Question 1

Which statement about incomes earned by factors of production is false?

Accepted Answer

A) Natural resources earn rent. 
B) Entrepreneurship earns profit. 
C) Land earns rent. 
D) Capital earns profit. 
E) Labour earns wages. 
A) Natural resources earn rent. 
B) Entrepreneurship earns profit. 
C) Land earns rent. 
D) Capital earns profit. 
E) Labour earns wages.

Question 2

Figure 1A.2.1
-Consider graph a) 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 3

Use the figure below to answer the following questions.
   Figure 1A.2.4
-Refer to Figure 1A.2.4.Suppose theory predicted that for low levels of quantity produced x) a firm's profits y) were low, for medium levels of output their profits were high, and for high levels of output their profits were low again.Which one of the graphs would represent this relationship?

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 4

Complete the following sentence.Financial capital is

Accepted Answer

A) not subject to scarcity. 
B) a service. 
C) one of the "gifts of nature." 
D) money, stocks, and bonds. 
E) a factor of production. 
A) not subject to scarcity. 
B) a service. 
C) one of the "gifts of nature." 
D) money, stocks, and bonds. 
E) a factor of production.

Question 5

The expansion of international trade, borrowing and lending, and investment is

Accepted Answer

A) a corporate revolution. 
B) the big tradeoff. 
C) antiglobalization. 
D) not in the best interests of most countries. 
E) globalization. 
A) a corporate revolution. 
B) the big tradeoff. 
C) antiglobalization. 
D) not in the best interests of most countries. 
E) globalization.

Question 6

Which of the following is the best definition of economics?

Accepted Answer

A) the study of how consumers spend their income 
B) the study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices 
C) the study of how a provincial government allocates tax dollars 
D) the study of how producers decide what inputs to hire and what outputs to produce 
E) the study of how consumers and producers meet each other in the market 
A) the study of how consumers spend their income 
B) the study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices 
C) the study of how a provincial government allocates tax dollars 
D) the study of how producers decide what inputs to hire and what outputs to produce 
E) the study of how consumers and producers meet each other in the market

Question 7

Each of the following would be considered a macroeconomic topic except

Accepted Answer

A) the reasons for a decrease in the unemployment rate. 
B) the selection of production techniques. 
C) the effect of the government budget deficit on inflation. 
D) the determination of aggregate income. 
E) the cause of recessions. 
A) the reasons for a decrease in the unemployment rate. 
B) the selection of production techniques. 
C) the effect of the government budget deficit on inflation. 
D) the determination of aggregate income. 
E) the cause of recessions.

Question 8

A normative statement is a statement regarding

Accepted Answer

A) the assumptions of an economic model. 
B) what is usually the case. 
C) what is. 
D) the predictions of an economic model. 
E) what ought to be. 
A) the assumptions of an economic model. 
B) what is usually the case. 
C) what is. 
D) the predictions of an economic model. 
E) what ought to be.

Question 9

Which of the following newspaper headlines concerns a macroeconomic issue?

Accepted Answer

A) How would a tax on e- commerce affect chapters.indigo.ca? 
B) Why do grain producers purchase less pesticides? 
C) Why are people buying more SUVs and fewer minivans? 
D) Why is Japan's economy stagnant? 
E) How would an unexpected freeze in Oxford, Nova Scotia change the price of blueberries in the Maritimes? 
A) How would a tax on e- commerce affect chapters.indigo.ca? 
B) Why do grain producers purchase less pesticides? 
C) Why are people buying more SUVs and fewer minivans? 
D) Why is Japan's economy stagnant? 
E) How would an unexpected freeze in Oxford, Nova Scotia change the price of blueberries in the Maritimes?

Question 10

Use the figure below to answer the following questions.
   Figure 1A.3.4
-In Figure 1A.3.4, the slope across arc BC is

Accepted Answer

A) - 4/3. 
B) - 2/3. 
C) - 3/2. 
D) - 3/4. 
E) - 2. 
A) - 4/3. 
B) - 2/3. 
C) - 3/2. 
D) - 3/4. 
E) - 2.

Which statement about incomes earned by factors of production is false?

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

Complete the following sentence.Financial capital is

The expansion of international trade, borrowing and lending, and investment is

Which of the following is the best definition of economics?

Each of the following would be considered a macroeconomic topic except

A normative statement is a statement regarding

Which of the following newspaper headlines concerns a macroeconomic issue?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc BC is

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 statement about incomes earned by factors of production is false?

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

Complete the following sentence.Financial capital is

The expansion of international trade, borrowing and lending, and investment is

Which of the following is the best definition of economics?

Each of the following would be considered a macroeconomic topic except

A normative statement is a statement regarding

Which of the following newspaper headlines concerns a macroeconomic issue?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc BC is

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