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Economics Exam Questions?
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Q. The collection of all possible sample points in an experiment is
1.the sample space2. a sample point
3.an experiment
4. the population
Ans.the sample space
Q. If P(A|B) = .3 and P(B) = .8, then
1. P(A) = .242. P(B|A) = .7
3. P(A . B) = .5
4. P(A . B) = .24
Ans : P(A . B) = .24
Q.Events that have no sample points in common are
1.independent events2. posterior events
3. mutually exclusive events
4.Complements
Ans : mutually exclusive events
Q.In a stem-and-leaf display,
1.a single digit is used to define each stem, and a single digit is used to define each leaf2. a single digit is used to define each stem, and one or more digits are used to define each leaf
3. one or more digits are used to define each stem, and a single digit is used to define each leaf
4. one or more digits are used to define each stem, and one or more digits are used to define each leaf
Ans : one or more digits are used to define each stem, and a single digit is used to define each leaf
Q.In quality control applications, bar charts are used to identify the most important causes of problems. When the bars are arranged in descending order of height from left to right with the most frequently occurring cause appearing first, the bar chart is called a
1.cause-and-effect diagram2.Histogram
3. Pareto diagram
4. Ogive
Ans :Pareto diagram
Q.The proper way to construct a stem-and-leaf display for the data set {62, 67, 68, 73, 73, 79, 91, 94, 95, 97} is to
1.exclude a stem labeled ‘8’2. include a stem labeled ‘8’ and enter no leaves on the stem
3. include a stem labeled ‘(8)’ and enter no leaves on the stem
4. include a stem labeled ‘8’ and enter one leaf value of ‘0’ on the stem
Ans : include a stem labeled ‘8’ and enter no leaves on the stem
Q.When the data are labels or names used to identify an attribute of the elements and the rank of the data is meaningful, the variable has which scale of measurement?
1.Nominal2. Ordinal
3. Interval
4. Ratio
Ans : Nominal
Q.Which of the following symbols represents the mean of the sample?
1.σ 22. σ
3.μ
4.x bar
Ans : x bar
Q.Excel's ____ function can be used to compute the population standard deviation.
1.MAX2. MODE
3.STDEV
4.None of the other answers are correct
Ans : STDEV
Q.In a five-number summary, which of the following is not used for data summarization?
1.the smallest value2. the largest value
3.the median
4.the mean
Ans : the mean
Q.If A and B are independent events with P(A) = 0.2 and P(B) = 0.6, then P(A ∪ B) =
1.0.622. 0.12
3.0.60
4.0.68
Ans : 0.68
Q.A list of all possible outcomes of an experiment is called
1.the sample space2. the sample point
3.the experimental outcome
4.the likelihood set
Ans : the sample space
Q.Assume your favorite football team has 2 games left to finish the season. The outcome of each game can be win, lose or tie. The number of possible outcomes is
1.22. 4
3.6
4.None of the other answers is correct.
Ans : None of the other answers is correct.
Q.A(n) ____ is a graph of a cumulative distribution.
1. Histogram2. pie chart
3.stem-and-leaf display
4.Ogive
Ans :Ogive
Q.Which scale of measurement can be either numeric or non-numeric?
1. Nominal2. Ordinal
3.Interval
4.nominal and ordinal
Ans : nominal and ordinal
Q.The numbers of hours worked (per week) by 400 statistics students are shown below. Number of hours Frequency 0 − 9 20 10 − 19 80 20 − 2 200 30 − 39 100 The cumulative percent frequency for the class of 30 − 39 is
1. 100%2.75%
3.50%
4.25%
Ans :100%
Q.The Department of Transportation of a city has noted that on the average there are 14 accidents per day. The average number of accidents is an example of
1. descriptive statisticsstatistical inference
a sample
a population
Ans :descriptive statistics
Q. μ is an example of a
1. population parameter2.sample statistic
3.population variance
4.Mode
Ans :population parameter
Q. The numerical value of the standard deviation can never be
1. arger than the variance2.Zero
3.Negative
4.all of these statements are correct
Ans :Negative
Q. The correlation coefficient ranges between
1.0 and 12.−1 and +1
3.minus infinity and plus infinity
4.1 and 100
Ans : −1 and +1
Q. Which of the following pair of factor of production and factor income is correct?
1.Land and interest2.Labour and wage
3.Entrepreneurship and wage
4.Capital and rent
Ans : Capital and rent
Q. According to the economic idea or principle of thinking at the margin, John will pay for his second plate of vegetable meal if his
1.marginal benefit is equal to the total cost.2.marginal benefit is greater than the marginal cost.
3.marginal cost is equal to the total benefit.
4.marginal benefit is less than marginal cost.
Ans : marginal benefit is greater than the marginal cost.
Q. Which of the following is a feature of a capitalist economy?
1.Inefficient firms are protected from failure by government.2.The price allocates resources in a competitive market.
3.Ownership of industry by government.
4.Central planning.
Ans : The price allocates resources in a competitive market.
