Question 1

According to Adam Smith

Accepted Answer

A) politicians are well- equipped to regulate corporations and intervene in markets to improve market outcomes. 
B) the self- interest and the social interest never conflict. 
C) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit, but both buyers and sellers can't gain simultaneously. 
D) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self- interest to unintentionally promote the social interest. 
E) when big corporations pursue their self- interest of maximum profit, they will inevitably conflict with social interest. 
A) politicians are well- equipped to regulate corporations and intervene in markets to improve market outcomes. 
B) the self- interest and the social interest never conflict. 
C) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit, but both buyers and sellers can't gain simultaneously. 
D) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self- interest to unintentionally promote the social interest. 
E) when big corporations pursue their self- interest of maximum profit, they will inevitably conflict with social interest.

Question 2

Two variables are negatively related if

Accepted Answer

A) increases in one are associated with increases in the other. 
B) both variables are less than zero. 
C) increases in one are associated with decreases 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 increases in the other. 
B) both variables are less than zero. 
C) increases in one are associated with decreases 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 3

Consider the following information on cola sales by number of cases for a typical university residence floor: 
Price dollars per case
  Cola sales and temperature are

Accepted Answer

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

Question 4

Which one of the following is an example of capital?

Accepted Answer

A) a carpenter 
B) money 
C) a university professor 
D) a bread- slicing machine 
E) pasture 
A) a carpenter 
B) money 
C) a university professor 
D) a bread- slicing machine 
E) pasture

Question 5

The equation of a line is y = 4 + 2x.What is the slope of this line?

Accepted Answer

A) 1/2 
B) 0 
C) 2 
D) 1/4 
E) 4 
A) 1/2 
B) 0 
C) 2 
D) 1/4 
E) 4

Question 6

The two big economic questions

Accepted Answer

A) involve neither self- interest nor social interest. 
B) do not arise from scarcity. 
C) involve self- interest only. 
D) involve both self- interest and social interest. 
E) involve only social interest. 
A) involve neither self- interest nor social interest. 
B) do not arise from scarcity. 
C) involve self- interest only. 
D) involve both self- interest and social interest. 
E) involve only social interest.

Question 7

Use the figure below to answer the following questions.
   Figure 1A.3.4
-Figure 1A.3.4 illustrates two variables, x and y, which are

Accepted Answer

A) negatively related, with slope becoming closer to 0 as x increases from 2 to 16. 
B) positively related, with the slope unchanging as x increases from 2 to 16. 
C) negatively related, with slope becoming farther from 0 as x increases from 2 to 16. 
D) positively related, with slope becoming closer to 0 as x increases from 2 to 16. 
E) positively related, with slope becoming farther from 0 as x increases from 2 to 16. 
A) negatively related, with slope becoming closer to 0 as x increases from 2 to 16. 
B) positively related, with the slope unchanging as x increases from 2 to 16. 
C) negatively related, with slope becoming farther from 0 as x increases from 2 to 16. 
D) positively related, with slope becoming closer to 0 as x increases from 2 to 16. 
E) positively related, with slope becoming farther from 0 as x increases from 2 to 16.

Question 8

Use the table below to answer the following questions.
Table 1A.4.2
    
-Given the data in Table 1A.4.2, suppose family income decreases from $400 to $300 per week.Then the graph relating the price of strawberries, measured on the y- axis and the number of boxes of strawberries purchased, measured on the x- axis will

Accepted Answer

A) become negatively sloped. 
B) shift rightward. 
C) no longer exist. 
D) shift leftward. 
E) become positively sloped. 
A) become negatively sloped. 
B) shift rightward. 
C) no longer exist. 
D) shift leftward. 
E) become positively sloped.

Question 9

Which of the following statements is correct?

Accepted Answer

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

Question 10

During the next hour John can choose one of the following three activities: playing basketball, watching television, or reading a book.The opportunity cost of reading a book

Accepted Answer

A) is equal to the marginal benefit from reading the book. 
B) depends on how much the book cost when it was purchased. 
C) is the value of playing basketball if John prefers that to watching television. 
D) depends on how much John enjoys the book. 
E) is the value of playing basketball and the value of watching television. 
A) is equal to the marginal benefit from reading the book. 
B) depends on how much the book cost when it was purchased. 
C) is the value of playing basketball if John prefers that to watching television. 
D) depends on how much John enjoys the book. 
E) is the value of playing basketball and the value of watching television.

Question 11

Complete the following sentence.Marginal cost is

Accepted Answer

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

Question 12

The concept of opportunity cost

Accepted Answer

A) is used in microeconomics but not macroeconomics. 
B) suggests that individuals can achieve all they want. 
C) is used in macroeconomics but not microeconomics. 
D) is relevant only for developing countries. 
E) suggests a major increase in public education spending means a reduced expansion in the public healthcare system. 
A) is used in microeconomics but not macroeconomics. 
B) suggests that individuals can achieve all they want. 
C) is used in macroeconomics but not microeconomics. 
D) is relevant only for developing countries. 
E) suggests a major increase in public education spending means a reduced expansion in the public healthcare system.

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

Complete the following sentence.Entrepreneurship is

Accepted Answer

A) the human resource that organizes labour, land and capital. 
B) traded on the stock market. 
C) categorized as capital. 
D) defined as money. 
E) categorized as the factor of production labour. 
A) the human resource that organizes labour, land and capital. 
B) traded on the stock market. 
C) categorized as capital. 
D) defined as money. 
E) categorized as the factor of production labour.

