If the overall unemployment rate is 7%, the youth unemployment rate will be around 20%

This is a positive economic statement

If Coke and Pepsi are substitutes, an increase in the price of Coke will result in

a rightward shift in the demand curve for Pepsi

The supply curve shows that

Price and Qs are positively related

If costs of production increase, we would expect to see

a leftward shift of the supply curve

the next best alternative for a chosen option

When supply shifts to the left (decrease in supply)

Price increases and Qd decreases

a downward sloping demand curve means that

There is a negative relationship between Qd and Price

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Revision

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Revision for Test 1

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Questions 15

Answers

1
If the overall unemployment rate is 7%, the youth unemployment rate will be around 20%
This is a normative economic statement
This is a positive economic statement
2
Scarcity forces individuals, businesses and governments to make choices
True
False
3
When demand decreases
Both price and Qs rise
Price rises and Qs falls
Both price and Qs fall
Price falls and Qs rises
4
If Coke and Pepsi are substitutes, an increase in the price of Coke will result in
a leftward shift in the demand curve for Pepsi
a movement along the demand curve for Pepsi
a rightward shift in the demand curve for Pepsi
5
Microeconomics focuses on
inflation
economy-wide effects
individual markets
interest rates
6
A movement along the demand curve is caused by
a change in a non-price determinant
a change in price
7
The supply curve shows that
Price and Qs are positively related
Price and Qs are negatively related
8
If costs of production increase, we would expect to see
a rightward shift of the supply curve
an increase in the demand for the product being produced
a leftward shift of the supply curve
a decrease in the demand for the product being produced
9
Opportunity cost is
the dollar value of the cost incurred in making a decision
both answers added together are correct
the next best alternative for a chosen option
10
Which of the following is not a factor of production?
capital
shares
land
labour
11
Every choice involves and opportunity cost
True
False
12
When supply shifts to the left (decrease in supply)
Both price and Qd fall
Both price and Qd rise
Price increases and Qd decreases
Price decreases and Qd increases
13
a downward sloping demand curve means that
There is a positive relationship between Qd and Price
There is a negative relationship between Qd and Price
14
When the demand curve shifts to the right (increase in demand)
Price increases and Qs decreases
Both price and Qs decrease
Price and Qs both increase
Price decreases and Qs increases
15
On the PPF, unemployment is represented by a point
outside the PPF
on the PPF
inside the PPF

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