1. Which of the following is true of public goods?

	a.	They are non-rival and non-excludable
	b.	They are rival and non-excludable
	c.	They are rival and excludable
	d.	They are non-rival and excludable

2. If the cross-price elasticity of demand between beer and nuts is negative:

	a.	beer and nuts are substitutes
	b.	an increase in the price of beer will cause a decrease in the equilibrium price of nuts
	c.	an increase in the price of beer will have no effect on the equilibrium price of nuts
	d.	an increase in the price of beer will cause an increase in the equilibrium price of nuts

Which of the following would NOT be a favoured strategy for promoting economic growth by free market advocates?

	a.	Government funding of research
	b.	Encourage entrepreneurship and risk
	c.	Encourage competition through deregulation
	d.	Reduced taxes to increase incentives

3. The average price of airline tickets from Brisbane to Sydney in a destination will tend to decrease if:

	a.	there is a surplus at the current price
	b.	the quantity supplied is less than the quantity demanded at the current price
	c.	the current price is below equilibrium
	d.	all of the other answers are true

4. If an unexpected event results in all the hotel and motel accommodation in a small town being booked out for the weekend, the immediate supply curve (i.e. this weekend) is:

	a.	perfectly inelastic
	b.	downward sloping
	c.	perfectly unit elastic
	d.	perfectly elastic

5. Which of the following is an expected internal economy of scale in a growing / expanding hotel chain?

	a.	The chain has to reduce the price of its rooms as it adds new hotels to its operations
	b.	The hotel chain has to pay higher prices for its inputs as it grows in size
	c.	The chain benefits from local improvements in infrastructure such as roads and airports
	d.	Reduced administrative costs through centralised management functions

6. Which of the following is the most likely source of funding for economic development via tourism in developing economies?

	a.	Domestic savings
	b.	Foreign aid
	c.	Government investment
	d.	Private foreign investment

7. Data from the economy of a tourism destination shows that for every dollar spent by tourists in the region $0.5 dollar (50 cents) leaks out of the regional economy. What is the tourism multiplier for this region?

	a.	1.5
	b.	2.00
	c.	4.00
	d.	0.5

8. Which of the following is NOT an example of trade liberalisation?

	a.	Removing import quotas
	b.	Reducing import tariffs
	c.	Reducing export subsidies
	d.	Increasing export subsidies

9. If people who are concerned about coronavirus cancel their international holiday plans and decide to take a domestic holiday instead, one would expect the demand for domestic holidays to increase (all other things remaining equal). In terms of supply and demand curves this is best represented as:

	a.	a shift to the left of the demand curve
	b.	a movement down along the demand curve
	c.	a movement up along the demand curve
	d.	a shift to the right of the demand curve

10. If an investment is likely to become obsolete quickly what is the most important criterion for appraising the investment?

	a.	High rate of return
	b.	Fast payback
	c.	Value of money when payback occurs
	d.	Duration of earnings