Question 1

The expansion of international trade,borrowing and lending,and investment is

Accepted Answer

A) the big tradeoff. 
B) not in the best interests of most countries. 
C) a corporate revolution. 
D) globalization. 
E) antiglobalization. 
A) the big tradeoff. 
B) not in the best interests of most countries. 
C) a corporate revolution. 
D) globalization. 
E) antiglobalization.

Question 2

Which of the following is not a factor of production?

Accepted Answer

A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat 
A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat

Question 3

Use the figure below to answer the following questions.   Figure 1A.2.5
-Which curve or curves in Figure 1A.2.5 shows no relationship between unemployment and inflation?

Accepted Answer

A) A 
B) A and B 
C) B,C,and D 
D) A and C 
E) B and D 
A) A 
B) A and B 
C) B,C,and D 
D) A and C 
E) B and D

Question 4

If you take an additional class this term,you can graduate earlier.This is an example of

Accepted Answer

A) opportunity cost. 
B) total cost. 
C) the pursuit of social interest. 
D) marginal benefit. 
E) social cost. 
A) opportunity cost. 
B) total cost. 
C) the pursuit of social interest. 
D) marginal benefit. 
E) social cost.

Question 5

Use the figure below to answer the following questions.   Figure 1A.3.5
-Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc CD is

Accepted Answer

A) 1/2. 
B) 1. 
C) -1/2. 
D) -1. 
E) -5/8. 
A) 1/2. 
B) 1. 
C) -1/2. 
D) -1. 
E) -5/8.

Question 6

An outcome is considered efficient if

Accepted Answer

A) it is the best available choice for an individual. 
B) as many people as possible are happy about the outcome. 
C) it is not possible to make someone better off without making anyone else worse off. 
D) everyone makes the same income. 
E) there is the smallest difference possible between the highest income earned and the lowest income earned. 
A) it is the best available choice for an individual. 
B) as many people as possible are happy about the outcome. 
C) it is not possible to make someone better off without making anyone else worse off. 
D) everyone makes the same income. 
E) there is the smallest difference possible between the highest income earned and the lowest income earned.

Question 7

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

Accepted Answer

A) a market. 
B) macroeconomics. 
C) opportunity cost. 
D) a "how" tradeoff. 
E) the big tradeoff. 
A) a market. 
B) macroeconomics. 
C) opportunity cost. 
D) a "how" tradeoff. 
E) the big tradeoff.

Question 8

Use the figure below to answer the following questions.   Figure 1A.3.5
-Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc BC is

Accepted Answer

A) 1/3. 
B) 1/2. 
C) 1. 
D) 2. 
E) 5/6. 
A) 1/3. 
B) 1/2. 
C) 1. 
D) 2. 
E) 5/6.

Question 9

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is

Accepted Answer

A) working and doing fix-up projects. 
B) working or doing fix-up projects,depending on which you would have done otherwise. 
C) working,because you would be giving up income. 
D) nothing because you will enjoy the trip to Florida. 
E) variable depending on the weather you leave behind in Canada. 
A) working and doing fix-up projects. 
B) working or doing fix-up projects,depending on which you would have done otherwise. 
C) working,because you would be giving up income. 
D) nothing because you will enjoy the trip to Florida. 
E) variable depending on the weather you leave behind in Canada.

Question 10

The slope of a horizontal line is

Accepted Answer

A) positive. 
B) negative. 
C) zero. 
D) infinite. 
E) initially positive and then negative. 
A) positive. 
B) negative. 
C) zero. 
D) infinite. 
E) initially positive and then negative.

Question 11

To earn income,people sell the services of the factors of production they own.Land earns ________and labour earns ________.

Accepted Answer

A) profit;wages 
B) wages;interest 
C) rent;wages 
D) profit;interest 
E) rent;minimum wage 
A) profit;wages 
B) wages;interest 
C) rent;wages 
D) profit;interest 
E) rent;minimum wage

Question 12

When the government of Alberta chooses to build more roads,the required resources are no longer available to provide better healthcare facilities.This situation illustrates the concept of

Accepted Answer

A) marginal benefit. 
B) monetary cost. 
C) opportunity cost. 
D) human capital. 
E) entrepreneurship. 
A) marginal benefit. 
B) monetary cost. 
C) opportunity cost. 
D) human capital. 
E) entrepreneurship.

Question 13

Scarcity confronts

Accepted Answer

A) neither the poor nor the rich. 
B) the rich but not the poor. 
C) the poor but not the rich. 
D) the rich and the poor. 
E) only families with incomes less than $25,000 a year. 
A) neither the poor nor the rich. 
B) the rich but not the poor. 
C) the poor but not the rich. 
D) the rich and the poor. 
E) only families with incomes less than $25,000 a year.

Question 14

Complete the following sentence.Economic models

Accepted Answer

A) do not answer questions about the economic world. 
B) include most of the details of the economic world. 
C) describe some aspect of the economic world,but include only those features needed for the purpose at hand. 
D) answer questions that arise from normative statements. 
E) were first developed in the 1970s. 
A) do not answer questions about the economic world. 
B) include most of the details of the economic world. 
C) describe some aspect of the economic world,but include only those features needed for the purpose at hand. 
D) answer questions that arise from normative statements. 
E) were first developed in the 1970s.

Question 15

Which of the following is not a factor of production?

