Question 1

An economic model is

Accepted Answer

A) tested by examining the realism of its assumptions. 
B) useful if it predicts well, even if its assumptions are not realistic. 
C) tested by the Testing Committee of the Canadian Economic Association. 
D) not useful unless it predicts with 100 percent accuracy. 
E) not useful because it simplifies real problems. 
A) tested by examining the realism of its assumptions. 
B) useful if it predicts well, even if its assumptions are not realistic. 
C) tested by the Testing Committee of the Canadian Economic Association. 
D) not useful unless it predicts with 100 percent accuracy. 
E) not useful because it simplifies real problems.

Question 2

The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if

Accepted Answer

A) the movie has a higher attendance than any other movie produced that year. 
B) the movie is produced at the lowest possible cost, and the movie gives the greatest possible benefit. 
C) the movie addresses a social issue. 
D) the movie is an Academy award winner because an Academy award winning movie is most popular with the movie-going public. 
E) the movie is produced in a country where workers typically earn less than workers in North America. 
A) the movie has a higher attendance than any other movie produced that year. 
B) the movie is produced at the lowest possible cost, and the movie gives the greatest possible benefit. 
C) the movie addresses a social issue. 
D) the movie is an Academy award winner because an Academy award winning movie is most popular with the movie-going public. 
E) the movie is produced in a country where workers typically earn less than workers in North America.

Question 3

Marginal benefit is the

Accepted Answer

A) total benefit from an activity. 
B) additional benefit from a decrease in an activity. 
C) additional benefit from an increase in an activity. 
D) opportunity cost of a decrease in an activity. 
E) opportunity cost of an increase in an activity. 
A) total benefit from an activity. 
B) additional benefit from a decrease in an activity. 
C) additional benefit from an increase in an activity. 
D) opportunity cost of a decrease in an activity. 
E) opportunity cost of an increase in an activity.

Question 4

Monika will choose to eat a seventh pizza slice if

Accepted Answer

A) the marginal benefit from the seventh slice is greater than its marginal cost. 
B) the marginal benefit from the seventh slice is less than its marginal cost. 
C) the total benefit from all seven slices is greater than their total cost. 
D) the total benefit from all seven slices is less than their total cost. 
E) she has enough money to pay for it. 
A) the marginal benefit from the seventh slice is greater than its marginal cost. 
B) the marginal benefit from the seventh slice is less than its marginal cost. 
C) the total benefit from all seven slices is greater than their total cost. 
D) the total benefit from all seven slices is less than their total cost. 
E) she has enough money to pay for it.

Question 5

Self-interest choices are

Accepted Answer

A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote. 
A) those choices which are best for the person making them. 
B) never in the social interest. 
C) always in the social interest. 
D) those choices that are best for all residents of a region. 
E) choices that are agreed to by majority vote.

Question 6

Chanel has the option of purchasing one of three products: Brand A, Brand B, or Brand C. The price of each product is $10. If Chanel decides to purchase Brand A, the opportunity cost of this decision is

Accepted Answer

A) $20. 
B) Brand B or Brand C, depending on which she considers to be the highest-valued alternative forgone. 
C) Brand A. 
D) Brand B and Brand C. 
E) zero if this is a frivolous purchase with no marginal benefit. 
A) $20. 
B) Brand B or Brand C, depending on which she considers to be the highest-valued alternative forgone. 
C) Brand A. 
D) Brand B and Brand C. 
E) zero if this is a frivolous purchase with no marginal benefit.

Question 7

Use the table below to answer the following question.
Table 1A.2.1
  
-The data in Table 1A.2.1 shows that

Accepted Answer

A) x and y have a negative relationship. 
B) x and y have a positive relationship. 
C) there is no relationship between x and y. 
D) there is first a negative and then a positive relationship between x and y. 
E) there is first a positive and then a negative relationship between x and y. 
A) x and y have a negative relationship. 
B) x and y have a positive relationship. 
C) there is no relationship between x and y. 
D) there is first a negative and then a positive relationship between x and y. 
E) there is first a positive and then a negative relationship between x and y.

Question 8

The slope of a straight line

Accepted Answer

A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope. 
A) is the same at every point. 
B) increases as the variable on the x-axis increases if the slope is positive. 
C) decreases as the variable on the x-axis increases if the slope is negative. 
D) is the same at every point only if the line is horizontal. 
E) depends on where you measure the slope.

Question 9

Which of the following statements is correct?

Accepted Answer

A) Canada produces more manufactured goods than services. 
B) Canada produces more agricultural goods than services. 
C) Canada produces more services than goods. 
D) The percentage of the Canadian population that produces goods is greater than the percentage of the Chinese population that produces goods. 
E) Canada produces more agricultural goods than manufactured goods. 
A) Canada produces more manufactured goods than services. 
B) Canada produces more agricultural goods than services. 
C) Canada produces more services than goods. 
D) The percentage of the Canadian population that produces goods is greater than the percentage of the Chinese population that produces goods. 
E) Canada produces more agricultural goods than manufactured goods.

Question 10

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 11

If you take an additional class this term, you can graduate earlier. This is an example of

Accepted Answer

A) opportunity cost. 
B) total cost. 
C) the pursuit of social interest. 
D) marginal benefit. 
E) social cost. 
A) opportunity cost. 
B) total cost. 
C) the pursuit of social interest. 
D) marginal benefit. 
E) social cost.

Question 12

Saskatchewan had more hospitals than Ontario, despite having one-tenth the population. The Saskatchewan government closed many of these hospitals in spite of widespread local protests. Which one of the following arguments is true?

Accepted Answer

A) Since hospitals have positive benefits, they should never be closed. 
B) If Saskatchewan had more hospitals than Ontario, it must have had too many hospitals. 
C) The Saskatchewan government must have thought the marginal benefit from one of these hospitals exceeded its marginal cost. 
D) The Saskatchewan government must have thought the marginal benefit from one of these hospitals was less than its marginal cost. 
E) The communities where these hospitals existed bore no costs from these decisions, because they did not pay for any of the hospital operating costs. 
A) Since hospitals have positive benefits, they should never be closed. 
B) If Saskatchewan had more hospitals than Ontario, it must have had too many hospitals. 
C) The Saskatchewan government must have thought the marginal benefit from one of these hospitals exceeded its marginal cost. 
D) The Saskatchewan government must have thought the marginal benefit from one of these hospitals was less than its marginal cost. 
E) The communities where these hospitals existed bore no costs from these decisions, because they did not pay for any of the hospital operating costs.

Question 13

The study of how wages are set for New Brunswick teachers is classified as

Accepted Answer

A) a macroeconomic topic. 
B) a microeconomic topic. 
C) economics of social interest. 
D) economics of private interest. 
E) normative economics. 
A) a macroeconomic topic. 
B) a microeconomic topic. 
C) economics of social interest. 
D) economics of private interest. 
E) normative economics.

Question 14

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Consider graph (d) of Figure 1A.1.5. Which one of the following statements is true?

Accepted Answer

A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) both A and D. 
A) x and y are negatively related. 
B) x and y are unrelated. 
C) x and y are positively related. 
D) x and y move in opposite directions. 
E) both A and D.

Question 15

Which of the following is an example of a positive statement?

Accepted Answer

A) Canada should cut back on its use of carbon-based fuels such as coal and oil. 
B) Increasing the minimum wage results in more unemployment. 
C) Every Canadian should have equal access to healthcare. 
D) The Bank of Canada ought to cut the interest rate. 
E) Canada should have lower tax rates for wealthier Canadians. 
A) Canada should cut back on its use of carbon-based fuels such as coal and oil. 
B) Increasing the minimum wage results in more unemployment. 
C) Every Canadian should have equal access to healthcare. 
D) The Bank of Canada ought to cut the interest rate. 
E) Canada should have lower tax rates for wealthier Canadians.

Question 16

To make choices, people must

Accepted Answer

A) be able to carry out complex mathematical calculations. 
B) have unlimited resources. 
C) be free from government constraint. 
D) have unlimited access to information at no cost. 
E) evaluate the values of alternative actions. 
A) be able to carry out complex mathematical calculations. 
B) have unlimited resources. 
C) be free from government constraint. 
D) have unlimited access to information at no cost. 
E) evaluate the values of alternative actions.

Question 17

Use the figure below to answer the following questions.
   
Figure 1A.2.3
-Refer to Figure 1A.2.3. Which one of the graphs shows a negative relationship between x and y?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) both (a)and (d) 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) both (a)and (d)

Question 18

To graph a relationship among three variables we

Accepted Answer

A) hold two variables constant to graph the third variable. 
B) hold one variable constant and graph the relationship between the other two variables. 
C) graph each of the three variables using a separate set of axes. 
D) must be able to draw in three dimensions. 
E) must be able to allow all three variables to vary simultaneously in one graph. 
A) hold two variables constant to graph the third variable. 
B) hold one variable constant and graph the relationship between the other two variables. 
C) graph each of the three variables using a separate set of axes. 
D) must be able to draw in three dimensions. 
E) must be able to allow all three variables to vary simultaneously in one graph.

Question 19

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

Accepted Answer

A) money held by Tim Hortons 
B) a Bell Canada bond 
C) an automobile factory owned by Ford 
D) a high school teacher 
E) natural gas 
A) money held by Tim Hortons 
B) a Bell Canada bond 
C) an automobile factory owned by Ford 
D) a high school teacher 
E) natural gas

Question 20

Which of the following creates an incentive to increase the amount of an activity?

Accepted Answer

A) an increase in the marginal cost of the activity and a decrease in the marginal benefit from the activity 
B) a decrease in the marginal cost of the activity and an increase in the marginal benefit from the activity 
C) constant marginal cost and constant marginal benefit from the activity 
D) an increase in the marginal cost of the activity and an equal increase in the marginal benefit from the activity 
E) a decrease in the marginal cost of the activity and an equal decrease in the marginal benefit from the activity 
A) an increase in the marginal cost of the activity and a decrease in the marginal benefit from the activity 
B) a decrease in the marginal cost of the activity and an increase in the marginal benefit from the activity 
C) constant marginal cost and constant marginal benefit from the activity 
D) an increase in the marginal cost of the activity and an equal increase in the marginal benefit from the activity 
E) a decrease in the marginal cost of the activity and an equal decrease in the marginal benefit from the activity

Exam 1: What Is Economics

An economic model is

The creation of a successful movie illustrates choices made in self-interest that also achieve the social interest if

Marginal benefit is the

Monika will choose to eat a seventh pizza slice if

Self-interest choices are

Chanel has the option of purchasing one of three products: Brand A, Brand B, or Brand C. The price of each product is $10. If Chanel decides to purchase Brand A, the opportunity cost of this decision is

Use the table below to answer the following question. Table 1A.2.1 -The data in Table 1A.2.1 shows that

The slope of a straight line

Which of the following statements is correct?

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

If you take an additional class this term, you can graduate earlier. This is an example of

Saskatchewan had more hospitals than Ontario, despite having one-tenth the population. The Saskatchewan government closed many of these hospitals in spite of widespread local protests. Which one of the following arguments is true?

The study of how wages are set for New Brunswick teachers is classified as

Use the figure below to answer the following questions. Figure 1A.1.5 -Consider graph (d) of Figure 1A.1.5. Which one of the following statements is true?

Which of the following is an example of a positive statement?

To make choices, people must

Use the figure below to answer the following questions. Figure 1A.2.3 -Refer to Figure 1A.2.3. Which one of the graphs shows a negative relationship between x and y?

To graph a relationship among three variables we

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

Which of the following creates an incentive to increase the amount of an activity?

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

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