Question 1

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 2

The two big economic questions

Accepted Answer

A) summarize the scope of economics. 
B) are "what goods and services are produced?" and "how are goods and services produced?" 
C) have nothing to do with goods and services. 
D) do not consider for whom goods and services are produced. 
E) have nothing to do with the way goods and services are produced. 
A) summarize the scope of economics. 
B) are "what goods and services are produced?" and "how are goods and services produced?" 
C) have nothing to do with goods and services. 
D) do not consider for whom goods and services are produced. 
E) have nothing to do with the way goods and services are produced.

Question 3

The relationship between two variables that are negatively related is shown graphically by a line that

Accepted Answer

A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is below the x-axis and to the left of the y-axis. 
A) slopes upward to the right. 
B) is horizontal. 
C) slopes downward to the right. 
D) is vertical. 
E) is below the x-axis and to the left of the y-axis.

Question 4

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 5

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-In Figure 1A.3.3 the relationship between x and y as x increases is

Accepted Answer

A) positive with decreasing slope. 
B) negative with decreasing slope. 
C) negative with increasing slope. 
D) positive with increasing slope. 
E) positive with slope first increasing then decreasing. 
A) positive with decreasing slope. 
B) negative with decreasing slope. 
C) negative with increasing slope. 
D) positive with increasing slope. 
E) positive with slope first increasing then decreasing.

Question 6

Sally has to decide whether to study for her economics test or her accounting test.If she chooses to study for accounting, her opportunity cost of studying accounting is

Accepted Answer

A) studying economics. 
B) less than the value of studying economics. 
C) not comparable to the value of studying economics. 
D) equal to the value of studying economics. 
E) the future lost wages that will occur if she fails her accounting exam. 
A) studying economics. 
B) less than the value of studying economics. 
C) not comparable to the value of studying economics. 
D) equal to the value of studying economics. 
E) the future lost wages that will occur if she fails her accounting exam.

Question 7

Use the figure below to answer the following question.
   
Figure 1A.5.5
-Which of the following equations describes a straight line with a y-intercept of -2 and a slope of -5?

Accepted Answer

A) y = -5 - 2x 
B) y = -2 
C) y = -2 - 5x 
D) y = -5x 
E) x = -2 - 5y 
A) y = -5 - 2x 
B) y = -2 
C) y = -2 - 5x 
D) y = -5x 
E) x = -2 - 5y

Question 8

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 9

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 10

Use the table below to answer the following questions.
Table 1A.4.1
  
-Consider the data in Table 1A.4.1.Suppose z increases from 4 to 5.What will happen to the graph of the relationship between x and y?

Accepted Answer

A) It will shift to the right. 
B) It will shift to the left. 
C) It will become positively sloped. 
D) both A and C 
E) both B and C 
A) It will shift to the right. 
B) It will shift to the left. 
C) It will become positively sloped. 
D) both A and C 
E) both B and C

Question 11

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You ________ a tradeoff and the opportunity cost of your evening at the movies was ________.

Accepted Answer

A) faced; the 15 percent fall in your grade 
B) did not face; zero 
C) did not face; the 15 percent fall in your grade 
D) faced; the mark of 60 percent on your test 
E) did not face; the mark of 60 percent on your test 
A) faced; the 15 percent fall in your grade 
B) did not face; zero 
C) did not face; the 15 percent fall in your grade 
D) faced; the mark of 60 percent on your test 
E) did not face; the mark of 60 percent on your test

Question 12

The problem of scarcity applies

Accepted Answer

A) to all countries, regardless of their level of development. 
B) only in industrially developed countries because resources are scarce in these countries. 
C) only in developing countries because resources are scarce in these countries 
D) only in countries that are over-populated 
E) only in countries that use natural resources in most of their production processes 
A) to all countries, regardless of their level of development. 
B) only in industrially developed countries because resources are scarce in these countries. 
C) only in developing countries because resources are scarce in these countries 
D) only in countries that are over-populated 
E) only in countries that use natural resources in most of their production processes

Question 13

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 14

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 15

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 16

Which statement about incomes earned by factors of production is false?

Accepted Answer

A) Land earns rent. 
B) Natural resources earn rent. 
C) Labour earns wages. 
D) Capital earns profit. 
E) Entrepreneurship earns profit. 
A) Land earns rent. 
B) Natural resources earn rent. 
C) Labour earns wages. 
D) Capital earns profit. 
E) Entrepreneurship earns profit.

Question 17

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 18

If variables x and y move up and down together, they are

Accepted Answer

A) positively related. 
B) negatively related. 
C) conversely related. 
D) unrelated. 
E) trendy. 
A) positively related. 
B) negatively related. 
C) conversely related. 
D) unrelated. 
E) trendy.

Question 19

A normative statement is

Accepted Answer

A) about what ought to be. 
B) about what is. 
C) always true. 
D) always false. 
E) capable of evaluation, as true or false, by observation and measurement. 
A) about what ought to be. 
B) about what is. 
C) always true. 
D) always false. 
E) capable of evaluation, as true or false, by observation and measurement.

Question 20

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.

Which of the following is not a factor of production?

The two big economic questions

The relationship between two variables that are negatively related is shown graphically by a line that

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

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3 the relationship between x and y as x increases is

Sally has to decide whether to study for her economics test or her accounting test.If she chooses to study for accounting, her opportunity cost of studying accounting is

Use the figure below to answer the following question. Figure 1A.5.5 -Which of the following equations describes a straight line with a y-intercept of -2 and a slope of -5?

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

Self-interest choices are

Use the table below to answer the following questions. Table 1A.4.1 -Consider the data in Table 1A.4.1.Suppose z increases from 4 to 5.What will happen to the graph of the relationship between x and y?

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .

The problem of scarcity applies

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

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.

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

Which statement about incomes earned by factors of production is false?

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

If variables x and y move up and down together, they are

A normative statement is

An economic model is

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government 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

Filters

Exam 1: What Is Economics

Which of the following is not a factor of production?

The two big economic questions

The relationship between two variables that are negatively related is shown graphically by a line that

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

Use the figure below to answer the following questions. Figure 1A.3.3 -In Figure 1A.3.3 the relationship between x and y as x increases is

Sally has to decide whether to study for her economics test or her accounting test.If she chooses to study for accounting, her opportunity cost of studying accounting is

Use the figure below to answer the following question. Figure 1A.5.5 -Which of the following equations describes a straight line with a y-intercept of -2 and a slope of -5?

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

Self-interest choices are

Use the table below to answer the following questions. Table 1A.4.1 -Consider the data in Table 1A.4.1.Suppose z increases from 4 to 5.What will happen to the graph of the relationship between x and y?

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You ________ a tradeoff and the opportunity cost of your evening at the movies was ________.

The problem of scarcity applies

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

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.

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

Which statement about incomes earned by factors of production is false?

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

If variables x and y move up and down together, they are

A normative statement is

An economic model is

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government 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

Filters

The night before a history test, you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .