1. Which of the following is a common effect of structural decline in an urban economy?

a. More people move into the area.

b. Low vacancy rates for business units.

c. Rising house prices.

d. Loss of local tax revenue.

2. Which of the following would NOT be considered a Macroeconomics topic?

	a.	A study of flow-on effects of tourism direct expenditure.
	b.	The role of tourism exports in Australia's international trade in services.
	c.	An investment decision by an airline to buy new planes.
	d.	The relationship between tourism marketing expenditure in source markets and visitor arrivals.

3. Which of the following macroeconomic indicators is likely to be associated with an increase in household consumption?

	a.	An increase in bank interest rates on home lending (mortgages).
	b.	Low consumer confidence.
	c.	A reduction in income tax rates.
	d.	A rise in unemployment.

4. When a restaurant pays for insurance on its building and contents this is an example of....

	a.	Induced tourism expenditure
	b.	Indirect tourism expenditure
	c.	Peripheral tourism expenditure
	d.	Direct tourism expenditure

5. The branch of economics that studies the decisions of individual households and firms is called:

	a.	positive economics
	b.	macroeconomics
	c.	microeconomics
	d.	normative economics

6. Which of the following would result in a shift of the supply curve for airline seats to the right?

	a.	increased take-off and landing fees charged by airports
	b.	new employment awards that reduced labour costs
	c.	additional security costs
	d.	an increase in the price of airline tickets

7. If the total cost is $6,000 and the total fixed cost is $4,000 at an output level of 100 units per period, the average variable cost must be equal to:

	a.	$200 per unit
	b.	$20per unit
	c.	$60per unit
	d.	$40per unit

8. Which of the following is a social benefit of a project to extend the G-link light rail service from Broadbeach to Burleigh?

	a.	Easier access to the beach
	b.	Jobs created in the construction phase
	c.	Fewer greenhouse gases from reduced car usage
	d.	Revenue from ticket sales

9. If the Australian dollar decreased in value relative to other currencies which of the following outcomes would you expect, ceteris paribus?

	a.	Fewer international tourists coming to Australia and fewer domestic tourists travelling overseas.
	b.	Fewer international tourists coming to Australia and more domestic tourists travelling overseas.
	c.	More international tourists coming to Australia and fewer domestic tourists travelling overseas.
	d.	More international tourists coming to Australia and more domestic tourists travelling overseas.

10. If the noise from a sport event affects the enjoyment of tourists trying to have a picnic nearby what type of externality does that represent?

	a.	Production on consumption
	b.	Consumption on production
	c.	Production on production
	d.	Consumption on consumption