Question 1

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

Accepted Answer

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

Question 2

"The rich should face higher income tax rates than the poor." This is an example of

Accepted Answer

A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) economic reasoning. 
E) neither a normative nor a positive statement. 
A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) economic reasoning. 
E) neither a normative nor a positive statement.

Question 3

Sally has to decide whether to study for her economics test or her accounting test.If she chooses to study for accounting,her opportunity cost of studying accounting is

Accepted Answer

A) studying economics. 
B) less than the value of studying economics. 
C) not comparable to the value of studying economics. 
D) equal to the value of studying economics. 
E) the future lost wages that will occur if she fails her accounting exam. 
A) studying economics. 
B) less than the value of studying economics. 
C) not comparable to the value of studying economics. 
D) equal to the value of studying economics. 
E) the future lost wages that will occur if she fails her accounting exam.

Question 4

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-Figure 1A.3.3 illustrates two variables,x and y,which are

Accepted Answer

A) negatively related, with a decreasing slope as x increases. 
B) negatively related, with an increasing slope as x increases. 
C) positively related, with a decreasing slope as x increases. 
D) positively related, with an increasing slope as x increases. 
E) positively related, with slope first increasing then decreasing. 
A) negatively related, with a decreasing slope as x increases. 
B) negatively related, with an increasing slope as x increases. 
C) positively related, with a decreasing slope as x increases. 
D) positively related, with an increasing slope as x increases. 
E) positively related, with slope first increasing then decreasing.

Question 5

The scientific purpose of simplifying assumptions in an economic model is to

Accepted Answer

A) avoid confronting difficult issues. 
B) eliminate the need for further testing of the implications of the model. 
C) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
D) eliminate the possibility of personal bias in the model. 
E) add necessary hypotheses to the problem. 
A) avoid confronting difficult issues. 
B) eliminate the need for further testing of the implications of the model. 
C) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
D) eliminate the possibility of personal bias in the model. 
E) add necessary hypotheses to the problem.

Question 6

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 its price when the temperature is 30°C?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 7

Use the figure below to answer the following questions.
   
Figure 1A.4.5
-The Latin term ceteris paribus means

Accepted Answer

A) "Innocent until proven guilty." 
B) "Fallacies are composed." 
C) "Compositions are fallacious." 
D) "The whole is not the sum of the parts." 
E) "If all other relevant things remain the same." 
A) "Innocent until proven guilty." 
B) "Fallacies are composed." 
C) "Compositions are fallacious." 
D) "The whole is not the sum of the parts." 
E) "If all other relevant things remain the same."

Question 8

Use the table below to answer the following questions.
Table 1A.4.2
  
-Given the data in Table 1A.4.2,suppose family income decreases from $400 to $300 per week.Then the graph relating the price of strawberries,measured on the y-axis and the number of boxes of strawberries purchased,measured on the x-axis will

Accepted Answer

A) become negatively sloped. 
B) become positively sloped. 
C) shift rightward. 
D) shift leftward. 
E) no longer exist. 
A) become negatively sloped. 
B) become positively sloped. 
C) shift rightward. 
D) shift leftward. 
E) no longer exist.

Question 9

Which of the following statements are positive?
1.The federal government should increase production of biofuels.
2.Air travel has increased since September 11.
3.The greatest number of accidents are caused by drunk drivers.
4.We ought to have a cure for cancer.

Accepted Answer

A) statements 1 and 4 are positive 
B) statements 2 and 3 are positive 
C) statements 1 and 2 are positive 
D) statements 3 and 4 are positive 
E) statements 2 and 4 are positive 
A) statements 1 and 4 are positive 
B) statements 2 and 3 are positive 
C) statements 1 and 2 are positive 
D) statements 3 and 4 are positive 
E) statements 2 and 4 are positive

Question 10

Which one of the following topics does macroeconomics study?

