Question 1

A statement that 'all children should receive free health care' is an example of what kind of statement?

Accepted Answer

A) A natural experiment statement 
B) A fair statement 
C) A normative statement 
D) A statement on the margin 
E) A positive statement 
A) A natural experiment statement 
B) A fair statement 
C) A normative statement 
D) A statement on the margin 
E) A positive statement

Question 2

The decision to enrol in a PhD program is a rational one for a university student if the

Accepted Answer

A) marginal cost exceeds the marginal benefit of gaining a PhD. 
B) marginal benefit of gaining a PhD exceeds the marginal cost. 
C) student carefully considered the social benefits of this decision. 
D) cost is not too great. 
E) opportunity cost of gaining a PhD equals zero. 
A) marginal cost exceeds the marginal benefit of gaining a PhD. 
B) marginal benefit of gaining a PhD exceeds the marginal cost. 
C) student carefully considered the social benefits of this decision. 
D) cost is not too great. 
E) opportunity cost of gaining a PhD equals zero.

Question 3

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

Accepted Answer

A) be unable to choose between eating and not eating. 
B) not eat the slice of pizza. 
C) eat the slice of pizza. 
D) eat half the slice. 
E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice. 
A) be unable to choose between eating and not eating. 
B) not eat the slice of pizza. 
C) eat the slice of pizza. 
D) eat half the slice. 
E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

Question 4

The graph shows

Accepted Answer

A) no relationship. 
B) a relationship with a minimum. 
C) a cross-section relationship. 
D) a relationship with a maximum. 
E) a linear relationship. 
A) no relationship. 
B) a relationship with a minimum. 
C) a cross-section relationship. 
D) a relationship with a maximum. 
E) a linear relationship.

Question 5

Opportunity cost is best defined as

Accepted Answer

A) the value of the highest-valued alternative that is forgone in making a choice. 
B) how much money is paid for something. 
C) the sunk cost of any decision. 
D) how much money and time it takes to consume something. 
E) the total of all other alternatives that are forgone in making a choice. 
A) the value of the highest-valued alternative that is forgone in making a choice. 
B) how much money is paid for something. 
C) the sunk cost of any decision. 
D) how much money and time it takes to consume something. 
E) the total of all other alternatives that are forgone in making a choice.

Question 6

Which of the following best defines economics?

Accepted Answer

A) Economics is concerned with prices and quantities of goods and services,both at the individual level and at the industry level. 
B) Economics helps you earn as much money as possible. 
C) Economics studies how to choose the best alternative when coping with scarcity. 
D) Economics analyses all aspects of human behaviour in general. 
E) Economics teaches how to limit our wants. 
A) Economics is concerned with prices and quantities of goods and services,both at the individual level and at the industry level. 
B) Economics helps you earn as much money as possible. 
C) Economics studies how to choose the best alternative when coping with scarcity. 
D) Economics analyses all aspects of human behaviour in general. 
E) Economics teaches how to limit our wants.

Question 7

Rational choice

Accepted Answer

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

Question 8

A change in a marginal benefit or cost will

Accepted Answer

A) change incentives. 
B) increase sunk costs. 
C) decrease production. 
D) increase consumption. 
E) cause an individual to make a rational choice. 
A) change incentives. 
B) increase sunk costs. 
C) decrease production. 
D) increase consumption. 
E) cause an individual to make a rational choice.

Question 9

The cost of a one-unit increase in an activity

Accepted Answer

A) is called the unit cost. 
B) is called the marginal benefit/cost. 
C) is called the total one-unit cost. 
D) is called the marginal cost. 
E) decreases as more of the activity is done. 
A) is called the unit cost. 
B) is called the marginal benefit/cost. 
C) is called the total one-unit cost. 
D) is called the marginal cost. 
E) decreases as more of the activity is done.

Question 10

Microeconomics includes the study of

Accepted Answer

A) the overall amount of production within the economy. 
B) how countries decide to fund their budget deficits. 
C) the effect on the national economy of the choices that individuals make. 
D) how a nation promotes economic growth. 
E) the choices that individuals and businesses make. 
A) the overall amount of production within the economy. 
B) how countries decide to fund their budget deficits. 
C) the effect on the national economy of the choices that individuals make. 
D) how a nation promotes economic growth. 
E) the choices that individuals and businesses make.

Question 11

The question 'should we produce LCD televisions or computer monitors? is an example of a ________ question.

Accepted Answer

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

Question 12

By donating $1,000 to the Salvation Army,Caroline reduced her taxable income.To Caroline,the reduction in her taxable income is

Accepted Answer

A) the margin. 
B) an incentive. 
C) an opportunity cost. 
D) a marginal benefit. 
E) a marginal cost. 
A) the margin. 
B) an incentive. 
C) an opportunity cost. 
D) a marginal benefit. 
E) a marginal cost.

Question 13

-In the above,which figure(s)show(s)both a positive and a negative relationship between the variables?

Accepted Answer

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

Question 14

When Qantas decides to stop flying to Singapore from Adelaide,it directly answers the ________ question.

Accepted Answer

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

Question 15

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is usually ________ of the second burger.

Accepted Answer

A) equal to the marginal benefit 
B) equal to the marginal cost and the marginal benefit 
C) smaller than the marginal benefit 
D) larger than the marginal benefit 
E) not related to the marginal benefit 
A) equal to the marginal benefit 
B) equal to the marginal cost and the marginal benefit 
C) smaller than the marginal benefit 
D) larger than the marginal benefit 
E) not related to the marginal benefit

Question 16

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

Accepted Answer

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

Question 17

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.

Accepted Answer

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

Question 18

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

Accepted Answer

A) 4. 
B) 3. 
C) 4/3. 
D) 3/4. 
E) 1. 
A) 4. 
B) 3. 
C) 4/3. 
D) 3/4. 
E) 1.

Question 19

A cross-section graph

Accepted Answer

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

Question 20

An incentive is

Accepted Answer

A) the marginal cost of some course of action. 
B) an inducement to take a particular action. 
C) the marginal benefit of some course of action. 
D) a constraint that society imposes on those who make self-interested choices. 
E) the net gain of some course of action. 
A) the marginal cost of some course of action. 
B) an inducement to take a particular action. 
C) the marginal benefit of some course of action. 
D) a constraint that society imposes on those who make self-interested choices. 
E) the net gain of some course of action.

A statement that 'all children should receive free health care' is an example of what kind of statement?

The decision to enrol in a PhD program is a rational one for a university student if the

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

The graph shows

Opportunity cost is best defined as

Which of the following best defines economics?

Rational choice

A change in a marginal benefit or cost will

The cost of a one-unit increase in an activity

Microeconomics includes the study of

The question 'should we produce LCD televisions or computer monitors? is an example of a ________ question.

By donating $1,000 to the Salvation Army,Caroline reduced her taxable income.To Caroline,the reduction in her taxable income is

-In the above,which figure(s)show(s)both a positive and a negative relationship between the variables?

When Qantas decides to stop flying to Singapore from Adelaide,it directly answers the ________ question.

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is usually ________ of the second burger.

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

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

A cross-section graph

An incentive is

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

A statement that 'all children should receive free health care' is an example of what kind of statement?

The decision to enrol in a PhD program is a rational one for a university student if the

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

The graph shows

Opportunity cost is best defined as

Which of the following best defines economics?

Rational choice

A change in a marginal benefit or cost will

The cost of a one-unit increase in an activity

Microeconomics includes the study of

The question 'should we produce LCD televisions or computer monitors? is an example of a ________ question.

By donating $1,000 to the Salvation Army,Caroline reduced her taxable income.To Caroline,the reduction in her taxable income is

-In the above,which figure(s)show(s)both a positive and a negative relationship between the variables?

When Qantas decides to stop flying to Singapore from Adelaide,it directly answers the ________ question.

Suppose you eat two hamburgers for lunch.The marginal benefit of the first burger is usually ________ of the second burger.

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

When Fresh Express Salads decides to mechanically pick all of its lettuce,it directly answers the ________ question.

If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4,then the slope of the curve equals

A cross-section graph

An incentive is

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