Question 1

To earn income, people sell the services of the factors of production they own. Land earns ________and labour earns ________.

Accepted Answer

A) profit; wages 
B) wages; interest 
C) rent; wages 
D) profit; interest 
E) rent; minimum wage 
A) profit; wages 
B) wages; interest 
C) rent; wages 
D) profit; interest 
E) rent; minimum wage

Question 2

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 3

Use the figure below to answer the following questions.
   
Figure 1A.3.9
-Refer to Figure 1A.3.9. Which one of the graphs shows a line with an infinite slope?

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 4

Use the figure below to answer the following questions.
   
Figure 1A.3.10
-Refer to Figure 1A.3.10. The figure shows a relationship between two variables, x and y. The slope at point A is

Accepted Answer

A) 2. 
B) -2. 
C) 0.25. 
D) -0.25. 
E) -4. 
A) 2. 
B) -2. 
C) 0.25. 
D) -0.25. 
E) -4.

Question 5

The fact that a hockey star earns $3 million a year while a teacher earns $50,000 annually is an example of an economy facing the ________ question.

Accepted Answer

A) "what" 
B) "how" 
C) "where" 
D) "for whom" 
E) "when" 
A) "what" 
B) "how" 
C) "where" 
D) "for whom" 
E) "when"

Question 6

The equation of a line is y = 4 + 2x. What is the slope 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 7

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 8

Use the table below to answer the following question.
Table 1A.4.3
  
-Refer to Table 1A.4.3. The table shows some data on the quantity of ice cream consumed at different prices and in different weather conditions. To draw a graph of the relationship between the quantity of the ice cream consumed and the price of ice cream, we must

Accepted Answer

A) decrease the temperature as the price rises. 
B) pick the temperature that prevailed when the price was $1.00. 
C) increase the temperature as the price rises. 
D) hold the temperature constant at any of the four levels shown. 
E) hold the price constant at any of the five levels shown. 
A) decrease the temperature as the price rises. 
B) pick the temperature that prevailed when the price was $1.00. 
C) increase the temperature as the price rises. 
D) hold the temperature constant at any of the four levels shown. 
E) hold the price constant at any of the five levels shown.

Question 9

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 10

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 11

What choices are best for the entire society?

Accepted Answer

A) self-interest choices 
B) minority group choices 
C) social interest choices 
D) ethnic group choices 
E) regional interest choices 
A) self-interest choices 
B) minority group choices 
C) social interest choices 
D) ethnic group choices 
E) regional interest choices

Question 12

Use the figure below to answer the following question.
   
Figure 1A.5.3
-The equation of a line is y = 4 + 2x. Which one of the graphs in Figure 1A.5.3 represents this line?

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 13

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 14

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

Accepted Answer

A) an insurance policy 
B) a donut 
C) the skills of a welder 
D) an IBM stock certificate 
E) a computer game 
A) an insurance policy 
B) a donut 
C) the skills of a welder 
D) an IBM stock certificate 
E) a computer game

Question 15

In Canada ________ percent of the adult population have completed high school and ________ percent have a college or university degree.

Accepted Answer

A) 23; 93 
B) 93; 53 
C) 93; 23 
D) 100; 53 
E) 53; 23 
A) 23; 93 
B) 93; 53 
C) 93; 23 
D) 100; 53 
E) 53; 23

Question 16

Complete the following sentence. Marginal cost is

Accepted Answer

A) the total cost of an activity. 
B) the total cost of a decrease in an activity. 
C) the opportunity cost of an increase in an activity. 
D) the opportunity cost of a decrease in an activity. 
E) equal to marginal benefit. 
A) the total cost of an activity. 
B) the total cost of a decrease in an activity. 
C) the opportunity cost of an increase in an activity. 
D) the opportunity cost of a decrease in an activity. 
E) equal to marginal benefit.

Question 17

Complete the following sentence. Capital is

Accepted Answer

A) money in the bank. 
B) the "gifts of nature." 
C) the tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services. 
D) land. 
E) stocks and bonds. 
A) money in the bank. 
B) the "gifts of nature." 
C) the tools, instruments, machines, buildings, and other constructions that businesses use to produce goods and services. 
D) land. 
E) stocks and bonds.

Question 18

Use the table below to answer the following questions.
Table 1A.3.3
  
-Refer to Table 1A.3.3. When x equals 5, the slope is

Accepted Answer

A) 5. 
B) -2. 
C) +2. 
D) 0. 
E) infinite. 
A) 5. 
B) -2. 
C) +2. 
D) 0. 
E) infinite.

Question 19

Two variables are positively related if

Accepted Answer

A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases in the other. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other. 
A) increases in one are associated with decreases in the other. 
B) increases in one are associated with increases in the other. 
C) decreases in one are associated with increases in the other. 
D) any change in one causes an increase in the other. 
E) any change in one causes a decrease in the other.

Question 20

The scientific purpose of simplifying assumptions in an economic model is to

Accepted Answer

A) avoid confronting difficult issues. 
B) eliminate the need for further testing of the implications of the model. 
C) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
D) eliminate the possibility of personal bias in the model. 
E) add necessary hypotheses to the problem. 
A) avoid confronting difficult issues. 
B) eliminate the need for further testing of the implications of the model. 
C) abstract from the complexities of the real world those issues that are not important for the issues under examination. 
D) eliminate the possibility of personal bias in the model. 
E) add necessary hypotheses to the problem.

Exam 1: What Is Economics

To earn income, people sell the services of the factors of production they own. Land earns ________and labour earns ________.

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

Use the figure below to answer the following questions. Figure 1A.3.9 -Refer to Figure 1A.3.9. Which one of the graphs shows a line with an infinite slope?

Use the figure below to answer the following questions. Figure 1A.3.10 -Refer to Figure 1A.3.10. The figure shows a relationship between two variables, x and y. The slope at point A is

The fact that a hockey star earns $3 million a year while a teacher earns $50,000 annually is an example of an economy facing the ________ question.

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

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

Which one of the following would economists classify as land?

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?

What choices are best for the entire society?

Use the figure below to answer the following question. Figure 1A.5.3 -The equation of a line is y = 4 + 2x. Which one of the graphs in Figure 1A.5.3 represents this line?

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

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

In Canada ________ percent of the adult population have completed high school and ________ percent have a college or university degree.

Complete the following sentence. Marginal cost is

Complete the following sentence. Capital is

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3. When x equals 5, the slope is

Two variables are positively related if

The scientific purpose of simplifying assumptions in an economic model is to

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

To earn income, people sell the services of the factors of production they own. Land earns and labour earns .

In Canada percent of the adult population have completed high school and percent have a college or university degree.