Question 1

Which of the following is a microeconomic topic?

Accepted Answer

A) the effect of the government budget deficit on inflation 
B) the reasons why the labour force in a country decreases 
C) the cause of increasing unemployment 
D) the reasons why the average price level in a country falls 
E) the reasons why a consumer buys less honey 
A) the effect of the government budget deficit on inflation 
B) the reasons why the labour force in a country decreases 
C) the cause of increasing unemployment 
D) the reasons why the average price level in a country falls 
E) the reasons why a consumer buys less honey

Question 2

Use the figure below to answer the following questions.
   Figure 1A.3.4
-Refer to Figure 1A.3.4.In Figure 1A.3.4, the slope at point B

Accepted Answer

A) is greater than 3/2. 
B) lies between - 3/4 and - 3/2. 
C) lies between - 2/3 and - 4/3. 
D) lies between 1 and 3/2. 
E) lies between - 2/3 and - 1. 
A) is greater than 3/2. 
B) lies between - 3/4 and - 3/2. 
C) lies between - 2/3 and - 4/3. 
D) lies between 1 and 3/2. 
E) lies between - 2/3 and - 1.

Question 3

Use the figure below to answer the following questions.
   Figure 1A.2.4
-Refer to Figure 1A.2.4.Which one of the graphs shows a negative relationship between x and y?

Accepted Answer

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

Question 4

-The slope of the line in Figure 1A.3.1 is

Accepted Answer

A) 1.25. 
B) 1.00 
C) 0.75. 
D) 0.50. 
E) 1.50. 
A) 1.25. 
B) 1.00 
C) 0.75. 
D) 0.50. 
E) 1.50.

Question 5

Use the table below to answer the following questions.
Table 1A.4.2
    
-Given the data in Table 1A.4.2, holding income constant, the graph relating the price of strawberries, measured on the y- axis and the purchases of strawberries, measured on the x- axis

Accepted Answer

A) is a positively sloped line. 
B) is a vertical line. 
C) is a negatively sloped line. 
D) is a horizontal line. 
E) reaches a minimum. 
A) is a positively sloped line. 
B) is a vertical line. 
C) is a negatively sloped line. 
D) is a horizontal line. 
E) reaches a minimum.

Question 6

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

Question 7

Use the figure below to answer the following questions.
   Figure 1A.4.3
-In Figure 1A.4.3, x is

Accepted Answer

A) greater than z. 
B) negatively related to both y and z. 
C) positively related to y and negatively related to z. 
D) positively related to both y and z. 
E) negatively related to y and positively related to z. 
A) greater than z. 
B) negatively related to both y and z. 
C) positively related to y and negatively related to z. 
D) positively related to both y and z. 
E) negatively related to y and positively related to z.

Question 8

Use the information below to answer the following question.
Fact 1.3.1 Costs Soar for London Olympics
The regeneration of East London, the site of the 2012 Olympic Games, is set to add extra £1.5 billion to taxpayers' bill.Source: The Times, London, July 6, 2006
-Refer to Fact 1.3.1.The cost of regenerating East London an opportunity cost of hosting the 2012 Olympic Games .

Accepted Answer

A) is; if the property taxes of people living in East London increase 
B) is not; because few people attending the 2012 Olympics will spend much time outside Olympic venues 
C) is not; because regenerating East London is an unnecessary expense 
D) is; if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics 
E) is; if the regeneration of East London would not occur unless London hosted the 2012 Olympics 
A) is; if the property taxes of people living in East London increase 
B) is not; because few people attending the 2012 Olympics will spend much time outside Olympic venues 
C) is not; because regenerating East London is an unnecessary expense 
D) is; if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics 
E) is; if the regeneration of East London would not occur unless London hosted the 2012 Olympics

Question 9

-Given the data in Table 1A.4.1, holding y constant, the graph of x and z

Accepted Answer

A) reaches a minimum. 
B) reaches a maximum. 
C) is a positively sloped line. 
D) shows that x and z are not related. 
E) is a negatively sloped line. 
A) reaches a minimum. 
B) reaches a maximum. 
C) is a positively sloped line. 
D) shows that x and z are not related. 
E) is a negatively sloped line.

Question 10

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

Accepted Answer

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

Question 11

Which one of the following topics does microeconomics study?

Accepted Answer

A) determination of total production in a country 
B) effect of interest rates on national economic growth 
C) effect of the government budget deficit on employment 
D) reasons for a fall in the price of orange juice 
E) the effect of a rise in the Canadian dollar on Canada's exports 
A) determination of total production in a country 
B) effect of interest rates on national economic growth 
C) effect of the government budget deficit on employment 
D) reasons for a fall in the price of orange juice 
E) the effect of a rise in the Canadian dollar on Canada's exports

Question 12

Use the figure below to answer the following question.
   Figure 1A.5.4
-Refer to Figure 1A.5.4.The graph shows the relationship between two variables, x and y.This relationship is described by the equation

Accepted Answer

A) y = - 5x + 10. 
B) x = 10 + 5y. 
C) y = 10x + 5. 
D) y = 5x2 + 10. 
E) y = 5x + 10. 
A) y = - 5x + 10. 
B) x = 10 + 5y. 
C) y = 10x + 5. 
D) y = 5x2 + 10. 
E) y = 5x + 10.

Question 13

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 14

Which one of the following would economists classify as land?

Accepted Answer

A) an elementary school in Nova Scotia 
B) an automotive plant in British Columbia 
C) an oil rig in the Atlantic Ocean 
D) automobiles parked in a parking lot in Manitoba 
E) rich agricultural soil in Saskatchewan 
A) an elementary school in Nova Scotia 
B) an automotive plant in British Columbia 
C) an oil rig in the Atlantic Ocean 
D) automobiles parked in a parking lot in Manitoba 
E) rich agricultural soil in Saskatchewan

Question 15

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

Accepted Answer

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

Question 16

Two variables are positively related if

Accepted Answer

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

Question 17

Choose the correct statement.

Accepted Answer

A) In Canada today, manufacturing accounts for 50 percent of total production. 
B) Canada produces more services than goods. 
C) China's production of services is a greater percentage of its total production than Canada's. 
D) Canada's production of manufacturing is a greater percentage of its total production than China's. 
E) In Canada today, agriculture accounts for 30 percent of total production. 
A) In Canada today, manufacturing accounts for 50 percent of total production. 
B) Canada produces more services than goods. 
C) China's production of services is a greater percentage of its total production than Canada's. 
D) Canada's production of manufacturing is a greater percentage of its total production than China's. 
E) In Canada today, agriculture accounts for 30 percent of total production.

Question 18

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

Accepted Answer

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

Question 19

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix- up projects around your house.If you decide to go to Florida, the opportunity cost of the trip is

Accepted Answer

A) working or doing fix- up projects, depending on which you would have done otherwise. 
B) nothing because you will enjoy the trip to Florida. 
C) variable depending on the weather you leave behind in Canada. 
D) working, because you would be giving up income. 
E) working and doing fix- up projects. 
A) working or doing fix- up projects, depending on which you would have done otherwise. 
B) nothing because you will enjoy the trip to Florida. 
C) variable depending on the weather you leave behind in Canada. 
D) working, because you would be giving up income. 
E) working and doing fix- up projects.

Question 20

Which of the following creates an incentive to increase the amount of an activity?

Accepted Answer

A) constant marginal cost and constant marginal benefit from the activity 
B) a decrease in the marginal cost of the activity and an increase in the marginal benefit from the activity 
C) an increase in the marginal cost of the activity and an equal increase in the marginal benefit from the activity 
D) an increase in the marginal cost of the activity and a decrease in the marginal benefit from the activity 
E) a decrease in the marginal cost of the activity and an equal decrease in the marginal benefit from the activity 
A) constant marginal cost and constant marginal benefit from the activity 
B) a decrease in the marginal cost of the activity and an increase in the marginal benefit from the activity 
C) an increase in the marginal cost of the activity and an equal increase in the marginal benefit from the activity 
D) an increase in the marginal cost of the activity and a decrease in the marginal benefit from the activity 
E) a decrease in the marginal cost of the activity and an equal decrease in the marginal benefit from the activity

Which of the following is a microeconomic topic?

Use the figure below to answer the following questions. Figure 1A.3.4 -Refer to Figure 1A.3.4.In Figure 1A.3.4, the slope at point B

Use the figure below to answer the following questions. Figure 1A.2.4 -Refer to Figure 1A.2.4.Which one of the graphs shows a negative relationship between x and y?

-The slope of the line in Figure 1A.3.1 is

Use the table below to answer the following questions. Table 1A.4.2 -Given the data in Table 1A.4.2, holding income constant, the graph relating the price of strawberries, measured on the y- axis and the purchases of strawberries, measured on the x- axis

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

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3, x is

-Given the data in Table 1A.4.1, holding y constant, the graph of x and z

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

Which one of the following topics does microeconomics study?

Use the figure below to answer the following question. Figure 1A.5.4 -Refer to Figure 1A.5.4.The graph shows the relationship between two variables, x and y.This relationship is described by the equation

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?

Which one of the following would economists classify as land?

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

Two variables are positively related if

Choose the correct statement.

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

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix- up projects around your house.If you decide to go to Florida, the opportunity cost of the trip is

Which of the following creates an incentive to increase the amount of an activity?

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

Which of the following is a microeconomic topic?

Use the figure below to answer the following questions. Figure 1A.3.4 -Refer to Figure 1A.3.4.In Figure 1A.3.4, the slope at point B

Use the figure below to answer the following questions. Figure 1A.2.4 -Refer to Figure 1A.2.4.Which one of the graphs shows a negative relationship between x and y?

-The slope of the line in Figure 1A.3.1 is

Use the table below to answer the following questions. Table 1A.4.2 -Given the data in Table 1A.4.2, holding income constant, the graph relating the price of strawberries, measured on the y- axis and the purchases of strawberries, measured on the x- axis

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

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3, x is

-Given the data in Table 1A.4.1, holding y constant, the graph of x and z

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

Which one of the following topics does microeconomics study?

Use the figure below to answer the following question. Figure 1A.5.4 -Refer to Figure 1A.5.4.The graph shows the relationship between two variables, x and y.This relationship is described by the equation

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?

Which one of the following would economists classify as land?

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

Two variables are positively related if

Choose the correct statement.

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

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix- up projects around your house.If you decide to go to Florida, the opportunity cost of the trip is

Which of the following creates an incentive to increase the amount of an activity?

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