Question 1

Productive efficiency is generated by _________.

Accepted Answer

A)  competition among sellers 
B)  competition among buyers 
C)  government inspectors 
D)  government production rules and regulations 
A)  competition among sellers 
B)  competition among buyers 
C)  government inspectors 
D)  government production rules and regulations A

Question 2

If it costs Danitra $225 to create four necklaces and $275 to create five necklaces,then $50 is the marginal cost of producing the fifth necklace.

Accepted Answer

A) True 
 B)False  True

Question 3

In a market economy,what is generated by voluntary exchange between buyers and sellers?

Accepted Answer

A)  Scarcity 
B)  Allocative efficiency 
C)  Productive efficiency 
D)  Equity 
A)  Scarcity 
B)  Allocative efficiency 
C)  Productive efficiency 
D)  Equity B

Question 4

Define microeconomics.
__________________________________________________________________________________________________________________________________________________________________________________________

Accepted Answer

Microeconomics is the study of

Question 5

A market economy results in _________.

Accepted Answer

A)  environmental protection 
B)  an equal income distribution 
C)  agreement on equity 
D)  voluntary exchange 
A)  environmental protection 
B)  an equal income distribution 
C)  agreement on equity 
D)  voluntary exchange

Question 6

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour if he can generate additional revenue of $200 for that hour.

Accepted Answer

A) True 
 B)False

Question 7

The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomics topic.

Accepted Answer

A) True 
 B)False

Question 8

A situation in which a good or service is produced at the lowest possible cost is _________.

Accepted Answer

A)  allocative efficiency 
B)  productive efficiency 
C)  equity 
D)  optimal marginalism 
A)  allocative efficiency 
B)  productive efficiency 
C)  equity 
D)  optimal marginalism

Question 9

An economic ________ is a simplified version of some aspect of economic life used to analyse an economic issue.

Accepted Answer

A)  market 
B)  trade-off 
C)  variable 
D)  model 
A)  market 
B)  trade-off 
C)  variable 
D)  model

Question 10

Jewellery manufacturers produce a range of products such as rings,necklaces,bracelets,and brooches.What fundamental economic question are they addressing by offering this range of items?

Accepted Answer

A)  How to produce goods that consumers want? 
B)  Why produce a variety of items? 
C)  What to produce? 
D)  Who to produce the items for? 
A)  How to produce goods that consumers want? 
B)  Why produce a variety of items? 
C)  What to produce? 
D)  Who to produce the items for?

Question 11

All economic questions arise from the fact that resources are unlimited.

Accepted Answer

A) True 
 B)False

Question 12

What are the three fundamental questions that any economy must address?

Accepted Answer

A)  What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? 
B)  What goods and services will be produced; how will these goods and services be produced; and who receives them? 
C)  Who gets jobs; what wages do workers earn; and who owns what property? 
D)  How much will be saved; what will be produced; and how can these goods and services be fairly distributed? 
A)  What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? 
B)  What goods and services will be produced; how will these goods and services be produced; and who receives them? 
C)  Who gets jobs; what wages do workers earn; and who owns what property? 
D)  How much will be saved; what will be produced; and how can these goods and services be fairly distributed?

Question 13

In a modern mixed economy,who decides what goods and services will be produced?

Accepted Answer

A)  Only the producers 
B)  Only consumers 
C)  Only the government 
D)  All of the above 
A)  Only the producers 
B)  Only consumers 
C)  Only the government 
D)  All of the above

Question 14

Marginal benefit refers to the additional benefit that your activity provides to you.

Accepted Answer

A) True 
 B)False

Question 15

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 16

Explain why economics is considered a social science.
__________________________________________________________________________________________________________________________________________________________________________________________

Accepted Answer

Economics is a social science

Question 17

Explain the economic assumption that 'people are rational'.
__________________________________________________________________________________________________________________________________________________________________________________________

Accepted Answer

'People are rational' means that economi

Question 18

Even if the population declines,scarcity will still exist.

Accepted Answer

A) True 
 B)False

Question 19

A restaurant sells a large soft drink at a fixed price of $1.79.What is the term used by economists to describe the money received from the sale of an additional large soft drink?

Accepted Answer

A)  Marginal revenue 
B)  Gross earnings 
C)  Pure profit 
D)  Net benefit 
A)  Marginal revenue 
B)  Gross earnings 
C)  Pure profit 
D)  Net benefit

Question 20

What basic economic problem has always existed and will continue to exist?

Accepted Answer

A)  Scarcity 
B)  Efficiency 
C)  Inflation 
D)  Recession 
A)  Scarcity 
B)  Efficiency 
C)  Inflation 
D)  Recession

Productive efficiency is generated by _________.

If it costs Danitra $225 to create four necklaces and $275 to create five necklaces,then $50 is the marginal cost of producing the fifth necklace.

In a market economy,what is generated by voluntary exchange between buyers and sellers?

Define microeconomics. __________________________________________________________________________________________________________________________________________________________________________________________

A market economy results in _________.

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour if he can generate additional revenue of $200 for that hour.

The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomics topic.

A situation in which a good or service is produced at the lowest possible cost is _________.

An economic ________ is a simplified version of some aspect of economic life used to analyse an economic issue.

Jewellery manufacturers produce a range of products such as rings,necklaces,bracelets,and brooches.What fundamental economic question are they addressing by offering this range of items?

All economic questions arise from the fact that resources are unlimited.

What are the three fundamental questions that any economy must address?

In a modern mixed economy,who decides what goods and services will be produced?

Marginal benefit refers to the additional benefit that your activity provides to you.

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

Explain why economics is considered a social science. __________________________________________________________________________________________________________________________________________________________________________________________

Explain the economic assumption that 'people are rational'. __________________________________________________________________________________________________________________________________________________________________________________________

Even if the population declines,scarcity will still exist.

A restaurant sells a large soft drink at a fixed price of $1.79.What is the term used by economists to describe the money received from the sale of an additional large soft drink?

What basic economic problem has always existed and will continue to exist?

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

Exam 1: Economics: Foundations and Models

Productive efficiency is generated by _________.

If it costs Danitra $225 to create four necklaces and $275 to create five necklaces,then $50 is the marginal cost of producing the fifth necklace.

In a market economy,what is generated by voluntary exchange between buyers and sellers?

Define microeconomics. __________________________________________________________________________________________________________________________________________________________________________________________

A market economy results in _________.

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour if he can generate additional revenue of $200 for that hour.

The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomics topic.

A situation in which a good or service is produced at the lowest possible cost is _________.

An economic ________ is a simplified version of some aspect of economic life used to analyse an economic issue.

Jewellery manufacturers produce a range of products such as rings,necklaces,bracelets,and brooches.What fundamental economic question are they addressing by offering this range of items?

All economic questions arise from the fact that resources are unlimited.

What are the three fundamental questions that any economy must address?

In a modern mixed economy,who decides what goods and services will be produced?

Marginal benefit refers to the additional benefit that your activity provides to you.

'An increase in the price of petrol will increase the demand for hybrid vehicles.' This statement is an example of a positive economic statement.

Explain why economics is considered a social science. __________________________________________________________________________________________________________________________________________________________________________________________

Explain the economic assumption that 'people are rational'. __________________________________________________________________________________________________________________________________________________________________________________________

Even if the population declines,scarcity will still exist.

A restaurant sells a large soft drink at a fixed price of $1.79.What is the term used by economists to describe the money received from the sale of an additional large soft drink?

What basic economic problem has always existed and will continue to exist?

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Unemployment and Inflation

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters