Question 1

Use the figure below to answer the following question.
   
Figure 1A.3.7
-The slope of the line in Figure 1A.3.7 is

Accepted Answer

A) 1. 
B) -1. 
C) 1/2. 
D) 2. 
E) dependent on where you measure it. 
A) 1. 
B) -1. 
C) 1/2. 
D) 2. 
E) dependent on where you measure it.

Question 2

Use the table below to answer the following questions.
Table 1A.4.1
  
-Given the data in Table 1A.4.1,holding z constant,the graph of x and y

Accepted Answer

A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) does not have a constant slope. 
A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) does not have a constant slope.

Question 3

Use the figure below to answer the following question.
   
Figure 1A.2.6
-Refer to Figure 1A.2.6.Consider the values for x and y given in the following table:
 
Which one of the graphs in Figure A1.13 represents the relationship between x and y?

Accepted Answer

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

Question 4

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

Accepted Answer

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

Question 5

Use the table below to answer the following questions.
Table 1A.2.3
  
-Refer to Table 1A.2.3.What type of relationship exists between w and u?

Accepted Answer

A) positive 
B) negative 
C) direct 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one 
A) positive 
B) negative 
C) direct 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one

Question 6

Use the figure below to answer the following questions.
   
Figure 1A.3.10
-Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

Accepted Answer

A) 2 
B) -2 
C) 0.25 
D) -0.25 
E) -4 
A) 2 
B) -2 
C) 0.25 
D) -0.25 
E) -4

Question 7

Use the table below to answer the following questions.
Table 1A.3.3
  
-Refer to Table 1A.3.3.If we were to draw a graph of this relationship,when would the slope be positive?

Accepted Answer

A) never 
B) only if x is less than 5 
C) only if x equals 5 
D) only if x is greater than 5 
E) We do not have enough information to tell. 
A) never 
B) only if x is less than 5 
C) only if x equals 5 
D) only if x is greater than 5 
E) We do not have enough information to tell.

Question 8

Which of the following statements is normative?

Accepted Answer

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

Question 9

Use the figure below to answer the following question.
   
Figure 1A.2.1
-Refer to Figure 1A.2.1.The variables x and y

Accepted Answer

A) are negatively related. 
B) have a nonlinear relationship. 
C) have a negative linear relationship. 
D) are unrelated. 
E) are positively related. 
A) are negatively related. 
B) have a nonlinear relationship. 
C) have a negative linear relationship. 
D) are unrelated. 
E) are positively related.

Question 10

Two variables are positively related if

Accepted Answer

A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases 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 decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases 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 11

Complete the following sentence.Marginal cost is

Accepted Answer

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

Question 12

Complete the following sentence.Entrepreneurship is

Accepted Answer

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

Question 13

Saskatchewan had more hospitals than Ontario,despite having one-tenth the population.The Saskatchewan government closed many of these hospitals in spite of widespread local protests.Which one of the following arguments is true?

Accepted Answer

A) Since hospitals have positive benefits, they should never be closed. 
B) If Saskatchewan had more hospitals than Ontario, it must have had too many hospitals. 
C) The Saskatchewan government must have thought the marginal benefit from one of these hospitals exceeded its marginal cost. 
D) The Saskatchewan government must have thought the marginal benefit from one of these hospitals was less then its marginal cost. 
E) The communities where these hospitals existed bore no costs from these decisions, because they did not pay for any of the hospital operating costs. 
A) Since hospitals have positive benefits, they should never be closed. 
B) If Saskatchewan had more hospitals than Ontario, it must have had too many hospitals. 
C) The Saskatchewan government must have thought the marginal benefit from one of these hospitals exceeded its marginal cost. 
D) The Saskatchewan government must have thought the marginal benefit from one of these hospitals was less then its marginal cost. 
E) The communities where these hospitals existed bore no costs from these decisions, because they did not pay for any of the hospital operating costs.

