Question 1

Opportunity cost is

Accepted Answer

A) the value of your favourite activity. 
B) your value of leisure. 
C) the money you spend on food,shelter,and clothing. 
D) the marginal benefit from an activity. 
E) the highest-valued alternative that we give up to get something. 
A) the value of your favourite activity. 
B) your value of leisure. 
C) the money you spend on food,shelter,and clothing. 
D) the marginal benefit from an activity. 
E) the highest-valued alternative that we give up to get something.

Question 2

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers,she is choosing at the margin when she compares

Accepted Answer

A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D) the revenue from selling HP's printers as compared to printers from competing companies,such as Lexmark. 
E) the cost of producing HP's printers as compared to printers from competing companies,such as Lexmark. 
A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D) the revenue from selling HP's printers as compared to printers from competing companies,such as Lexmark. 
E) the cost of producing HP's printers as compared to printers from competing companies,such as Lexmark.

Question 3

Which one of the following is labour?

Accepted Answer

A) money 
B) a carpenter's hammer 
C) a shoe factory 
D) a bread-slicing machine 
E) a singer's voice 
A) money 
B) a carpenter's hammer 
C) a shoe factory 
D) a bread-slicing machine 
E) a singer's voice

Question 4

Use the figure below to answer the following questions.   Figure 1A.3.10
-Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

Accepted Answer

A) 2. 
B) -2. 
C) 0.25. 
D) -0.25. 
E) -4. 
A) 2. 
B) -2. 
C) 0.25. 
D) -0.25. 
E) -4.

Question 5

The fact that human wants cannot be fully satisfied with available resources is called the problem of

Accepted Answer

A) opportunity cost. 
B) scarcity. 
C) normative economics. 
D) marginal cost. 
E) the big tradeoff. 
A) opportunity cost. 
B) scarcity. 
C) normative economics. 
D) marginal cost. 
E) the big tradeoff.

Question 6

Use the figure below to answer the following questions.   Figure 1A.3.1
-In Figure 1A.3.1,if household income increases by $1 000,household expenditure will

Accepted Answer

A) increase by $1,333. 
B) decrease by $1,333. 
C) remain unchanged. 
D) increase by $1,000. 
E) increase by $750. 
A) increase by $1,333. 
B) decrease by $1,333. 
C) remain unchanged. 
D) increase by $1,000. 
E) increase by $750.

Question 7

The two big economic questions

Accepted Answer

A) summarize the scope of economics. 
B) are "what goods and services are produced?" and "how are goods and services produced?" 
C) have nothing to do with goods and services. 
D) do not consider for whom goods and services are produced. 
E) have nothing to do with the way goods and services are produced. 
A) summarize the scope of economics. 
B) are "what goods and services are produced?" and "how are goods and services produced?" 
C) have nothing to do with goods and services. 
D) do not consider for whom goods and services are produced. 
E) have nothing to do with the way goods and services are produced.

Question 8

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

Accepted Answer

A) "who" 
B) "how" 
C) "what" 
D) "where" 
E) "when" 
A) "who" 
B) "how" 
C) "what" 
D) "where" 
E) "when"

Question 9

Which of the following statements are true regarding "positive" statements? I.They describe what "ought to be."
II.They describe what is believed about how the world appears.
III.They can be tested as to their truthfulness.

Accepted Answer

A) I and II 
B) II and III 
C) I and III 
D) I,II and III 
E) None of the statements are true. 
A) I and II 
B) II and III 
C) I and III 
D) I,II and III 
E) None of the statements are true.

Question 10

Use the figure below to answer the following questions.   Figure 1A.3.4
-In Figure 1A.3.4,the slope across arc AB is

Accepted Answer

A) 2/3. 
B) -1. 
C) -3/2. 
D) -3. 
E) -9/4. 
A) 2/3. 
B) -1. 
C) -3/2. 
D) -3. 
E) -9/4.

Question 11

Two variables are positively related if

Accepted Answer

A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases in the other. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other. 
A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases in the other. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other.

Question 12

An incentive

Accepted Answer

A) could be a reward but could not be a penalty. 
B) could be a penalty but could not be a reward. 
C) could be either a reward or a penalty. 
D) is the opposite of a tradeoff. 
E) occurs in the macroeconomy but not in the microeconomy. 
A) could be a reward but could not be a penalty. 
B) could be a penalty but could not be a reward. 
C) could be either a reward or a penalty. 
D) is the opposite of a tradeoff. 
E) occurs in the macroeconomy but not in the microeconomy.

Question 13

At all points along a straight line,slope is

Accepted Answer

A) positive. 
B) negative. 
C) constant. 
D) zero. 
E) infinity. 
A) positive. 
B) negative. 
C) constant. 
D) zero. 
E) infinity.

Question 14

When a farmer decides to harvest tomatoes using machines instead of migrant workers,the farmer is answering the ________ question.

Accepted Answer

A) "what" 
B) "how" 
C) "who" 
D) "where" 
E) "when" 
A) "what" 
B) "how" 
C) "who" 
D) "where" 
E) "when"

Question 15

Which of the following statements is correct?

Accepted Answer

A) Canada produces more manufactured goods than services. 
B) Canada produces more agricultural goods than services. 
C) Canada produces more services than goods. 
D) Agriculture accounts for 10 percent of total Canadian production. 
E) Canada produces more agricultural goods than manufactured goods. 
A) Canada produces more manufactured goods than services. 
B) Canada produces more agricultural goods than services. 
C) Canada produces more services than goods. 
D) Agriculture accounts for 10 percent of total Canadian production. 
E) Canada produces more agricultural goods than manufactured goods.

Question 16

Which of the following equations describes a straight line with a y-axis intercept of -2 and a slope of -5?

Accepted Answer

A) y = -5 - 2x 
B) y = -2 
C) y = -2 - 5x 
D) y = -5x 
E) x = -2 - 5y 
A) y = -5 - 2x 
B) y = -2 
C) y = -2 - 5x 
D) y = -5x 
E) x = -2 - 5y

Question 17

Use the figure below to answer the following question.   Figure 1A.4.4
-Complete the following sentence.In Figure 1A.4.4,z is

Accepted Answer

A) positively related to x and negatively related to y. 
B) negatively related to x and positively related to y. 
C) positively related to both x and y. 
D) negatively related to both x and y. 
E) related to y but not related to x. 
A) positively related to x and negatively related to y. 
B) negatively related to x and positively related to y. 
C) positively related to both x and y. 
D) negatively related to both x and y. 
E) related to y but not related to x.

Question 18

To meet increased demand for its good,a firm decides to hire a few high-skilled workers,rather than hire many low-skilled workers.The firm is answering the ________ question.

Accepted Answer

A) "when" 
B) "what" 
C) "who" 
D) "where" 
E) "how" 
A) "when" 
B) "what" 
C) "who" 
D) "where" 
E) "how"

Question 19

Use the figure below to answer the following question.   Figure 1A.4.2
-Given the data in the following table,which one of the graphs in Figure 1A.4.2 correctly represents the relationship among x,y,and z?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a)and (d) 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a)and (d)

Question 20

Complete the following sentence.Financial capital is

Accepted Answer

A) one of the "gifts of nature." 
B) a factor of production. 
C) money,stocks,and bonds. 
D) not subject to scarcity. 
E) a service. 
A) one of the "gifts of nature." 
B) a factor of production. 
C) money,stocks,and bonds. 
D) not subject to scarcity. 
E) a service.

Opportunity cost is

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers,she is choosing at the margin when she compares

Which one of the following is labour?

Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

The fact that human wants cannot be fully satisfied with available resources is called the problem of

Use the figure below to answer the following questions. Figure 1A.3.1 -In Figure 1A.3.1,if household income increases by $1 000,household expenditure will

The two big economic questions

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

Which of the following statements are true regarding "positive" statements? I.They describe what "ought to be." II.They describe what is believed about how the world appears. III.They can be tested as to their truthfulness.

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4,the slope across arc AB is

Two variables are positively related if

An incentive

At all points along a straight line,slope is

When a farmer decides to harvest tomatoes using machines instead of migrant workers,the farmer is answering the ________ question.

Which of the following statements is correct?

Which of the following equations describes a straight line with a y-axis intercept of -2 and a slope of -5?

Use the figure below to answer the following question. Figure 1A.4.4 -Complete the following sentence.In Figure 1A.4.4,z is

To meet increased demand for its good,a firm decides to hire a few high-skilled workers,rather than hire many low-skilled workers.The firm is answering the ________ question.

Use the figure below to answer the following question. Figure 1A.4.2 -Given the data in the following table,which one of the graphs in Figure 1A.4.2 correctly represents the relationship among x,y,and z?

Complete the following sentence.Financial capital is

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

Opportunity cost is

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers,she is choosing at the margin when she compares

Which one of the following is labour?

Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

The fact that human wants cannot be fully satisfied with available resources is called the problem of

Use the figure below to answer the following questions. Figure 1A.3.1 -In Figure 1A.3.1,if household income increases by $1 000,household expenditure will

The two big economic questions

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

Which of the following statements are true regarding "positive" statements? I.They describe what "ought to be." II.They describe what is believed about how the world appears. III.They can be tested as to their truthfulness.

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4,the slope across arc AB is

Two variables are positively related if

An incentive

At all points along a straight line,slope is

When a farmer decides to harvest tomatoes using machines instead of migrant workers,the farmer is answering the ________ question.

Which of the following statements is correct?

Which of the following equations describes a straight line with a y-axis intercept of -2 and a slope of -5?

Use the figure below to answer the following question. Figure 1A.4.4 -Complete the following sentence.In Figure 1A.4.4,z is

To meet increased demand for its good,a firm decides to hire a few high-skilled workers,rather than hire many low-skilled workers.The firm is answering the ________ question.

Use the figure below to answer the following question. Figure 1A.4.2 -Given the data in the following table,which one of the graphs in Figure 1A.4.2 correctly represents the relationship among x,y,and z?

Complete the following sentence.Financial capital is

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