Question 1

An incentive

Accepted Answer

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

Question 2

Complete the following sentence.Microeconomics is

Accepted Answer

A) not concerned with factors of production. 
B) concerned exclusively with the role of the government in the economy. 
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 with normative issues only. 
A) not concerned with factors of production. 
B) concerned exclusively with the role of the government in the economy. 
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 with normative issues only.

Question 3

Which of the following statements is normative?

Accepted Answer

A) If income increases, sales of luxury goods fall. 
B) As e- book prices fall, people buy more of them. 
C) Scientists should not make normative statements. 
D) There is more caffeine in a cup of tea than in a cup of coffee. 
E) Warts are caused by handling toads. 
A) If income increases, sales of luxury goods fall. 
B) As e- book prices fall, people buy more of them. 
C) Scientists should not make normative statements. 
D) There is more caffeine in a cup of tea than in a cup of coffee. 
E) Warts are caused by handling toads.

Question 4

The problem of scarcity exists

Accepted Answer

A) in all economies. 
B) only when people are unemployed. 
C) now but will be eliminated with economic growth. 
D) only in economies that lack incentives. 
E) only in economies that have incentives. 
A) in all economies. 
B) only when people are unemployed. 
C) now but will be eliminated with economic growth. 
D) only in economies that lack incentives. 
E) only in economies that have incentives.

Question 5

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

Accepted Answer

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

Question 6

Marginal benefit is

Accepted Answer

A) the benefit that arises from a decrease in an activity. 
B) the cost of a decrease in an activity. 
C) the cost of an increase in an activity. 
D) the benefit that arises from an increase in an activity. 
E) the sum of benefit and cost that arises from an increase in an activity. 
A) the benefit that arises from a decrease in an activity. 
B) the cost of a decrease in an activity. 
C) the cost of an increase in an activity. 
D) the benefit that arises from an increase in an activity. 
E) the sum of benefit and cost that arises from an increase in an activity.

Question 7

Use the figure below to answer the following questions.
   Figure 1A.1.1
-The graphs in Figure 1A.1.1 are examples of

Accepted Answer

A) graphs that show no relationship between x and y. 
B) scatter diagrams. 
C) dot graphs. 
D) dot diagrams. 
E) none of the above. 
A) graphs that show no relationship between x and y. 
B) scatter diagrams. 
C) dot graphs. 
D) dot diagrams. 
E) none of the above.

Question 8

Use the figure below to answer the following questions.
   Figure 1A.1.2
-Refer to Figure 1A.1.2.If x decreases from 5 to 4, y

Accepted Answer

A) decreases from 4 to 3 1/2. 
B) increases from 3 1/2 to 4. 
C) decreases from 4 to 2. 
D) decreases from 4 to 3. 
E) increases from 4 to 5. 
A) decreases from 4 to 3 1/2. 
B) increases from 3 1/2 to 4. 
C) decreases from 4 to 2. 
D) decreases from 4 to 3. 
E) increases from 4 to 5.

Question 9

Use the information below to answer the following questions.
Fact 1.4.1 Costco
When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as drivers lined up to get the discount of 10 cents a litre.
-Refer to Fact 1.4.1.To control the crowd Costco hires traffic police.When Costco hires traffic police, it faces a tradeoff that could include all of the following except

Accepted Answer

A) taking business away from gas stations in the area. 
B) hiring more customer service representatives. 
C) having a larger inventory of stock. 
D) expansion of the warehouse. 
E) having large seasonal displays. 
A) taking business away from gas stations in the area. 
B) hiring more customer service representatives. 
C) having a larger inventory of stock. 
D) expansion of the warehouse. 
E) having large seasonal displays.

Question 10

To graph a relationship among three variables we

Accepted Answer

A) graph each of the three variables using a separate set of axes. 
B) must be able to draw in three dimensions. 
C) must be able to allow all three variables to vary simultaneously in one graph. 
D) hold two variables constant to graph the third variable. 
E) hold one variable constant and graph the relationship between the other two variables. 
A) graph each of the three variables using a separate set of axes. 
B) must be able to draw in three dimensions. 
C) must be able to allow all three variables to vary simultaneously in one graph. 
D) hold two variables constant to graph the third variable. 
E) hold one variable constant and graph the relationship between the other two variables.

Question 11

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

Accepted Answer

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

Question 12

When a firm decides to produce computers using robots instead of people, it is answering the question.

