-interest. 
B)  how a person can get everything he or she wants. 
C)  the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. 
D)  the reason money exists. 
E)  the way to eliminate choices in our decisions.

Question 19

A graph shows the average ATAR scores for males and females in 20192. The kind of graph used to show these data would be a

Accepted Answer

A)  scatter diagram. 
B)  trend figure. 
C)  time-series graph. 
D)  cross-section graph. 
E)  time-stationary graph. 
A)  scatter diagram. 
B)  trend figure. 
C)  time-series graph. 
D)  cross-section graph. 
E)  time-stationary graph.

Question 20

Which type of economic graph reveals trends in data?

Accepted Answer

A)  Time-series graph 
B)  Cross-section graph 
C)  Scatter diagram 
D)  Answers A and C are correct. 
E)  Answers A, B and C are all correct. 
A)  Time-series graph 
B)  Cross-section graph 
C)  Scatter diagram 
D)  Answers A and C are correct. 
E)  Answers A, B and C are all correct.

When two variables in a graph are related to a third, changing the third causes

A normative statement: i. can be tested as to whether it is true or false. Ii) is considered negative. Iii) depends on a person's values.

When Ferrari decides to produce 1,200 '360 Modenas' each year, Ferrari is answering the ________ question.

If the change in y = -4 and the change in x = 2, there is

Proponents of cuts to income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

Which of the following is a positive statement?

-In the diagram above, which figure(s) show(s) an inverse relationship between the variables?

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Yet, Adam still decides to go skiing.

-In the diagram above, which figure(s) show(s) no relationship between the variables?

-The figure above shows a

'As the price of petrol increases, fewer people buy cars that are petrol guzzlers.' A graph showing this relationship would

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his email. What is the opportunity cost of attending the concert for John?

Which of the following is a macroeconomic topic? i. China increases interest rates to slow its economic growth. Ii) Parliament lowers tax rates to try to lower the unemployment rate. Iii) Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Correlation means:

Which of the following is a microeconomic issue?

'Lower ticket prices would lead to more people attending football games.' This statement is a:

In making your decision whether to spend a week on the Gold Coast during the mid-semester break, you compare all the other activities you could undertake. As a result, you

Economics is best defined as the social science that studies

A graph shows the average ATAR scores for males and females in 20192. The kind of graph used to show these data would be a

Which type of economic graph reveals trends in data?

The Australian and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: Getting Started

When two variables in a graph are related to a third, changing the third causes

A normative statement: i. can be tested as to whether it is true or false. Ii) is considered negative. Iii) depends on a person's values.

When Ferrari decides to produce 1,200 '360 Modenas' each year, Ferrari is answering the ________ question.

If the change in y = -4 and the change in x = 2, there is

Proponents of cuts to income tax rates argue that when income tax rates are cut, workers have an incentive to increase their work hours. This argument is based on the assumption that

Which of the following is a positive statement?

-In the diagram above, which figure(s) show(s) an inverse relationship between the variables?

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Yet, Adam still decides to go skiing.

-In the diagram above, which figure(s) show(s) no relationship between the variables?

-The figure above shows a

'As the price of petrol increases, fewer people buy cars that are petrol guzzlers.' A graph showing this relationship would

John has two hours of free time this evening. He ranked his alternatives, first go to a concert, second go to a movie, third study for an economics exam, and fourth answer his email. What is the opportunity cost of attending the concert for John?

Which of the following is a macroeconomic topic? i. China increases interest rates to slow its economic growth. Ii) Parliament lowers tax rates to try to lower the unemployment rate. Iii) Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Correlation means:

Which of the following is a microeconomic issue?

'Lower ticket prices would lead to more people attending football games.' This statement is a:

In making your decision whether to spend a week on the Gold Coast during the mid-semester break, you compare all the other activities you could undertake. As a result, you

Economics is best defined as the social science that studies

A graph shows the average ATAR scores for males and females in 20192. The kind of graph used to show these data would be a

Which type of economic graph reveals trends in data?

The Australian and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters