Question 1

The creation of a successful movie can influence the main questions that economics seeks to answer.Choose the statement that is false.

Accepted Answer

A) The movie influences the how question because the movie can create new production techniques, which can be used in subsequent films. 
B) The movie influences the for whom question because the people who earn higher incomes through the movie production buy more goods and services. 
C) The movie influences the when question because movie crews work on many different films and must be available for the entire production. 
D) The movie influences the what question because it can lead to spinoff goods or a new movie genre, which can result in the production of similar films. 
E) The movie influences the how question because it can use unknown actors or Academy Award winners. 
A) The movie influences the how question because the movie can create new production techniques, which can be used in subsequent films. 
B) The movie influences the for whom question because the people who earn higher incomes through the movie production buy more goods and services. 
C) The movie influences the when question because movie crews work on many different films and must be available for the entire production. 
D) The movie influences the what question because it can lead to spinoff goods or a new movie genre, which can result in the production of similar films. 
E) The movie influences the how question because it can use unknown actors or Academy Award winners.

Question 2

Which of the following is a microeconomic topic?

Accepted Answer

A) the reasons why a consumer buys less honey 
B) the reasons why the average price level in a country falls 
C) the cause of increasing unemployment 
D) the effect of the government budget deficit on inflation 
E) the reasons why the labour force in a country decreases 
A) the reasons why a consumer buys less honey 
B) the reasons why the average price level in a country falls 
C) the cause of increasing unemployment 
D) the effect of the government budget deficit on inflation 
E) the reasons why the labour force in a country decreases

Question 3

Scarcity confronts ________.

Accepted Answer

A) neither the poor nor the rich 
B) the rich but not the poor 
C) the poor but not the rich 
D) the rich and the poor 
E) families with incomes less than $25,000 a year 
A) neither the poor nor the rich 
B) the rich but not the poor 
C) the poor but not the rich 
D) the rich and the poor 
E) families with incomes less than $25,000 a year

Question 4

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3.Suppose our theory predicted that for low levels of quantity produced (x)a firm's profits (y)were low,for medium levels of output their profits were high,and for high levels of output their profits were low again.Which one of the graphs would represent this relationship?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) none of the graphs

Question 5

Complete the following sentence.Economic models

Accepted Answer

A) do not answer questions about the economic world. 
B) include most of the details of the economic world. 
C) describe some aspect of the economic world, but include only those features needed for the purpose at hand. 
D) answer questions that arise from normative statements. 
E) were first developed in the 1970s. 
A) do not answer questions about the economic world. 
B) include most of the details of the economic world. 
C) describe some aspect of the economic world, but include only those features needed for the purpose at hand. 
D) answer questions that arise from normative statements. 
E) were first developed in the 1970s.

Question 6

Use the figure below to answer the following question.
   
Figure 1A.5.5
-Refer to Figure 1A.5.5.The graph shows the relationship between two variables,x and y.Which of the following equations describes this relationship?

Accepted Answer

A) y = 3x + 15 
B) y = -3x + 15 
C) y = -3x² + 15 
D) y = 15x + 3 
E) x = 15y + 3 
A) y = 3x + 15 
B) y = -3x + 15 
C) y = -3x² + 15 
D) y = 15x + 3 
E) x = 15y + 3

Question 7

An art museum decides to offer tours by having visitors listen to CDs rather than have tour guides.The museum is answering the ________ question.

Accepted Answer

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

Question 8

Use the figure below to answer the following question.
   
Figure 1A.4.1
-Given the data in the following table,which one of the graphs in Figure 1A.4.1 correctly represents the relationship among x,y,and z?

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 9

Which of the following is a positive statement?

Accepted Answer

A) Low rents restrict the supply of housing. 
B) Low rents are better for a city than high rents. 
C) Housing costs too much. 
D) Owners of apartment buildings ought to be free to charge whatever rent they want. 
E) Government should control the rents that apartment owners charge. 
A) Low rents restrict the supply of housing. 
B) Low rents are better for a city than high rents. 
C) Housing costs too much. 
D) Owners of apartment buildings ought to be free to charge whatever rent they want. 
E) Government should control the rents that apartment owners charge.

Question 10

Statements about "what is" 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 11

Which of the following equations describes a straight line with a y-intercept of -2 and a slope of -5?

Accepted Answer

A) y = -5 - 2x 
B) y = -2 
C) y = -2 - 5x 
D) y = -5x 
E) x = -2 - 5y 
A) y = -5 - 2x 
B) y = -2 
C) y = -2 - 5x 
D) y = -5x 
E) x = -2 - 5y

Question 12

Use the table below to answer the following questions.
Table 1A.3.2
  
-In 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) positive with a decreasing slope. 
B) negative with a decreasing slope. 
C) positive with an increasing slope. 
D) negative with a constant slope. 
E) positive with a constant slope. 
A) positive with a decreasing slope. 
B) negative with a decreasing slope. 
C) positive with an increasing slope. 
D) negative with a constant slope. 
E) positive with a constant slope.

Question 13

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is ________.

Accepted Answer

A) working and doing fix-up projects 
B) working or doing fix-up projects, depending on which you would have done otherwise 
C) working, because you would be giving up dollars 
D) nothing because you will enjoy the trip to Florida 
E) variable depending on the weather you leave behind in Canada 
A) working and doing fix-up projects 
B) working or doing fix-up projects, depending on which you would have done otherwise 
C) working, because you would be giving up dollars 
D) nothing because you will enjoy the trip to Florida 
E) variable depending on the weather you leave behind in Canada

Question 14

Use the information below to answer the following question.
Fact 1.1.1 Costs Soar for London Olympics
The regeneration of East London, the site of the 2012 Olympic Games, is set to add extra £1.5 billion to taxpayers' bill.
The Times, London, July 6, 2006
-Refer to Fact 1.1.1.The cost of regenerating East London ________ an opportunity cost of hosting the 2012 Olympic Games ________.

Accepted Answer

A) is not;because few people attending the 2012 Olympics will spend much time outside Olympic venues 
B) is;if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics 
C) is;if the regeneration of East London would not occur unless London hosted the 2012 Olympics 
D) is not;because regenerating East London is an unnecessary expense 
E) is;if the property taxes of people living in East London increase 
A) is not;because few people attending the 2012 Olympics will spend much time outside Olympic venues 
B) is;if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics 
C) is;if the regeneration of East London would not occur unless London hosted the 2012 Olympics 
D) is not;because regenerating East London is an unnecessary expense 
E) is;if the property taxes of people living in East London increase

Question 15

Which one of the following would economists classify as land?

Accepted Answer

A) an automotive plant in British Columbia 
B) rich agricultural soil in Saskatchewan 
C) an oil rig in the Atlantic Ocean 
D) an elementary school in Nova Scotia 
E) automobiles parked in a parking lot in Manitoba 
A) an automotive plant in British Columbia 
B) rich agricultural soil in Saskatchewan 
C) an oil rig in the Atlantic Ocean 
D) an elementary school in Nova Scotia 
E) automobiles parked in a parking lot in Manitoba

Question 16

Use the figure below to answer the following question.
   
Figure 1A.3.6
-What is the slope of the line in Figure A1.3.6?

Accepted Answer

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

Question 17

The equation of a line is y = 4 + 2x.What is the x-intercept 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 18

When asked in an interview what she missed the most because of the time she spent training for the Olympics,a rower,who lived on her own,answered "a normal social life." She also revealed that she had given up a job that paid $30,000 per year to train fulltime.She received a grant of $8,000 per year from Sport Canada,but this failed to cover all her training expenses.Her food and rent were $5,000 per year and training expenses were $12,000 per year.Aside from the value of a normal social life,what is the annual opportunity cost,expressed in dollars,to this rower of "Going for Gold"?

Accepted Answer

A) $25,000 
B) $4,000 
C) $30,000 
D) $39,000 
E) $34,000 
A) $25,000 
B) $4,000 
C) $30,000 
D) $39,000 
E) $34,000

Question 19

Complete the following sentence.Macroeconomics

Accepted Answer

A) is primarily concerned with the operation of individual markets in the economy. 
B) deals mainly with the economic behaviour of households. 
C) is the only part of economics to deal with government decisions. 
D) is primarily concerned with the behaviour of the stock market. 
E) is the study of the national economy and the global economy. 
A) is primarily concerned with the operation of individual markets in the economy. 
B) deals mainly with the economic behaviour of households. 
C) is the only part of economics to deal with government decisions. 
D) is primarily concerned with the behaviour of the stock market. 
E) is the study of the national economy and the global economy.

Question 20

Which one of the following is a necessary consequence of scarcity?

Accepted Answer

A) no choices required 
B) high profits 
C) the requirement of making choices 
D) all wants are satisfied 
E) low profits 
A) no choices required 
B) high profits 
C) the requirement of making choices 
D) all wants are satisfied 
E) low profits

Exam 1: What Is Economics?

The creation of a successful movie can influence the main questions that economics seeks to answer.Choose the statement that is false.

Which of the following is a microeconomic topic?

Scarcity confronts ________.

Complete the following sentence.Economic models

Use the figure below to answer the following question. Figure 1A.5.5 -Refer to Figure 1A.5.5.The graph shows the relationship between two variables,x and y.Which of the following equations describes this relationship?

An art museum decides to offer tours by having visitors listen to CDs rather than have tour guides.The museum is answering the ________ question.

Use the figure below to answer the following question. Figure 1A.4.1 -Given the data in the following table,which one of the graphs in Figure 1A.4.1 correctly represents the relationship among x,y,and z?

Which of the following is a positive statement?

Statements about "what is" are called

Which of the following equations describes a straight line with a y-intercept of -2 and a slope of -5?

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

You have the choice of going on vacation to Florida for one week,staying at work for the week,or spending the week doing fix-up projects around your house.If you decide to go to Florida,the opportunity cost of the trip is ________.

Which one of the following would economists classify as land?

Use the figure below to answer the following question. Figure 1A.3.6 -What is the slope of the line in Figure A1.3.6?

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

Complete the following sentence.Macroeconomics

Which one of the following is a necessary consequence of scarcity?

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