Exam 1: Ten Lessons From Economics

According to Peltzman, one effect of a government-imposed seatbelt law has been:

Which is the most correct statement about the 'invisible hand'?

The country's standard of living is generated by its:

The Australian government redistributes income from the rich to the poor. Explain how this action affects equity as well as efficiency in the economy.

In the recent Global Financial Crisis, the US economy went from a situation of full employment to one of 12 per cent unemployment. What do you assume happened to prices?

If the government redistributes income from the rich to the poor:

Coordination of economic activity in a market economy is achieved by:

Which of the following resources is least likely to meet the definition of scarcity?

In Australia, it would be possible to justify a higher income tax on the rich by potential gains in:

Which of these consumption activities is most likely to cause an external cost?

Efficiency refers to the size of the economic pie and equity refers to how the pie is divided.

The opportunity cost of going to university is:

Australian government policies announcing when changes to child benefits would occur had no effect on the timing decision of some Australian families to have babies.

Australia can benefit from trade if it

Periods of high, persistent inflation are almost always caused by:

Almost all variation in living standards is attributable to differences in countries':

While the 'invisible hand' cannot guarantee efficiency, it is better at guaranteeing equity.

In what case can a government's attempt to lower inflation have an effect on student numbers at TAFE/universities?

Economists study how individuals make decisions, how they interact with each other and the factors that affect the economy as a whole.

Economists have recognised that people respond to: