Question 1

In the above figure,as the y variable increases,

Accepted Answer

A) the x variable probably changes,but more information is needed to determine if it increases,decreases or stays the same. 
B) the x variable increases. 
C) the x variable decreases. 
D) the x variable is constant. 
E) the x variable at first increases but then decreases. 
A) the x variable probably changes,but more information is needed to determine if it increases,decreases or stays the same. 
B) the x variable increases. 
C) the x variable decreases. 
D) the x variable is constant. 
E) the x variable at first increases but then decreases.

Question 2

Matthew has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

Accepted Answer

A) the third hamburger minus the pleasure from consuming zero hamburgers. 
B) just the third hamburger. 
C) just the second hamburger. 
D) the two previous hamburgers. 
E) all three hamburgers. 
A) the third hamburger minus the pleasure from consuming zero hamburgers. 
B) just the third hamburger. 
C) just the second hamburger. 
D) the two previous hamburgers. 
E) all three hamburgers.

Question 3

In 1983 the government introduced Medicare.This is an example of

Accepted Answer

A) normative versus positive economics. 
B) the government using economic tools to make policy decisions. 
C) increasing the marginal benefit of health care. 
D) increasing the marginal cost of health care. 
E) answering the 'how?' question. 
A) normative versus positive economics. 
B) the government using economic tools to make policy decisions. 
C) increasing the marginal benefit of health care. 
D) increasing the marginal cost of health care. 
E) answering the 'how?' question.

Question 4

The cost of a one-unit increase in an activity is called the

Accepted Answer

A) margin. 
B) rational cost. 
C) opportunity benefit. 
D) marginal cost. 
E) marginal benefit. 
A) margin. 
B) rational cost. 
C) opportunity benefit. 
D) marginal cost. 
E) marginal benefit.

Question 5

You have chosen to take a trip during the mid-semester break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Accepted Answer

A) We cannot determine what the opportunity cost is without knowing which alternative,working or studying,you would have preferred. 
B) the wages you would have earned from working and the lower grade earned by not studying. 
C) the wages you would have earned from working. 
D) the value of the trip. 
E) the lower grade earned by not studying. 
A) We cannot determine what the opportunity cost is without knowing which alternative,working or studying,you would have preferred. 
B) the wages you would have earned from working and the lower grade earned by not studying. 
C) the wages you would have earned from working. 
D) the value of the trip. 
E) the lower grade earned by not studying.

Question 6

Which of the following is NOT a normative economic statement?

Accepted Answer

A) The price of petrol is too high. 
B) People over the age of 75 should not be allowed to drive cars. 
C) Teenagers are responsible for most driving fatalities. 
D) We don't spend enough money on anti-smoking campaigns. 
E) States should reduce the tax on heating fuel oil during the winter. 
A) The price of petrol is too high. 
B) People over the age of 75 should not be allowed to drive cars. 
C) Teenagers are responsible for most driving fatalities. 
D) We don't spend enough money on anti-smoking campaigns. 
E) States should reduce the tax on heating fuel oil during the winter.

Question 7

A linear relationship

Accepted Answer

A) can be a positive or a negative relationship. 
B) when graphed is a line whose slope changes. 
C) when graphed is a straight line. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct. 
A) can be a positive or a negative relationship. 
B) when graphed is a line whose slope changes. 
C) when graphed is a straight line. 
D) Both answers A and C are correct. 
E) Both answers A and B are correct.

Question 8

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Accepted Answer

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

Question 9

Which of the following statements is correct?

Accepted Answer

A) If two variables are directly related,a graph of the two variables has a negative slope. 
B) When a line slopes downwards moving to the right,the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C) When a line slopes upwards moving to the right,the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
D) The higher the temperature,the more ice cream people consume.Thus the temperature and ice-cream consumption are inversely related. 
E) None of the above statements is correct. 
A) If two variables are directly related,a graph of the two variables has a negative slope. 
B) When a line slopes downwards moving to the right,the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
C) When a line slopes upwards moving to the right,the variable measured on the x-axis and the variable measured on the y-axis are directly related. 
D) The higher the temperature,the more ice cream people consume.Thus the temperature and ice-cream consumption are inversely related. 
E) None of the above statements is correct.

Question 10

If there is a positive relationship between two variables,

Accepted Answer

A) the slope of the line graphing the relationship will be negative. 
B) the graph of the relationship will be downward sloping. 
C) the graph of the relationship will be upward sloping. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct. 
A) the slope of the line graphing the relationship will be negative. 
B) the graph of the relationship will be downward sloping. 
C) the graph of the relationship will be upward sloping. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct.

Question 11

A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

Accepted Answer

A) time-series graph. 
B) scatter diagram. 
C) fixed-year figure. 
D) cross-section graph. 
E) Venn diagram. 
A) time-series graph. 
B) scatter diagram. 
C) fixed-year figure. 
D) cross-section graph. 
E) Venn diagram.

