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1

What type of Economic System does Australia operate under?

Planned Socialist Economy

Market Socialist Economy

Planned Capitalist Economy

Market Capitalist Economy

1

In the Australian economy, which of the following is most correct?

Decisions are mostly made by the government and there is private ownership of most resources and businessess.

It is through the operation of the market system that some decisions are made about how to allocate resources.

The government owns most of the means of production.

Demand and supply operate to create price signals to the owners of resources to help them answer the three basic questions, and there is a dominance of private enterprise or capitalism.

1

A market is best defined as

a virtual space where buyers and sellers meet to exchange goods and services for money

a physical place where buyers and sellers meet to exchange goods and services for money

an institution or organisation where buyers and sellers of a particular good or service negotiate an agreeable or equilibrium price.

an organisation that sells goods and services to buyers for prices that they c

1

Which of the following is not a condition of a perfectly competitive market?

There are many buyers and sellers competiting

Products are homogenous (virtually identical)

Regulations and controls are set by the government

Sellers seek to maximise profits, and both buyers and sellers have good knowleddge about the changing market conditions

1

Which statement is false about different types of market structures?

Perfect or pure monopoly exists when there is a single producer or seller in the market.

Oligopolies exist when there are many large firms competing strongly in the market.

Perfect or pure competition exists when there are many rival firms, each selling an identical or

homogeneous product.

Monopolistic competition exists when there are quite a few competing producers in a market, each selling a product differentiated by brand names and other elements.

1

Which of the following is not an effect of market power and structure?

Competion means higher efficiency in allocating resources

Competion means lower prices and greater purchasing power for consumers

Competion means higher materiall wellbeing and living standars

Competion means less output of particular goods and services

1

Markets make key economic decisions based on which combination of questions?

What to produce, how much to produce and for whom to produce?

What to produce, how to produce and for whom to produce?

What and how much to produce, how to produce and for whom to produce?

How much to produce, how to produce and for whom to produce?

1

The law of demand states that as price INCREASES, quantity ALSO INCREASES

Nokorɛ

Ɛnyɛ ampa

1

Which of the following causes a movement ALONG the demand curve/ line?

A rise or fall in disposable income

An increase or decrease in the price of a substitute

A change in consumer confidence

An increase or decrease in price

1

Which of the following causes a movement of the ENTIRE demand curve/ line to the left or right?

An increase or decrease in the price of a substitute

A decrease in price

An increase in productivity

An increase in price

1

The law of supply states that as price INCREASES, quantity ALSO INCREASES

Nokorɛ

Ɛnyɛ ampa

1

Which of the following causes a movement ALONG the supply curve/ line?

An increase or decrease in price

An increase or decrease in efficiency

A change in climatic conditions

An increase or decrease in the cost of resources

1

Which of the following causes a movement of the ENTIRE supply curve/ line to the left or right?

An increase in price

A decrease in price

An increase or decrease in the price of a substitute

An increase or decrease in the cost of resources

1

At equilibrium, the quantity demanded exactly equals the quantity supplied and there is no force for further change

Nokorɛ

Ɛnyɛ ampa

1

In a perfectly or purely competitive market for sunglasses, equilbrium exists when:

there is no shortage or surplus

the quantity supplied equals the quantity demanded

there is no tendency for the market price to rise or fall

all of the above conditions are met

Unit 1 AOS 2 Pre-Test

Unit 1 AOS 2 Pre-Test

What type of Economic System does Australia operate under?

In the Australian economy, which of the following is most correct?

A market is best defined as

Which of the following is not a condition of a perfectly competitive market?

Which statement is false about different types of market structures?

Which of the following is not an effect of market power and structure?

Markets make key economic decisions based on which combination of questions?

The law of demand states that as price INCREASES, quantity ALSO INCREASES

Which of the following causes a movement ALONG the demand curve/ line?

Which of the following causes a movement of the ENTIRE demand curve/ line to the left or right?

The law of supply states that as price INCREASES, quantity ALSO INCREASES

Which of the following causes a movement ALONG the supply curve/ line?

Which of the following causes a movement of the ENTIRE supply curve/ line to the left or right?

At equilibrium, the quantity demanded exactly equals the quantity supplied and there is no force for further change

In a perfectly or purely competitive market for sunglasses, equilbrium exists when:

What type of Economic System does Australia operate under?

In the Australian economy, which of the following is most correct?

A market is best defined as

Which of the following is not a condition of a perfectly competitive market?

Which statement is false about different types of market structures?

Which of the following is not an effect of market power and structure?

Markets make key economic decisions based on which combination of questions?

The law of demand states that as price INCREASES, quantity ALSO INCREASES

Which of the following causes a movement ALONG the demand curve/ line?

Which of the following causes a movement of the ENTIRE demand curve/ line to the left or right?

The law of supply states that as price INCREASES, quantity ALSO INCREASES

Which of the following causes a movement ALONG the supply curve/ line?

Which of the following causes a movement of the ENTIRE supply curve/ line to the left or right?

At equilibrium, the quantity demanded exactly equals the quantity supplied and there is no force for further change

In a perfectly or purely competitive market for sunglasses, equilbrium exists when: