Question 1

Which of the following is an example of a capital resource?

Accepted Answer

A)  yellow-fin tuna 
B)  an unskilled worker 
C)  a large coal deposit 
D)  a fishing boat 
A)  yellow-fin tuna 
B)  an unskilled worker 
C)  a large coal deposit 
D)  a fishing boat

Question 2

Which of the following graphs or charts must add up to 100 percent?

Accepted Answer

A)  a labour graph 
B)  a time-series graph 
C)  a bar graph 
D)  a pie chart 
A)  a labour graph 
B)  a time-series graph 
C)  a bar graph 
D)  a pie chart

Question 3

What question is economics fundamentally concerned with?

Accepted Answer

A)  How can limited wants be used to satisfy limited resources? 
B)  How are limited resources allocated to satisfy unlimited wants? 
C)  How are scarce resources allocated to satisfy limited wants? 
D)  How are limited resources allocated to satisfy scarce wants? 
A)  How can limited wants be used to satisfy limited resources? 
B)  How are limited resources allocated to satisfy unlimited wants? 
C)  How are scarce resources allocated to satisfy limited wants? 
D)  How are limited resources allocated to satisfy scarce wants?

Question 4

If race-car driving is dangerous, why would any rational person choose to be a race-car driver?

Accepted Answer

A rational person might choose

Question 5

The marginal cost of a vacation in Jamaica is $3500. According to the rule of rational choice, if the marginal benefit to Colby of a vacation in Jamaica is $3000, what will he do?

Accepted Answer

A)  Colby will experience a net gain of $500 if he vacations in Jamaica. 
B)  Colby will choose not to vacation in Jamaica at this time. 
C)  Colby will borrow $500 and vacation in Jamaica. 
D)  Colby will experience a net gain of $3000 if he vacations in Jamaica. 
A)  Colby will experience a net gain of $500 if he vacations in Jamaica. 
B)  Colby will choose not to vacation in Jamaica at this time. 
C)  Colby will borrow $500 and vacation in Jamaica. 
D)  Colby will experience a net gain of $3000 if he vacations in Jamaica.

Question 6

Rational individuals act to advance their own self-interest; therefore, charitable giving must constitute irrational behaviour.

Accepted Answer

A) True 
 B)False

Question 7

What is the term for the branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labour or consumer products?

Accepted Answer

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

Question 8

One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment.

Accepted Answer

A) True 
 B)False

Question 9

What does "ceteris paribus" mean?

Accepted Answer

A)  If events A and B occur together, one must cause the other. 
B)  Other things are held constant. 
C)  What is True for the individual must be True for the whole. 
D)  All relevant details are included. 
A)  If events A and B occur together, one must cause the other. 
B)  Other things are held constant. 
C)  What is True for the individual must be True for the whole. 
D)  All relevant details are included.

Question 10

What is the term for the beginning point of a graph (the 0,0 point)?

Accepted Answer

A)  the basis point 
B)  variable one 
C)  the origin 
D)  the quadrant 
A)  the basis point 
B)  variable one 
C)  the origin 
D)  the quadrant

Question 11

A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others.

Accepted Answer

A) True 
 B)False

Question 12

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." What is the opportunity cost of attending class tonight?

Accepted Answer

A)  $0 
B)  $4 
C)  $40 
D)  $44 
A)  $0 
B)  $4 
C)  $40 
D)  $44

Question 13

If incentives matter, then policies can be used to discourage undesirable behaviour. Which of the following policies would NOT likely help protect wildlife?

Accepted Answer

A)  a reduction in the number of park rangers and law enforcement personnel 
B)  jail sentences for camping or littering in protected areas 
C)  fines on hunting 
D)  the provision of additional rangers and law enforcement personnel 
A)  a reduction in the number of park rangers and law enforcement personnel 
B)  jail sentences for camping or littering in protected areas 
C)  fines on hunting 
D)  the provision of additional rangers and law enforcement personnel

Question 14

When does an individual have a comparative advantage in production?

Accepted Answer

A)  when they are more self-sufficient than others 
B)  when they can produce at the highest opportunity cost 
C)  when they can produce at the lowest opportunity cost 
D)  when they are less self-sufficient than others 
A)  when they are more self-sufficient than others 
B)  when they can produce at the highest opportunity cost 
C)  when they can produce at the lowest opportunity cost 
D)  when they are less self-sufficient than others

Question 15

In order for a student to acquire an education, many resources are required. Which of the following might be categorized as capital resources?

Accepted Answer

A)  the work effort of registrars, clerical assistants, and teaching assistants 
B)  chalkboards, overhead projectors, and the expertise of professors 
C)  water, trees, and the acreage a campus rests on 
D)  exams, natural gas (which heats the buildings), and electricity 
A)  the work effort of registrars, clerical assistants, and teaching assistants 
B)  chalkboards, overhead projectors, and the expertise of professors 
C)  water, trees, and the acreage a campus rests on 
D)  exams, natural gas (which heats the buildings), and electricity

Question 16

If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?

Accepted Answer

A)  The reoccurrence of such a relationship is sufficient evidence that sitting in the back of a classroom will lead to lower grades. 
B)  It is not possible for an economist to determine causation between variables. 
C)  The reoccurrence of a certain relationship between two variables does not necessarily imply causation. 
D)  The reoccurrence of such a relationship is sufficient evidence that students who receive low grades prefer to keep a low profile and always sit in the back of the classroom. 
A)  The reoccurrence of such a relationship is sufficient evidence that sitting in the back of a classroom will lead to lower grades. 
B)  It is not possible for an economist to determine causation between variables. 
C)  The reoccurrence of a certain relationship between two variables does not necessarily imply causation. 
D)  The reoccurrence of such a relationship is sufficient evidence that students who receive low grades prefer to keep a low profile and always sit in the back of the classroom.

Question 17

Which of the following best demonstrates marginal thinking?

Accepted Answer

A)  measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake 
B)  choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time 
C)  acquiring the information relevant to a choice before making that choice 
D)  deciding to never purchase a coat made with animal skins or furs 
A)  measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake 
B)  choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time 
C)  acquiring the information relevant to a choice before making that choice 
D)  deciding to never purchase a coat made with animal skins or furs

Question 18

Which of the following is NOT a reason that economists use theories?

Accepted Answer

A)  to explain and help predict human behaviour 
B)  to understand economic behaviour 
C)  to develop a testable hypothesis 
D)  to abstract from the complexities of the world 
A)  to explain and help predict human behaviour 
B)  to understand economic behaviour 
C)  to develop a testable hypothesis 
D)  to abstract from the complexities of the world

Question 19

Why is economics different from a "hard" science like physics?

Accepted Answer

A)  Economists cannot easily control all the variables that might influence human behaviour. 
B)  Economists have to control fewer variables than what is found in a physics experiment. 
C)  Economic experiments are easier to conduct than those in physics. 
D)  Economists abstract from reality in creating their theories. 
A)  Economists cannot easily control all the variables that might influence human behaviour. 
B)  Economists have to control fewer variables than what is found in a physics experiment. 
C)  Economic experiments are easier to conduct than those in physics. 
D)  Economists abstract from reality in creating their theories.

Question 20

Lance's boss offers him twice his usual wage rate to work tonight instead of taking his girlfriend on a romantic date. Which of the following is the likely outcome of this offer?

Accepted Answer

A)  It will decrease the opportunity cost of going on the date, since Lance really needs the money. 
B)  It will increase the opportunity cost of going on the date. 
C)  It will not affect the opportunity cost of going on the date. 
D)  It will reduce the opportunity cost of going on the date because giving up the additional work dollars will make his girlfriend feel even more appreciated. 
A)  It will decrease the opportunity cost of going on the date, since Lance really needs the money. 
B)  It will increase the opportunity cost of going on the date. 
C)  It will not affect the opportunity cost of going on the date. 
D)  It will reduce the opportunity cost of going on the date because giving up the additional work dollars will make his girlfriend feel even more appreciated.

Which of the following is an example of a capital resource?

Which of the following graphs or charts must add up to 100 percent?

What question is economics fundamentally concerned with?

If race-car driving is dangerous, why would any rational person choose to be a race-car driver?

The marginal cost of a vacation in Jamaica is $3500. According to the rule of rational choice, if the marginal benefit to Colby of a vacation in Jamaica is $3000, what will he do?

Rational individuals act to advance their own self-interest; therefore, charitable giving must constitute irrational behaviour.

What is the term for the branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labour or consumer products?

One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment.

What does "ceteris paribus" mean?

What is the term for the beginning point of a graph (the 0,0 point)?

A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others.

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." What is the opportunity cost of attending class tonight?

If incentives matter, then policies can be used to discourage undesirable behaviour. Which of the following policies would NOT likely help protect wildlife?

When does an individual have a comparative advantage in production?

In order for a student to acquire an education, many resources are required. Which of the following might be categorized as capital resources?

If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?

Which of the following best demonstrates marginal thinking?

Which of the following is NOT a reason that economists use theories?

Why is economics different from a "hard" science like physics?

Lance's boss offers him twice his usual wage rate to work tonight instead of taking his girlfriend on a romantic date. Which of the following is the likely outcome of this offer?

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

Which of the following is an example of a capital resource?

Which of the following graphs or charts must add up to 100 percent?

What question is economics fundamentally concerned with?

If race-car driving is dangerous, why would any rational person choose to be a race-car driver?

The marginal cost of a vacation in Jamaica is $3500. According to the rule of rational choice, if the marginal benefit to Colby of a vacation in Jamaica is $3000, what will he do?

Rational individuals act to advance their own self-interest; therefore, charitable giving must constitute irrational behaviour.

What is the term for the branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labour or consumer products?

One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment.

What does "ceteris paribus" mean?

What is the term for the beginning point of a graph (the 0,0 point)?

A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others.

"If I didn't have class tonight, I would save the $4 campus parking fee and spend four hours at work where I earn $10 per hour." What is the opportunity cost of attending class tonight?

If incentives matter, then policies can be used to discourage undesirable behaviour. Which of the following policies would NOT likely help protect wildlife?

When does an individual have a comparative advantage in production?

In order for a student to acquire an education, many resources are required. Which of the following might be categorized as capital resources?

If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?

Which of the following best demonstrates marginal thinking?

Which of the following is NOT a reason that economists use theories?

Why is economics different from a "hard" science like physics?

Lance's boss offers him twice his usual wage rate to work tonight instead of taking his girlfriend on a romantic date. Which of the following is the likely outcome of this offer?

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