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 the average income is in Australia. 
D)  The effect of price on an individual household's expenditure. 
E)  The growth of the economy. 
A)  How the GST affected the economy. 
B)  The unemployment in Europe and Australia. 
C)  What the average income is in Australia. 
D)  The effect of price on an individual household's expenditure. 
E)  The growth of the economy.

Question 2

A model (or theory):

Accepted Answer

A)  is a statement about the causal relationship between variables, based on intuition. 
B)  helps explain but cannot predict the relationship between variables. 
C)  when expressed as an upward sloping graph, implies an inverse relationship between the variables. 
D)  is a simplified description of reality. 
A)  is a statement about the causal relationship between variables, based on intuition. 
B)  helps explain but cannot predict the relationship between variables. 
C)  when expressed as an upward sloping graph, implies an inverse relationship between the variables. 
D)  is a simplified description of reality.

Question 3

Scarcity:

Accepted Answer

A)  is a problem only in the poorer countries of the world. 
B)  will disappear if the country is rich. 
C)  can be solved by rapid advances in technology. 
D)  is a problem that exists in every economy with limited resources. 
E)  is not a problem for the developed countries. 
A)  is a problem only in the poorer countries of the world. 
B)  will disappear if the country is rich. 
C)  can be solved by rapid advances in technology. 
D)  is a problem that exists in every economy with limited resources. 
E)  is not a problem for the developed countries.

Question 4

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 5

A positive economic statement is:

Accepted Answer

A)  an opinion of an action that should be taken. 
B)  an action that will have no effect on the economy. 
C)  a statement testable by facts. 
D)  a claim that the speaker has no idea. 
A)  an opinion of an action that should be taken. 
B)  an action that will have no effect on the economy. 
C)  a statement testable by facts. 
D)  a claim that the speaker has no idea.

Question 6

The statement: 'It would be better to put up with price controls than to have continuing higher medical care prices', is an example of normative economic analysis.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  The price of an apple. 
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 an apple. 
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 8

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 9

'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.

Microeconomists would be interested in which of the following topics?

A model (or theory):

Scarcity:

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

A positive economic statement is:

The statement: 'It would be better to put up with price controls than to have continuing higher medical care prices', is an example of normative economic analysis.

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

Which of the following is a microeconomics topic?

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

Applying Graphs to Economics

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: Housing Affordability 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

Filters

Exam 1: Thinking Like an Economist

Microeconomists would be interested in which of the following topics?

A model (or theory):

Scarcity:

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

A positive economic statement is:

The statement: 'It would be better to put up with price controls than to have continuing higher medical care prices', is an example of normative economic analysis.

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

Which of the following is a microeconomics topic?

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

Applying Graphs to Economics

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: Housing Affordability 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

Filters