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Unit 1 AOS 2 Pre-Test
By Danielle D'Silva
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Last updated almost 6 years ago
15 questions
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Economics Unit 1 AOS 2 Pre-Test
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Question 1
1.
What type of Economic System does Australia operate under?
Planned Socialist Economy
Market Socialist Economy
Planned Capitalist Economy
Market Capitalist Economy
Question 2
2.
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.
Question 3
3.
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
Question 4
4.
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
Question 5
5.
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.
Question 6
6.
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
Question 7
7.
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?
Question 8
8.
The law of demand states that as price INCREASES, quantity ALSO INCREASES
True
False
Question 9
9.
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
Question 10
10.
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
Question 11
11.
The law of supply states that as price INCREASES, quantity ALSO INCREASES
True
False
Question 12
12.
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
Question 13
13.
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
Question 14
14.
At equilibrium, the quantity demanded exactly equals the quantity supplied and there is no force for further change
True
False
Question 15
15.
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