Question 1

To make a rational choice,a person

Accepted Answer

A) adds the total costs to determine if the total is small enough. 
B) adds the total benefits to determine if the total is large enough. 
C) adds the total benefits and the total costs and then compares the two totals. 
D) compares the extra benefits of one more unit to the extra costs of one more unit. 
E) takes account of all benefits and all opportunity costs,including both marginal costs and sunk costs. 
A) adds the total costs to determine if the total is small enough. 
B) adds the total benefits to determine if the total is large enough. 
C) adds the total benefits and the total costs and then compares the two totals. 
D) compares the extra benefits of one more unit to the extra costs of one more unit. 
E) takes account of all benefits and all opportunity costs,including both marginal costs and sunk costs.

Question 2

Economics is best defined as the social science that studies

Accepted Answer

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

Question 3

Increasing income tax rates will solve the 'social security time bomb issue' is an example of

Accepted Answer

A) business economic policy. 
B) marginal cost exceeding marginal benefit. 
C) a positive economic statement. 
D) globalisation. 
E) answering the 'how' question. 
A) business economic policy. 
B) marginal cost exceeding marginal benefit. 
C) a positive economic statement. 
D) globalisation. 
E) answering the 'how' question.

Question 4

-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.

Question 5

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

Accepted Answer

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

Question 6

Instead of studying for an additional two hours for the economics final exam,Leanne decides to watch a movie.Leanne is making

Accepted Answer

A) a rational decision if her marginal cost from the movie is greater than her marginal benefit. 
B) a decision that does not involve an opportunity cost. 
C) a rational decision if her marginal benefit from the movie is greater than her marginal cost. 
D) an irrational decision because studying is more important than watching a movie. 
E) a decision that is not on the margin because she will see the entire movie. 
A) a rational decision if her marginal cost from the movie is greater than her marginal benefit. 
B) a decision that does not involve an opportunity cost. 
C) a rational decision if her marginal benefit from the movie is greater than her marginal cost. 
D) an irrational decision because studying is more important than watching a movie. 
E) a decision that is not on the margin because she will see the entire movie.

Question 7

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

Accepted Answer

A) rational-decision statement. 
B) marginal statement. 
C) normative statement. 
D) macroeconomic statement. 
E) positive statement. 
A) rational-decision statement. 
B) marginal statement. 
C) normative statement. 
D) macroeconomic statement. 
E) positive statement.

Question 8

The opportunity cost of a decision is measured in terms of

Accepted Answer

A) the price of a new opportunity that arises. 
B) sunk cost. 
C) the price of the alternative we choose. 
D) the next best thing given up. 
E) time. 
A) the price of a new opportunity that arises. 
B) sunk cost. 
C) the price of the alternative we choose. 
D) the next best thing given up. 
E) time.

Question 9

People must make choices because

Accepted Answer

A) most people enjoy shopping. 
B) making choices is in the social interest. 
C) the question 'what goods and services are produced?' is not adequately answered. 
D) there are many goods available. 
E) of scarcity. 
A) most people enjoy shopping. 
B) making choices is in the social interest. 
C) the question 'what goods and services are produced?' is not adequately answered. 
D) there are many goods available. 
E) of scarcity.

Question 10

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

Question 11

When Toyota decides to increase production of hybrid cars,it directly answers the ________ question.

Accepted Answer

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

Question 12

-In the above,which figures show a relationship between the variables that is always positive?

Accepted Answer

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

Question 13

Which of the following is a microeconomic topic?
i.Banana prices increase after a cyclone hits Queensland.
ii.Xavier starts a new business designing web pages.
iii.Abby decides to practise an extra hour of soccer instead of studying.

Accepted Answer

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

Question 14

A time-series graph

Accepted Answer

A) depicts a series of good economic times a nation had. 
B) shows points that are scattered. 
C) uses bars rather than lines. 
D) is not useful if the goal is to determine a variable's trend. 
E) shows how a certain variable changes over time. 
A) depicts a series of good economic times a nation had. 
B) shows points that are scattered. 
C) uses bars rather than lines. 
D) is not useful if the goal is to determine a variable's trend. 
E) shows how a certain variable changes over time.

