* not completed

. Which of the following is not part of the opportunity cost of a university education for a full-time student?

Any tuition fees payable correct incorrect

Cost of food correct incorrect

Income forgone from not working full time correct incorrect

Cost of textbooks correct incorrect

* not completed

. Which of the following perspectives tends to put more faith in the free operation of markets as a way of bringing about economic efficiency?

The neoclassical view correct incorrect

The interventionist or structuralist view correct incorrect

The radical or Marxist view correct incorrect

The green or environmentalist view correct incorrect

* not completed

. Which of the following statements best describes what economists mean by the term 'scarcity'?

When unlimited needs and wants exist and yet resources are limited. correct incorrect

When limited needs and wants exist and yet resources are unlimited. correct incorrect

When people cannot afford to buy what they need to guarantee a minimum standard of living. correct incorrect

When as a result of high demand prices of resources and commodities rise. correct incorrect

* not completed

. Which one of the following statements relating to scarcity is most likely to be associated with a socialist/Marxist perspective?

We will never satisfy our needs and wants because they are infinite and resources are finite. correct incorrect

Given that resources are scarce the aim of the economic environment is to ensure that we minimize the amount of resources used in production whilst ensuring high-quality outputs. correct incorrect

Even if we accept that at the global level there is scarcity, the real pressing problem is that inequality means that resources are used to satisfy the needs of the rich at the expense of the poor. We thus have a world where there is abundance for the few and poverty for many. correct incorrect

We need to live within the resource constraints of the planet. correct incorrect

* not completed

. If the demand for a good is relatively price inelastic and its price rises the revenue will:

Fall correct incorrect

Remain constant correct incorrect

Rise correct incorrect

Depends on how supply responds correct incorrect

* not completed

. If a 10 per cent rise in price causes a 5 per cent fall in the quantity demanded:

The price elasticity of demand is -5 correct incorrect

The price elasticity of demand is -2 correct incorrect

The price elasticity of demand is -0.5 correct incorrect

The price elasticity of demand is -0.2 correct incorrect

* not completed

. Which of the following options is not an example of 'market failure'?

Failure of a firm to maximize its profits correct incorrect

Failure to produce merit goods correct incorrect

Failure to produce public goods correct incorrect

Failure to account for externalities correct incorrect

* not completed

. Which of the following is an example of a primary form of business activity?

Hairdressing correct incorrect

Automobile production correct incorrect

Banking correct incorrect

Forestry correct incorrect

* not completed

. Which of the following statements is most likely to be true?

As incomes rise the demand for agricultural goods in general will fall. correct incorrect

As incomes rise the percentage of total income spent on agricultural goods in general tends to fall. correct incorrect

As incomes rise the percentage of total income spent on agricultural goods in general tends to rise. correct incorrect

As incomes rise total spending on agricultural products in general will fall. correct incorrect

* not completed

. A business is more likely to be able to exercise monopoly power if it operates in a market in which the demand is:

Relatively price elastic correct incorrect

Income elastic correct incorrect

Unitary elastic in terms of price correct incorrect

Highly price inelastic correct incorrect

* not completed

. Which of the following statements best describes what economists mean by a merit good?

Goods which people deserve if they are work hard correct incorrect

Goods that it is felt people should own or have access to irrespective of ability to pay correct incorrect

Goods which rich people buy to demonstrate how rich they are correct incorrect

Goods which are impossible to be provided to one person without excluding other people from benefitting from its provision correct incorrect

* not completed

. If as a result of a fall in price the revenue of a business was to increase, then we can conclude that the market in which the business operates is:

Small correct incorrect

Uncompetitive correct incorrect

Price inelastic in relation to demand correct incorrect

Price elastic in relation to demand correct incorrect