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Multiple choice help! [Preliminary Eco] (1 Viewer)

AdmiralAlonzo

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Mar 6, 2017
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HSC
2018
Hey guys, just need some help with practise MC questions as I prepare for the first assessment tasks. Explanations for answers if possible - all help appreciated!

1. Which of the following is an example of the govt. protecting consumer sovereignty?
a) Disallowing producers to copy or manufacture patented products
b) A legal obligation on the producer to offer a warranty to consumers
c) Introducing a levy that penalises producers if they dispose of contaminated waste
d) Increasing taxation rates on the sale of cigarettes

Should be b) here.

2. For an individual, if average propensity to save is less than marginal propensity to save, what happens to saving if income is doubled?
a) Average propensity to save falls
b) Saving is doubled
c) Saving increases by more than double
d) Average propensity to save increases

Is this d) ?

3. Which of the following best describes the life cycle theory of consumption?
a) Age and consumption are negatively correlated
b) A high proportion of employed people will discourage saving in the economy
c) Individuals try to smooth their consumption over their lifetimes
d) Low income earners have a lower propensity save compared to high income earners

Should be c).
 

GeorgeYLin

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Feb 10, 2017
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HSC
2016
I got 1B

2C (D might be correct but it doesn't address the amount of savings)

3C
 

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