ATARMAxxing · Economics
VCE Economics Practice Questions
64 exam-style questions · full worked solutions
The 64 practice questions inside the VCE Economics Mastery Pack, grouped by area of study. Every question comes with a full worked solution.
- AOS1
- Multiple choice × 20
- define; explain × 2
- analyse; calculate; explain × 1
- discuss × 1
- define; explain; analyse × 1
- evaluate × 3
- explain × 2
- analyse × 2
- AOS2
- Multiple choice × 15
- define, explain × 2
- analyse × 1
- discuss × 2
- define, explain (data response) × 1
- Define, Explain × 1
- Explain, Analyse × 1
- Evaluate × 1
- AOS3
- Multiple choice × 5
- define, explain, analyse × 1
- define, explain × 1
- discuss × 1
Sample question
An economy is currently producing at a point inside its production possibility frontier (PPF). Which of the following statements is most accurate?
- The economy has achieved productive efficiency.
- The economy can increase production of both goods without incurring an opportunity cost.
- The economy must give up some of one good to produce more of the other.
- The economy's productive capacity has decreased.
Show the worked answer
Answer: B
B is correct. A point inside the PPF means some resources are unemployed or used inefficiently, so output of both goods can be increased by putting idle resources to work — no opportunity cost is incurred. Productive efficiency (A) and the trade-off described in C apply only to points on the frontier, while D describes an inward shift of the frontier itself, not a point inside it.
Included in the VCE Economics Mastery Pack
20 full-length practice exams with worked solutions, 20 revision notes, 64 practice questions and 200 flashcards.
Preview a sample note and question free on the VCE Economics hub →