Question 1

You have data for sales of pizza for each Australian state in 2011.The type of graph to best display these data would be a

Accepted Answer

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

Question 2

Decision making on the margin involves

Accepted Answer

A) eliminating the additional cost when making a decision. 
B) comparing the total cost and the total benefit when making a decision. 
C) comparing the benefits for the social interest to the benefits for the person's self-interest. 
D) comparing the marginal cost and marginal benefit when making a decision. 
E) determining the total benefit of a decision. 
A) eliminating the additional cost when making a decision. 
B) comparing the total cost and the total benefit when making a decision. 
C) comparing the benefits for the social interest to the benefits for the person's self-interest. 
D) comparing the marginal cost and marginal benefit when making a decision. 
E) determining the total benefit of a decision.

Question 3

Scarcity

Accepted Answer

A) leads to higher prices. 
B) used to exist everywhere but has been eliminated in advanced economies. 
C) is the inability to satisfy all our wants. 
D) is not something that affects very rich people. 
E) applies only to people living in poverty. 
A) leads to higher prices. 
B) used to exist everywhere but has been eliminated in advanced economies. 
C) is the inability to satisfy all our wants. 
D) is not something that affects very rich people. 
E) applies only to people living in poverty.

Question 4

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

Accepted Answer

A) y-axis. 
B) x-axis. 
C) variable. 
D) time axis. 
E) origin. 
A) y-axis. 
B) x-axis. 
C) variable. 
D) time axis. 
E) origin.

Question 5

If a decision is made and it is the best choice for society,the decision is said to be

Accepted Answer

A) consistent with scarcity. 
B) a want-maximising choice. 
C) a valid economic choice. 
D) made in the social interest. 
E) made in self-interest. 
A) consistent with scarcity. 
B) a want-maximising choice. 
C) a valid economic choice. 
D) made in the social interest. 
E) made in self-interest.

Question 6

Two variables are unrelated if their graph is i.a vertical line.
Ii)a 45 degree line.
Iii)a horizontal line.

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

A time-series graph reveals whether there ________,which represents ________.

Accepted Answer

A) is a relationship between two variables;a trend in a variable 
B) are trends in two variables;unrelated variables 
C) is a relationship between two variables;a cross-section relationship 
D) is a cross-section relationship;a general tendency for the variables to rise or fall 
E) is a trend in a variable;a general tendency for the variable to rise or fall 
A) is a relationship between two variables;a trend in a variable 
B) are trends in two variables;unrelated variables 
C) is a relationship between two variables;a cross-section relationship 
D) is a cross-section relationship;a general tendency for the variables to rise or fall 
E) is a trend in a variable;a general tendency for the variable to rise or fall

Question 9

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

Accepted Answer

A) greater than 
B) equal to 
C) less than 
D) not comparable to 
E) unrelated to 
A) greater than 
B) equal to 
C) less than 
D) not comparable to 
E) unrelated to

Question 10

Scarcity forces people to

Accepted Answer

A) be unwilling to help others. 
B) consume as much as they can as quickly as they can. 
C) choose among available alternatives. 
D) live at a low standard of living. 
E) cheat and steal. 
A) be unwilling to help others. 
B) consume as much as they can as quickly as they can. 
C) choose among available alternatives. 
D) live at a low standard of living. 
E) cheat and steal.

Question 11

Scarcity results from the fact that

Accepted Answer

A) choices made in self-interest are not always in the social interest. 
B) people's wants exceed the resources available to satisfy them. 
C) we cannot answer the major economic questions. 
D) the population keeps growing. 
E) not all goals are desirable. 
A) choices made in self-interest are not always in the social interest. 
B) people's wants exceed the resources available to satisfy them. 
C) we cannot answer the major economic questions. 
D) the population keeps growing. 
E) not all goals are desirable.

Question 12

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

Accepted Answer

A) had no effect on the marginal cost or marginal benefit but did affect the total benefit 
B) increased the marginal benefit 
C) decreased the marginal cost 
D) decreased the marginal benefit 
E) increased the marginal cost 
A) had no effect on the marginal cost or marginal benefit but did affect the total benefit 
B) increased the marginal benefit 
C) decreased the marginal cost 
D) decreased the marginal benefit 
E) increased the marginal cost

Question 13

An incentive is

Accepted Answer

A) when people make rational choices by comparing costs and benefits. 
B) what you must give up to get something. 
C) a reward or a penalty that encourages or discourages an action. 
D) a choice made on the margin. 
E) a good or service that satisfies wants. 
A) when people make rational choices by comparing costs and benefits. 
B) what you must give up to get something. 
C) a reward or a penalty that encourages or discourages an action. 
D) a choice made on the margin. 
E) a good or service that satisfies wants.

Question 14

The graph shows a

Accepted Answer

A) negative relationship that is linear. 
B) negative relationship that becomes less steep. 
C) positive relationship that is linear. 
D) positive relationship that becomes less steep. 
E) None of the above answers is correct. 
A) negative relationship that is linear. 
B) negative relationship that becomes less steep. 
C) positive relationship that is linear. 
D) positive relationship that becomes less steep. 
E) None of the above answers is correct.

