Question 1

Productivity can be increased by

Accepted Answer

A) improving the education of workers. 
B) raising union wages. 
C) raising minimum wages. 
D) restricting trade with foreign countries. 
A) improving the education of workers. 
B) raising union wages. 
C) raising minimum wages. 
D) restricting trade with foreign countries.

Question 2

Which of the following is not part of the opportunity cost of going on holiday? The money you

Accepted Answer

A) spent on a theatre show. 
B) could have made if you had stayed at home and worked. 
C) spent on airline tickets. 
D) spent on another opportunity. 
A) spent on a theatre show. 
B) could have made if you had stayed at home and worked. 
C) spent on airline tickets. 
D) spent on another opportunity.

Question 3

Suppose that Rebecca throws her cola bottle out of her car window and it smashes on the road.Shaun drives over the broken glass and gets a flat tyre.Rebecca's cola consumption has resulted in

Accepted Answer

A) the production of a public good. 
B) an externality. 
C) monopoly power for Rebecca. 
D) greater efficiency in consumption. 
A) the production of a public good. 
B) an externality. 
C) monopoly power for Rebecca. 
D) greater efficiency in consumption.

Question 4

High and persistent inflation is caused by

Accepted Answer

A) unions increasing wages too much. 
B) OPEC raising the price of oil too much. 
C) governments increasing the quantity of money too much. 
D) regulations raising the cost of production too much. 
A) unions increasing wages too much. 
B) OPEC raising the price of oil too much. 
C) governments increasing the quantity of money too much. 
D) regulations raising the cost of production too much.

Question 5

When a jet flies overhead, the noise it generates is an externality.

Accepted Answer

A) True 
 B)False

Question 6

The Phillips curve shows that

Accepted Answer

A) the business cycle has been eliminated. 
B) an increase in inflation temporarily increases unemployment. 
C) inflation and unemployment are unrelated in the short run. 
D) a decrease in inflation temporarily increases unemployment. 
E) None of these answers. 
A) the business cycle has been eliminated. 
B) an increase in inflation temporarily increases unemployment. 
C) inflation and unemployment are unrelated in the short run. 
D) a decrease in inflation temporarily increases unemployment. 
E) None of these answers.

Question 7

In the short run, a reduction in inflation tends to cause a reduction in unemployment.

Accepted Answer

A) True 
 B)False

Question 8

Suppose you find R450.If you choose to use the R450 to go to a rugby match, your opportunity cost of going to the game is

Accepted Answer

A) nothing, because you found the money. 
B) R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game. 
C) R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game. 
D) R450 (because you could have used the R450 to buy other things). 
E) none of these answers. 
A) nothing, because you found the money. 
B) R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game. 
C) R450 (because you could have used the R450 to buy other things) plus the value of your time spent at the game, plus the cost of the dinner you purchased at the game. 
D) R450 (because you could have used the R450 to buy other things). 
E) none of these answers.

Question 9

Government can improve market outcomes by

Accepted Answer

A) directing labour to priority areas. 
B) printing money. 
C) using well designed policies to reduce firms' market power. 
D) taxing everyone equally. 
A) directing labour to priority areas. 
B) printing money. 
C) using well designed policies to reduce firms' market power. 
D) taxing everyone equally.

Question 10

Why is a high quality education system important in raising living standards for future generations?

Accepted Answer

A high quality educational system will r

Question 11

Adam Smith's "invisible hand" concept describes how corporate business reaches into the pockets of consumers like an "invisible hand."

Accepted Answer

A) True 
 B)False

Question 12

Resources are

Accepted Answer

A) scarce for households but plentiful for economies. 
B) plentiful for households but scarce for economies. 
C) scarce for households and scarce for economies. 
D) plentiful for households and plentiful for economies. 
A) scarce for households but plentiful for economies. 
B) plentiful for households but scarce for economies. 
C) scarce for households and scarce for economies. 
D) plentiful for households and plentiful for economies.

Question 13

In a market economy

Accepted Answer

A) people are rewarded according to their family size. 
B) people are rewarded according to how well they achieve the goals set by government. 
C) people are rewarded according to how many hours they work. 
D) people are rewarded according to their ability to produce things for which other people are willing to pay. 
A) people are rewarded according to their family size. 
B) people are rewarded according to how well they achieve the goals set by government. 
C) people are rewarded according to how many hours they work. 
D) people are rewarded according to their ability to produce things for which other people are willing to pay.

Question 14

Which of the following activities is most likely to produce an externality? A student

Accepted Answer

A) eats a hamburger in the student centre. 
B) reads a novel for pleasure. 
C) sits at home and watches TV. 
D) has a party in her university residence room. 
A) eats a hamburger in the student centre. 
B) reads a novel for pleasure. 
C) sits at home and watches TV. 
D) has a party in her university residence room.

Question 15

Productivity is defined as the

Accepted Answer

A) amount of goods and services produced from each unit of labour input. 
B) number of workers required to produce a given amount of goods and services. 
C) amount of labour that can be saved by replacing workers with machines. 
D) actual amount of effort workers put into an hour of working time. 
A) amount of goods and services produced from each unit of labour input. 
B) number of workers required to produce a given amount of goods and services. 
C) amount of labour that can be saved by replacing workers with machines. 
D) actual amount of effort workers put into an hour of working time.

Question 16

Which of the following situations describes the greatest market power?

Accepted Answer

A) BMW's impact on the price of cars. 
B) A farmer's impact on the price of corn. 
C) Microsoft's impact on the price of desktop operating systems. 
D) A student's impact on university fees. 
A) BMW's impact on the price of cars. 
B) A farmer's impact on the price of corn. 
C) Microsoft's impact on the price of desktop operating systems. 
D) A student's impact on university fees.

Question 17

Define opportunity cost.What is the opportunity cost to you of attending university? What was your opportunity cost of coming to class today?

Accepted Answer

Whatever must be given up to obtain some

Productivity can be increased by

Which of the following is not part of the opportunity cost of going on holiday? The money you

Suppose that Rebecca throws her cola bottle out of her car window and it smashes on the road.Shaun drives over the broken glass and gets a flat tyre.Rebecca's cola consumption has resulted in

High and persistent inflation is caused by

When a jet flies overhead, the noise it generates is an externality.

The Phillips curve shows that

In the short run, a reduction in inflation tends to cause a reduction in unemployment.

Suppose you find R450.If you choose to use the R450 to go to a rugby match, your opportunity cost of going to the game is

Government can improve market outcomes by

Why is a high quality education system important in raising living standards for future generations?

Adam Smith's "invisible hand" concept describes how corporate business reaches into the pockets of consumers like an "invisible hand."

Resources are

In a market economy

Which of the following activities is most likely to produce an externality? A student

Productivity is defined as the

Which of the following situations describes the greatest market power?

Define opportunity cost.What is the opportunity cost to you of attending university? What was your opportunity cost of coming to class today?

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters

Exam 1: What Is Economics

Productivity can be increased by

Which of the following is not part of the opportunity cost of going on holiday? The money you

Suppose that Rebecca throws her cola bottle out of her car window and it smashes on the road.Shaun drives over the broken glass and gets a flat tyre.Rebecca's cola consumption has resulted in

High and persistent inflation is caused by

When a jet flies overhead, the noise it generates is an externality.

The Phillips curve shows that

In the short run, a reduction in inflation tends to cause a reduction in unemployment.

Suppose you find R450.If you choose to use the R450 to go to a rugby match, your opportunity cost of going to the game is

Government can improve market outcomes by

Why is a high quality education system important in raising living standards for future generations?

Adam Smith's "invisible hand" concept describes how corporate business reaches into the pockets of consumers like an "invisible hand."

Resources are

In a market economy

Which of the following activities is most likely to produce an externality? A student

Productivity is defined as the

Which of the following situations describes the greatest market power?

Define opportunity cost.What is the opportunity cost to you of attending university? What was your opportunity cost of coming to class today?

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Production and Growth

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters