Question 1

Microeconomists would be interested in which of the following topics?

Accepted Answer

A) How the GST affected the economy. 
B) The unemployment in Europe and Australia. 
C) What is the average income in Australia. 
D) The effect of price on revenue. 
E) The growth of the economy. 
A) How the GST affected the economy. 
B) The unemployment in Europe and Australia. 
C) What is the average income in Australia. 
D) The effect of price on revenue. 
E) The growth of the economy.

Question 2

The statement: 'When buyers and sellers interact in the market,the equilibrium price is $50 per unit',is an example of normative economic analysis.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a macroeconomics topic?

Accepted Answer

A) The effect of price change on the supply of tomatoes. 
B) The market price of electricity. 
C) The interest rate and unemployment. 
D) National demand for fuel efficient cars 
E) Effects of farm subsidies on food prices. 
A) The effect of price change on the supply of tomatoes. 
B) The market price of electricity. 
C) The interest rate and unemployment. 
D) National demand for fuel efficient cars 
E) Effects of farm subsidies on food prices.

Question 4

Which of the following would eliminate scarcity as an economic problem?

Accepted Answer

A) Moderation of people's competitive instincts. 
B) Discovery of sufficiently large new energy reserves. 
C) Resumption of steady productivity growth. 
D) Economic scarcity cannot be eliminated. 
A) Moderation of people's competitive instincts. 
B) Discovery of sufficiently large new energy reserves. 
C) Resumption of steady productivity growth. 
D) Economic scarcity cannot be eliminated.

Question 5

An economic model is useful only if it:

Accepted Answer

A) contains no positive statements. 
B) captures all the complexities of reality. 
C) yields accurate predictions. 
D) has both macro- and microeconomic applications. 
A) contains no positive statements. 
B) captures all the complexities of reality. 
C) yields accurate predictions. 
D) has both macro- and microeconomic applications.

Question 6

Labour resources:

Accepted Answer

A) include only physical activities. 
B) are only counted as a resource if used in the production of other resources. 
C) include only skilled labour. 
D) include both physical and mental activities. 
E) include human effort involved in the production of goods but not services. 
A) include only physical activities. 
B) are only counted as a resource if used in the production of other resources. 
C) include only skilled labour. 
D) include both physical and mental activities. 
E) include human effort involved in the production of goods but not services.

Question 7

The study of microeconomics and macroeconomics differs in that:

Accepted Answer

A) microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy. 
B) microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy. 
C) microeconomics studies the actions of households and macroeconomics studies the actions of business firms. 
D) microeconomics studies the economy in terms of private individuals and firms while macroeconomics includes the effect of government. 
E) microeconomics examines the whole economy while macroeconomics studies the individual units of the economy. 
A) microeconomics is concerned with the domestic economy and macroeconomics is concerned only with the international economy. 
B) microeconomics examines the individual markets of the economy while macroeconomics studies the whole economy. 
C) microeconomics studies the actions of households and macroeconomics studies the actions of business firms. 
D) microeconomics studies the economy in terms of private individuals and firms while macroeconomics includes the effect of government. 
E) microeconomics examines the whole economy while macroeconomics studies the individual units of the economy.

Question 8

Which of the following is a statement of positive economics?

Accepted Answer

A) Government control of rent is a fair way to help poor people afford housing. 
B) Government control of rent keeps landlords from charging too much rent. 
C) Government control of rent decreases the number of new apartments constructed. 
D) Government control of rent is an injustice. 
A) Government control of rent is a fair way to help poor people afford housing. 
B) Government control of rent keeps landlords from charging too much rent. 
C) Government control of rent decreases the number of new apartments constructed. 
D) Government control of rent is an injustice.

Question 9

Select the normative statement that completes the following sentence: 'If the minimum wage is raised:

Accepted Answer

A) cost per unit of output will rise'. 
B) workers will gain their rightful share of total income'. 
C) the rate of inflation will increase'. 
D) profits will fall'. 
A) cost per unit of output will rise'. 
B) workers will gain their rightful share of total income'. 
C) the rate of inflation will increase'. 
D) profits will fall'.

Question 10

Economists:

Accepted Answer

A) always use diagrams and tables. 
B) never use equations or diagrams. 
C) sometimes use diagrams and equations. 
D) have to use diagrams and mathematical equations all the time. 
A) always use diagrams and tables. 
B) never use equations or diagrams. 
C) sometimes use diagrams and equations. 
D) have to use diagrams and mathematical equations all the time.

Question 11

Economists believe that scarcity forces everyone to:

Accepted Answer

A) satisfy all their wants. 
B) abandon consumer sovereignty. 
C) make choices. 
D) create unlimited resources. 
E) not to reveal their wants. 
A) satisfy all their wants. 
B) abandon consumer sovereignty. 
C) make choices. 
D) create unlimited resources. 
E) not to reveal their wants.

Question 12

Which of the following is the best example of a microeconomics topic?

Accepted Answer

A) The impact that the money supply has on inflation. 
B) The effect that government budget deficits have on the interest rate. 
C) The reasons for increases in the price of mobile phones. 
D) The trade-off between inflation and unemployment. 
A) The impact that the money supply has on inflation. 
B) The effect that government budget deficits have on the interest rate. 
C) The reasons for increases in the price of mobile phones. 
D) The trade-off between inflation and unemployment.

Question 13

Which of the following is a microeconomics topic?

