Question 1

Which of the following is a statement of positive economics?

Accepted Answer

A) Government should spend more on education. 
B) Creating jobs is the most serious problem facing the Australian economy. 
C) Raising taxes provides additional revenue to finance health care. 
D) If taxes are over 50 per cent of national income, job creation falls. 
A) Government should spend more on education. 
B) Creating jobs is the most serious problem facing the Australian economy. 
C) Raising taxes provides additional revenue to finance health care. 
D) If taxes are over 50 per cent of national income, job creation falls.

Question 2

Scarcity means that it is impossible to satisfy every desire.

Accepted Answer

A) True 
 B)False

Question 3

'An increase in the federal minimum wage causes an increase in unemployment among teenagers' is a:

Accepted Answer

A) statement of positive economics. 
B) statement of normative economics. 
C) testable value judgement. 
D) fallacy of composition. 
A) statement of positive economics. 
B) statement of normative economics. 
C) testable value judgement. 
D) fallacy of composition.

Question 4

Which of the following is not an example of a factor of production?

Accepted Answer

A) A lake. 
B) A cow. 
C) A union leader. 
D) Dollars. 
A) A lake. 
B) A cow. 
C) A union leader. 
D) Dollars.

Question 5

Economics studies decision making by a single individual.

Accepted Answer

A) True 
 B)False

Question 6

To abstract from reality in an economic model means that:

Accepted Answer

A) we include all aspects of reality. 
B) the economic study surveys only a very limited period of time. 
C) we include only those elements which support our hypothesis. 
D) the model includes some non-important aspect of the real world. 
E) only essential aspects of reality are included. 
A) we include all aspects of reality. 
B) the economic study surveys only a very limited period of time. 
C) we include only those elements which support our hypothesis. 
D) the model includes some non-important aspect of the real world. 
E) only essential aspects of reality are included.

Question 7

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

Accepted Answer

A) The inflation rate in Australia decreased from 4 per cent last year to 3 per cent this year as a result of lower energy prices. 
B) The economy grew at an annual rate of 5 per cent during the first quarter of this year. 
C) If two automobile companies merge, it is likely that the price of automobiles will rise. 
D) An increase in international trade benefits some workers but hurts others. 
E) Australia should use more renewable energy to reduce greenhouse gas emissions. 
A) The inflation rate in Australia decreased from 4 per cent last year to 3 per cent this year as a result of lower energy prices. 
B) The economy grew at an annual rate of 5 per cent during the first quarter of this year. 
C) If two automobile companies merge, it is likely that the price of automobiles will rise. 
D) An increase in international trade benefits some workers but hurts others. 
E) Australia should use more renewable energy to reduce greenhouse gas emissions.

Question 8

The finite nature of the economy's resource base:

Accepted Answer

A) would be solved if only we would learn to conserve. 
B) arises out of the insatiable appetite of consumers. 
C) is only a problem in developing countries. 
D) will be solved as technology advances. 
E) will always be with us. 
A) would be solved if only we would learn to conserve. 
B) arises out of the insatiable appetite of consumers. 
C) is only a problem in developing countries. 
D) will be solved as technology advances. 
E) will always be with us.

Question 9

Which of the following is not a resource?

Accepted Answer

A) Land. 
B) Labour. 
C) Money. 
D) Capital. 
A) Land. 
B) Labour. 
C) Money. 
D) Capital.

Which of the following is a statement of positive economics?

Scarcity means that it is impossible to satisfy every desire.

'An increase in the federal minimum wage causes an increase in unemployment among teenagers' is a:

Which of the following is not an example of a factor of production?

Economics studies decision making by a single individual.

To abstract from reality in an economic model means that:

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

The finite nature of the economy's resource base:

Which of the following is not a resource?

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 a statement of positive economics?

Scarcity means that it is impossible to satisfy every desire.

'An increase in the federal minimum wage causes an increase in unemployment among teenagers' is a:

Which of the following is not an example of a factor of production?

Economics studies decision making by a single individual.

To abstract from reality in an economic model means that:

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

The finite nature of the economy's resource base:

Which of the following is not a resource?

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