Question 12

Most economic graphs have two lines perpendicular to each other.Where these lines meet is called the

Accepted Answer

A) x-axis. 
B) point of beginning. 
C) origin. 
D) variable. 
E) y-axis. 
A) x-axis. 
B) point of beginning. 
C) origin. 
D) variable. 
E) y-axis.

Question 13

'Lower ticket prices would lead to more people attending football games.' This statement is a

Accepted Answer

A) normative statement. 
B) positive statement. 
C) macroeconomic statement. 
D) statement that confuses marginal cost and sunk cost. 
E) statement assessing the social interest versus the private interest. 
A) normative statement. 
B) positive statement. 
C) macroeconomic statement. 
D) statement that confuses marginal cost and sunk cost. 
E) statement assessing the social interest versus the private interest.

Question 14

A graph of the value of one variable against the value of another variable is known as a

Accepted Answer

A) scatter diagram. 
B) time-series graph. 
C) three-dimensional graph. 
D) two-variable graph. 
E) two-dimensional graph. 
A) scatter diagram. 
B) time-series graph. 
C) three-dimensional graph. 
D) two-variable graph. 
E) two-dimensional graph.

Question 15

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

Accepted Answer

A) quantity of gold is falling. 
B) price of gold fluctuates. 
C) price of gold is low and not changing. 
D) price of gold is falling. 
E) price of gold is rising. 
A) quantity of gold is falling. 
B) price of gold fluctuates. 
C) price of gold is low and not changing. 
D) price of gold is falling. 
E) price of gold is rising.

Question 16

The slope of the line shown in the above figure is

Accepted Answer

A) -3. 
B) -10. 
C) -1. 
D) -5. 
E) -1/3. 
A) -3. 
B) -10. 
C) -1. 
D) -5. 
E) -1/3.

Question 17

The graph shows

Accepted Answer

A) a cross-section relationship. 
B) a relationship with a minimum. 
C) a relationship that becomes less steep. 
D) a relationship with a maximum. 
E) no relationship. 
A) a cross-section relationship. 
B) a relationship with a minimum. 
C) a relationship that becomes less steep. 
D) a relationship with a maximum. 
E) no relationship.

Question 18

Which of the following is an example of a normative statement?

Accepted Answer

A) Car prices should be affordable. 
B) If cars become more expensive,fewer people will buy them. 
C) Cars emit pollution. 
D) Fewer people die in larger cars than in smaller cars. 
E) If wages increase,firms will fire some workers. 
A) Car prices should be affordable. 
B) If cars become more expensive,fewer people will buy them. 
C) Cars emit pollution. 
D) Fewer people die in larger cars than in smaller cars. 
E) If wages increase,firms will fire some workers.

Question 19

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

Accepted Answer

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

Question 20

In a graph,a straight line has a negative slope if the line

Accepted Answer

A) is horizontal. 
B) shows a trend. 
C) falls from left to right. 
D) is vertical. 
E) rises from left to right. 
A) is horizontal. 
B) shows a trend. 
C) falls from left to right. 
D) is vertical. 
E) rises from left to right.

In the above figure,as the y variable increases,

Matthew has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

In 1983 the government introduced Medicare.This is an example of

The cost of a one-unit increase in an activity is called the

You have chosen to take a trip during the mid-semester break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Which of the following is NOT a normative economic statement?

A linear relationship

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Which of the following statements is correct?

If there is a positive relationship between two variables,

A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

Most economic graphs have two lines perpendicular to each other.Where these lines meet is called the

'Lower ticket prices would lead to more people attending football games.' This statement is a

A graph of the value of one variable against the value of another variable is known as a

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

The slope of the line shown in the above figure is

The graph shows

Which of the following is an example of a normative statement?

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

In a graph,a straight line has a negative slope if the line

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

In the above figure,as the y variable increases,

Matthew has eaten two hamburgers and is considering a third.The marginal benefit in his decision is the pleasure from consuming

In 1983 the government introduced Medicare.This is an example of

The cost of a one-unit increase in an activity is called the

You have chosen to take a trip during the mid-semester break.If you had not gone,you would either have worked at a temporary job or studied for exams.The opportunity cost of your trip is

Which of the following is NOT a normative economic statement?

A linear relationship

When the federal government decides to pay senators more than it pays soldiers,it answers the ________ question.

Which of the following statements is correct?

If there is a positive relationship between two variables,

A graph shows the average wage of various demographic groups in 2012.The kind of graph used to show these data would be a

Most economic graphs have two lines perpendicular to each other.Where these lines meet is called the

'Lower ticket prices would lead to more people attending football games.' This statement is a

A graph of the value of one variable against the value of another variable is known as a

A time-series graph displays the price of gold.The slope of the line is negative for periods when the

The slope of the line shown in the above figure is

The graph shows

Which of the following is an example of a normative statement?

You have data for the amount of rainfall in 50 cities for the month of June.The type of graph to best display these data would be a

In a graph,a straight line has a negative slope if the line

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