Question 1

In a world characterized by scarcity

Accepted Answer

A) all goods are free. 
B) opportunity cost is zero. 
C) we are not limited by time. 
D) individuals need not work to obtain goods. 
E) people must make choices among alternatives. 
A) all goods are free. 
B) opportunity cost is zero. 
C) we are not limited by time. 
D) individuals need not work to obtain goods. 
E) people must make choices among alternatives.

Question 2

In Canada ________ percent of the adult population have completed high school and ________ percent have a college or university degree.

Accepted Answer

A) 25;95 
B) 95;55 
C) 95;25 
D) 100;55 
E) 55;25 
A) 25;95 
B) 95;55 
C) 95;25 
D) 100;55 
E) 55;25

Question 3

What choices are best for the entire society?

Accepted Answer

A) self-interest choices 
B) choices influenced by lobbyists 
C) social interest choices 
D) choices made by majority rule 
E) choices made by well-meaning citizens 
A) self-interest choices 
B) choices influenced by lobbyists 
C) social interest choices 
D) choices made by majority rule 
E) choices made by well-meaning citizens

Question 4

Use the figure below to answer the following questions.   Figure 1A.3.5
-Refer to Figure 1A.3.5.Which one of the following statements is true?

Accepted Answer

A) The slope is less between points A and B than between points B and C. 
B) The slope is greater between points B and C than between points A and B. 
C) The slope at C is 0. 
D) The slope at C is 1. 
E) The slope at C is negative. 
A) The slope is less between points A and B than between points B and C. 
B) The slope is greater between points B and C than between points A and B. 
C) The slope at C is 0. 
D) The slope at C is 1. 
E) The slope at C is negative.

Question 5

Use the figure below to answer the following question.   Figure 1A.2.7
-Refer to Figure 1A.2.7.Consider the values for x and y given in the following table:   Which one of the graphs in Figure 1A.2.7 represents the relationship between x and y?

Accepted Answer

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

Question 6

An art museum decides to offer audio tour downloads rather than have tour guides.The museum is answering the ________ question.

Accepted Answer

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

Question 7

Use the table below to answer the following question.
Table 1A.3.1
  
-Refer to Table 1A.3.1.Assuming y is plotted on the vertical axis,the slope of the line is

Accepted Answer

A) constant at -2. 
B) -2 when x is between 1 and 3. 
C) -2 when x is between 1 and 3,and then +2 when x is between 4 and 5. 
D) -2 when x is between 4 and 5. 
E) constant at +2. 
A) constant at -2. 
B) -2 when x is between 1 and 3. 
C) -2 when x is between 1 and 3,and then +2 when x is between 4 and 5. 
D) -2 when x is between 4 and 5. 
E) constant at +2.

Question 8

Use the figure below to answer the following questions.   Figure 1A.2.1
-Refer to Figure 1A.2.1.Which graph or graphs indicates a positive relationship between x and y?

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 9

Complete the following sentence.Marginal cost is

Accepted Answer

A) the total cost of an activity. 
B) the total cost of a decrease in an activity. 
C) the opportunity cost of an increase in an activity. 
D) the opportunity cost of a decrease in an activity. 
E) equal to marginal benefit. 
A) the total cost of an activity. 
B) the total cost of a decrease in an activity. 
C) the opportunity cost of an increase in an activity. 
D) the opportunity cost of a decrease in an activity. 
E) equal to marginal benefit.

Question 10

Chanel has the option of purchasing one of three products: Brand A,Brand B,or Brand C.The price of each product is $10.If Chanel decides to purchase Brand A,the opportunity cost of this decision is

Accepted Answer

A) $20. 
B) Brand B or Brand C,depending on which she considers to be the highest-valued alternative forgone. 
C) Brand A. 
D) Brand B and Brand C. 
E) zero if this is a frivolous purchase with no marginal benefit. 
A) $20. 
B) Brand B or Brand C,depending on which she considers to be the highest-valued alternative forgone. 
C) Brand A. 
D) Brand B and Brand C. 
E) zero if this is a frivolous purchase with no marginal benefit.

Question 11

Which of the following sayings best describes opportunity cost?

Accepted Answer

A) "Make hay while the sun shines." 
B) "Love of money is the root of all evil." 
C) "Boldly go where no one has gone before." 
D) "There's no such thing as a free lunch." 
E) "Baseball has been very good to me." 
A) "Make hay while the sun shines." 
B) "Love of money is the root of all evil." 
C) "Boldly go where no one has gone before." 
D) "There's no such thing as a free lunch." 
E) "Baseball has been very good to me."

Question 12

Complete the following sentence.Microeconomics is

Accepted Answer

A) not concerned with factors of production. 
B) concerned with normative issues only. 
C) concerned with the size of the total amount of income earned by all households in an economy. 
D) the branch of economics that studies the choices of individuals and businesses. 
E) concerned exclusively with the role of the government in the economy. 
A) not concerned with factors of production. 
B) concerned with normative issues only. 
C) concerned with the size of the total amount of income earned by all households in an economy. 
D) the branch of economics that studies the choices of individuals and businesses. 
E) concerned exclusively with the role of the government in the economy.

Question 13

Use the figure below to answer the following question.   Figure 1A.5.3
-The equation of a line is y = 4 + 2x.Which one of the graphs in Figure 1A.5.3 represents this line?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs

Question 14

Use the figure below to answer the following questions.   Figure 1A.2.5
-Which curve or curves in Figure 1A.2.5 shows a positive relationship between unemployment and inflation?

Accepted Answer

A) A 
B) A and B 
C) B,C,and D 
D) A and C 
E) none of the curves. 
A) A 
B) A and B 
C) B,C,and D 
D) A and C 
E) none of the curves.

Question 15

Which factor of production includes the "gifts of nature"?

Accepted Answer

A) labour 
B) capital 
C) human capital 
D) entrepreneurship 
E) land 
A) labour 
B) capital 
C) human capital 
D) entrepreneurship 
E) land

Question 16

Use the table below to answer the following questions.
Table 1A.3.3
  
-Refer to Table 1A.3.3.When x equals 5,the slope is

Accepted Answer

A) 5. 
B) -2. 
C) +2. 
D) 0. 
E) infinite. 
A) 5. 
B) -2. 
C) +2. 
D) 0. 
E) infinite.

Question 17

A positive statement is

Accepted Answer

A) always true. 
B) always false. 
C) about what ought to be. 
D) what is currently believed about the way the world operates. 
E) an opinion that cannot be verified. 
A) always true. 
B) always false. 
C) about what ought to be. 
D) what is currently believed about the way the world operates. 
E) an opinion that cannot be verified.

Question 18

Which factor of production earns the most income?

Accepted Answer

A) capital 
B) land 
C) labour 
D) entrepreneurship 
E) the stock market 
A) capital 
B) land 
C) labour 
D) entrepreneurship 
E) the stock market

Question 19

An economic model is

Accepted Answer

A) tested by examining the realism of its assumptions. 
B) useful if it predicts well,even if its assumptions are not realistic. 
C) tested by the Testing Committee of the Canadian Economic Association. 
D) not useful unless it predicts with 100 percent accuracy. 
E) not useful because it simplifies real problems. 
A) tested by examining the realism of its assumptions. 
B) useful if it predicts well,even if its assumptions are not realistic. 
C) tested by the Testing Committee of the Canadian Economic Association. 
D) not useful unless it predicts with 100 percent accuracy. 
E) not useful because it simplifies real problems.

Question 20

A normative statement is

Accepted Answer

A) about what ought to be. 
B) about what is. 
C) always true. 
D) always false. 
E) capable of evaluation,as true or false,by observation and measurement. 
A) about what ought to be. 
B) about what is. 
C) always true. 
D) always false. 
E) capable of evaluation,as true or false,by observation and measurement.

In a world characterized by scarcity

In Canada percent of the adult population have completed high school and percent have a college or university degree.

What choices are best for the entire society?

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.Which one of the following statements is true?

Use the figure below to answer the following question. Figure 1A.2.7 -Refer to Figure 1A.2.7.Consider the values for x and y given in the following table: Which one of the graphs in Figure 1A.2.7 represents the relationship between x and y?

An art museum decides to offer audio tour downloads rather than have tour guides.The museum is answering the ________ question.

Use the table below to answer the following question. Table 1A.3.1 -Refer to Table 1A.3.1.Assuming y is plotted on the vertical axis,the slope of the line is

Use the figure below to answer the following questions. Figure 1A.2.1 -Refer to Figure 1A.2.1.Which graph or graphs indicates a positive relationship between x and y?

Complete the following sentence.Marginal cost is

Chanel has the option of purchasing one of three products: Brand A,Brand B,or Brand C.The price of each product is $10.If Chanel decides to purchase Brand A,the opportunity cost of this decision is

Which of the following sayings best describes opportunity cost?

Complete the following sentence.Microeconomics is

Use the figure below to answer the following question. Figure 1A.5.3 -The equation of a line is y = 4 + 2x.Which one of the graphs in Figure 1A.5.3 represents this line?

Use the figure below to answer the following questions. Figure 1A.2.5 -Which curve or curves in Figure 1A.2.5 shows a positive relationship between unemployment and inflation?

Which factor of production includes the "gifts of nature"?

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3.When x equals 5,the slope is

A positive statement is

Which factor of production earns the most income?

An economic model is

A normative statement 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

In a world characterized by scarcity

In Canada ________ percent of the adult population have completed high school and ________ percent have a college or university degree.

What choices are best for the entire society?

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.Which one of the following statements is true?

Use the figure below to answer the following question. Figure 1A.2.7 -Refer to Figure 1A.2.7.Consider the values for x and y given in the following table: Which one of the graphs in Figure 1A.2.7 represents the relationship between x and y?

An art museum decides to offer audio tour downloads rather than have tour guides.The museum is answering the ________ question.

Use the table below to answer the following question. Table 1A.3.1 -Refer to Table 1A.3.1.Assuming y is plotted on the vertical axis,the slope of the line is

Use the figure below to answer the following questions. Figure 1A.2.1 -Refer to Figure 1A.2.1.Which graph or graphs indicates a positive relationship between x and y?

Complete the following sentence.Marginal cost is

Chanel has the option of purchasing one of three products: Brand A,Brand B,or Brand C.The price of each product is $10.If Chanel decides to purchase Brand A,the opportunity cost of this decision is

Which of the following sayings best describes opportunity cost?

Complete the following sentence.Microeconomics is

Use the figure below to answer the following question. Figure 1A.5.3 -The equation of a line is y = 4 + 2x.Which one of the graphs in Figure 1A.5.3 represents this line?

Use the figure below to answer the following questions. Figure 1A.2.5 -Which curve or curves in Figure 1A.2.5 shows a positive relationship between unemployment and inflation?

Which factor of production includes the "gifts of nature"?

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3.When x equals 5,the slope is

A positive statement is

Which factor of production earns the most income?

An economic model is

A normative statement 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

In Canada percent of the adult population have completed high school and percent have a college or university degree.