Question 1

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

Accepted Answer

A) Venn diagram. 
B) cross-section graph. 
C) time-series graph. 
D) scatter diagram. 
E) None of the above answers is correct. 
A) Venn diagram. 
B) cross-section graph. 
C) time-series graph. 
D) scatter diagram. 
E) None of the above answers is correct.

Question 2

-In the diagram above,which figure(s)show(s)no relationship between the variables?

Accepted Answer

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

Question 3

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

Accepted Answer

A) high and not changing. 
B) low and falling. 
C) high and falling. 
D) falling. 
E) rising. 
A) high and not changing. 
B) low and falling. 
C) high and falling. 
D) falling. 
E) rising.

Question 4

Which of the following is a microeconomic issue?

Accepted Answer

A) The quantity of wheat grown in South Australia increases this year. 
B) Growth in the Australian economy slowed. 
C) The inflation rate fell this year. 
D) Increased federal government expenditures have lowered the unemployment rate. 
E) The Australian government cuts taxes to combat a recession. 
A) The quantity of wheat grown in South Australia increases this year. 
B) Growth in the Australian economy slowed. 
C) The inflation rate fell this year. 
D) Increased federal government expenditures have lowered the unemployment rate. 
E) The Australian government cuts taxes to combat a recession.

Question 5

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

Accepted Answer

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

Question 6

When Ferrari decides to produce 1,200 '360 Modenas' each year,Ferrari is answering the ________ question.

Accepted Answer

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

Question 7

A scatter diagram can be used to see

Accepted Answer

A) how a variable behaves over time. 
B) whether a variable is positively or negatively related to itself. 
C) if the value of a variable is rising or falling. 
D) the value of a variable for different groups in a population. 
E) if a relationship exists between two variables. 
A) how a variable behaves over time. 
B) whether a variable is positively or negatively related to itself. 
C) if the value of a variable is rising or falling. 
D) the value of a variable for different groups in a population. 
E) if a relationship exists between two variables.

Question 8

Proponents of cuts to income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

Accepted Answer

A) the opportunity cost of working is negative. 
B) workers are irrational. 
C) workers make decisions based on the social interest. 
D) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
E) the marginal cost of each additional work hour is not important to most workers. 
A) the opportunity cost of working is negative. 
B) workers are irrational. 
C) workers make decisions based on the social interest. 
D) workers make decisions based on the marginal benefit of each hour worked compared to the marginal cost of work. 
E) the marginal cost of each additional work hour is not important to most workers.

Question 9

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Accepted Answer

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

Question 10

Australia has a universal health care system called Medicare,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Australia has decided that 'everyone,regardless of their ability to pay' is the answer to what microeconomic question?

Accepted Answer

A) For whom will health care be produced? 
B) What type of health care will be produced and in what quantity? 
C) Why will we offer health care? 
D) Must we offer health care? 
E) How will health care be produced? 
A) For whom will health care be produced? 
B) What type of health care will be produced and in what quantity? 
C) Why will we offer health care? 
D) Must we offer health care? 
E) How will health care be produced?

Question 11

A graph shows the average ATAR scores for males and females in 2012.The kind of graph used to show these data would be a

Accepted Answer

A) time-series graph. 
B) scatter diagram. 
C) trend figure. 
D) cross-section graph. 
E) time-stationary graph. 
A) time-series graph. 
B) scatter diagram. 
C) trend figure. 
D) cross-section graph. 
E) time-stationary graph.

Question 12

The benefit of an activity is

Accepted Answer

A) purely objective and measured in dollars. 
B) the gain or pleasure it brings. 
C) not measurable on the margin. 
D) measured by what must be given up to get one more unit of the activity. 
E) the value of its opportunity cost. 
A) purely objective and measured in dollars. 
B) the gain or pleasure it brings. 
C) not measurable on the margin. 
D) measured by what must be given up to get one more unit of the activity. 
E) the value of its opportunity cost.

Question 13

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Accepted Answer

A) correlated. 
B) significantly related. 
C) independent. 
D) casually related. 
E) statistics. 
A) correlated. 
B) significantly related. 
C) independent. 
D) casually related. 
E) statistics.

