Question 1

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

Accepted Answer

A) money held by Tim Hortons 
B) a Bell Canada bond 
C) an automobile factory owned by Ford 
D) a high school teacher 
E) natural gas 
A) money held by Tim Hortons 
B) a Bell Canada bond 
C) an automobile factory owned by Ford 
D) a high school teacher 
E) natural gas

Question 2

Use the figure below to answer the following question.
   
Figure 1A.4.4
-Complete the following sentence.In Figure 1A.4.4,z is

Accepted Answer

A) positively related to x and negatively related to y. 
B) negatively related to x and positively related to y. 
C) positively related to both x and y. 
D) negatively related to both x and y. 
E) related to y but not related to x. 
A) positively related to x and negatively related to y. 
B) negatively related to x and positively related to y. 
C) positively related to both x and y. 
D) negatively related to both x and y. 
E) related to y but not related to x.

Question 3

The fact that some people can afford to live in beautiful homes while others are homeless 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 4

Which of the following sayings best describes opportunity cost?

Accepted Answer

A) "Make hay while the sun shines." 
B) "Love of money is the root of all evil." 
C) "Boldly go where no one has gone before." 
D) "There's no such thing as a free lunch." 
E) "Baseball has been very good to me." 
A) "Make hay while the sun shines." 
B) "Love of money is the root of all evil." 
C) "Boldly go where no one has gone before." 
D) "There's no such thing as a free lunch." 
E) "Baseball has been very good to me."

Question 5

The concept of opportunity cost

Accepted Answer

A) is relevant only for European countries. 
B) suggests that individuals can achieve all they want. 
C) suggests a major increase in public education spending means a reduced expansion in the public healthcare system. 
D) is relevant only for developed countries. 
E) is relevant only for developing countries. 
A) is relevant only for European countries. 
B) suggests that individuals can achieve all they want. 
C) suggests a major increase in public education spending means a reduced expansion in the public healthcare system. 
D) is relevant only for developed countries. 
E) is relevant only for developing countries.

Question 6

The study of how wages are set for New Brunswick teachers is classified as

Accepted Answer

A) a macroeconomic topic. 
B) a microeconomic topic. 
C) economics of social interest. 
D) economics of private interest. 
E) normative economics. 
A) a macroeconomic topic. 
B) a microeconomic topic. 
C) economics of social interest. 
D) economics of private interest. 
E) normative economics.

Question 7

The big tradeoff is the tradeoff between

Accepted Answer

A) taxes and transfers. 
B) equality and efficiency. 
C) current consumption and a higher future standard of living. 
D) guns and butter. 
E) personal security and private property. 
A) taxes and transfers. 
B) equality and efficiency. 
C) current consumption and a higher future standard of living. 
D) guns and butter. 
E) personal security and private property.

Question 8

Use the figure below to answer the following question.
   
Figure 1A.5.2
-If the line in Figure 1A.5.2 were to continue down to the x-axis,what would the value of x be when y is zero?

Accepted Answer

A) 0 
B) 2 
C) 2/3 
D) -2/3 
E) -3/2. 
A) 0 
B) 2 
C) 2/3 
D) -2/3 
E) -3/2.

Question 9

The fact that human wants cannot be fully satisfied with available resources is called the problem of

Accepted Answer

A) opportunity cost. 
B) scarcity. 
C) normative economics. 
D) marginal cost. 
E) the big tradeoff. 
A) opportunity cost. 
B) scarcity. 
C) normative economics. 
D) marginal cost. 
E) the big tradeoff.

Question 10

Monika will choose to eat a seventh pizza slice if

Accepted Answer

A) the marginal benefit from the seventh slice is greater than its marginal cost. 
B) the marginal benefit from the seventh slice is less than its marginal cost. 
C) the total benefit from all seven slices is greater than their total cost. 
D) the total benefit from all seven slices is less than their total cost. 
E) she has enough money to pay for it. 
A) the marginal benefit from the seventh slice is greater than its marginal cost. 
B) the marginal benefit from the seventh slice is less than its marginal cost. 
C) the total benefit from all seven slices is greater than their total cost. 
D) the total benefit from all seven slices is less than their total cost. 
E) she has enough money to pay for it.

Question 11

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

Question 12

Choose the correct statement.

Accepted Answer

A) Canada produces more services than goods. 
B) Canada produces more goods than services. 
C) Canada produces an equal quantity of goods and services. 
D) China's production of services is a greater percentage of its total production than Canada's. 
E) Canada's production of manufacturing is a greater percentage of its total production than China's. 
A) Canada produces more services than goods. 
B) Canada produces more goods than services. 
C) Canada produces an equal quantity of goods and services. 
D) China's production of services is a greater percentage of its total production than Canada's. 
E) Canada's production of manufacturing is a greater percentage of its total production than China's.

Question 13

Use the figure below to answer the following questions.
   
Figure 1A.3.1
-In Figure 1A.3.1,if household income increases by $1 000,household expenditure will

Accepted Answer

A) increase by $1 333. 
B) decrease by $1 333. 
C) remain unchanged. 
D) increase by $1 000. 
E) increase by $750. 
A) increase by $1 333. 
B) decrease by $1 333. 
C) remain unchanged. 
D) increase by $1 000. 
E) increase by $750.

Question 14

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-The graphs in Figure 1A.1.5 are examples of

Accepted Answer

A) dot graphs. 
B) graphs that show no relationship between x and y. 
C) dot diagrams. 
D) scatter diagrams. 
E) none of the above. 
A) dot graphs. 
B) graphs that show no relationship between x and y. 
C) dot diagrams. 
D) scatter diagrams. 
E) none of the above.

Question 15

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

Accepted Answer

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

Question 16

"There can be too much of a good thing." This statement suggests that

Accepted Answer

A) choices made in self-interest cannot be applied to many economic decisions. 
B) a good may be produced to the point where its marginal cost exceeds its marginal benefit. 
C) certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits. 
D) a good may be produced to the point where its marginal benefit exceeds its marginal cost. 
E) a good may be produced to the point where its marginal benefit is equal to its marginal cost. 
A) choices made in self-interest cannot be applied to many economic decisions. 
B) a good may be produced to the point where its marginal cost exceeds its marginal benefit. 
C) certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits. 
D) a good may be produced to the point where its marginal benefit exceeds its marginal cost. 
E) a good may be produced to the point where its marginal benefit is equal to its marginal cost.

Question 17

If the equation of a straight line is y = 8 - 2x,then the slope is

Accepted Answer

A) -2 and the x-intercept is -4. 
B) -2 and the x-intercept is 4. 
C) -2 and the x-intercept is 8. 
D) 2 and the x-intercept is -4. 
E) 2 and the x-intercept is 4. 
A) -2 and the x-intercept is -4. 
B) -2 and the x-intercept is 4. 
C) -2 and the x-intercept is 8. 
D) 2 and the x-intercept is -4. 
E) 2 and the x-intercept is 4.

Question 18

Which factor of production earns the most income?

Accepted Answer

A) capital 
B) land 
C) labour 
D) entrepreneurship 
E) the stock market 
A) capital 
B) land 
C) labour 
D) entrepreneurship 
E) the stock market

Question 19

Which of the following relates factors of production to the sources of income correctly?

Accepted Answer

A) Land earns interest. 
B) Land earns rent. 
C) Labour earns rent. 
D) Capital earns profit. 
E) Entrepreneurship earns rent. 
A) Land earns interest. 
B) Land earns rent. 
C) Labour earns rent. 
D) Capital earns profit. 
E) Entrepreneurship earns rent.

Question 20

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

Accepted Answer

A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) shows that x and z are not related. 
A) is a negatively sloped line. 
B) is a positively sloped line. 
C) reaches a maximum. 
D) reaches a minimum. 
E) shows that x and z are not related.

Exam 1: What Is Economics?

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

Use the figure below to answer the following question. Figure 1A.4.4 -Complete the following sentence.In Figure 1A.4.4,z is

The fact that some people can afford to live in beautiful homes while others are homeless is an example of an economy facing the ________ question.

Which of the following sayings best describes opportunity cost?

The concept of opportunity cost

The study of how wages are set for New Brunswick teachers is classified as

The big tradeoff is the tradeoff between

Use the figure below to answer the following question. Figure 1A.5.2 -If the line in Figure 1A.5.2 were to continue down to the x-axis,what would the value of x be when y is zero?

The fact that human wants cannot be fully satisfied with available resources is called the problem of

Monika will choose to eat a seventh pizza slice if

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

Choose the correct statement.

Use the figure below to answer the following questions. Figure 1A.3.1 -In Figure 1A.3.1,if household income increases by $1 000,household expenditure will

Use the figure below to answer the following questions. Figure 1A.1.5 -The graphs in Figure 1A.1.5 are examples of

When a textile firm decides to produce more silk fabric and less cotton fabric,it is answering the ________ question.

"There can be too much of a good thing." This statement suggests that

If the equation of a straight line is y = 8 - 2x,then the slope is

Which factor of production earns the most income?

Which of the following relates factors of production to the sources of income correctly?

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

Filters