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VCE Economics Units 3 and 4 practice quiz quiz

12questions. Pick an answer and you'll see why right away.

  1. A rise in the price of petrol, with all other factors held constant, causes:

  2. The quantity demanded of a good falls by 2 percent when its price rises by 8 percent. The price elasticity of demand is:

  3. Which of the following is a public good in the technical economic sense?

  4. On a negative production externality diagram, the marginal social cost curve lies above the marginal private cost curve because:

  5. In VCE Economics, 'full employment' is best defined as:

  6. The Reserve Bank's main instrument of monetary policy is:

  7. Which of the following is NOT one of the four channels of the monetary policy transmission mechanism?

  8. A contractionary budgetary (fiscal) policy stance is best described as:

  9. Which of the following is an aggregate supply (supply-side) policy rather than an aggregate demand policy?

  10. The short-run Phillips curve shows that:

  11. The underlying cash balance of the Commonwealth Budget is best described as:

  12. Why does coordinating monetary and budgetary policy improve macroeconomic outcomes?