Question 1

In a market economy, what groups decide the amount of a good that is produced?

Accepted Answer

A)  buyers and sellers 
B)  producers and input suppliers 
C)  all consumers 
D)  producers and government planning committees 
A)  buyers and sellers 
B)  producers and input suppliers 
C)  all consumers 
D)  producers and government planning committees

Question 2

What is economics primarily the study of?

Accepted Answer

A)  how firms compete for profits in the marketplace 
B)  how limited resources are allocated to satisfy unlimited wants 
C)  how we deal with unemployed resources 
D)  how prices are set in the marketplace 
A)  how firms compete for profits in the marketplace 
B)  how limited resources are allocated to satisfy unlimited wants 
C)  how we deal with unemployed resources 
D)  how prices are set in the marketplace

Question 3

Which of the following statements about the opportunity cost of an airplane flight is the most accurate?

Accepted Answer

A)  It is identical for all passengers and equal to the number of hours a particular flight takes. 
B)  It differs across passengers to the extent that both the airfare paid and the highest valued use of travel time vary. 
C)  It is equal to the cost of a bus ticket, the next best form of alternative transportation to flying. 
D)  It differs across passengers only to the extent that each traveller pays a different airfare. 
A)  It is identical for all passengers and equal to the number of hours a particular flight takes. 
B)  It differs across passengers to the extent that both the airfare paid and the highest valued use of travel time vary. 
C)  It is equal to the cost of a bus ticket, the next best form of alternative transportation to flying. 
D)  It differs across passengers only to the extent that each traveller pays a different airfare.

Question 4

In a parliamentary debate about agricultural price supports, Members of Parliament and other experts made the following four statements. Which one of these is a normative statement?

Accepted Answer

A)  "Without price supports, the price of wheat and corn will fall by over 20 percent." 
B)  "Price supports are important because Canada should preserve the small family farm." 
C)  "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." 
D)  "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in Canada." 
A)  "Without price supports, the price of wheat and corn will fall by over 20 percent." 
B)  "Price supports are important because Canada should preserve the small family farm." 
C)  "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." 
D)  "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in Canada."

Question 5

A scientist is trying to test a theory about the relationship between people's consumption of alcohol and their longevity. Which of the following variables would the scientist NOT hold constant?

Accepted Answer

A)  the past histories of heart and lung disease 
B)  the amount of dietary fat that people in the experimental group consumed 
C)  the amount of alcohol that people in the experimental group consumed 
D)  the amount of cigarettes that people in the experimental group smoked 
A)  the past histories of heart and lung disease 
B)  the amount of dietary fat that people in the experimental group consumed 
C)  the amount of alcohol that people in the experimental group consumed 
D)  the amount of cigarettes that people in the experimental group smoked

Question 6

What does microeconomics primarily examine?

Accepted Answer

A)  the behaviour of firms and how they interact with each other in the marketplace 
B)  the overall economy, especially fiscal and monetary policy 
C)  the behaviour of households but not firms 
D)  the behaviour of both firms and households and how they interact in the marketplace 
A)  the behaviour of firms and how they interact with each other in the marketplace 
B)  the overall economy, especially fiscal and monetary policy 
C)  the behaviour of households but not firms 
D)  the behaviour of both firms and households and how they interact in the marketplace

Question 7

Economics has much in common with sociology because it is concerned with how societies organize themselves. However, economics shares little in common with political science, psychology or anthropology.

Accepted Answer

A) True 
 B)False

Question 8

Which area of study is most concerned with measuring the rate of inflation?

Accepted Answer

A)  macroeconomics 
B)  microeconomics 
C)  normative economics 
D)  positive economics 
A)  macroeconomics 
B)  microeconomics 
C)  normative economics 
D)  positive economics

In a market economy, what groups decide the amount of a good that is produced?

What is economics primarily the study of?

Which of the following statements about the opportunity cost of an airplane flight is the most accurate?

In a parliamentary debate about agricultural price supports, Members of Parliament and other experts made the following four statements. Which one of these is a normative statement?

A scientist is trying to test a theory about the relationship between people's consumption of alcohol and their longevity. Which of the following variables would the scientist NOT hold constant?

What does microeconomics primarily examine?

Economics has much in common with sociology because it is concerned with how societies organize themselves. However, economics shares little in common with political science, psychology or anthropology.

Which area of study is most concerned with measuring the rate of inflation?

Scarcity, Trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Elasticity

Market Efficiency and Market Failure

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labour Markets and the Distribution of Income

The Environment

Filters

Exam 1: The Role and Method of Economics

In a market economy, what groups decide the amount of a good that is produced?

What is economics primarily the study of?

Which of the following statements about the opportunity cost of an airplane flight is the most accurate?

In a parliamentary debate about agricultural price supports, Members of Parliament and other experts made the following four statements. Which one of these is a normative statement?

A scientist is trying to test a theory about the relationship between people's consumption of alcohol and their longevity. Which of the following variables would the scientist NOT hold constant?

What does microeconomics primarily examine?

Economics has much in common with sociology because it is concerned with how societies organize themselves. However, economics shares little in common with political science, psychology or anthropology.

Which area of study is most concerned with measuring the rate of inflation?

Scarcity, Trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Elasticity

Market Efficiency and Market Failure

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labour Markets and the Distribution of Income

The Environment

Filters