Accepted Answer

A) decisions of individual firms 
B) effects of government safety regulations on the price of cars 
C) the performance of the global economy 
D) prices of individual goods and services 
E) effects of taxes on the price of gasoline 
A) decisions of individual firms 
B) effects of government safety regulations on the price of cars 
C) the performance of the global economy 
D) prices of individual goods and services 
E) effects of taxes on the price of gasoline

Question 11

Which of the following would an economist classify as capital?

Accepted Answer

A) natural resources 
B) a deposit of silver 
C) entrepreneurship 
D) a computer 
E) land 
A) natural resources 
B) a deposit of silver 
C) entrepreneurship 
D) a computer 
E) land

Question 12

Use the figure below to answer the following questions.
   
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Accepted Answer

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

Question 13

Complete the following sentence.Microeconomics is

Accepted Answer

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

Question 14

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

Accepted Answer

A) 23;93 
B) 93;53 
C) 93;23 
D) 100;53 
E) 53;23 
A) 23;93 
B) 93;53 
C) 93;23 
D) 100;53 
E) 53;23

Question 15

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

Accepted Answer

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

Question 16

Use the figure below to answer the following question.
   
Figure 1A.3.8
-The slope of the line in Figure 1A.3.8 is

Accepted Answer

A) 3/2. 
B) 2/3. 
C) -3/2. 
D) -2/3. 
E) none of the above. 
A) 3/2. 
B) 2/3. 
C) -3/2. 
D) -2/3. 
E) none of the above.

Question 17

"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

Accepted Answer

A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) a theoretical statement. 
E) a descriptive statement. 
A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) a theoretical statement. 
E) a descriptive statement.

Question 18

The two big economic questions include all of the following except

Accepted Answer

A) what to produce. 
B) why to produce. 
C) how to produce. 
D) for whom to produce. 
E) can choices made in the pursuit of self-interest also promote the social interest. 
A) what to produce. 
B) why to produce. 
C) how to produce. 
D) for whom to produce. 
E) can choices made in the pursuit of self-interest also promote the social interest.

Question 19

Use the figure below to answer the following question.
   
Figure 1A.2.2
-In Figure 1A.2.2,the variables x and y

Accepted Answer

A) move in the same direction. 
B) are negatively related. 
C) are always equal. 
D) are unrelated 
E) are positively related. 
A) move in the same direction. 
B) are negatively related. 
C) are always equal. 
D) are unrelated 
E) are positively related.

Question 20

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-In Figure 1A.3.3 the relationship between x and y as x increases is

Accepted Answer

A) positive with decreasing slope. 
B) negative with decreasing slope. 
C) negative with increasing slope. 
D) positive with increasing slope. 
E) positive with slope first increasing then decreasing. 
A) positive with decreasing slope. 
B) negative with decreasing slope. 
C) negative with increasing slope. 
D) positive with increasing slope. 
E) positive with slope first increasing then decreasing.

Exam 1: What Is Economics?

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

"The rich should face higher income tax rates than the poor." This is an example of

Sally has to decide whether to study for her economics test or her accounting test.If she chooses to study for accounting,her opportunity cost of studying accounting is

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables,x and y,which are

The scientific purpose of simplifying assumptions in an economic model is to

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 its price when the temperature is 30°C?

Use the figure below to answer the following questions. Figure 1A.4.5 -The Latin term ceteris paribus means

Which of the following statements are positive? 1.The federal government should increase production of biofuels. 2.Air travel has increased since September 11. 3.The greatest number of accidents are caused by drunk drivers. 4.We ought to have a cure for cancer.

Which one of the following topics does macroeconomics study?

Which of the following would an economist classify as capital?

Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Complete the following sentence.Microeconomics is

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

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

Use the figure below to answer the following question. Figure 1A.3.8 -The slope of the line in Figure 1A.3.8 is

"The rich face higher income tax rates than the poor,which is not good since it is the rich who provide jobs for the poor." This is an example of

The two big economic questions include all of the following except

Use the figure below to answer the following question. Figure 1A.2.2 -In Figure 1A.2.2,the variables x and y

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3 the relationship between x and y as x increases is

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

Filters

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