IMSU Economics 2012/2013 Past Questions

Practice each question, then open it to see the full details.

Question 1

The opportunity cost of a good is

A.the time lost in finding it
B.the quantity of other goods sacrificed to get another unit of that goods
C.the expenditure on the goods
D.the loss of interest in using savings.

Objective

Question 2

A market can accurately be described as

A.a place to buy things
B.a place to sell things
C.the process by which prices adjust to reconcile the allocation of resources
D.a place where buyers and sellers meet

Objective

Question 3

In a free market

A.governments intervene
B.governments plan production
C.governments interfere
D.prices adjust to reconcile scarcity and desires

Objective

Question 4

Normative economics forms ______ based on _______

A.positive statements, facts
B.opinions, personal values
C.positive statements, values
D.opinions, facts

Objective

Question 5

Microeconomics is concerned with

A.the economy as a whole
B.the electronics industry
C.the study of individual economic behaviour
D.the interactions within the entire economy.

Objective

Question 6

Macroeconomics is the study of

A.individual building blocks in the economy
B.the relationship between different sectors of the economy
C.household purchase decisions
D.the economy as a whole

Objective

Question 7

Data are important in economics because _____ and ______

A.they suggest relationships for explanation, allow testing of hypotheses
B.they can be used for tables, they can be graphed
C.they can be used in computers, governments use them
D.they provide interesting information, can be summarized.

Objective

Question 8

When a market is in equilibrium

A.quantity demanded equals quantity supplied
B.excess demand/excess supply are zero
C.The market is cleared by the equilibrium price
D.All of the above

Objective

Question 9

The retail price index is used to

A.construct price list
B.compare shop prices
C.measure changes in the cost of living
D.none of the above

Objective

Question 10

A real value can be derived from a nominal value by

A.adjusting for change over time
B.adjusting for data collection errors
C.adjusting for population changes
D.adjusting for changes in prices

Objective

Question 11

A politician proposes reducing business taxes, a move she says will encourage risk taking entrepreneurship. This proposed cut in business taxes is intended to stimulate the economy mainly through

A.an increase in aggregate supply.
B.a decrease in aggregate supply
C.a decrease in aggregate demand.
D.an increase in aggregate demand.

Objective

Question 12

As more labour is added to a fixed amount of input, the rate at which output goes up begins to decrease. This is called

A.diminishing marginal utility
B.diminishing marginal productivity
C.diminishing marginal costs.
D.diminishing marginal profit.

Objective

Question 13

If the cost of sugar rises and sugar is a major ingredient in jelly beans, then the jelly bean

A.demand curve shifts to the left.
B.supply curve shifts to the left.
C.supply curve shifts to the right
D.demand and supply curves both shift to the right

Objective

Question 14

Which of the following is most likely to benefit a debtor?

A.unanticipated deflation
B.anticipated deflation
C.unanticipated inflation
D.anticipated inflation

Objective

Question 15

When the Federal Reserve Bank lowers the reserve requirement

A.investors will purchase "open market" bonds
B.banks must hold less money
C.people will deposit more money.
D.banks will create more money

Objective

Question 16

Economics is the study of

A.production technology
B.consumption decisions.
C.how society decides what, how, and for whom to produce.
D.the best way to run society.

Objective