Accepted Answer

A) The unemployment rate. 
B) The inflation rate. 
C) The economy's growth rate. 
D) The price of apples. 
E) Forecasts of a recession next year. 
A) The unemployment rate. 
B) The inflation rate. 
C) The economy's growth rate. 
D) The price of apples. 
E) Forecasts of a recession next year.

Question 14

An economics textbook is an example of:

Accepted Answer

A) capital. 
B) labour. 
C) a natural resource. 
D) entrepreneurship. 
A) capital. 
B) labour. 
C) a natural resource. 
D) entrepreneurship.

Question 15

If the price of textbooks rises and then students purchase fewer of them,then an economic model can show a cause-and-effect relationship only if which of the following conditions hold?

Accepted Answer

A) Students' incomes fall. 
B) Tuition decreases. 
C) The number of students increases. 
D) Everything else is constant. 
E) The bookstore no longer accepts used book trade-ins. 
A) Students' incomes fall. 
B) Tuition decreases. 
C) The number of students increases. 
D) Everything else is constant. 
E) The bookstore no longer accepts used book trade-ins.

Question 16

Which of the following would be of particular interest to a microeconomist?

Accepted Answer

A) The price of fruit the typical household consumes. 
B) The nation's inflation rate. 
C) The nation's rate of unemployment. 
D) The budget of the national government. 
E) The growth of the economy. 
A) The price of fruit the typical household consumes. 
B) The nation's inflation rate. 
C) The nation's rate of unemployment. 
D) The budget of the national government. 
E) The growth of the economy.

Question 17

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

Accepted Answer

A) The economy's real output increased at about 3 per cent last year and the unemployment rate decreased. 
B) A central bank should not print too much money because inflation could result. 
C) Parliament should stabilise the social security system by raising taxes now. 
D) A healthy economy should grow at about 5 per cent a year in order to provide enough goods for a growing population. 
E) The government farm products surplus should be distributed to the needy. 
A) The economy's real output increased at about 3 per cent last year and the unemployment rate decreased. 
B) A central bank should not print too much money because inflation could result. 
C) Parliament should stabilise the social security system by raising taxes now. 
D) A healthy economy should grow at about 5 per cent a year in order to provide enough goods for a growing population. 
E) The government farm products surplus should be distributed to the needy.

Question 18

Scarcity:

Accepted Answer

A) is a problem only in the poorer countries of the world. 
B) would disappear if resources were unlimited. 
C) can be solved by rapid advances in technology. 
D) is a problem that exists in every economy. 
E) is not a problem for the very rich. 
A) is a problem only in the poorer countries of the world. 
B) would disappear if resources were unlimited. 
C) can be solved by rapid advances in technology. 
D) is a problem that exists in every economy. 
E) is not a problem for the very rich.

Question 19

A positive economic statement is:

Accepted Answer

A) an opinion of an action that should be taken. 
B) an action that will have a positive effect on the economy. 
C) a statement testable by facts. 
D) a claim that the speaker is positive will occur. 
E) always a microeconomic position. 
A) an opinion of an action that should be taken. 
B) an action that will have a positive effect on the economy. 
C) a statement testable by facts. 
D) a claim that the speaker is positive will occur. 
E) always a microeconomic position.

Question 20

Economists use _____ economic analysis to understand an individual market.They then use _____ economic analysis to guide future national economic policy.

Accepted Answer

A) macro, normative 
B) micro, positive 
C) micro, macro 
D) normative, positive 
A) macro, normative 
B) micro, positive 
C) micro, macro 
D) normative, positive

Microeconomists would be interested in which of the following topics?

The statement: 'When buyers and sellers interact in the market,the equilibrium price is $50 per unit',is an example of normative economic analysis.

Which of the following is a macroeconomics topic?

Which of the following would eliminate scarcity as an economic problem?

An economic model is useful only if it:

Labour resources:

The study of microeconomics and macroeconomics differs in that:

Which of the following is a statement of positive economics?

Select the normative statement that completes the following sentence: 'If the minimum wage is raised:

Economists:

Economists believe that scarcity forces everyone to:

Which of the following is the best example of a microeconomics topic?

Which of the following is a microeconomics topic?

An economics textbook is an example of:

If the price of textbooks rises and then students purchase fewer of them,then an economic model can show a cause-and-effect relationship only if which of the following conditions hold?

Which of the following would be of particular interest to a microeconomist?

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

Scarcity:

A positive economic statement is:

Economists use _ economic analysis to understand an individual market.They then use _ economic analysis to guide future national economic policy.

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

Microeconomists would be interested in which of the following topics?

The statement: 'When buyers and sellers interact in the market,the equilibrium price is $50 per unit',is an example of normative economic analysis.

Which of the following is a macroeconomics topic?

Which of the following would eliminate scarcity as an economic problem?

An economic model is useful only if it:

Labour resources:

The study of microeconomics and macroeconomics differs in that:

Which of the following is a statement of positive economics?

Select the normative statement that completes the following sentence: 'If the minimum wage is raised:

Economists:

Economists believe that scarcity forces everyone to:

Which of the following is the best example of a microeconomics topic?

Which of the following is a microeconomics topic?

An economics textbook is an example of:

If the price of textbooks rises and then students purchase fewer of them,then an economic model can show a cause-and-effect relationship only if which of the following conditions hold?

Which of the following would be of particular interest to a microeconomist?

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

Scarcity:

A positive economic statement is:

Economists use _____ economic analysis to understand an individual market.They then use _____ economic analysis to guide future national economic policy.

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

Economists use _ economic analysis to understand an individual market.They then use _ economic analysis to guide future national economic policy.