Question 1

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-What is the slope across the arc between B and C in Figure 1A.3.3?

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 2

Self-interest choices are

Accepted Answer

A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote. 
A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote.

Question 3

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

Accepted Answer

A) a market. 
B) macroeconomics. 
C) opportunity cost. 
D) a "how" tradeoff. 
E) the big tradeoff. 
A) a market. 
B) macroeconomics. 
C) opportunity cost. 
D) a "how" tradeoff. 
E) the big tradeoff.

Question 4

Use the table below to answer the following questions.
Table 1A.3.2
  
-Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

Accepted Answer

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

Question 5

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

Accepted Answer

A) the big tradeoff. 
B) industrial revolution. 
C) corporate revolution. 
D) globalization. 
E) antiglobalization. 
A) the big tradeoff. 
B) industrial revolution. 
C) corporate revolution. 
D) globalization. 
E) antiglobalization.

Question 6

The two big economic questions

Accepted Answer

A) involve self-interest only. 
B) involve only social interest. 
C) involve neither self-interest nor social interest. 
D) do not arise from scarcity. 
E) involve both self-interest and social interest. 
A) involve self-interest only. 
B) involve only social interest. 
C) involve neither self-interest nor social interest. 
D) do not arise from scarcity. 
E) involve both self-interest and social interest.

Question 7

If the equation of a straight line is y = 6 + 3x,then the slope is

Accepted Answer

A) -3 and the y-intercept is 6. 
B) -3 and the y-intercept is -2. 
C) 3 and the y-intercept is 6. 
D) 3 and the y-intercept is -2. 
E) 3 and the y-intercept is -6. 
A) -3 and the y-intercept is 6. 
B) -3 and the y-intercept is -2. 
C) 3 and the y-intercept is 6. 
D) 3 and the y-intercept is -2. 
E) 3 and the y-intercept is -6.

Question 8

To earn income,people sell the services of the factors of production they own.Land earns ________;labour earns ________;capital earns ________ and entrepreneurship earns ________.

Accepted Answer

A) profit;wages;rent;interest 
B) wages;interest;profit;rent 
C) rent;wages;interest;profit 
D) profit;interest;wages;rent 
E) interest;profit;rent;wages 
A) profit;wages;rent;interest 
B) wages;interest;profit;rent 
C) rent;wages;interest;profit 
D) profit;interest;wages;rent 
E) interest;profit;rent;wages

Question 9

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Consider graph (d)of Figure 1A.1.5.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. 
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.

Question 10

A normative statement is

Accepted Answer

A) about what should be. 
B) about what is. 
C) always true. 
D) always false. 
E) capable of evaluation, as true or false, by observation and measurement. 
A) about what should be. 
B) about what is. 
C) always true. 
D) always false. 
E) capable of evaluation, as true or false, by observation and measurement.

Question 11

The slope of a horizontal line is

Accepted Answer

A) positive. 
B) negative. 
C) zero. 
D) infinite. 
E) initially positive and then negative. 
A) positive. 
B) negative. 
C) zero. 
D) infinite. 
E) initially positive and then negative.

Question 12

Opportunity cost is

Accepted Answer

A) the value of your favourite activity. 
B) your value of leisure. 
C) the money you spend on food, shelter, and clothing. 
D) the marginal benefit from an activity. 
E) the highest-valued alternative that we give up to get something. 
A) the value of your favourite activity. 
B) your value of leisure. 
C) the money you spend on food, shelter, and clothing. 
D) the marginal benefit from an activity. 
E) the highest-valued alternative that we give up to get something.

Question 13

A university decides to change its late night bus service between the campus and student housing from a fare-based service to a free service.This statement means that the incentive to ride the bus ________ and the opportunity cost of a bus ride ________.The university's decision is a ________ decision.

Accepted Answer

A) changes;decreases;microeconomic 
B) changes;decreases;macroeconomic 
C) remains the same;remains the same;macroeconomic 
D) remains the same;remains the same;microeconomic 
E) changes;increases;microeconomic 
A) changes;decreases;microeconomic 
B) changes;decreases;macroeconomic 
C) remains the same;remains the same;macroeconomic 
D) remains the same;remains the same;microeconomic 
E) changes;increases;microeconomic

Question 14

Use the figure below to answer the following question.
   
