Choose one option Question 1 The cross-price elasticity of demand for electric heaters with respect to…

Choose one option
Question 1
The cross-price elasticity of demand for electric heaters with
respect to price of electricity is most likely to be
Question 1 options:

A)

Negative, indicating they a substitute goods.

B)

Positive, indicating they a complementary goods.

C)

Zero, indicating the goods are not related.

D)

Negative, indicating they a complementary goods.

Question 2 (1.5 points)
How are ‘discouraged workers’ classified by the Australian
Bureau of Statistics (ABS)?
Question 2 options:

A)

Not in the labour force

B)

Unemployed

C)

Employed

D)

Part of the labour force

Question 3 (1.5 points)
When real GDP in an economy grows more slowly than the
population in that economy, which of the following must be
occurring?
Question 3 options:

A)

Nominal GDP is falling.

B)

Real GDP per capita is rising.

C)

Real GDP is falling.

D)

Living standards are falling.

Question 4 (1.5 points)
Which of the following is NOT an example of public good?
Question 4 options:

A)

Herd immunity

B)

Unprotected fishery

C)

Knowledge

D)

National defence spending

Question 5 (1.5 points)
The price elasticity of demand for petrol will be more
elastic:
Question 5 options:

A)

If there is public transport available.

B)

When considering all petrol, rather than a specific brand of
petrol such as Mobil.

C)

If petrol is a necessity, rather than a luxury good.

D)

If petrol is a complementary good rather than a substitute
good.

Question 6 (1.5 points)
If a doctor knows that an insurance company will pay for most of
a patient’s bill, the doctor has more of an incentive to require
additional medical procedures and tests, even if the patient may
not require them. This is an example of
Question 6 options:

A)

Adverse selection

B)

The principle-agent problem

C)

Symmetric information

D)

Moral hazard

Question 7 (1.5 points)
Which of the following is NOT a cause of market failure?
Question 7 options:

A)

Social norms

B)

Collusion

C)

Moral hazard

D)

Common resource

Question 8 (1.5 points)
If the assumptions of perfect competition are met, property
rights are established and there are no externalities, then for
private goods, the free market system will:
Question 8 options:

A)

Produce and allocate the socially efficient level of
output.

B)

Maximise the sum of producer and consumer surplus.

C)

All of the above.

D)

None of the above.

Question 9 (1.5 points)
When Australia and Papua New Guinea voluntarily trade goods and
services
Question 9 options:

A)

Neither benefit.

B)

Papua New Guinea benefits as it exports more to Australia.

C)

Both Australia and Papua New Guinea benefit.

D)

Australia benefits as it imports more from Papua New
Guinea.