Question 1

To show how a variable ________, we typically use a ________.

Accepted Answer

A)  changes over time; cross-time chart 
B)  relates to another variable; time-series graph 
C)  changes over time; cross-section graph 
D)  relates to another variable; pie chart 
E)  changes over time; time-series graph 
A)  changes over time; cross-time chart 
B)  relates to another variable; time-series graph 
C)  changes over time; cross-section graph 
D)  relates to another variable; pie chart 
E)  changes over time; time-series graph

Question 2

An economist observed that, as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

Accepted Answer

A)  negative both before and after the minimum point. 
B)  negative and then positive after the minimum point. 
C)  negative and then linear after the minimum point. 
D)  positive and then negative after the minimum point. 
E)  linear and then positive after the minimum point. 
A)  negative both before and after the minimum point. 
B)  negative and then positive after the minimum point. 
C)  negative and then linear after the minimum point. 
D)  positive and then negative after the minimum point. 
E)  linear and then positive after the minimum point.

Question 3

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points B and C equals

Accepted Answer

A)  16. 
B)  4. 
C)  8. 
D)  14. 
E)  2. 
A)  16. 
B)  4. 
C)  8. 
D)  14. 
E)  2.

Question 4

A positive statement: 
i) makes a statement about how the world operates.
Ii) is a true statement.
Iii) can be tested against the facts.

Accepted Answer

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

Question 5

Which of the following statements is true regarding scarcity?

Accepted Answer

A)  An economy experiences scarcity only when the incomes of its citizens decline. 
B)  Scarcity could be overcome if people would make all choices in the social interest. 
C)  Poor people experience scarcity more often than do rich people. 
D)  Scarcity affects poorer countries only. 
E)  All citizens in a wealthy economy experience scarcity. 
A)  An economy experiences scarcity only when the incomes of its citizens decline. 
B)  Scarcity could be overcome if people would make all choices in the social interest. 
C)  Poor people experience scarcity more often than do rich people. 
D)  Scarcity affects poorer countries only. 
E)  All citizens in a wealthy economy experience scarcity.

Question 6

Scarcity requires that we

Accepted Answer

A)  have unlimited resources. 
B)  make choices about what goods and services to produce. 
C)  learn to limit our wants. 
D)  have the most rapid economic growth possible. 
E)  produce efficiently. 
A)  have unlimited resources. 
B)  make choices about what goods and services to produce. 
C)  learn to limit our wants. 
D)  have the most rapid economic growth possible. 
E)  produce efficiently.

Question 7

The marginal benefit of an activity is: i. the benefit from a one-unit increase in the activity.
Ii) the benefit of a small, unimportant activity.
Iii) measured by what the person is willing to give up to get one additional unit of the activity.

Accepted Answer

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

Question 8

Scarcity results from the fact that

Accepted Answer

A)  not all goals are desirable. 
B)  we cannot answer the major economic questions. 
C)  choices made in self-interest are not always in the social interest. 
D)  the population keeps growing. 
E)  people's wants exceed the resources available to satisfy them 
A)  not all goals are desirable. 
B)  we cannot answer the major economic questions. 
C)  choices made in self-interest are not always in the social interest. 
D)  the population keeps growing. 
E)  people's wants exceed the resources available to satisfy them

Question 9

Which of the following is a microeconomic issue?

Accepted Answer

A)  The Australian government cuts taxes to combat a recession. 
B)  The inflation rate fell this year. 
C)  The quantity of wheat grown in South Australia increases this year. 
D)  Growth in the Australian economy slowed. 
E)  Increased federal government expenditures have lowered the unemployment rate. 
A)  The Australian government cuts taxes to combat a recession. 
B)  The inflation rate fell this year. 
C)  The quantity of wheat grown in South Australia increases this year. 
D)  Growth in the Australian economy slowed. 
E)  Increased federal government expenditures have lowered the unemployment rate.

Question 10

The statement that 'increases in the tax on petrol increase the price of petrol' is an example of which of the following?

Accepted Answer

A)  Marginal statement. 
B)  Rational-decision statement. 
C)  Macroeconomic statement. 
D)  Positive statement. 
E)  Normative statement. 
A)  Marginal statement. 
B)  Rational-decision statement. 
C)  Macroeconomic statement. 
D)  Positive statement. 
E)  Normative statement.

Question 11

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Accepted Answer

A)  time-series graph. 
B)  Venn diagram. 
C)  scatter diagram. 
D)  cross-section graph. 
E)  None of the above answers is correct. 
A)  time-series graph. 
B)  Venn diagram. 
C)  scatter diagram. 
D)  cross-section graph. 
E)  None of the above answers is correct.

Question 12

Self-interest

Accepted Answer

A)  occurs only when wants exceed available resources. 
B)  reflects choices that are best for society as a whole. 
C)  reflects choices that are best for the individual who makes them. 
D)  cannot be used to determine how goods are produced. 
E)  has nothing to do with determining what goods are produced 
A)  occurs only when wants exceed available resources. 
B)  reflects choices that are best for society as a whole. 
C)  reflects choices that are best for the individual who makes them. 
D)  cannot be used to determine how goods are produced. 
E)  has nothing to do with determining what goods are produced

Question 13

Your lecturer changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. Your lecturer has

Accepted Answer

A)  recognised that students don't make rational choices. 
B)  decreased the marginal benefit of cheating. 
C)  made all the students act in the social interest. 
D)  recognised that students don't respond to incentives. 
E)  increased the marginal cost of cheating. 
A)  recognised that students don't make rational choices. 
B)  decreased the marginal benefit of cheating. 
C)  made all the students act in the social interest. 
D)  recognised that students don't respond to incentives. 
E)  increased the marginal cost of cheating.

Question 14

When Tesla decides to increase production of electric cars, it directly answers the ________ question.

Accepted Answer

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

Question 15

In the above figure, while drawing the line showing the relationship between the price of a kilogram of peanuts and the quantity sold, the

Accepted Answer

A)  the quantity of peanuts that farmers supply does not change. 
B)  price of a kilogram of pecans does not change. 
C)  price of a kilogram of peanuts does not change. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct. 
A)  the quantity of peanuts that farmers supply does not change. 
B)  price of a kilogram of pecans does not change. 
C)  price of a kilogram of peanuts does not change. 
D)  Both answers A and B are correct. 
E)  Both answers B and C are correct.

Question 16

Normative statements 
i) describe how the world is.
Ii) describe how the world ought to be.
Iii) depend on people's values and cannot be tested.

Accepted Answer

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

Question 17

When Gabriel made a rational choice to spend his entire allowance on chocolate bars, he did so by comparing the

Accepted Answer

A)  benefits of the chocolate bars to the scarcity of the chocolate bars. 
B)  marginal benefits of the chocolate bars to the marginal costs of the chocolate bars. 
C)  opportunity costs of the chocolate bars to the scarcity of the chocolate bars. 
D)  self-interest to the social interest. 
E)  benefits of the chocolate bars to the desire he had for the chocolate bars. 
A)  benefits of the chocolate bars to the scarcity of the chocolate bars. 
B)  marginal benefits of the chocolate bars to the marginal costs of the chocolate bars. 
C)  opportunity costs of the chocolate bars to the scarcity of the chocolate bars. 
D)  self-interest to the social interest. 
E)  benefits of the chocolate bars to the desire he had for the chocolate bars.

Question 18

A cross-section graph

Accepted Answer

A)  shows the values of an economic variable for different groups in a population at a point in time. 
B)  is divided into different sections. 
C)  measures time on the x-axis and the variable in which we are interested on the y-axis. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  shows the values of an economic variable for different groups in a population at a point in time. 
B)  is divided into different sections. 
C)  measures time on the x-axis and the variable in which we are interested on the y-axis. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 19

When the Adelaide Crows score more than 100 points in a home game, they win the game. This is an example of

Accepted Answer

A)  an incentive to win the game. 
B)  an economic theory. 
C)  a normative statement. 
D)  a statement on the margin. 
E)  a correlation. 
A)  an incentive to win the game. 
B)  an economic theory. 
C)  a normative statement. 
D)  a statement on the margin. 
E)  a correlation.

Question 20

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Accepted Answer

A)  time-series graph. 
B)  linear graph. 
C)  Venn diagram. 
D)  scatter diagram. 
E)  cross-section graph. 
A)  time-series graph. 
B)  linear graph. 
C)  Venn diagram. 
D)  scatter diagram. 
E)  cross-section graph.

To show how a variable , we typically use a .

An economist observed that, as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points B and C equals

A positive statement: i) makes a statement about how the world operates. Ii) is a true statement. Iii) can be tested against the facts.

Which of the following statements is true regarding scarcity?

Scarcity requires that we

The marginal benefit of an activity is: i. the benefit from a one-unit increase in the activity. Ii) the benefit of a small, unimportant activity. Iii) measured by what the person is willing to give up to get one additional unit of the activity.

Scarcity results from the fact that

Which of the following is a microeconomic issue?

The statement that 'increases in the tax on petrol increase the price of petrol' is an example of which of the following?

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Self-interest

Your lecturer changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. Your lecturer has

When Tesla decides to increase production of electric cars, it directly answers the ________ question.

In the above figure, while drawing the line showing the relationship between the price of a kilogram of peanuts and the quantity sold, the

Normative statements i) describe how the world is. Ii) describe how the world ought to be. Iii) depend on people's values and cannot be tested.

When Gabriel made a rational choice to spend his entire allowance on chocolate bars, he did so by comparing the

A cross-section graph

When the Adelaide Crows score more than 100 points in a home game, they win the game. This is an example of

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

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

To show how a variable ________, we typically use a ________.

An economist observed that, as more computers are added to a factory, the costs of production initially decline, reach a minimum, and then rise. In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis, the relationship always is

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points B and C equals

A positive statement: i) makes a statement about how the world operates. Ii) is a true statement. Iii) can be tested against the facts.

Which of the following statements is true regarding scarcity?

Scarcity requires that we

The marginal benefit of an activity is: i. the benefit from a one-unit increase in the activity. Ii) the benefit of a small, unimportant activity. Iii) measured by what the person is willing to give up to get one additional unit of the activity.

Scarcity results from the fact that

Which of the following is a microeconomic issue?

The statement that 'increases in the tax on petrol increase the price of petrol' is an example of which of the following?

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Self-interest

Your lecturer changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. Your lecturer has

When Tesla decides to increase production of electric cars, it directly answers the ________ question.

In the above figure, while drawing the line showing the relationship between the price of a kilogram of peanuts and the quantity sold, the

Normative statements i) describe how the world is. Ii) describe how the world ought to be. Iii) depend on people's values and cannot be tested.

When Gabriel made a rational choice to spend his entire allowance on chocolate bars, he did so by comparing the

A cross-section graph

When the Adelaide Crows score more than 100 points in a home game, they win the game. This is an example of

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

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

To show how a variable , we typically use a .