Question 15

Which of the following is an example of a positive statement?

Accepted Answer

A) Canada should cut back on its use of carbon- based fuels such as coal and oil. 
B) Every Canadian should have equal access to healthcare. 
C) Increasing the minimum wage results in more unemployment. 
D) Canada should have lower tax rates for wealthier Canadians. 
E) The Bank of Canada ought to cut the interest rate. 
A) Canada should cut back on its use of carbon- based fuels such as coal and oil. 
B) Every Canadian should have equal access to healthcare. 
C) Increasing the minimum wage results in more unemployment. 
D) Canada should have lower tax rates for wealthier Canadians. 
E) The Bank of Canada ought to cut the interest rate.

Question 16

Complete the following sentence.Macroeconomics

Accepted Answer

A) deals mainly with the economic behaviour of households. 
B) is primarily concerned with the operation of individual markets in the economy. 
C) is the only part of economics to deal with government decisions. 
D) is the study of the performance of the national economy and the global economy. 
E) is primarily concerned with the behaviour of the stock market. 
A) deals mainly with the economic behaviour of households. 
B) is primarily concerned with the operation of individual markets in the economy. 
C) is the only part of economics to deal with government decisions. 
D) is the study of the performance of the national economy and the global economy. 
E) is primarily concerned with the behaviour of the stock market.

Question 17

A positive statement is

Accepted Answer

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

Question 18

Economists test economic models by using

Accepted Answer

A) personal economic policy, business economic policy, and government economic policy. 
B) the what, how, and for whom questions. 
C) marginal benefit and marginal cost. 
D) positive statements and normative statements. 
E) natural experiments, statistical investigations, and economic experiments. 
A) personal economic policy, business economic policy, and government economic policy. 
B) the what, how, and for whom questions. 
C) marginal benefit and marginal cost. 
D) positive statements and normative statements. 
E) natural experiments, statistical investigations, and economic experiments.

Question 19

The relationship between two variables that are negatively related is shown graphically by a line that

Accepted Answer

A) is horizontal. 
B) slopes downward to the right. 
C) is below the x- axis and to the left of the y- axis. 
D) slopes upward to the right. 
E) is vertical. 
A) is horizontal. 
B) slopes downward to the right. 
C) is below the x- axis and to the left of the y- axis. 
D) slopes upward to the right. 
E) is vertical.

Question 20

Which of the following statements are positive? 1.The federal government should increase production of biofuels.
2.Air travel has increased since September 11.
3.The greatest number of accidents are caused by drunk drivers.
4.We ought to have a cure for cancer.

Accepted Answer

A) Statements 1 and 2 are positive. 
B) Statements 1 and 4 are positive. 
C) Statements 2 and 4 are positive. 
D) Statements 2 and 3 are positive. 
E) Statements 3 and 4 are positive. 
A) Statements 1 and 2 are positive. 
B) Statements 1 and 4 are positive. 
C) Statements 2 and 4 are positive. 
D) Statements 2 and 3 are positive. 
E) Statements 3 and 4 are positive.

According to Adam Smith

Two variables are negatively related if

Consider the following information on cola sales by number of cases for a typical university residence floor: Price dollars per case Cola sales and temperature are

Which one of the following is an example of capital?

The equation of a line is y = 4 + 2x.What is the slope of this line?

The two big economic questions

Use the figure below to answer the following questions. Figure 1A.3.4 -Figure 1A.3.4 illustrates two variables, x and y, which are

Which of the following statements is correct?

During the next hour John can choose one of the following three activities: playing basketball, watching television, or reading a book.The opportunity cost of reading a book

Complete the following sentence.Marginal cost is

The concept of opportunity cost

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?

Complete the following sentence.Entrepreneurship is

Which of the following is an example of a positive statement?

Complete the following sentence.Macroeconomics

A positive statement is

Economists test economic models by using

The relationship between two variables that are negatively related is shown graphically by a line that

Which of the following statements are positive? 1.The federal government should increase production of biofuels. 2.Air travel has increased since September 11. 3.The greatest number of accidents are caused by drunk drivers. 4.We ought to have a cure for cancer.

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics

According to Adam Smith

Two variables are negatively related if

Consider the following information on cola sales by number of cases for a typical university residence floor: Price dollars per case Cola sales and temperature are

Which one of the following is an example of capital?

The equation of a line is y = 4 + 2x.What is the slope of this line?

The two big economic questions

Use the figure below to answer the following questions. Figure 1A.3.4 -Figure 1A.3.4 illustrates two variables, x and y, which are

Which of the following statements is correct?

During the next hour John can choose one of the following three activities: playing basketball, watching television, or reading a book.The opportunity cost of reading a book

Complete the following sentence.Marginal cost is

The concept of opportunity cost

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?

Complete the following sentence.Entrepreneurship is

Which of the following is an example of a positive statement?

Complete the following sentence.Macroeconomics

A positive statement is

Economists test economic models by using

The relationship between two variables that are negatively related is shown graphically by a line that

Which of the following statements are positive? 1.The federal government should increase production of biofuels. 2.Air travel has increased since September 11. 3.The greatest number of accidents are caused by drunk drivers. 4.We ought to have a cure for cancer.

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters