Question 1

The question 'should economics majors or sociology majors earn more after they graduate?' is an example of a ________ question.

Accepted Answer

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

Question 2

Which of the following is a topic studied in macroeconomics?

Accepted Answer

A)  How the wheat industry determines how much wheat to grow. 
B)  The effect on economic growth if the government raises taxes. 
C)  The impact of higher prices for petrol on the number of SUVs people buy. 
D)  The pricing decisions in the computer hardware industry. 
E)  The impact of labour unions on wages. 
A)  How the wheat industry determines how much wheat to grow. 
B)  The effect on economic growth if the government raises taxes. 
C)  The impact of higher prices for petrol on the number of SUVs people buy. 
D)  The pricing decisions in the computer hardware industry. 
E)  The impact of labour unions on wages.

Question 3

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

Accepted Answer

A)  'when will the goods be produced?' 
B)  'where will the goods be produced?' 
C)  'why will the goods be produced?' 
D)  'for whom will goods be produced?' 
E)  'how will the goods be produced?' 
A)  'when will the goods be produced?' 
B)  'where will the goods be produced?' 
C)  'why will the goods be produced?' 
D)  'for whom will goods be produced?' 
E)  'how will the goods be produced?'

Question 4

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 5

Which of the following statements is correct?

Accepted Answer

A)  When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B)  When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C)  If two variables are directly related, a graph of the two variables has a negative slope. 
D)  The higher the temperature, the more ice cream people consume. Thus the temperature and ice-cream consumption are inversely related. 
E)  None of the above statements is correct. 
A)  When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
B)  When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C)  If two variables are directly related, a graph of the two variables has a negative slope. 
D)  The higher the temperature, the more ice cream people consume. Thus the temperature and ice-cream consumption are inversely related. 
E)  None of the above statements is correct.

Question 6

Which of the following is the best example of a 'what?' question?

Accepted Answer

A)  Should higher-income or lower-income people buy SUVs? 
B)  Should cars be produced using workers or robots? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid? 
A)  Should higher-income or lower-income people buy SUVs? 
B)  Should cars be produced using workers or robots? 
C)  Should we make faster microprocessors or pest-resistant corn? 
D)  Should migrant workers or domestic workers be used to pick grapes? 
E)  What should doctors be paid?

Question 7

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

Accepted Answer

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

Question 8

If x increases whenever y decreases, then x and y are

Accepted Answer

A)  related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis. 
B)  not related. 
C)  negatively related. 
D)  positively related. 
E)  directly related. 
A)  related but whether positively or negatively related depends on whether the x variable or the y variable is plotted on the vertical axis. 
B)  not related. 
C)  negatively related. 
D)  positively related. 
E)  directly related.

Question 9

-In the figure above, ceteris paribus, an increase in x is associated with

Accepted Answer

A)  an increase in y. 
B)  a random change in z. 
C)  an increase in z. 
D)  no change in either y or z. 
E)  a decrease in y. 
A)  an increase in y. 
B)  a random change in z. 
C)  an increase in z. 
D)  no change in either y or z. 
E)  a decrease in y.

Question 10

Your economics lecturer offers 10 bonus marks on the final exam if you attend a review session before the exam. These bonus marks are an example of

Accepted Answer

A)  a rational choice. 
B)  a decrease in the marginal benefit of attending the review session. 
C)  an incentive to attend the review session. 
D)  an increase in the marginal cost of attending the review session. 
E)  None of the above answers is correct. 
A)  a rational choice. 
B)  a decrease in the marginal benefit of attending the review session. 
C)  an incentive to attend the review session. 
D)  an increase in the marginal cost of attending the review session. 
E)  None of the above answers is correct.

Question 11

When an AFL player earns more than a police officer, society answers the ________ question.

Accepted Answer

A)  for whom 
B)  why 
C)  what 
D)  social interest versus self-interest 
E)  how 
A)  for whom 
B)  why 
C)  what 
D)  social interest versus self-interest 
E)  how

Question 12

If there is no scarcity,

Accepted Answer

A)  choices are no longer rational. 
B)  the opportunity cost of an action would be greater than its sunk cost. 
C)  all marginal benefits would equal zero. 
D)  an action would have zero opportunity cost. 
E)  the marginal cost of an action is greater than its marginal benefit. 
A)  choices are no longer rational. 
B)  the opportunity cost of an action would be greater than its sunk cost. 
C)  all marginal benefits would equal zero. 
D)  an action would have zero opportunity cost. 
E)  the marginal cost of an action is greater than its marginal benefit.

Question 13

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

Accepted Answer

A)  non-existent. 
B)  cross-sectionally trended. 
C)  negative. 
D)  linear. 
E)  positive. 
A)  non-existent. 
B)  cross-sectionally trended. 
C)  negative. 
D)  linear. 
E)  positive.

Question 14

Rational choice:

Accepted Answer

A)  is always efficient. 
B)  is a choice that uses the available resources to best achieve the objective of the person making the choice. 
C)  provides the answer to only the 'how?' question. 
D)  is made by comparing different incentives. 
E)  is what you must give up to get what you want 
A)  is always efficient. 
B)  is a choice that uses the available resources to best achieve the objective of the person making the choice. 
C)  provides the answer to only the 'how?' question. 
D)  is made by comparing different incentives. 
E)  is what you must give up to get what you want

Question 15

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 16

A trend is

Accepted Answer

A)  a measure of closeness on a scatter diagram. 
B)  the minimum value of a variable. 
C)  the difference between the maximum value of a variable and the minimum value of the variable. 
D)  the maximum value of a variable. 
E)  a general tendency for a variable to rise or fall. 
A)  a measure of closeness on a scatter diagram. 
B)  the minimum value of a variable. 
C)  the difference between the maximum value of a variable and the minimum value of the variable. 
D)  the maximum value of a variable. 
E)  a general tendency for a variable to rise or fall.

Question 17

A graph of the value of one variable against the value of another variable is known as a:

Accepted Answer

A)  three-dimensional graph. 
B)  scatter diagram. 
C)  time-series graph. 
D)  two-variable graph. 
E)  two-dimensional graph. 
A)  three-dimensional graph. 
B)  scatter diagram. 
C)  time-series graph. 
D)  two-variable graph. 
E)  two-dimensional graph.

Question 18

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 19

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

Accepted Answer

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

Question 20

-The above figure shows how many kilograms of peanuts farmers are willing to sell at different prices per kilogram of peanuts. If the price of a kilogram of peanuts is $1 and the price of a kilogram of pecans is $2, peanut farmers are willing to sell

Accepted Answer

A)  no peanuts. 
B)  1,000 kilograms of peanuts. 
C)  2,000 kilograms of peanuts. 
D)  4,000 kilograms of peanuts. 
E)  more than 4,000 kilograms of peanuts. 
A)  no peanuts. 
B)  1,000 kilograms of peanuts. 
C)  2,000 kilograms of peanuts. 
D)  4,000 kilograms of peanuts. 
E)  more than 4,000 kilograms of peanuts.

The question 'should economics majors or sociology majors earn more after they graduate?' is an example of a ________ question.

Which of the following is a topic studied in macroeconomics?

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

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

Which of the following statements is correct?

Which of the following is the best example of a 'what?' question?

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

If x increases whenever y decreases, then x and y are

-In the figure above, ceteris paribus, an increase in x is associated with

Your economics lecturer offers 10 bonus marks on the final exam if you attend a review session before the exam. These bonus marks are an example of

When an AFL player earns more than a police officer, society answers the ________ question.

If there is no scarcity,

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

Rational choice:

Which of the following is a microeconomic issue?

A trend is

A graph of the value of one variable against the value of another variable is known as a:

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.

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

-The above figure shows how many kilograms of peanuts farmers are willing to sell at different prices per kilogram of peanuts. If the price of a kilogram of peanuts is $1 and the price of a kilogram of pecans is $2, peanut farmers are willing to sell

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

The question 'should economics majors or sociology majors earn more after they graduate?' is an example of a ________ question.

Which of the following is a topic studied in macroeconomics?

Whether a company produces fishing rods mostly by hand or using high-tech machinery is a question of

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

Which of the following statements is correct?

Which of the following is the best example of a 'what?' question?

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

If x increases whenever y decreases, then x and y are

-In the figure above, ceteris paribus, an increase in x is associated with

Your economics lecturer offers 10 bonus marks on the final exam if you attend a review session before the exam. These bonus marks are an example of

When an AFL player earns more than a police officer, society answers the ________ question.

If there is no scarcity,

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

Rational choice:

Which of the following is a microeconomic issue?

A trend is

A graph of the value of one variable against the value of another variable is known as a:

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.

You have data for the amount of rainfall in 50 cities for the month of June. The type of graph to best display these data would be a

-The above figure shows how many kilograms of peanuts farmers are willing to sell at different prices per kilogram of peanuts. If the price of a kilogram of peanuts is $1 and the price of a kilogram of pecans is $2, peanut farmers are willing to sell

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