Question 1

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

Accepted Answer

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

Question 2

The slope of a straight line

Accepted Answer

A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope. 
A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope.

Question 3

The determination of prices in individual markets is primarily a concern of

Accepted Answer

A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics. 
A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics.

Question 4

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3.If you were told that economic theory predicts that higher levels of the rate of interest (x)lead to lower levels of sales of houses (y),which graph would you pick to represent this economic relationship?

Accepted Answer

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

Question 5

Use the figure below to answer the following questions.
   
Figure 1A.2.5
-Refer to Figure 1A.2.5.Which one of the following statements is true?

Accepted Answer

A) x and y are positively related at all points between A and D. 
B) x and y are negatively related at all points between points B and D. 
C) y reaches a maximum at point C. 
D) y reaches a minimum at point C. 
E) x and y are unrelated. 
A) x and y are positively related at all points between A and D. 
B) x and y are negatively related at all points between points B and D. 
C) y reaches a maximum at point C. 
D) y reaches a minimum at point C. 
E) x and y are unrelated.

Question 6

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-In Figure 1A.3.3,the slope across arc AB is

Accepted Answer

A) 1/2. 
B) 1. 
C) 3/2. 
D) 5/2. 
E) 5/3. 
A) 1/2. 
B) 1. 
C) 3/2. 
D) 5/2. 
E) 5/3.

Question 7

Use the table below to answer the following questions.
Table 1A.3.3
  
-At all points along a straight line,slope is

Accepted Answer

A) positive. 
B) negative. 
C) constant. 
D) zero. 
E) infinity. 
A) positive. 
B) negative. 
C) constant. 
D) zero. 
E) infinity.

Question 8

When a firm decides to produce computers using robots instead of people,it is answering the ________ question.

Accepted Answer

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

Question 9

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3.If your theory predicted that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y),which graph would you use to represent this relationship?

Accepted Answer

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

Question 10

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

Question 11

Use the figure below to answer the following questions.
   
Figure 1A.3.5
-Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc BC is

Accepted Answer

A) 1/3. 
B) 1/2. 
C) 1. 
D) 2. 
E) 5/6. 
A) 1/3. 
B) 1/2. 
C) 1. 
D) 2. 
E) 5/6.

Question 12

Which of the following would be considered a microeconomic topic?

Accepted Answer

A) the severity of a recession 
B) the cause of unemployment in the economy 
C) the effect of the government budget deficit on inflation 
D) the determination of aggregate income 
E) the study of how wages are set for mine workers 
A) the severity of a recession 
B) the cause of unemployment in the economy 
C) the effect of the government budget deficit on inflation 
D) the determination of aggregate income 
E) the study of how wages are set for mine workers

Question 13

A positive statement is

Accepted Answer

A) always true. 
B) always false. 
C) about what ought to be. 
D) what is currently believed about the way the world operates. 
E) an opinion that cannot be verified. 
A) always true. 
B) always false. 
C) about what ought to be. 
D) what is currently believed about the way the world operates. 
E) an opinion that cannot be verified.

Question 14

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3.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 15

A star athlete can afford a garage full of exotic cars while other people can only afford to take a city bus for transportation.This is an example of an economy facing the ________ question.

Accepted Answer

A) "what" 
B) "how" 
C) "for whom" 
D) "where" 
E) "when" 
A) "what" 
B) "how" 
C) "for whom" 
D) "where" 
E) "when"

Question 16

Use the figure below to answer the following questions.
   
Figure 1A.3.9
-Refer to Figure 1A.3.9.Which one of the graphs shows a line with an infinite slope?

Accepted Answer

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

Question 17

Use the figure below to answer the following questions.
   
Figure 1A.3.5
-Refer to Figure 1A.3.5.Which one of the following statements is true?

Accepted Answer

A) The slope is less between points A and B than between points B and C. 
B) The slope is greater between points B and C than between points A and B. 
C) The slope at C is 0. 
D) The slope at C is 1. 
E) The slope at C is negative. 
A) The slope is less between points A and B than between points B and C. 
B) The slope is greater between points B and C than between points A and B. 
C) The slope at C is 0. 
D) The slope at C is 1. 
E) The slope at C is negative.

Question 18

The inescapable economic fact is that

Accepted Answer

A) there are unlimited wants and limited resources. 
B) there are unlimited resources, and we just have to figure out how to allocate them. 
C) capitalists are always exploiting the workers. 
D) unions are always exploiting firms. 
E) capitalists and unions cannot work together. 
A) there are unlimited wants and limited resources. 
B) there are unlimited resources, and we just have to figure out how to allocate them. 
C) capitalists are always exploiting the workers. 
D) unions are always exploiting firms. 
E) capitalists and unions cannot work together.

Question 19

Which of the following is not a factor of production?

Accepted Answer

A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat 
A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat

Question 20

Use the figure below to answer the following question.
   
Figure 1A.4.3
-In Figure 1A.4.3,a decrease in the value of z results in,ceteris paribus,

Accepted Answer

A) a decrease in the value of x. 
B) an increase in the value of x. 
C) an increase in the value of y. 
D) no change in the value of y. 
E) no change in the value of x. 
A) a decrease in the value of x. 
B) an increase in the value of x. 
C) an increase in the value of y. 
D) no change in the value of y. 
E) no change in the value of x.

Exam 1: What Is Economics?

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

The slope of a straight line

The determination of prices in individual markets is primarily a concern of

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3.If you were told that economic theory predicts that higher levels of the rate of interest (x)lead to lower levels of sales of houses (y),which graph would you pick to represent this economic relationship?

Use the figure below to answer the following questions. Figure 1A.2.5 -Refer to Figure 1A.2.5.Which one of the following statements is true?

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3,the slope across arc AB is

Use the table below to answer the following questions. Table 1A.3.3 -At all points along a straight line,slope is

When a firm decides to produce computers using robots instead of people,it is answering the ________ question.

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3.If your theory predicted that a rise in the wage rate (x)leads to a rise in the amount of labour supplied in the economy (y),which graph would you use to represent this relationship?

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.3.5 -Refer to Figure 1A.3.5.In Figure 1A.3.5,the slope across arc BC is

Which of the following would be considered a microeconomic topic?

A positive statement is

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3.Which one of the graphs shows a negative relationship between x and y?

A star athlete can afford a garage full of exotic cars while other people can only afford to take a city bus for transportation.This is an example of an economy facing the ________ question.

Use the figure below to answer the following questions. Figure 1A.3.9 -Refer to Figure 1A.3.9.Which one of the graphs shows a line with an infinite slope?

Use the figure below to answer the following questions. Figure 1A.3.5 -Refer to Figure 1A.3.5.Which one of the following statements is true?

The inescapable economic fact is that

Which of the following is not a factor of production?

Use the figure below to answer the following question. Figure 1A.4.3 -In Figure 1A.4.3,a decrease in the value of z results in,ceteris paribus,

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