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Sample Assessment Items

MODEL TEST SCHEDULED FOR WEEK 5 OR WEEK 6 OF TERM.

It is worth 20% of the final grade

These are the type of questions you will face in the early warning test.

ANSWER ANY FIVE (5) QUESTIONS

1.Draw a Production Possibilities Curve for an imaginary economy.

Show if there was unemployment in that economy

Show what would happen if more economic resources were used for investment.

What would happen if there were more entrepreneurs in the economy? (2

marks)

2.Using a simple demand and supply diagram show the equilibrium. Now show a case

of maximum price legislation. Now show a minimum price legislation case. Can you

give examples of each? (2 marks)

3.What are the five variables that can cause the demand curve to shift? What are the

five variables that can shift the supply curve? (2 marks)

4.What is the economic problem? Does the worlds richest man, Bill Gates, have an

economic problem? (2 Marks)

5.What are the three cases of elasticity and how will the three cases or outcomes

affect a companys total revenue? (2 marks)

6.What is normal profit? Why can a perfectively competitive firm make only this? (2

marks).

7.What is the difference between economies of scale and returns to a factor of

production (2 marks)

LEARNING TASK 2 individual based learning

Sample Exercise Questions

Assessment Weight and due date: These TWO assignments contributes 2O% of the

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total assessment. You must complete both assignments to qualify to sit for the exam. Your

Partner lecturer will inform you when the first part of the assignment (i.e. the

microeconomic questions) will be due.

Answer all the questions.

Be sure to explain your reasoning clearly and fully and use diagrams where appropriate.

Do Not Scan in your Answers as they will not be marked!

Students should note that this learning task must be an individual piece of work. That is, it

must be the creation of the person submitting it.

BUECO5903 Study Guide - 259

1.What is the opportunity cost of doing an MBA or an MPA at the University of Ballarat?

Itemize the costs involved. Say you decide to attempt to do this economics unit

without accessing the recommended textbook what is the risk of doing so? (1 mark)

2.What are the key words of microeconomics? What is the universal economic

problem? (1 mark )

3.Last term a student identified the law of demand As quantity demanded rises, price

falls. Is this a correct statement? (1 mark)

4.Construct a demand and supply diagram showing the restaurant industry show

demand and supply shifts that result in raising salaries for waiters/waitresses. What

are the factors behind the demand side of the Industry? What are the factors behind

the supply side? (1 mark)

5.For each of the following, draw a demand and supply diagram for the bicycle market

that illustrates the effect on the following four changes. Indicate in each case the

impact on equilibrium price and quantity:

a) The price of public transport keeps rising

b) Cyclists have to wear a safety helmet when they go riding

c) A technological innovation reduces the cost of production of producing bicycles

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d) The state government insists that al bicycles be registered and licensed (1 mark)

6.What are the four macroeconomic goals for any country? Is there a conflict between

achieving all of them at the same time? (1 mark)

7.Which is worse, higher inflation or higher unemployment? (1 mark)

8.Give examples of each of the 4 types of aggregate expenditure. Which of the 4

represent the largest share of GDP in Australia? Can an expenditure component be

negative? Explain. (1 mark)

9.What is the economic trade cycle and what are the four phases of it? Identify where

you think the Australian economy might be on the diagram. (1 mark)

10.Using the simple Keynesian macro model, assess the implications for equilibrium

GDP and the level of savings of an increase in the savings function. (Hint : Keynes

called this phenomenon the paradox of thrift) (I mark)

BUE