Economics (final revision)

Question 1

PPF shows maximum output of an economy when all resources are fully and efficiently employed

Accepted Answer

True

Question 2

Drought occurs completely destroying soil used to grow strawberries, the PPF would move...

Accepted Answer

inwards

Question 3

As the price of one rises, the demand for the other rises is a

Accepted Answer

substitute

Question 4

A drill press tool can be catergorised as

Accepted Answer

Capital

Question 5

Cost of inputs, state of technology, natural disasters, taxes and subsidies on goods are...

Accepted Answer

Conditions of supply

Question 6

Having more resources moves the entire PPF outwards.

Accepted Answer

True

Question 7

Wants are...

Accepted Answer

Things we desire but can survive without

Question 8

Capital refers to the tools and machines used to produce goods.

Accepted Answer

Correct

Question 9

PPF shows the possible production...

Accepted Answer

options for a business, individual or economy

Question 10

An accountant can be categorised as...

Accepted Answer

Labour

Question 11

An increase in personal income tax will...

Accepted Answer

shift the demand curve to the left

Question 12

The demand and supply curves will shift when there is a change in circumstances.

Accepted Answer

True

Question 13

Resources are factors of production

Accepted Answer

True

Question 14

Needs are...

Accepted Answer

Things we physically can't live without

Question 15

If the market price changes there is a movement along the demand curve.

Accepted Answer

True

Question 16

Excess demand results when quantity supplied exceeds quantity demanded

Accepted Answer

False

Question 17

PPF stands for...

Accepted Answer

Production Possibility Frontier

Question 18

The opportunity cost is not being able to have your second choice.

Accepted Answer

True

Question 19

Economic growth is...

Accepted Answer

a rise in the productive potential of the economy

Question 20

In Australia we use the market mechanism with some help from the government.

Accepted Answer

True

Question 21

A famous rapper makes capes cool is a condition of

Accepted Answer

Demand

Question 22

To make an opportunity cost decision we first consider the...

Accepted Answer

Pros and Cons

Question 23

A technological advance will shift the...

Accepted Answer

supply curve downwards and to the right

Question 24

Wants and needs exceeding limited resources leads to...

Accepted Answer

Scarcity

Question 25

A competitive market means buyers and sellers compete for the best deal.

Accepted Answer

Correct

Question 26

Consumer income, consumer tastes, price of other goods. seasons are...

Accepted Answer

conditions of demand

Question 27

At $0.80 consumers demand 500 Mars Bars, but suppliers supply 950, there is excess

Accepted Answer

supply of 450 Mars Bars

Question 28

Factors of production are inputs or resources used to produce goods and services.

Accepted Answer

Correct

Question 29

Why does the supply curve slope upwards?

Accepted Answer

As the price rises selling the good becomes more profitable

Question 30

Every market has two parts consisting of...

Accepted Answer

Demand and supply

Question 31

500 units of quantity demanded equals 800 units of quantity supplied is...

Accepted Answer

not the market clearing price

Question 32

The law of demand is as price increases, quantity demanded decreases...

Accepted Answer

and as price falls, quantity demanded increases

Question 33

A fish can be categorised as...

Accepted Answer

Land

Question 34

The demand curve shows the relationship between the...

Accepted Answer

price of a good and the quantity demanded

Question 35

An increase in company tax will..

Accepted Answer

shift the supply curve upwards and to the left

Question 36

High prices attract new firms to the industry.

Accepted Answer

True

Question 37

The basic economic problem is there are...

Accepted Answer

limited factors of production, but unlimited wants and needs

Question 38

Natural resources that we use to produce goods is a factor of production known as...

Accepted Answer

Land

Question 39

The conditions of demand will shift the supply curve.

Accepted Answer

False

Question 40

After buying a new tractor, the PPF would move...

Accepted Answer

Outwards

Question 41

Economics is study of how society makes...

Accepted Answer

Choices

Question 42

The next best alternative forgone is...

Accepted Answer

Opportunity cost

Question 43

When either curve shifts, the point of intersection (equilibrium) will move and the...

Accepted Answer

equilibrium price and quantity will change

Question 44

Markets decide on...

Accepted Answer

prices

Question 45

Inside the PPF means all resources are being used efficiently.

Accepted Answer

False

Question 46

Two classes of goods which affect the consumption of others are...

Accepted Answer

Substitutes and complements

Question 47

Goods consumed together are...

Accepted Answer

Complements

Question 48

Population and demographic change are a condition of demand.

Accepted Answer

True

Question 49

Buyers and sellers make their decisions based upon the...

Accepted Answer

market price

Question 50

The prime minister of Australia is

Accepted Answer

Malcolm Turnbull

Economics (final revision)

Questions 50

Economics (final revision)

Questions 50