Economic question

1.Which of the following would NOT be a favoured strategy for promoting economic growth by government interventionists?

a.Encourage competition through deregulation

b.Increased taxes to fund education

c.Public investment in important infrastructure

d.Government funding of research

2.Why is GVA contribution seen as a better indicator of output by industry than GDP contribution?

a.It takes leakage into account

b.It takes inflation into account

c.It considers the future value of money

d.It removes the differential impact of taxes and subsidies

3.If the cross-price elasticity of demand between sushi and soy sauce is negative:

a.an increase in the price of soy sauce will have no effect on the equilibrium price of sushi

b.an increase in the price of soy sauce will cause an increase in the equilibrium price of sushi

c.an increase in the price of soy sauce will cause a decrease in the equilibrium price of sushi

d.sushi and soy sauce are substitutes

4.Which of the following is NOT a social benefit of a project to turn a disused dockland area into a public recreation area?

a.

Revenue from caf licences granted by the local authority.

b.

Provision of open space for community arts performances.

c.

Improved aesthetics.

d.

Increased public utility from bike tracks through the area.

1. In Australia an increase in the price of petrol has led to an increase in demand for airline tickets. This shows that:

a.petrol must be an inferior good

b.airline tickets must be a normal good

c.petrol and airline tickets are compliments

d.petrol and airline tickets are substitutes

6.Which of the market structures is characterised by having identical products:

a.a perfectly competitive market

b.an oligopoly market

c.a monopoly

d.a monopolistically competitive market

7.The branch of economics that studies aggregate economic quantities, such as the level and growth rate of national output is called:

a.positive economics

b.microeconomics

c.normative economics

d.macroeconomics

8.Which of the following would probably NOT be observed during a period of economic growth?

a.Increased household spending on tourism and leisure goods.

b.Increasing unemployment.

c.Increasing inflation.

d.Increasing imports.

9.If the total cost is $10,000 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.$100 per unit

b.$10per unit

c.$60per unit

d.$40per unit

10.A vertical demand curve:

a.is perfectly elastic

b.is unit elastic

c.is elastic throughout

d.is perfectly inelastic