Question 15

In the above figure,the diagram shows

Accepted Answer

A) a scatter diagram. 
B) a two-variable scatter diagram. 
C) a downward trend in x. 
D) an upward trend in x. 
E) a cross-section graph between x and time. 
A) a scatter diagram. 
B) a two-variable scatter diagram. 
C) a downward trend in x. 
D) an upward trend in x. 
E) a cross-section graph between x and time.

Question 16

Which of the following is an example of a positive economic statement?

Accepted Answer

A) Voter ID laws should be strictly enforced in all states. 
B) The Higher Education Contribution Scheme should be repealed. 
C) Illegal immigration is the biggest threat to national security that we face today. 
D) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons on Mondays,Wednesdays and Fridays. 
E) The death penalty is a strong deterrent to violent criminal activity. 
A) Voter ID laws should be strictly enforced in all states. 
B) The Higher Education Contribution Scheme should be repealed. 
C) Illegal immigration is the biggest threat to national security that we face today. 
D) Medicare recipients should only be allowed to visit a doctor for non-emergency reasons on Mondays,Wednesdays and Fridays. 
E) The death penalty is a strong deterrent to violent criminal activity.

Question 17

Suppose you take a trip during the mid-semester break.To determine the benefit of taking the trip,you

Accepted Answer

A) must measure what the trip is worth to you and then subtract the cost of the trip. 
B) calculate the opportunity cost of the trip. 
C) measure what you are willing to give up to take the trip. 
D) calculate the value of the next best alternative forgone. 
E) determine the sunk cost of taking the trip. 
A) must measure what the trip is worth to you and then subtract the cost of the trip. 
B) calculate the opportunity cost of the trip. 
C) measure what you are willing to give up to take the trip. 
D) calculate the value of the next best alternative forgone. 
E) determine the sunk cost of taking the trip.

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

Question 19

As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organisers decided to drop the plan to reduce emissions.We can conclude that

Accepted Answer

A) the organisers were not making a rational decision. 
B) the marginal cost of reducing emissions exceeded the marginal benefit of reducing emissions. 
C) it is difficult to calculate the cost of reducing emissions. 
D) there were no incentives to reduce carbon emissions. 
E) the organisers were ignoring a sunk cost. 
A) the organisers were not making a rational decision. 
B) the marginal cost of reducing emissions exceeded the marginal benefit of reducing emissions. 
C) it is difficult to calculate the cost of reducing emissions. 
D) there were no incentives to reduce carbon emissions. 
E) the organisers were ignoring a sunk cost.

Question 20

Which of the following is a macroeconomic topic?
i.China increases interest rates to slow its economic growth.
ii.Parliament lowers tax rates to try to lower the unemployment rate.
iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

Accepted Answer

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

You have data for sales of pizza for each Australian state in 2011.The type of graph to best display these data would be a

Decision making on the margin involves

Scarcity

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

If a decision is made and it is the best choice for society,the decision is said to be

Two variables are unrelated if their graph is i.a vertical line. Ii)a 45 degree line. Iii)a horizontal line.

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

A time-series graph reveals whether there ,which represents .

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

Scarcity forces people to

Scarcity results from the fact that

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

An incentive is

The graph shows a

In the above figure,the diagram shows

Which of the following is an example of a positive economic statement?

Suppose you take a trip during the mid-semester break.To determine the benefit of taking the trip,you

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.

As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organisers decided to drop the plan to reduce emissions.We can conclude that

Which of the following is a macroeconomic topic? i.China increases interest rates to slow its economic growth. ii.Parliament lowers tax rates to try to lower the unemployment rate. iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

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

You have data for sales of pizza for each Australian state in 2011.The type of graph to best display these data would be a

Decision making on the margin involves

Scarcity

Most economic graphs have two lines perpendicular to each other.The vertical line is called the

If a decision is made and it is the best choice for society,the decision is said to be

Two variables are unrelated if their graph is i.a vertical line. Ii)a 45 degree line. Iii)a horizontal line.

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

A time-series graph reveals whether there ________,which represents ________.

-The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week.Between points A and B,the slope of the line is ________ the slope of the line between points B and C.

Scarcity forces people to

Scarcity results from the fact that

Mothers Against Drunk Drivers (MADD)campaigned to increase the legal penalties of drunk driving.This successful campaign ________ of drunk driving.

An incentive is

The graph shows a

In the above figure,the diagram shows

Which of the following is an example of a positive economic statement?

Suppose you take a trip during the mid-semester break.To determine the benefit of taking the trip,you

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.

As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organisers decided to drop the plan to reduce emissions.We can conclude that

Which of the following is a macroeconomic topic? i.China increases interest rates to slow its economic growth. ii.Parliament lowers tax rates to try to lower the unemployment rate. iii.Nissan decides to produce more electric Leaf models and fewer Altima sedans.

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

A time-series graph reveals whether there ,which represents .