Question 15

Which of the following statements is correct?

Accepted Answer

A) The slope of a straight line changes depending where on the line it is calculated. 
B) A straight line that slopes upward moving to the right has a positive slope. 
C) The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
D) Answers A and B are correct. 
E) Answers A and C are correct. 
A) The slope of a straight line changes depending where on the line it is calculated. 
B) A straight line that slopes upward moving to the right has a positive slope. 
C) The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line. 
D) Answers A and B are correct. 
E) Answers A and C are correct.

Question 16

-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 17

Which of the following statements is the best example of the term ceteris paribus?

Accepted Answer

A) The government budget surplus was $200 billion in 2000 because the economy was growing. 
B) When studying the effects of a budget deficit,an economist must take account of all the factors involved. 
C) More money should be spent on cleaning up the environment. 
D) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
E) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses. 
A) The government budget surplus was $200 billion in 2000 because the economy was growing. 
B) When studying the effects of a budget deficit,an economist must take account of all the factors involved. 
C) More money should be spent on cleaning up the environment. 
D) An economist holds other factors constant when he examines the relationship between tax rates and tax revenues. 
E) An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses.

Question 18

When you make the decision to spend your time attending class,which economic question are you answering?

Accepted Answer

A) Why? 
B) For whom? 
C) Is this in the social interest? 
D) What? 
E) How? 
A) Why? 
B) For whom? 
C) Is this in the social interest? 
D) What? 
E) How?

Question 19

Whenever people's incomes increase,they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

Accepted Answer

A) a positive relationship. 
B) some sort of relationship,but whether it is positive or negative depends on whether income is plotted on the vertical or horizontal axis. 
C) a linear relationship. 
D) a negative relationship. 
E) a U-shaped relationship. 
A) a positive relationship. 
B) some sort of relationship,but whether it is positive or negative depends on whether income is plotted on the vertical or horizontal axis. 
C) a linear relationship. 
D) a negative relationship. 
E) a U-shaped relationship.

Question 20

-In the above,in which figures is the slope the same at every point?

Accepted Answer

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

To make a rational choice,a person

Economics is best defined as the social science that studies

Increasing income tax rates will solve the 'social security time bomb issue' is an example of

-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

To show how a variable ,we typically use a .

Instead of studying for an additional two hours for the economics final exam,Leanne decides to watch a movie.Leanne is making

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

The opportunity cost of a decision is measured in terms of

People must make choices because

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

When Toyota decides to increase production of hybrid cars,it directly answers the ________ question.

-In the above,which figures show a relationship between the variables that is always positive?

Which of the following is a microeconomic topic? i.Banana prices increase after a cyclone hits Queensland. ii.Xavier starts a new business designing web pages. iii.Abby decides to practise an extra hour of soccer instead of studying.

A time-series graph

Which of the following statements is correct?

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

Which of the following statements is the best example of the term ceteris paribus?

When you make the decision to spend your time attending class,which economic question are you answering?

Whenever people's incomes increase,they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

-In the above,in which figures is the slope the same at every point?

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 Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 1: Getting Started

To make a rational choice,a person

Economics is best defined as the social science that studies

Increasing income tax rates will solve the 'social security time bomb issue' is an example of

-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

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

Instead of studying for an additional two hours for the economics final exam,Leanne decides to watch a movie.Leanne is making

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

The opportunity cost of a decision is measured in terms of

People must make choices because

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

When Toyota decides to increase production of hybrid cars,it directly answers the ________ question.

-In the above,which figures show a relationship between the variables that is always positive?

Which of the following is a microeconomic topic? i.Banana prices increase after a cyclone hits Queensland. ii.Xavier starts a new business designing web pages. iii.Abby decides to practise an extra hour of soccer instead of studying.

A time-series graph

Which of the following statements is correct?

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

Which of the following statements is the best example of the term ceteris paribus?

When you make the decision to spend your time attending class,which economic question are you answering?

Whenever people's incomes increase,they buy more guitars.Hence a scatter diagram shows that the relationship between income and guitars purchased is

-In the above,in which figures is the slope the same at every point?

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 Trade Off

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

To show how a variable ,we typically use a .