Question 1

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. B

Question 2

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 C

Question 3

Scarcity exists because:

Accepted Answer

A)  human wants exceed the resources available to satisfy them. 
B)  some people make bad economic decisions. 
C)  people take too much leisure time. 
D)  some individuals have low incomes. 
E)  the costs of production are high. 
A)  human wants exceed the resources available to satisfy them. 
B)  some people make bad economic decisions. 
C)  people take too much leisure time. 
D)  some individuals have low incomes. 
E)  the costs of production are high. A

Question 4

What typically happens to benefits as the amount of an activity is increased?

Accepted Answer

A)  Marginal benefit increases. 
B)  Marginal benefit decreases. 
C)  Marginal benefit remains constant. 
D)  The marginal benefit changes only if the marginal cost changes. 
E)  Total benefit remains constant. 
A)  Marginal benefit increases. 
B)  Marginal benefit decreases. 
C)  Marginal benefit remains constant. 
D)  The marginal benefit changes only if the marginal cost changes. 
E)  Total benefit remains constant.

Question 5

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

Accepted Answer

A)  the value of x and the value of y are held constant. 
B)  the value of x is held constant. 
C)  no other variables are related to x and y. 
D)  other variables not shown are held constant. 
E)  the value of y is held constant. 
A)  the value of x and the value of y are held constant. 
B)  the value of x is held constant. 
C)  no other variables are related to x and y. 
D)  other variables not shown are held constant. 
E)  the value of y is held constant.

Question 6

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

Question 7

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Accepted Answer

A)  For whom? 
B)  What? 
C)  Where? 
D)  How? 
E)  Why? 
A)  For whom? 
B)  What? 
C)  Where? 
D)  How? 
E)  Why?

Question 8

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the

Accepted Answer

A)  forgone party. 
B)  forgone working and partying. 
C)  test because you are taking it. 
D)  forgone working or partying, depending on which was your next best choice. 
E)  forgone work. 
A)  forgone party. 
B)  forgone working and partying. 
C)  test because you are taking it. 
D)  forgone working or partying, depending on which was your next best choice. 
E)  forgone work.

Question 9

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 10

In the above figure, which of the figures show a relationship between x and y with a negative slope?

Accepted Answer

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

Question 11

-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 12

An opportunity cost is

Accepted Answer

A)  the benefits of the highest-valued alternative forgone. 
B)  another term for all the sunk costs. 
C)  the dollar amount that is paid. 
D)  whatever is paid out and cannot be reduced or reversed. 
E)  anything the decision maker believes costs to be. 
A)  the benefits of the highest-valued alternative forgone. 
B)  another term for all the sunk costs. 
C)  the dollar amount that is paid. 
D)  whatever is paid out and cannot be reduced or reversed. 
E)  anything the decision maker believes costs to be.

Question 13

When an electricity distribution company decides to use manpower to bury its lines, it directly answers the ________ question.

Accepted Answer

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

Question 14

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 15

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 16

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 17

Jamie has enough money to buy either a Mountain Dew, a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is

Accepted Answer

A)  the Mountain Dew. 
B)  the Pepsi and the bag of chips. 
C)  the Pepsi or the bag of chips, whichever is the highest-valued alternative forgone. 
D)  the Pepsi, because it is a drink as is the Mountain Dew. 
E)  zero because he enjoys the Mountain Dew. 
A)  the Mountain Dew. 
B)  the Pepsi and the bag of chips. 
C)  the Pepsi or the bag of chips, whichever is the highest-valued alternative forgone. 
D)  the Pepsi, because it is a drink as is the Mountain Dew. 
E)  zero because he enjoys the Mountain Dew.

Question 18

A linear relationship

Accepted Answer

A)  when graphed is a straight line. 
B)  when graphed is a line whose slope changes. 
C)  can be a positive or a negative relationship. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct. 
A)  when graphed is a straight line. 
B)  when graphed is a line whose slope changes. 
C)  can be a positive or a negative relationship. 
D)  Both answers A and C are correct. 
E)  Both answers A and B are correct.

Question 19

The slope of the line shown in the above figure is

Accepted Answer

A)  5/2. 
B)  5. 
C)  2/3. 
D)  2/5. 
E)  2. 
A)  5/2. 
B)  5. 
C)  2/3. 
D)  2/5. 
E)  2.

Question 20

You have data for sales of pizza for each Australian state in 20191. The type of graph to best display these data would be a

Accepted Answer

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

Scarcity requires that we

Self-interest

Scarcity exists because:

What typically happens to benefits as the amount of an activity is increased?

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

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.

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the

A cross-section graph

In the above figure, which of the figures show a relationship between x and y with a negative slope?

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

An opportunity cost is

When an electricity distribution company decides to use manpower to bury its lines, it directly answers the ________ question.

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

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

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

Jamie has enough money to buy either a Mountain Dew, a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is

A linear relationship

The slope of the line shown in the above figure is

You have data for sales of pizza for each Australian state in 20191. The type of graph to best display these data would be a

The Australian and Global Economies

The Economic Problem

Demand and Supply

GDP: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance, Saving and Investment

Money, the Price Level and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 1: Getting Started

Scarcity requires that we

Self-interest

Scarcity exists because:

What typically happens to benefits as the amount of an activity is increased?

On a graph showing the relationship between x and y, the ceteris paribus condition implies that

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.

Which economic question depends on the incomes that people earn and the prices they pay for goods and services?

Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the

A cross-section graph

In the above figure, which of the figures show a relationship between x and y with a negative slope?

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

An opportunity cost is

When an electricity distribution company decides to use manpower to bury its lines, it directly answers the ________ question.

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

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

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

Jamie has enough money to buy either a Mountain Dew, a Pepsi, or a bag of chips. He chooses to buy the Mountain Dew. The opportunity cost of the Mountain Dew is

A linear relationship

The slope of the line shown in the above figure is

You have data for sales of pizza for each Australian state in 20191. The type of graph to best display these data would be a

The Australian and Global Economies

The Economic Problem

Demand and Supply

GDP: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Economic Growth

Finance, Saving and Investment

Money, the Price Level and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters