Question 1

To graph a relationship among three variables we

Accepted Answer

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

Question 2

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Refer to Figure 1A.1.5.Which graph or graphs indicates no relationship between x and y?

Accepted Answer

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

Question 3

If you take an additional class this term,you can graduate earlier.This is an example of

Accepted Answer

A) opportunity cost. 
B) total cost. 
C) the pursuit social interest. 
D) marginal benefit. 
E) social cost. 
A) opportunity cost. 
B) total cost. 
C) the pursuit social interest. 
D) marginal benefit. 
E) social cost.

Question 4

Statements about "what ought to be" are called

Accepted Answer

A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses. 
A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses.

Question 5

An economic model is

Accepted Answer

A) tested by examining the realism of its assumptions. 
B) useful if it predicts well, even if its assumptions are not realistic. 
C) tested by the Testing Committee of the Canadian Economic Association. 
D) not useful unless it predicts with 100 percent accuracy. 
E) not useful because it simplifies real problems. 
A) tested by examining the realism of its assumptions. 
B) useful if it predicts well, even if its assumptions are not realistic. 
C) tested by the Testing Committee of the Canadian Economic Association. 
D) not useful unless it predicts with 100 percent accuracy. 
E) not useful because it simplifies real problems.

Question 6

Which one of the following is an example of a factor of production?

Accepted Answer

A) an insurance policy 
B) a donut 
C) the skills of a welder 
D) an IBM stock certificate 
E) a computer game 
A) an insurance policy 
B) a donut 
C) the skills of a welder 
D) an IBM stock certificate 
E) a computer game

Question 7

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

Accepted Answer

A) 2/3. 
B) -1. 
C) -3/2. 
D) -3. 
E) -9/4. 
A) 2/3. 
B) -1. 
C) -3/2. 
D) -3. 
E) -9/4.

Question 8

The change in the value of the variable measured on the y- axis divided by the change in the value of the variable measures on the x-axis is

Accepted Answer

A) increasing. 
B) slope. 
C) decreasing. 
D) constant. 
E) a maximum or minimum. 
A) increasing. 
B) slope. 
C) decreasing. 
D) constant. 
E) a maximum or minimum.

Question 9

To disentangle cause and effect,economists use economic models and use ________ to test the predictions of those models.

Accepted Answer

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

Question 10

Use the figure below to answer the following questions.
   
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

Accepted Answer

A) A 
B) A and B 
C) B, C, and D 
D) A and C 
E) B and D 
A) A 
B) A and B 
C) B, C, and D 
D) A and C 
E) B and D

Question 11

Which of the following newspaper headlines concerns a macroeconomic issue?

Accepted Answer

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

Question 12

Use the figure below to answer the following question.
   
Figure 1A.2.1
-Refer to Figure 1A.2.1.When y increases from 5 to 6,x

Accepted Answer

A) increases from 5 to 6. 
B) increases from 7 to 8. 
C) increases from 7 to 9. 
D) decreases from 9 to 7. 
E) increases from 7 to 7 1/2. 
A) increases from 5 to 6. 
B) increases from 7 to 8. 
C) increases from 7 to 9. 
D) decreases from 9 to 7. 
E) increases from 7 to 7 1/2.

Question 13

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

Question 14

Use the figure below to answer the following questions.
   
Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor:
 
Refer to Figure 1A.4.5.Which line shows the relationship of cola sales and the temperature when the price of a case is $15.00?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) none of the above. 
A) A 
B) B 
C) C 
D) D 
E) none of the above.

Question 15

Use the table below to answer the following question.
Table 1A.2.2
  
-Refer to Table 1A.2.2.What type of relationship exists between y and z?

Accepted Answer

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

Question 16

The problem of scarcity exists

Accepted Answer

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

Question 17

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

Question 18

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Refer to Figure 1A.1.5.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 19

A tractor is an example of which of the following factors of production?

Accepted Answer

A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy 
A) capital 
B) labour 
C) land 
D) entrepreneurship 
E) energy

Question 20

Use the figure below to answer the following question.
   
Figure 1A.4.2
-Given the data in the following table,which one of the graphs in Figure 1A.4.2 correctly represents the relationship among x,y,and z?

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)

Exam 1: What Is Economics?

To graph a relationship among three variables we

Use the figure below to answer the following questions. Figure 1A.1.5 -Refer to Figure 1A.1.5.Which graph or graphs indicates no relationship between x and y?

If you take an additional class this term,you can graduate earlier.This is an example of

Statements about "what ought to be" are called

An economic model is

Which one of the following is an example of a factor of production?

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

The change in the value of the variable measured on the y- axis divided by the change in the value of the variable measures on the x-axis is

To disentangle cause and effect,economists use economic models and use ________ to test the predictions of those models.

Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

Which of the following newspaper headlines concerns a macroeconomic issue?

Use the figure below to answer the following question. Figure 1A.2.1 -Refer to Figure 1A.2.1.When y increases from 5 to 6,x

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

Use the table below to answer the following question. Table 1A.2.2 -Refer to Table 1A.2.2.What type of relationship exists between y and z?

The problem of scarcity exists

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.1.5 -Refer to Figure 1A.1.5.Which graph or graphs indicates a positive relationship between x and y?

A tractor is an example of which of the following factors of production?

Use the figure below to answer the following question. Figure 1A.4.2 -Given the data in the following table,which one of the graphs in Figure 1A.4.2 correctly represents the relationship among x,y,and z?

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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