Q. The economic problem exists because
1.rich people spend more than poor people2.of limited incomes and limited wants
3.of scarcity of resources and unlimited wants
4.of unlimited supply of resources and limited demand.
Ans : of scarcity of resources and unlimited wants
Q. The law of demand implies that, other things being equal:
1.as the price of iPads increases, the quantity of iPads demanded will increase.2. as household incomes rise, the quantity of iPads demanded will decrease.
3.as the demand for iPads increases, the price of iPads will fall.
4.as the price of iPads decreases, the quantity of iPads demanded will increase.
Ans : as the price of iPads decreases, the quantity of iPads demanded will increase.
Q. Which of the following could lead to an increase in demand for pizza?
1.An increase in the price of tomato sauce, a complement.2.A decrease in Australia's population.
3.An increase in consumer income.
4.A decrease in the price of meat pies, a substitute.
Ans : An increase in consumer income.
Q. The demand for houses has decreased but the equilibrium quantity of houses supplied remains the same. This is because the
1.demand curve is perfectly inelastic.2. supply curve is perfectly elastic.
3.demand curve is perfectly elastic.
4.supply curve is perfectly inelastic.
Ans : demand curve is perfectly inelastic.
Q. The price elasticity of supply is calculated as:
1.the change in price divided by the change in quantity supplied.2. the percentage change in price divided by the percentage change in quantity supplied.
3.the change in quantity supplied divided by the change in price.
4.the percentage change in quantity supplied divided by the percentage change in price.
Ans :the percentage change in quantity supplied divided by the percentage change in price.
Q. The price of apples increased by 5 per cent and the quantity of apples demanded decreased by 10 per cent. The price elasticity of demand is
1.0.2.2. 2.0.
3.0.5.
4. 5.0.
Ans :2.0.
Q. Which of the following is true?
1.When the price of bananas is higher than the equilibrium price, there is a shortage of bananas.2. When the price of bananas is higher than the equilibrium price, there is a surplus of bananas.
3.When the price of bananas is higher than the equilibrium price, there is excess demand for bananas.
4.When the price of bananas is lower than the equilibrium price, there is a surplus of bananas.
Ans :When the price of bananas is lower than the equilibrium price, there is a surplus of bananas.
Q. Ms Alexa (a resident individual) receives a cash dividend from Alectra Pty Limited of $420 which was franked to 100%. How much will Ms Alexa include in her assessable income in relation to the dividend received?
1.$4202. $180
3. $600
4.$520
Ans : $600
Q. Basil Pty Ltd sells a computer which has been used for income-producing purposes. The termination value of the computer is $1,600 and its cost was $2,500. At the time of sale, the computer’s adjustable value is $900. What is the balancing adjustment amount in respect of the sale?
1.$7002. $1,600
3.$0
4.$900
Ans :$700
Q.When providing advice to a client, you need to consider the five categories of the Code of Professional conduct. Which one of the following is not one of them?
1.Diligence2. Honesty and integrity
3.Independence
4.Competence
Ans :Diligence
Q. Which of the following expenses are deductible under s8-1?
1.Gym membership fees incurred by a model for her upcoming fashion show. Her job does not require any physical endurance.2. Costs of travelling from home to a place of income production whilst carrying bulky work related equipment in the ca
3.A doctor training to become a commercial pilot
4.A retired barrister who continues to subscribe for law journals
Ans :Gym membership fees incurred by a model for her upcoming fashion show. Her job does not require any physical endurance.
Q.Which of the following is most likely to have been intended to be legally enforceable?
1.A promise by a teacher to her boyfriend2.A promise by a charity to a volunteer worker
3.A promise by a lawyer to his friend at a party
4.A promise by a business on its website
Ans :A promise by a business on its website
Q. In order to establish the tort of negligence it must be proved that:
1.The duty of care was breached2. Damage as a result of the breach
3.All answers are correct
4.There was a duty of care
Ans :All answers are correct
Q. Which of the following is true about the defence of contributory negligence?
1.Where the plaintiff has contributed to his or her loss, damage or injury, the damages awarded under negligence may be reduced proportionately to the negligent actions of that plaintiff.2. Where a plaintiff contributes to more than 50% of the loss or damage they suffer, the defendant will not be liable for that loss or damage.
3.It refers to an act of negligence committed by the defendant and must be claimed with an action for voluntary assumption of risk.
4.A defendant can no longer avoid liability for negligence by bringing evidence of the negligence of the plaintiff.
Ans :A defendant can no longer avoid liability for negligence by bringing evidence of the negligence of the plaintiff.
Q. In a referendum, amending the Commonwealth of Australia Constitution requires.
1.A majority of voters in a majority of States and a majority of all Australians to vote “Yes”2. The agreement of all State, Territory and Commonwealth Parliaments
3.The Prime Minister’s unilateral decision
4.All Australian citizens to vote “Yes”
Ans :A majority of voters in a majority of States and a majority of all Australians to vote “Yes”
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