Economics Quiz (2010 Complete)

Which of the following is a benefit of higher productivity?

• Higher rate of inflation

• Higher rate of economic growth

• Higher per unit production costs

• Increase in working hours

The following table shows the production possibility schedule of two goods for an economy. If the economy is operating at combination B, what is the opportunity cost of producing 200 cordless phones?

• 700 headsets

• 500 headsets

• 250 headsets

• 200 headsets

The following table shows the quantity demanded at various prices for a sports drink. What is the price elasticity of demand between $4.00 and $4.50? (Use the total outlay method for calculation of price elasticity.)

• Perfectly elastic demand

• Relatively elastic demand

• Relatively inelastic demand

• Unit elastic demand

Which of the following tax types is characterised by the impact and incidence of taxation being paid by the same person or group in an economy?

• Customs duty

• Excise duty

• Goods and services tax

• Income tax

The following diagram shows the market for nurses. Which of the following statements is correct?

• At a wage rate of W2 there is a shortage of nurses

• At a wage rate of W1 the demand for nurses is equal to supply

• At a wage rate of W there is a surplus of nurses

• At a wage rate of W1 there is market equilibrium

Which of the following institutions is responsible for the supervision of banks and superannuation funds?

• The Australian Securities Exchange (ASX)

• The Australian Prudential Regulation Authority (APRA)

• The Reserve Bank of Australia (RBA)

• The Australian Securities and Investments Commission (ASIC)

Which of the following market structures is characterised by barriers to entry into the industry and long run pure economic profit?

• Oligopoly

• Monopolistic competition

• Monopoly

• Perfect competition

Which of the following is the equilibrium condition for an economy with no international trade?

• S + T = I + G

• S + T + X = I + G + M

• S + I = T + G

• T = G

The following table shows data for the composition of Australia’s workforce between 2009 and 2010. Which of the following statements is correct?

• The participation rate in 2009 was 62.5%.

• The unemployment rate in 2010 was 5.4%.

• The labourforce totalled 11,410,000 persons in 2010.

• The unemployment rate was 5.8% in 2009.

The following diagram shows a firm's long run average cost curve (LRAC). If a firm is producing an output of OG, which of the following situations is it experiencing?

• Increasing returns to scale

• Decreasing returns to scale

• Optimum returns to scale

• Constant returns to scale