Question 1

Suppose a nation is currently producing at a point inside its production possibilities frontier. What do we know?

Accepted Answer

A)  The nation is producing beyond its capacity, and inflation will occur. 
B)  The nation is not using all available resources and is inefficient. 
C)  The nation needs improved technology in order to produce an efficient combination of goods. 
D)  There will be a large opportunity cost if the nation tries to increase production. 
A)  The nation is producing beyond its capacity, and inflation will occur. 
B)  The nation is not using all available resources and is inefficient. 
C)  The nation needs improved technology in order to produce an efficient combination of goods. 
D)  There will be a large opportunity cost if the nation tries to increase production.

Question 2

What does macroeconomics study?

Accepted Answer

A)  individual decision makers 
B)  economic history 
C)  economy-wide phenomena 
D)  how firms maximize profit 
A)  individual decision makers 
B)  economic history 
C)  economy-wide phenomena 
D)  how firms maximize profit

Question 3

What are the four sectors in a more complex circular-flow diagram?

Accepted Answer

A)  households, government, financial markets, and international trade 
B)  households, firms, government, and financial markets 
C)  households, firms, financial markets, and international trade 
D)  households, firms, government, and international trade 
A)  households, government, financial markets, and international trade 
B)  households, firms, government, and financial markets 
C)  households, firms, financial markets, and international trade 
D)  households, firms, government, and international trade

Question 4

What will the slope of a fairly flat upward-sloping line be?

Accepted Answer

A)  a small positive number 
B)  a large positive number 
C)  a small negative number 
D)  a large negative number 
A)  a small positive number 
B)  a large positive number 
C)  a small negative number 
D)  a large negative number

Question 5

When is an economic outcome said to be efficient?

Accepted Answer

A)  if the economy is using all of the resources it has available 
B)  if the economy is conserving its resources for the future 
C)  if the economy is getting all it can from the scarce resources it has available 
D)  if the economy is able to produce more than its current production without additional resources 
A)  if the economy is using all of the resources it has available 
B)  if the economy is conserving its resources for the future 
C)  if the economy is getting all it can from the scarce resources it has available 
D)  if the economy is able to produce more than its current production without additional resources

Question 6

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

Accepted Answer

A)  advising Parliament 
B)  designing tax policy 
C)  writing the annual Economic Report 
D)  studying the relationship between average wages and gender 
A)  advising Parliament 
B)  designing tax policy 
C)  writing the annual Economic Report 
D)  studying the relationship between average wages and gender

Question 7

What does The Bank of Canada do?

Accepted Answer

A)  designs tax policy 
B)  enforces the country's antitrust laws 
C)  sets the country's monetary policy 
D)  analyzes the data on workers 
A)  designs tax policy 
B)  enforces the country's antitrust laws 
C)  sets the country's monetary policy 
D)  analyzes the data on workers

Question 8

For economists, what are the two types of statements about the world?

Accepted Answer

A)  positive statements and false statements 
B)  true statements and false statements 
C)  true statements and normative statements 
D)  positive statements and normative statements 
A)  positive statements and false statements 
B)  true statements and false statements 
C)  true statements and normative statements 
D)  positive statements and normative statements

Question 9

What is a common thread between economics and other sciences, such as physics?

Accepted Answer

A)  Experiments are most often conducted in a lab. 
B)  Real-world observations often lead to theories. 
C)  They deal with similar phenomena. 
D)  They deal primarily with abstract concepts. 
A)  Experiments are most often conducted in a lab. 
B)  Real-world observations often lead to theories. 
C)  They deal with similar phenomena. 
D)  They deal primarily with abstract concepts.

Question 10

Figure 2-2  
-Refer to Figure 2-2. What does the inner loop represent?

Accepted Answer

A)  the flow of inputs to firms and output to households 
B)  the flow of output to firms and inputs to households 
C)  the flow of spending to firms and factor payments to households 
D)  the flow of spending to households and factor payments to firms 
A)  the flow of inputs to firms and output to households 
B)  the flow of output to firms and inputs to households 
C)  the flow of spending to firms and factor payments to households 
D)  the flow of spending to households and factor payments to firms

Question 11

How do economists begin building an economic model?

Accepted Answer

A)  by writing grants for government funding 
B)  by conducting controlled experiments in a lab 
C)  by making assumptions 
D)  by reviewing statistical forecasts 
A)  by writing grants for government funding 
B)  by conducting controlled experiments in a lab 
C)  by making assumptions 
D)  by reviewing statistical forecasts

Question 12

Figure 2-4  
-Refer to Figure 2-4. What is the opportunity cost in terms of toothbrushes of getting 10 additional toasters by moving from point B to point A?

Accepted Answer

A)  0 toothbrushes 
B)  5 toothbrushes 
C)  10 toothbrushes 
D)  15 toothbrushes 
A)  0 toothbrushes 
B)  5 toothbrushes 
C)  10 toothbrushes 
D)  15 toothbrushes

Question 13

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 250?