Question 14

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

Accepted Answer

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

Question 15

Use the table below to answer the following questions.
Table 1A.4.2
  
-Table 1A.4.2 shows that,

Accepted Answer

A) the number of boxes of strawberries purchased is negatively related to the price of strawberries, holding income constant. 
B) the number of boxes of strawberries purchased is negatively related to income, holding the price of strawberries constant. 
C) the price of strawberries is negatively related to family income, holding purchases of strawberries constant. 
D) B and C. 
E) A and B. 
A) the number of boxes of strawberries purchased is negatively related to the price of strawberries, holding income constant. 
B) the number of boxes of strawberries purchased is negatively related to income, holding the price of strawberries constant. 
C) the price of strawberries is negatively related to family income, holding purchases of strawberries constant. 
D) B and C. 
E) A and B.

Question 16

The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if ________.

Accepted Answer

A) the movie has a higher attendance than any other movie produced that year 
B) the movie is produced at the lowest possible cost, and the movie gives the greatest possible benefit 
C) the movie addresses a social issue 
D) the movie is an Academy award winner because an Academy award winning movie is most popular with the movie-going public 
E) the movie is produced in a country where workers typically earn less than workers in North America 
A) the movie has a higher attendance than any other movie produced that year 
B) the movie is produced at the lowest possible cost, and the movie gives the greatest possible benefit 
C) the movie addresses a social issue 
D) the movie is an Academy award winner because an Academy award winning movie is most popular with the movie-going public 
E) the movie is produced in a country where workers typically earn less than workers in North America

Question 17

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

Question 18

To meet increased demand for its good,a firm decides to hire a few high-skilled workers,rather than hire many low-skilled workers.The firm is answering the ________ question.

Accepted Answer

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

Question 19

What choices are best for the entire society?

Accepted Answer

A) self-interest choices 
B) minority group choices 
C) social interest choices 
D) ethnic group choices 
E) regional interest choices 
A) self-interest choices 
B) minority group choices 
C) social interest choices 
D) ethnic group choices 
E) regional interest choices

Question 20

Which of the following is the best definition of economics?

Accepted Answer

A) the study of how a provincial government allocates tax dollars 
B) the study of how consumers spend their income 
C) the study of how producers decide what inputs to hire and what outputs to produce 
D) 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 
E) the study of how consumers and producers meet each other at the market 
A) the study of how a provincial government allocates tax dollars 
B) the study of how consumers spend their income 
C) the study of how producers decide what inputs to hire and what outputs to produce 
D) 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 
E) the study of how consumers and producers meet each other at the market

Exam 1: What Is Economics?

Use the figure below to answer the following question. Figure 1A.3.7 -The slope of the line in Figure 1A.3.7 is

Use the table below to answer the following questions. Table 1A.4.1 -Given the data in Table 1A.4.1,holding z constant,the graph of x and y

Use the figure below to answer the following question. Figure 1A.2.6 -Refer to Figure 1A.2.6.Consider the values for x and y given in the following table: Which one of the graphs in Figure A1.13 represents the relationship between x and y?

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

Use the table below to answer the following questions. Table 1A.2.3 -Refer to Table 1A.2.3.What type of relationship exists between w and u?

Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10.The figure shows a relationship between two variables,x and y.The slope at point A is

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3.If we were to draw a graph of this relationship,when would the slope be positive?

Which of the following statements is normative?

Use the figure below to answer the following question. Figure 1A.2.1 -Refer to Figure 1A.2.1.The variables x and y

Two variables are positively related if

Complete the following sentence.Marginal cost is

Complete the following sentence.Entrepreneurship is

Saskatchewan had more hospitals than Ontario,despite having one-tenth the population.The Saskatchewan government closed many of these hospitals in spite of widespread local protests.Which one of the following arguments is true?

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

Use the table below to answer the following questions. Table 1A.4.2 -Table 1A.4.2 shows that,

The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if ________.

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

To meet increased demand for its good,a firm decides to hire a few high-skilled workers,rather than hire many low-skilled workers.The firm is answering the ________ question.

What choices are best for the entire society?

Which of the following is the best definition of economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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 Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

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