Question 14

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

Accepted Answer

A) the value of the session minus the $10 he could have earned at his job. 
B) the $10 he could have earned at his job. 
C) nothing,because the review session does not cost anything. 
D) equal to the benefit he gets from the review session. 
E) the one-hour review session. 
A) the value of the session minus the $10 he could have earned at his job. 
B) the $10 he could have earned at his job. 
C) nothing,because the review session does not cost anything. 
D) equal to the benefit he gets from the review session. 
E) the one-hour review session.

Question 15

The figure above shows a

Accepted Answer

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

Question 16

Scarcity means we must

Accepted Answer

A) work more. 
B) make choices. 
C) earn more. 
D) consume less. 
E) produce less. 
A) work more. 
B) make choices. 
C) earn more. 
D) consume less. 
E) produce less.

Question 17

A normative statement

Accepted Answer

A) must be tested to determine if it is correct. 
B) depends on someone's values. 
C) can be tested to determine if it is correct. 
D) cannot use the word 'should'. 
E) says what is currently believed about the way the world operates. 
A) must be tested to determine if it is correct. 
B) depends on someone's values. 
C) can be tested to determine if it is correct. 
D) cannot use the word 'should'. 
E) says what is currently believed about the way the world operates.

Question 18

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

Accepted Answer

A) benefit's 
B) direct 
C) sunk 
D) opportunity 
E) explicit 
A) benefit's 
B) direct 
C) sunk 
D) opportunity 
E) explicit

Question 19

-To graph a relationship that involves more than two variables,we use

Accepted Answer

A) a direct relationship. 
B) a negative relationship. 
C) ceteris paribus. 
D) a positive relationship. 
E) movement up along one of the lines showing the relationship between x and y. 
A) a direct relationship. 
B) a negative relationship. 
C) ceteris paribus. 
D) a positive relationship. 
E) movement up along one of the lines showing the relationship between x and y.

Question 20

A positive statement

Accepted Answer

A) must always be right. 
B) cannot be negative. 
C) cannot be tested. 
D) might be right or wrong. 
E) depends on someone's value judgement. 
A) must always be right. 
B) cannot be negative. 
C) cannot be tested. 
D) might be right or wrong. 
E) depends on someone's value judgement.

A graph showing the values of an economic variable for different groups in a population at a point in time is called a

-In the diagram above,which figure(s)show(s)no relationship between the variables?

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

Which of the following is a microeconomic issue?

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

When Ferrari decides to produce 1,200 '360 Modenas' each year,Ferrari is answering the ________ question.

A scatter diagram can be used to see

Proponents of cuts to income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Australia has a universal health care system called Medicare,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Australia has decided that 'everyone,regardless of their ability to pay' is the answer to what microeconomic question?

A graph shows the average ATAR scores for males and females in 2012.The kind of graph used to show these data would be a

The benefit of an activity is

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

The figure above shows a

Scarcity means we must

A normative statement

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

-To graph a relationship that involves more than two variables,we use

A positive statement

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 graph showing the values of an economic variable for different groups in a population at a point in time is called a

-In the diagram above,which figure(s)show(s)no relationship between the variables?

A graph shows the wage rate of factory workers.The slope of the line is positive for periods when the wage rate is

Which of the following is a microeconomic issue?

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

When Ferrari decides to produce 1,200 '360 Modenas' each year,Ferrari is answering the ________ question.

A scatter diagram can be used to see

Proponents of cuts to income tax rates argue that when income tax rates are cut,workers have an incentive to increase their work hours.This argument is based on the assumption that

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

Australia has a universal health care system called Medicare,so that everyone,regardless of their ability to pay,has some access to health care.Based on this observation,Australia has decided that 'everyone,regardless of their ability to pay' is the answer to what microeconomic question?

A graph shows the average ATAR scores for males and females in 2012.The kind of graph used to show these data would be a

The benefit of an activity is

In examining two variables,we find that as one variable changes,the other changes.These variables are said to be

Ali decides to attend the one-hour review session for microeconomics instead of working at his job.His job pays him $10 per hour.Ali's opportunity cost of attending the review session is

The figure above shows a

Scarcity means we must

A normative statement

The value of the best thing that a person must give up when making a decision is known as the ________ cost.

-To graph a relationship that involves more than two variables,we use

A positive statement

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