Accepted Answer

A) Timmy who is developing a production schedule for a new product 
B) 175 shares of Microsoft stock 
C) Vans used by a bakery company for deliveries 
D) Wilderness areas that have yet to be developed 
E) National parks 
A) Timmy who is developing a production schedule for a new product 
B) 175 shares of Microsoft stock 
C) Vans used by a bakery company for deliveries 
D) Wilderness areas that have yet to be developed 
E) National parks

Question 16

Use the figure below to answer the following questions.   Figure 1A.2.2
-Refer to Figure 1A.2.2.The variables x and y

Accepted Answer

A) are negatively related. 
B) have a nonlinear relationship. 
C) have a negative linear relationship. 
D) are unrelated. 
E) are positively related. 
A) are negatively related. 
B) have a nonlinear relationship. 
C) have a negative linear relationship. 
D) are unrelated. 
E) are positively related.

Question 17

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park ________.
The operators' decision is a ________.

Accepted Answer

A) remains the same;macroeconomic decision 
B) changes;microeconomic decision 
C) remains the same;microeconomic decision 
D) changes;macroeconomic decision 
E) changes;decision in the self-interest but not in the social interest 
A) remains the same;macroeconomic decision 
B) changes;microeconomic decision 
C) remains the same;microeconomic decision 
D) changes;macroeconomic decision 
E) changes;decision in the self-interest but not in the social interest

Question 18

Which of the following is the best definition of economics?

Accepted Answer

A) the study of how a provincial government allocates tax dollars 
B) the study of how consumers spend their income 
C) the study of how producers decide what inputs to hire and what outputs to produce 
D) the study of how individuals,businesses,governments,and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices 
E) the study of how consumers and producers meet each other in the market 
A) the study of how a provincial government allocates tax dollars 
B) the study of how consumers spend their income 
C) the study of how producers decide what inputs to hire and what outputs to produce 
D) the study of how individuals,businesses,governments,and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices 
E) the study of how consumers and producers meet each other in the market

Question 19

Use the figure below to answer the following question.   Figure 1A.5.5
-Refer to Figure 1A.5.5.The graph shows the relationship between two variables,x and y.Which of the following equations describes this relationship?

Accepted Answer

A) y = 3x + 15 
B) y = -3x + 15 
C) y = -3x2 + 15 
D) y = 15x + 3 
E) x = 15y + 3 
A) y = 3x + 15 
B) y = -3x + 15 
C) y = -3x2 + 15 
D) y = 15x + 3 
E) x = 15y + 3

Question 20

Use the figure below to answer the following question.   Figure 1A.4.4
-Consider the following information on cola sales by number of cases for a typical university residence floor: Price (dollars per case)
  Cola sales and cola prices are

Accepted Answer

A) inversely related. 
B) positively related. 
C) not affected by the temperature. 
D) unrelated. 
E) negatively related at low temperatures,but positively related at high temperatures. 
A) inversely related. 
B) positively related. 
C) not affected by the temperature. 
D) unrelated. 
E) negatively related at low temperatures,but positively related at high temperatures.

The expansion of international trade,borrowing and lending,and investment is

Which of the following is not a factor of production?

Use the figure below to answer the following questions. Figure 1A.2.5 -Which curve or curves in Figure 1A.2.5 shows no relationship between unemployment and inflation?

If you take an additional class this term,you can graduate earlier.This is an example of

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc CD is

An outcome is considered efficient if

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc BC is

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is

The slope of a horizontal line is

To earn income,people sell the services of the factors of production they own.Land earns and labour earns .

When the government of Alberta chooses to build more roads,the required resources are no longer available to provide better healthcare facilities.This situation illustrates the concept of

Scarcity confronts

Complete the following sentence.Economic models

Which of the following is not a factor of production?

Use the figure below to answer the following questions. Figure 1A.2.2 -Refer to Figure 1A.2.2.The variables x and y

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park . The operators' decision is a .

Which of the following is the best definition of economics?

Use the figure below to answer the following question. Figure 1A.5.5 -Refer to Figure 1A.5.5.The graph shows the relationship between two variables,x and y.Which of the following equations describes this relationship?

Use the figure below to answer the following question. Figure 1A.4.4 -Consider the following information on cola sales by number of cases for a typical university residence floor: Price (dollars per case) Cola sales and cola prices are

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: What Is Economics

The expansion of international trade,borrowing and lending,and investment is

Which of the following is not a factor of production?

Use the figure below to answer the following questions. Figure 1A.2.5 -Which curve or curves in Figure 1A.2.5 shows no relationship between unemployment and inflation?

If you take an additional class this term,you can graduate earlier.This is an example of

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc CD is

An outcome is considered efficient if

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc BC is

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is

The slope of a horizontal line is

To earn income,people sell the services of the factors of production they own.Land earns ________and labour earns ________.

When the government of Alberta chooses to build more roads,the required resources are no longer available to provide better healthcare facilities.This situation illustrates the concept of

Scarcity confronts

Complete the following sentence.Economic models

Which of the following is not a factor of production?

Use the figure below to answer the following questions. Figure 1A.2.2 -Refer to Figure 1A.2.2.The variables x and y

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park ________. The operators' decision is a ________.

Which of the following is the best definition of economics?

Use the figure below to answer the following question. Figure 1A.5.5 -Refer to Figure 1A.5.5.The graph shows the relationship between two variables,x and y.Which of the following equations describes this relationship?

Use the figure below to answer the following question. Figure 1A.4.4 -Consider the following information on cola sales by number of cases for a typical university residence floor: Price (dollars per case) Cola sales and cola prices are

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

To earn income,people sell the services of the factors of production they own.Land earns and labour earns .

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park . The operators' decision is a .