Figure 1A.5.1
MyEconLab
1.9 Appendix: Mathematical Note
-The equation of the line in Figure 1A.5.1 is

Accepted Answer

A) y = 1.5 - 0.5x. 
B) y =1.5 + 2x. 
C) y = 1.5 + 0.5x. 
D) y = -3 + 2x. 
E) dependent on where you measure it. 
A) y = 1.5 - 0.5x. 
B) y =1.5 + 2x. 
C) y = 1.5 + 0.5x. 
D) y = -3 + 2x. 
E) dependent on where you measure it.

Question 15

The relationship between two variables that are positively 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 above the x-axis and to the right of the y-axis. 
A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is above the x-axis and to the right of the y-axis.

Question 16

To graph a relationship among more than two variables,what assumption is necessary?

Accepted Answer

A) normative 
B) positive 
C) linear 
D) independence of variables 
E) ceteris paribus 
A) normative 
B) positive 
C) linear 
D) independence of variables 
E) ceteris paribus

Question 17

Which of the following is an example of a positive statement?

Accepted Answer

A) Canada should cut back on its use of carbon-based fuels such as coal and oil. 
B) Increasing the minimum wage results in more unemployment. 
C) Every Canadian should have equal access to health care. 
D) The Bank of Canada ought to cut the interest rate. 
E) Canada should have lower tax rates for wealthier Canadians. 
A) Canada should cut back on its use of carbon-based fuels such as coal and oil. 
B) Increasing the minimum wage results in more unemployment. 
C) Every Canadian should have equal access to health care. 
D) The Bank of Canada ought to cut the interest rate. 
E) Canada should have lower tax rates for wealthier Canadians.

Question 18

The fact that a hockey star earns $3 million a year while a teacher earns $50,000 annually is an example of an economy facing the ________ question.

Accepted Answer

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

Question 19

Select the best statement about economic models.

Accepted Answer

A) An economic model must always be correct in its predictions or it must be discarded. 
B) An economic model is evaluated based on the realism of its assumptions. 
C) An economic model should not generate predictions about actual events in the real world, since it discusses only abstract events. 
D) An economic model will be discarded if its predictions are often in conflict with the facts. 
E) Economic models are all false. 
A) An economic model must always be correct in its predictions or it must be discarded. 
B) An economic model is evaluated based on the realism of its assumptions. 
C) An economic model should not generate predictions about actual events in the real world, since it discusses only abstract events. 
D) An economic model will be discarded if its predictions are often in conflict with the facts. 
E) Economic models are all false.

Question 20

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Consider graph (b)of Figure 1A.1.5.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.

Exam 1: What Is Economics?

Use the figure below to answer the following questions. Figure 1A.3.3 -What is the slope across the arc between B and C in Figure 1A.3.3?

Self-interest choices are

When the government chooses to use resources to build a dam,those resources are no longer available to build a highway.This illustrates the concept of

Use the table below to answer the following questions. Table 1A.3.2 -Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

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

The two big economic questions

If the equation of a straight line is y = 6 + 3x,then the slope is

To earn income,people sell the services of the factors of production they own.Land earns ________;labour earns ________;capital earns ________ and entrepreneurship earns ________.

Use the figure below to answer the following questions. Figure 1A.1.5 -Consider graph (d)of Figure 1A.1.5.Which one of the following statements is true?

A normative statement is

The slope of a horizontal line is

Opportunity cost is

Use the figure below to answer the following question. Figure 1A.5.1 MyEconLab 1.9 Appendix: Mathematical Note -The equation of the line in Figure 1A.5.1 is

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

To graph a relationship among more than two variables,what assumption is necessary?

Which of the following is an example of a positive statement?

The fact that a hockey star earns $3 million a year while a teacher earns $50,000 annually is an example of an economy facing the ________ question.

Select the best statement about economic models.

Use the figure below to answer the following questions. Figure 1A.1.5 -Consider graph (b)of Figure 1A.1.5.Which one of the following statements is true?

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

To earn income,people sell the services of the factors of production they own.Land earns ;labour earns ;capital earns and entrepreneurship earns .