Question 1

The Latin term 'ceteris paribus' means

Accepted Answer

A) 'other things remaining the same.' 
B) 'what is true of the whole is not necessarily true of the parts.' 
C) 'after this,therefore because of this.' 
D) 'false unless proven true.' 
E) 'obviously true.' 
A) 'other things remaining the same.' 
B) 'what is true of the whole is not necessarily true of the parts.' 
C) 'after this,therefore because of this.' 
D) 'false unless proven true.' 
E) 'obviously true.'

Question 2

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points B and C equals

Accepted Answer

A) 14. 
B) 16. 
C) 2. 
D) 8. 
E) 4. 
A) 14. 
B) 16. 
C) 2. 
D) 8. 
E) 4.

Question 3

If a curve rises and then falls,it has a

Accepted Answer

A) minimum. 
B) maximum. 
C) slope that is negative and then positive. 
D) constant-slope relationship. 
E) linear relationship. 
A) minimum. 
B) maximum. 
C) slope that is negative and then positive. 
D) constant-slope relationship. 
E) linear relationship.

Question 4

'The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis' is the definition of

Accepted Answer

A) a relationship. 
B) a graph. 
C) slope. 
D) a trend. 
E) a curve. 
A) a relationship. 
B) a graph. 
C) slope. 
D) a trend. 
E) a curve.

Question 5

Which of the following is a normative statement?

Accepted Answer

A) Flood victims should pay for their own rebuilding. 
B) An increase in the supply of computers has caused computer prices to fall. 
C) Recessions lead to increases in the unemployment rate. 
D) When the price of kiwi fruit increases,fewer people eat kiwi fruit. 
E) Cyclones strike mainly Queensland and Western Australia. 
A) Flood victims should pay for their own rebuilding. 
B) An increase in the supply of computers has caused computer prices to fall. 
C) Recessions lead to increases in the unemployment rate. 
D) When the price of kiwi fruit increases,fewer people eat kiwi fruit. 
E) Cyclones strike mainly Queensland and Western Australia.

Question 6

-In the above figure,a negative relationship between x and y is shown in Figure

Accepted Answer

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

Question 7

The slope

Accepted Answer

A) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
B) falls as the x variable increases if the line has a negative slope. 
C) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
D) of a straight line is the same regardless of where on the line it is calculated. 
E) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis. 
A) equals the change in the value of the variable measured on the x-axis divided by the change in the variable measured on the y-axis. 
B) falls as the x variable increases if the line has a negative slope. 
C) equals the change in the value of the variable measured on the y-axis minus the change in the variable measured on the x-axis. 
D) of a straight line is the same regardless of where on the line it is calculated. 
E) will be small if a large change in the variable measured on the y-axis is associated with a small change in the variable measured on the x-axis.

Question 8

Your lecturer changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.Your lecturer has

Accepted Answer

A) increased the marginal cost of cheating. 
B) recognised that students don't respond to incentives. 
C) decreased the marginal benefit of cheating. 
D) recognised that students don't make rational choices. 
E) made all the students act in the social interest. 
A) increased the marginal cost of cheating. 
B) recognised that students don't respond to incentives. 
C) decreased the marginal benefit of cheating. 
D) recognised that students don't make rational choices. 
E) made all the students act in the social interest.

Question 9

Which of the following BEST describes macroeconomics?

Accepted Answer

A) It is not a social science because its predictions cannot be tested. 
B) It examines how the choices that individuals make affect governments. 
C) It analyses the aggregate effects on the national economy of the choices made by individuals,firms and governments. 
D) It studies the choices that individuals and businesses make when coping with scarcity. 
E) Proving causation is never a problem for macroeconomics. 
A) It is not a social science because its predictions cannot be tested. 
B) It examines how the choices that individuals make affect governments. 
C) It analyses the aggregate effects on the national economy of the choices made by individuals,firms and governments. 
D) It studies the choices that individuals and businesses make when coping with scarcity. 
E) Proving causation is never a problem for macroeconomics.

Question 10

-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 equals

Accepted Answer

A) -4. 
B) -1. 
C) -3. 
D) -2 
E) -5. 
A) -4. 
B) -1. 
C) -3. 
D) -2 
E) -5.

Question 11

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

Accepted Answer

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

Question 12

All economic questions and problems arise from

Accepted Answer

A) the fact that society has more than it needs. 
B) turmoil in the stock market. 
C) the difference between self-interest and social interest. 
D) a society's wants exceeding what its scarce resources can produce. 
E) the unequal distribution of income. 
A) the fact that society has more than it needs. 
B) turmoil in the stock market. 
C) the difference between self-interest and social interest. 
D) a society's wants exceeding what its scarce resources can produce. 
E) the unequal distribution of income.

Question 13

If x increases and as a result y decreases,then x and y are

Accepted Answer

A) trend-line related. 
B) directly related. 
C) negatively related. 
D) positively related. 
E) not related because the relationship is a causal one. 
A) trend-line related. 
B) directly related. 
C) negatively related. 
D) positively related. 
E) not related because the relationship is a causal one.

Question 14

Which of the following is a microeconomic issue?

Accepted Answer

A) Why has economic growth been rapid in China? 
B) Why has unemployment risen nationwide? 
C) Why is the average income lower in Africa than in Latin America? 
D) Why did overall production increase in Australia last year? 
E) What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favour of non-carbonated drinks? 
A) Why has economic growth been rapid in China? 
B) Why has unemployment risen nationwide? 
C) Why is the average income lower in Africa than in Latin America? 
D) Why did overall production increase in Australia last year? 
E) What is the impact on the quantity of Pepsi purchased if consumers' tastes change in favour of non-carbonated drinks?

Question 15

A time-series graph measures

Accepted Answer

A) the value of one variable against the value of another variable. 
B) time on the y-axis and the variable or variables in which we are interested on the x-axis. 
C) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. 
D) time on the x-axis and the variable or variables in which we are interested on the y-axis. 
E) the value of an economic variable for different groups in a population at a point in time. 
A) the value of one variable against the value of another variable. 
B) time on the y-axis and the variable or variables in which we are interested on the x-axis. 
C) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. 
D) time on the x-axis and the variable or variables in which we are interested on the y-axis. 
E) the value of an economic variable for different groups in a population at a point in time.

Question 16

When two variables in a graph are related to a third,changing the third causes

Accepted Answer

A) either a shift or a movement in the curve but more information is needed to determine which occurs. 
B) no change in the curve because the third variable isn't on the axes. 
C) a shift of the curve. 
D) a movement along the curve. 
E) None of the above answers is correct. 
A) either a shift or a movement in the curve but more information is needed to determine which occurs. 
B) no change in the curve because the third variable isn't on the axes. 
C) a shift of the curve. 
D) a movement along the curve. 
E) None of the above answers is correct.

Question 17

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

Accepted Answer

A) 1. 
B) 4. 
C) 12. 
D) 2. 
E) 8. 
A) 1. 
B) 4. 
C) 12. 
D) 2. 
E) 8.

Question 18

A slope is measured as the

Accepted Answer

A) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
B) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
C) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
D) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
E) change in the value of the variable on the x-axis divided by the change in the value of the variable on the y-axis. 
A) value of the variable measured on the y-axis minus the value of the variable measured on the x-axis. 
B) change in the value of variable on the y-axis divided by the change in the value of the variable on the x-axis. 
C) value of the variable measured on the y-axis divided by the value of the variable measured on the x-axis. 
D) value of the variable measured on the x-axis divided by the value of the variable measured on the y-axis. 
E) change in the value of the variable on the x-axis divided by the change in the value of the variable on the y-axis.

Question 19

Because human wants are insatiable and unlimited while available resources are limited,people are said to face the problem of

Accepted Answer

A) why to produce. 
B) scarcity. 
C) macroeconomics. 
D) social interest versus self-interest. 
E) microeconomics. 
A) why to produce. 
B) scarcity. 
C) macroeconomics. 
D) social interest versus self-interest. 
E) microeconomics.

Question 20

An economist observed that,as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always is

Accepted Answer

A) negative and then positive after the minimum point. 
B) negative both before and after the minimum point. 
C) negative and then linear after the minimum point. 
D) linear and then positive after the minimum point. 
E) positive and then negative after the minimum point. 
A) negative and then positive after the minimum point. 
B) negative both before and after the minimum point. 
C) negative and then linear after the minimum point. 
D) linear and then positive after the minimum point. 
E) positive and then negative after the minimum point.

The Latin term 'ceteris paribus' means

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points B and C equals

If a curve rises and then falls,it has a

'The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis' is the definition of

Which of the following is a normative statement?

-In the above figure,a negative relationship between x and y is shown in Figure

The slope

Your lecturer changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.Your lecturer has

Which of the following BEST describes macroeconomics?

-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 equals

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

All economic questions and problems arise from

If x increases and as a result y decreases,then x and y are

Which of the following is a microeconomic issue?

A time-series graph measures

When two variables in a graph are related to a third,changing the third causes

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

A slope is measured as the

Because human wants are insatiable and unlimited while available resources are limited,people are said to face the problem of

An economist observed that,as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always 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

The Latin term 'ceteris paribus' means

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points B and C equals

If a curve rises and then falls,it has a

'The change in the value of the variable measured on the y-axis divided by the change in the value of the variable measured on the x-axis' is the definition of

Which of the following is a normative statement?

-In the above figure,a negative relationship between x and y is shown in Figure

The slope

Your lecturer changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course.Your lecturer has

Which of the following BEST describes macroeconomics?

-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 equals

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

All economic questions and problems arise from

If x increases and as a result y decreases,then x and y are

Which of the following is a microeconomic issue?

A time-series graph measures

When two variables in a graph are related to a third,changing the third causes

-The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell.The slope between points C and D equals

A slope is measured as the

Because human wants are insatiable and unlimited while available resources are limited,people are said to face the problem of

An economist observed that,as more computers are added to a factory,the costs of production initially decline,reach a minimum,and then rise.In a diagram that has costs on the vertical axis and the number of computers on the horizontal axis,the relationship always 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