1) Which of the following transactions would be included in GDP? a) The purchase of a Monet painting b) The purchase of paper clips c) The purchase of Telstra shares d) The purchase of a used car 2) Economics is the study of a) the choices everybody makes to attain their goals, given their scarce resources. b) supply and demand. c) how to make money in a market economy. d) how to make money in the stock market. 3) The economy is considered to be at full employment when a) all unemployment is voluntary. b) all unemployment is frictional or structural. c) there are no unemployed workers. d) there are more unemployed workers than job vacancies. 4) An example of an intermediate good would be a) a can of cool drink sold by a super‐market. b) a microwave used at home. c) the bread that goes into a sandwich sold by a lunch bar. d) the petrol purchased by consumers for their cars. 5) From 2004 to 2005, the CPI for medical care increased from 260.8 to 272.8. What was the inflation rate for medical care? a) 12 percent b) 11.1 percent c) 4.9 percent d) 4.6 percent 6) A shift outwards of the nation's production possibility frontier can occur from a) a reduction in unemployment. b) an increase in the size of the labour force. c) a change in the amounts of one good desired. d) a natural disaster like a hurricane or severe earthquake. 7) What assumptions about humans do economists make? a) People are greedy and selfish. b) None, because economics takes humans as given. c) People are rational and respond to incentives. d) Humans prefer to live in a society that values fairness above all else.
8) The labour force is the a) number of people employed minus the number of people unemployed. b) ratio of the number of people employed to the number of people unemployed. c) ratio of the number of people employed to the working age population. d)...
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