ASSESSMEMT STUDENT NAME: POOJA PRADHAN STUDENT NUMBER: 11505769 ECO130 Business Economic Assessment item-1 Multiple Choice Quiz ECO130 ASSESSMENT NUMBER 1 (201330) (NOTE there are 20 multiple choice questions. You should allocate yourself 1. 5 minutes per multiple choice question (i. e.
a total of 30 minutes). This is NOT an open book exam. Choose the best answer from a), b), c), d) or e). Q1 Economics is the study of a) the share market and its effect on consumers and businesses b) money and how it is used by society * c) unlimited wants and limited resources d) unlimited resources and limited wantsQ2 Which of the following does not illustrate opportunity cost? * a) If I study I must give up my sport and hobbies.
b) If I purchase a new computer I must give up spoiling myself with “goodies”. c) The more I spend now the more I will be likely to spend in the future. d) If I spend more on my car the less I will have to spend on other luxuries. Q3 The opportunity cost of going to university is a) the money spent at university including all fees * b) the benefit gained from having a university degree c) dollar value of all alternatives d) the next best alternative of the money spent Q4 Which of the following is NOT a factor of production? ) land b) labour * c) a financial asset d) capital Q5 An economic model indicates that a rise in income will result in consumers purchasing fewer fast food meals, ceteris paribus.
“Ceteris paribus” means a) other relevant factors like consumer incomes must be held constant b) consumers need for food remains the same regardless of price * c) the theory is widely accepted but cannot be accurately tested d) food prices must first be adjusted for inflation Q6 Abolition of child labour in developing countries is likely to a) increase the wages of unskilled adult workers ) make school places scarcer c) shift the Production Possibilities Frontier towards the origin in the short term d) shift the Production Possibilities Frontier away from the origin in the long term * e) all of the above Q7 A band leader is deciding whether or not to take on a keyboard player. If the band adds a keyboard player it can charge an extra $100 (from $800 to $900). According to marginal analysis, the band leader should add a keyboard player if, ceteris paribus, she costs less than * a) $90 b) $100 c) $900 d) $1700Q8 On a Production Possibilities Frontier a change from economic inefficiency to economic efficiency is shown by a) a movement along the frontier * b) a movement from a point within the frontier to a point outside the frontier c) a movement from a point within the frontier to a point on the frontier d) a change in the slope of the frontier Q9 On a Production Possibilities Frontier the opportunity cost of good “A” in terms of good “B” is a) the distance of the frontier to the vertical axis b) the distance of the frontier to the horizontal axis c) the movement along the frontier d) all of the above Q10 A nation is able to increase its economic growth by a) reducing the number of skilled migrants into the country * b) adding to its stock of capital c) reducing its expenditure on research and development when in a budget deficit d) imposing tariffs and quotas on imported goods Q11 On the Production Possibilities Frontier the assumption is that a) technology is continually evolving b) unemployment occurs by the choice of the individual c) resources are completely used d) impossible to answer from the available information Q12 On a Production Possibilities Frontier, unemployment is represented by a point located a) near the middle of the frontier b) at the top of the frontier c) at the bottom of the frontier d) outside the frontier * e) inside the frontier Q13 The Australian government is in the process of raising the retirement age from 65 to 67. Assuming the all retirees refrain from working, the Production Possibilities Frontier would as a result of this change a) shift out b) shift in ) have a positive slope * d) have a negative slope Q14 The demand curve for cinema tickets shifts to the right. This would be caused by a) a fall in price of cinema tickets * b) an increase in the price of DVD’s c) a fall in consumer income d) a rise in price of cinema tickets Q15 Assuming noodles and oyster sauce are complements, a decrease in the price of noodles will a) decrease the demand for noodles b) increase the demand for noodles * c) increase the demand for oyster sauce d) decrease the demand for oyster sauceQ16 Assuming fruit juice and soft drink are substitutes, a decrease in the price of fruit juice, other things being equal, results in a) a downward movement along the demand curve for soft drink b) a leftward shift of the demand curve for soft drink c) An upward movement along the demand curve for soft drink * d) A rightward shift of the demand curve for soft drink Q17 Which of the following will result in an increase in the price of take away pizzas, ceteris paribus? a) a leftward shift in the demand curve for take away pizzas b) a downward movement along the demand curve for take away pizzas c) a rightward shift in the demand curve for take away pizzas d) an upward movement along the demand curve for take away pizzas Q18 The demand curve for good “X” is downward sloping. This means that an increase in price results in * a) an increase in demand for good “X” b) a decrease in demand for good “X” c) a larger quantity demanded for good “X” d) a smaller quantity demanded for good “X”Q19 Which of the following will cause a movement along the demand curve for good “X”? * a) a change in the price of a substitute b) a change in the price of good “X” c) a change in consumer tastes for good “X” d) a change in consumer income Q20 Assume the equilibrium price for a good is $30.
If the market price is $17 then a) a shortage will cause the price to remain at $17 b) a surplus will cause the price to fall below $17 * c) a shortage will cause the price to rise to $30 d) a surplus will cause the price to rise towards $30