Accepted Answer

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

Question 13

Use the figure below to answer the following question.
   Figure 1A.3.2
-Refer to Figure 1A.3.2.The slope across the arc between A and B is

Accepted Answer

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

Question 14

Figure 1A.2.1
-Consider graph b) of Figure 1A.2.1.Which one of the following statements is true?

Accepted Answer

A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) Both A and D are correct. 
A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) Both A and D are correct.

Question 15

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Accepted Answer

A) making a positive statement. 
B) identifying the standard of living- cost of living tradeoff. 
C) making a negative statement. 
D) making a normative statement. 
E) testing an economic model. 
A) making a positive statement. 
B) identifying the standard of living- cost of living tradeoff. 
C) making a negative statement. 
D) making a normative statement. 
E) testing an economic model.

Question 16

Use the figure below to answer the following questions.
   Figure 1A.4.3
-In Figure 1A.4.3, a decrease in the value of z results in, ceteris paribus,

Accepted Answer

A) no change in the value of y. 
B) an increase in the value of y. 
C) a decrease in the value of x. 
D) no change in the value of x. 
E) an increase in the value of x. 
A) no change in the value of y. 
B) an increase in the value of y. 
C) a decrease in the value of x. 
D) no change in the value of x. 
E) an increase in the value of x.

Question 17

Use the figure below to answer the following question.
   Figure 1A.5.2
-If the line in Figure 1A.5.2 were to continue down to the x- axis, what would the value of x be when y is zero?

Accepted Answer

A) - 3/2. 
B) 0 
C) 2 
D) - 2/3 
E) 2/3 
A) - 3/2. 
B) 0 
C) 2 
D) - 2/3 
E) 2/3

Question 18

Which of the following is not a factor of production?

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

Of the tasks listed below, an economics major would be best qualified to take a job

Accepted Answer

A) analyzing balance sheets. 
B) determining ways of minimizing taxable income. 
C) studying ways of using resources more effectively. 
D) litigating. 
E) determining the amount of tax owed. 
A) analyzing balance sheets. 
B) determining ways of minimizing taxable income. 
C) studying ways of using resources more effectively. 
D) litigating. 
E) determining the amount of tax owed.

An incentive

Complete the following sentence.Microeconomics is

Which of the following statements is normative?

The problem of scarcity exists

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

Marginal benefit is

Use the figure below to answer the following questions. Figure 1A.1.1 -The graphs in Figure 1A.1.1 are examples of

Use the figure below to answer the following questions. Figure 1A.1.2 -Refer to Figure 1A.1.2.If x decreases from 5 to 4, y

To graph a relationship among three variables we

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

When a firm decides to produce computers using robots instead of people, it is answering the question.

Use the figure below to answer the following question. Figure 1A.3.2 -Refer to Figure 1A.3.2.The slope across the arc between A and B is

Figure 1A.2.1 -Consider graph b) of Figure 1A.2.1.Which one of the following statements is true?

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3, a decrease in the value of z results in, ceteris paribus,

Use the figure below to answer the following question. Figure 1A.5.2 -If the line in Figure 1A.5.2 were to continue down to the x- axis, what would the value of x be when y is zero?

Which of the following is not a factor of production?

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

Of the tasks listed below, an economics major would be best qualified to take a job

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

An incentive

Complete the following sentence.Microeconomics is

Which of the following statements is normative?

The problem of scarcity exists

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

Marginal benefit is

Use the figure below to answer the following questions. Figure 1A.1.1 -The graphs in Figure 1A.1.1 are examples of

Use the figure below to answer the following questions. Figure 1A.1.2 -Refer to Figure 1A.1.2.If x decreases from 5 to 4, y

To graph a relationship among three variables we

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

When a firm decides to produce computers using robots instead of people, it is answering the question.

Use the figure below to answer the following question. Figure 1A.3.2 -Refer to Figure 1A.3.2.The slope across the arc between A and B is

Figure 1A.2.1 -Consider graph b) of Figure 1A.2.1.Which one of the following statements is true?

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3, a decrease in the value of z results in, ceteris paribus,

Use the figure below to answer the following question. Figure 1A.5.2 -If the line in Figure 1A.5.2 were to continue down to the x- axis, what would the value of x be when y is zero?

Which of the following is not a factor of production?

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

Of the tasks listed below, an economics major would be best qualified to take a job

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

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