Accepted Answer

A)  50 toy cars 
B)  100 toy cars 
C)  150 toy cars 
D)  200 toy cars 
A)  50 toy cars 
B)  100 toy cars 
C)  150 toy cars 
D)  200 toy cars

Question 14

What type of statement is "When the price of tuition goes up, fewer people will attend post-secondary institutions"?

Accepted Answer

A)  a positive economic statement 
B)  an educated statement 
C)  a normative economic statement 
D)  a welfare statement 
A)  a positive economic statement 
B)  an educated statement 
C)  a normative economic statement 
D)  a welfare statement

Question 15

A circular-flow diagram is a visual model of how an economy is organized.

Accepted Answer

A) True 
 B)False

Question 16

On a production possibilities frontier, when is production efficient?

Accepted Answer

A)  if the production point is on the frontier 
B)  if the production point is outside the frontier 
C)  if the production point is on or inside the frontier 
D)  if the production point is inside the frontier 
A)  if the production point is on the frontier 
B)  if the production point is outside the frontier 
C)  if the production point is on or inside the frontier 
D)  if the production point is inside the frontier

Question 17

What does a point on a country's production possibilities frontier represent?

Accepted Answer

A)  a combination of two goods that an economy will never be able to produce 
B)  a combination of two goods that an economy can produce using all available resources and technology 
C)  a combination of two goods that an economy can produce using some of its resources and technology 
D)  a combination of two goods that an economy may be able to produce sometime in the future with additional resources and technology 
A)  a combination of two goods that an economy will never be able to produce 
B)  a combination of two goods that an economy can produce using all available resources and technology 
C)  a combination of two goods that an economy can produce using some of its resources and technology 
D)  a combination of two goods that an economy may be able to produce sometime in the future with additional resources and technology

Question 18

What does the art of scientific thinking include?

Accepted Answer

A)  capability of eliminating invalid theories 
B)  understanding every scientific field, including physics, biology, and economics 
C)  deciding which assumptions to make 
D)  being able to mathematically express natural forces 
A)  capability of eliminating invalid theories 
B)  understanding every scientific field, including physics, biology, and economics 
C)  deciding which assumptions to make 
D)  being able to mathematically express natural forces

Question 19

According to a simple circular-flow diagram, how many markets do households and firms interact in?

Accepted Answer

A)  one type of market 
B)  two types of markets 
C)  three types of markets 
D)  four types of markets 
A)  one type of market 
B)  two types of markets 
C)  three types of markets 
D)  four types of markets

Question 20

What is an ordered pair?

Accepted Answer

A)  the process of checking calculations twice before placing them on a graph 
B)  two numbers that can be represented by a single point on a graph 
C)  two numbers that are represented by side-by-side points on a graph 
D)  two points on a graph that are equal distances from the origin 
A)  the process of checking calculations twice before placing them on a graph 
B)  two numbers that can be represented by a single point on a graph 
C)  two numbers that are represented by side-by-side points on a graph 
D)  two points on a graph that are equal distances from the origin

Suppose a nation is currently producing at a point inside its production possibilities frontier. What do we know?

What does macroeconomics study?

What are the four sectors in a more complex circular-flow diagram?

What will the slope of a fairly flat upward-sloping line be?

When is an economic outcome said to be efficient?

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

What does The Bank of Canada do?

For economists, what are the two types of statements about the world?

What is a common thread between economics and other sciences, such as physics?

Figure 2-2 -Refer to Figure 2-2. What does the inner loop represent?

How do economists begin building an economic model?

Figure 2-4 -Refer to Figure 2-4. What is the opportunity cost in terms of toothbrushes of getting 10 additional toasters by moving from point B to point A?

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 250?

What type of statement is "When the price of tuition goes up, fewer people will attend post-secondary institutions"?

A circular-flow diagram is a visual model of how an economy is organized.

On a production possibilities frontier, when is production efficient?

What does a point on a country's production possibilities frontier represent?

What does the art of scientific thinking include?

According to a simple circular-flow diagram, how many markets do households and firms interact in?

What is an ordered pair?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 2: Thinking Like an Economist

Suppose a nation is currently producing at a point inside its production possibilities frontier. What do we know?

What does macroeconomics study?

What are the four sectors in a more complex circular-flow diagram?

What will the slope of a fairly flat upward-sloping line be?

When is an economic outcome said to be efficient?

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

What does The Bank of Canada do?

For economists, what are the two types of statements about the world?

What is a common thread between economics and other sciences, such as physics?

Figure 2-2 -Refer to Figure 2-2. What does the inner loop represent?

How do economists begin building an economic model?

Figure 2-4 -Refer to Figure 2-4. What is the opportunity cost in terms of toothbrushes of getting 10 additional toasters by moving from point B to point A?

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 250?

What type of statement is "When the price of tuition goes up, fewer people will attend post-secondary institutions"?

A circular-flow diagram is a visual model of how an economy is organized.

On a production possibilities frontier, when is production efficient?

What does a point on a country's production possibilities frontier represent?

What does the art of scientific thinking include?

According to a simple circular-flow diagram, how many markets do households and firms interact in?

What is an ordered pair?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters