Inflation and unemployment:
are the focus of macroeconomics
are the focus of positive economics
are the focus of microeconomics
are
... [Show More] the focus of economic history
A study of how the changes in minimum wage rates in Australia will affect the rate of unemployment rate among unskilled workers is a _____issue.
macroeconomics
descriptive economics
normative economics
microeconomics
An economic model is:
an overly simplified depiction of the real world, used only in introductory economics
a complex mathematical analysis of the real world used only by experienced economists
a simplified representation of the real world used to understand relationships between economic variables
a complex diagrammatic depiction of the real world used to confuse economic students
The idea of choice would not be needed if:
no one was poor
we were just looking at one person's lifestyle
capital were eliminated
scarcity did not exist
Which of the following is a reason to study economics?
to understand society
to understand global affairs
to be an informed consumer
all of the above
Which of the following is the best definition of economics?
the study of how firms decide what inputs to hire and what outputs to produce
the study of how governments allocate tax revenue
the study of how consumers spend their income
the study of how individuals and societies choose to use their scarce resources
During times of war, many of a country's resources are often destroyed. This would be shown on a production possibility curve (PPC) by:
a shift of the PPC back and to the left
a movement down along the PPC
a movement up along the PPC
a movement of prediction levels from a point on the PPC to some point inside the PPC
The 'for whom' question is concerned with:
the combination of goods and services used in production
who produces what goods and services
who demands what goods and services
the distribution of income
The branch of economics that examines the economic behaviour of aggregates such as income and employment is:
macroeconomics
normative economics
positive economics
microeconomics
Aggregate supply is the total amount of:
goods and services produced by the government
labour supplied by all households
goods and services produced in an economy
goods and services produced by a particular industry
Opportunity cost is defined as:
the wages paid by a firm to its workforce
the lowest price at which a good can be purchased
the value of the next best alternative that is not chosen
none of the above
The process by which resources are transformed into useful items is:
allocation
capitalisation
production
consumption
Which of the following would NOT be called a resource by economists?
money
labour
buildings
land
A change in the tax system designed to encourage single-parents to work is a/an:
supply-side policy
incomes policy
demand-side policy
anti-inflation policy
The economic problem of scarcity exists because:
technological advances have increased the rate at which natural resources are being depleted
the world's resources are insufficient to sustain the global population
global warming is increasing the rate at which the natural resources are being depleted
human wants are assumed to be virtually unlimited meaning resources will always be scarce relative to wants
The study of why a person may decide to go to university instead of accepting a $40 000 a year job would be considered a/an ______ issue.
microeconomics
macroeconomics
industrial relations
public sector economics
Studying how the management of Telstra decides what price to charge customers for its G3 mobile network is a _______ issue.
positive economics
microeconomics
normative economics
macroeconomics
The opportunity cost of being a full-time student is:
the loss of earnings had you chosen to work instead plus student fees
the cost of accommodation and food during your time studying
the loss of earnings had you chosen to work instead
having to miss out on lots of parties while you are busy studying all the time
Microeconomics is the branch of economics that examines:
outcomes of economic behaviour, evaluates them as good or bad, and prescribes preferred courses of action
ways to understand behaviour and the operation of systems without making judgements
the functioning of individual industries and the behaviour of individual decision-making units, that is, business firms and households
the economic behaviour of income, employment, and output on a national scale
The problem of scarcity occurs:
only in recent times as the rate of resource use has increased
in all countries
only in wealthy countries due to high levels of consumer demand
only in poor countries
The factors of production include:
labour, land and raw materials and capital
land, labour, raw materials and money
land, raw materials and capital
labour, land and raw materials
The reason that opportunity costs arise is that:
there are no alternative decisions that could be made
an economy relies on money to facilitate exchange of goods and services
resources are scarce
people have unlimited wants
Economists define inflation as:
a decrease in the overall price level
a decrease in the overall level of economic activity
an increase in the overall level of economic activity
an increase in the overall price level
The opportunity cost of going on a holiday to an unemployed person is:
zero, as the person does not have a next best alternative
zero, as the person is not foregoing any wages to take the holiday
equal to the cost of the holiday plus the alternative use of the person's time
equal to the cost of the holiday only
Economists say that there is unemployment when:
at the going wage rate there are people who want to work but cannot find work
there are less unfilled vacancies than there are people seeking work
there are people who are not willing to work at the going wage rate
there is excess demand in the labour market
A retired individual decides to spend the day golfing. The opportunity cost of this decision:
is zero, since the individual is retired and is not forgoing any income to spend his time golfing
equals the cost of the golf outing plus the value of the individual's alternative use of time
is best measured by using the wage rate this individual earned prior to retirement
is equal to the cost of the golf outing
Opportunity cost is best defined as the:
next best alternative that is not chosen
price paid for a good or service
leisure time that is lost due to increased hours at work
cost to producers resulting from a failed investment opportunity [Show Less]