Question 1

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.

Question 2

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 3

Use the figure below to answer the following questions.
   
Figure 1A.4.3
-In Figure 1A.4.3, a decrease in the value of z results in, ceteris paribus,

Accepted Answer

A) a decrease in the value of x. 
B) an increase in the value of x. 
C) an increase in the value of y. 
D) no change in the value of y. 
E) no change in the value of x. 
A) a decrease in the value of x. 
B) an increase in the value of x. 
C) an increase in the value of y. 
D) no change in the value of y. 
E) no change in the value of x.

Question 4

Use the figure below to answer the following questions.
   
Figure 1A.4.3
-In Figure 1A.4.3, x is

Accepted Answer

A) positively related to y and negatively related to z. 
B) positively related to both y and z. 
C) negatively related to y and positively related to z. 
D) negatively related to both y and z. 
E) greater than z. 
A) positively related to y and negatively related to z. 
B) positively related to both y and z. 
C) negatively related to y and positively related to z. 
D) negatively related to both y and z. 
E) greater than z.

Question 5

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 6

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 7

When the government of Alberta chooses to build more roads, the required resources are no longer available to provide better healthcare facilities. This situation illustrates the concept of

Accepted Answer

A) marginal benefit. 
B) monetary cost. 
C) opportunity cost. 
D) human capital. 
E) entrepreneurship. 
A) marginal benefit. 
B) monetary cost. 
C) opportunity cost. 
D) human capital. 
E) entrepreneurship.

Question 8

An economic model is tested by

Accepted Answer

A) examining the realism of its assumptions. 
B) comparing its predictions with the facts. 
C) comparing its complexity to other models that deal with similar issues. 
D) the Testing Committee of the Canadian Economic Association. 
E) comparing its descriptions and examining the realism of its assumptions. 
A) examining the realism of its assumptions. 
B) comparing its predictions with the facts. 
C) comparing its complexity to other models that deal with similar issues. 
D) the Testing Committee of the Canadian Economic Association. 
E) comparing its descriptions and examining the realism of its assumptions.

Question 9

Which of the following is not a factor of production?

Accepted Answer

A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat 
A) the water used to cool a nuclear power plant 
B) the effort of farmers raising cattle 
C) the wages paid to workers 
D) the management skill of a small business owner 
E) the land used by a farmer to grow wheat

Question 10

Model A is superior to model B if

Accepted Answer

A) it contains more real world detail than model B. 
B) it contains fewer unrealistic assumptions than model B. 
C) its predictions correspond more closely to the facts than the predictions of model B. 
D) it is preferred by a majority of researchers in a public opinion poll. 
E) it is scientifically "elegant." 
A) it contains more real world detail than model B. 
B) it contains fewer unrealistic assumptions than model B. 
C) its predictions correspond more closely to the facts than the predictions of model B. 
D) it is preferred by a majority of researchers in a public opinion poll. 
E) it is scientifically "elegant."

Question 11

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 12

Use the information below to answer the following question.
Fact 1.3.2 Cost of Sochi Winter Olympics
The Russian government spent $6.7 billion on Olympic facilities and $16.7 billion upgrading Sochi area infrastructure. Sponsors spent $27.6 billion on hotels and facilities hoping to turn Sochi into a year-round tourist magnet.
Source: The Washington Post, February 11, 2014
-Refer to Fact 1.3.2. The opportunity cost of the Sochi Olympics was

Accepted Answer

A) $51 billion because the Russian government would have spent this money anyway to revitalize Sochi. 
B) $6.7 billion because that was the cost of the Olympic facilities. 
C) $51 billion if the Russian government would not have spent this money had the Olympics not been held in Sochi. 
D) $23.4 billion because spending on hotels and facilities of $27.6 billion was unnecessary. 
E) zero because the Russian government competed with other countries to host the Olympics. 
A) $51 billion because the Russian government would have spent this money anyway to revitalize Sochi. 
B) $6.7 billion because that was the cost of the Olympic facilities. 
C) $51 billion if the Russian government would not have spent this money had the Olympics not been held in Sochi. 
D) $23.4 billion because spending on hotels and facilities of $27.6 billion was unnecessary. 
E) zero because the Russian government competed with other countries to host the Olympics.

Exam 1: What Is Economics

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

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

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3, a decrease in the value of z results in, ceteris paribus,

Use the figure below to answer the following questions. Figure 1A.4.3 -In Figure 1A.4.3, x 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

The concept of opportunity cost

When the government of Alberta chooses to build more roads, the required resources are no longer available to provide better healthcare facilities. This situation illustrates the concept of

An economic model is tested by

Which of the following is not a factor of production?

Model A is superior to model B if

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 Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments 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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters