Question 1

Which of the following is included in the study of macroeconomics?

Accepted Answer

A) How households make a purchasing decision. 
B) Market for laptops. 
C) Flows of import and export. 
D) Prices of cars. 
A) How households make a purchasing decision. 
B) Market for laptops. 
C) Flows of import and export. 
D) Prices of cars. C

Question 2

Economists most often disagree over positive rather than normative economic issues.

Accepted Answer

A) True 
 B)False  False

Question 3

The most fundamental concepts underlying the discipline of economics are:

Accepted Answer

A) scarcity and choice. 
B) supply and demand. 
C) money, stocks and bonds. 
D) inflation and unemployment. 
A) scarcity and choice. 
B) supply and demand. 
C) money, stocks and bonds. 
D) inflation and unemployment. A

Question 4

Policies to increase the supply of money in the economy are primarily a concern of microeconomics.

Accepted Answer

A) True 
 B)False

Question 5

A television network newscaster reports that the national inflation rate the past year equalled 4 per cent.This report would be of particular interest to a _____.

Accepted Answer

A) microeconomist 
B) normative economist 
C) macroeconomist 
D) ceteris paribus 
E) social science economist 
A) microeconomist 
B) normative economist 
C) macroeconomist 
D) ceteris paribus 
E) social science economist

Question 6

Which of the following is closest to the definition of capital?

Accepted Answer

A) Money in your bank account. 
B) Factories and machinery. 
C) Borrowed money. 
D) The ability of an individual to create financial capital. 
E) Lakes, animals, coal and oil. 
A) Money in your bank account. 
B) Factories and machinery. 
C) Borrowed money. 
D) The ability of an individual to create financial capital. 
E) Lakes, animals, coal and oil.

Question 7

Microeconomics deals with the analysis of all the following except how:

Accepted Answer

A) the wages of doctors are determined. 
B) Honda decides to price its cars. 
C) to deal with the market power. 
D) the monetary policy has changed. 
E) monopolies and competitive markets differ. 
A) the wages of doctors are determined. 
B) Honda decides to price its cars. 
C) to deal with the market power. 
D) the monetary policy has changed. 
E) monopolies and competitive markets differ.

Question 8

Economics is the study of how people:

Accepted Answer

A) vote for political leaders who decide what is to be produced. 
B) make choices to produce and consume goods and services. 
C) establish social institutions that maximise wellbeing. 
D) develop value systems that affect their consumption choices. 
E) form customs and traditions that influence consumption. 
A) vote for political leaders who decide what is to be produced. 
B) make choices to produce and consume goods and services. 
C) establish social institutions that maximise wellbeing. 
D) develop value systems that affect their consumption choices. 
E) form customs and traditions that influence consumption.

Question 9

The statement: 'It is better to suffer a little more unemployment than a little lower prices',is an example of normative economic analysis.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is capital?

Accepted Answer

A) Fresh air. 
B) Money. 
C) Photocopier. 
D) Pastoral land. 
E) Lake. 
A) Fresh air. 
B) Money. 
C) Photocopier. 
D) Pastoral land. 
E) Lake.

Question 11

Scarcity is a situation:

Accepted Answer

A) where people's needs exceed their resources. 
B) where people's wants exceed their resources. 
C) where the quantity of resources is sufficient to meet all wants. 
D) where people's needs exceed other people's resources. 
E) where the quantity of resources is sufficient to meet all needs. 
A) where people's needs exceed their resources. 
B) where people's wants exceed their resources. 
C) where the quantity of resources is sufficient to meet all wants. 
D) where people's needs exceed other people's resources. 
E) where the quantity of resources is sufficient to meet all needs.

Question 12

Ceteris paribus means:

Accepted Answer

A) allowing everything else changing. 
B) one-to-one cause-and-effect relationships. 
C) holding one variable constant. 
D) in the absence of other influences. 
A) allowing everything else changing. 
B) one-to-one cause-and-effect relationships. 
C) holding one variable constant. 
D) in the absence of other influences.

Question 13

Ceteris paribus is a German phrase that means that everything is allowed to be changed.

Accepted Answer

A) True 
 B)False

Question 14

The three basic categories of resources are land,labour and:

Accepted Answer

A) money. 
B) time. 
C) energy. 
D) capital. 
A) money. 
B) time. 
C) energy. 
D) capital.

Question 15

Which of the following is the best example of a non-renewable resource?

Accepted Answer

A) Forests. 
B) Oil. 
C) Clean air. 
D) Fish in the ocean. 
A) Forests. 
B) Oil. 
C) Clean air. 
D) Fish in the ocean.

Question 16

A positive economic statement does not have to be verifiable.

Accepted Answer

A) True 
 B)False

Question 17

An economic theory claims that a rise in petrol prices will cause petrol purchases to fall,ceteris paribus.The phrase 'ceteris paribus' means that:

Accepted Answer

A) other relevant factors like consumer incomes must be held constant. 
B) the petrol prices must first be adjusted for inflation. 
C) the theory is widely accepted but cannot be accurately tested. 
D) consumers' need for petrol remains the same regardless of the price. 
A) other relevant factors like consumer incomes must be held constant. 
B) the petrol prices must first be adjusted for inflation. 
C) the theory is widely accepted but cannot be accurately tested. 
D) consumers' need for petrol remains the same regardless of the price.

Question 18

An entrepreneur is a motivated person who seeks profit by:

Accepted Answer

A) economising. 
B) undertaking risky activities. 
C) winning in the lottery. 
D) selling shares. 
A) economising. 
B) undertaking risky activities. 
C) winning in the lottery. 
D) selling shares.

Question 19

The Minister for Employment states that wage rates in the country have risen by 2 per cent in the past year.The head of a local labour union argues that wages have to be increased more to match the 3 per cent rate of inflation.The Minister's statement is a _____ economic statement and the union head's statement is a _____ economic statement.

Accepted Answer

A) normative, normative 
B) normative, positive 
C) positive, normative 
D) positive, positive 
E) proper, improper 
A) normative, normative 
B) normative, positive 
C) positive, normative 
D) positive, positive 
E) proper, improper

Question 20

Policies to determine the price of troll dolls are a concern of macroeconomics.

Accepted Answer

A) True 
 B)False

Which of the following is included in the study of macroeconomics?

Economists most often disagree over positive rather than normative economic issues.

The most fundamental concepts underlying the discipline of economics are:

Policies to increase the supply of money in the economy are primarily a concern of microeconomics.

A television network newscaster reports that the national inflation rate the past year equalled 4 per cent.This report would be of particular interest to a _____.

Which of the following is closest to the definition of capital?

Microeconomics deals with the analysis of all the following except how:

Economics is the study of how people:

The statement: 'It is better to suffer a little more unemployment than a little lower prices',is an example of normative economic analysis.

Which of the following is capital?

Scarcity is a situation:

Ceteris paribus means:

Ceteris paribus is a German phrase that means that everything is allowed to be changed.

The three basic categories of resources are land,labour and:

Which of the following is the best example of a non-renewable resource?

A positive economic statement does not have to be verifiable.

An economic theory claims that a rise in petrol prices will cause petrol purchases to fall,ceteris paribus.The phrase 'ceteris paribus' means that:

An entrepreneur is a motivated person who seeks profit by:

Policies to determine the price of troll dolls are a concern of macroeconomics.

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 1: Thinking like an economist

Which of the following is included in the study of macroeconomics?

Economists most often disagree over positive rather than normative economic issues.

The most fundamental concepts underlying the discipline of economics are:

Policies to increase the supply of money in the economy are primarily a concern of microeconomics.

A television network newscaster reports that the national inflation rate the past year equalled 4 per cent.This report would be of particular interest to a _____.

Which of the following is closest to the definition of capital?

Microeconomics deals with the analysis of all the following except how:

Economics is the study of how people:

The statement: 'It is better to suffer a little more unemployment than a little lower prices',is an example of normative economic analysis.

Which of the following is capital?

Scarcity is a situation:

Ceteris paribus means:

Ceteris paribus is a German phrase that means that everything is allowed to be changed.

The three basic categories of resources are land,labour and:

Which of the following is the best example of a non-renewable resource?

A positive economic statement does not have to be verifiable.

An economic theory claims that a rise in petrol prices will cause petrol purchases to fall,ceteris paribus.The phrase 'ceteris paribus' means that:

An entrepreneur is a motivated person who seeks profit by:

Policies to determine the price of troll dolls are a concern of macroeconomics.

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters