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VCE Economics U3_Unit3_Quiz1

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

When resources are limited but society's need and wants are unlimited this is referred to as:

a)

Increasing opportunity cost

b)

Diminishing marginal utility

c)

Relative scarcity

d)

Opportunity cost

2.

Which of the following is NOT an indication of the PPF shifting outward at all combinations of production levels for agricultural products and service industries

a)

Farmers become more productive

b)

All workers become more productive

c)

The cost of transportation has decreased

d)

The government reduces all business taxes

3.

If a country is producing a combination of goods and services outside the PPF in the short-run, in the long-run this will likely create:

a)

Higher unemployment and economic growth

b)

Higher unemployment and lower economic growth

c)

Higher inflation and higher unemployment

d)

Higher inflation and very low unemployment

e)

Lower inflation and higher unemployment

4.

Which of the following is NOT an essential requirement of a perfectly competitive market?

a)

Homogeneous products

b)

Many buyers and sellers

c)

Firms are price-makers

d)

Free or minimal barriers to entry and exit from the market

5.

If the price of food has increased, which of the following comments is true?

a)

Consumers have had a favourable income effect

b)

Consumers have had a favourable substitution effect

c)

Consumers have had an unfavourable income effect

d)

Consumers have had an unfavourable substitution effect

e)

it is not possible to comment on either the income or substitution effects of the change

6.

The price of bananas has decreased. In the banana market this will cause:

a)

An expansion in demand

b)

A contraction in demand

c)

A favourable shift in demand

d)

An unfavourable shift in demand

7.

The price of green beans increases. For the product for broccoli this will cause:

a)

An expansion in demand

b)

A contraction in demand

c)

A favourable shift in demand

d)

An unfavourable shift in demand

8.

Which of the following has no effect on the demand for Toyotas, ceteris paribus?

a)

Decreases in the personal income tax rates

b)

An increase in the price of steel

c)

A new study showing that Toyotas are cost efficient for a longer period of time

d)

An increase in interest rates

9.

Which of the following is the correct task word meaning "Give a detailed account of why and/or how with reference to causes, effects, continuity, change, reasons or mechanisms; make the relationships between things evident."?

a)

Discuss

b)

Account for

c)

Outline

d)

Explain

10.

Which task word means "Consider an argument, concept, debate, data point, trend or artefact in a way that identifies assumptions, possibilities and interrelationships."?

a)

Examine

b)

Explain

c)

Evaluate

d)

Outline

11.

Which task word means "Present a clear, considered and balanced argument or prose that identifies issues and shows the strengths and weaknesses of, or points for and against, one or more arguments, concepts, factors, hypotheses, narratives and/or opinions"?

a)

Outline

b)

Evaluate

c)

Discuss

d)

Contrast

12.

Which task word means "Ascertain the value or amount of; make a judgment using the information supplied, criteria and/or own knowledge and understanding to consider a logical argument and/or supporting evidence for and against different points, arguments, concepts, processes, opinions or other information"?

a)

Expose

b)

Evaluate

c)

Justify

d)

Analyse

13.

Which task word means "Identify components/elements and the significance of the relationship between them; draw out and relate implications; determine logic and reasonableness of information"?

a)

Interpret

b)

Discuss

c)

Contrast

d)

Analyse

14.

Which of the following would cause a favourable shift in supply for shoes?

a)

An increase in the price of thongs

b)

A decrease in the price of leather

c)

An increase in the price of leather

d)

A decrease in the price of thongs

15.

Which is NOT a factor affecting PED?

a)

Time

b)

Necessity

c)

Number of substitutes

d)

Number of complements

16.

If the relative price of Samsung tablets to iPads drops then the FOP will:

a)

Divert towards iPad production

b)

Divert towards Samsung production

c)

Remain the same

d)

Could go either way