Question 1

Complete the following sentence.Financial capital is

Accepted Answer

A) one of the "gifts of nature." 
B) the tools and machines that are used to produce goods and services. 
C) money, stocks, and bonds. 
D) used in the production of goods and services. 
E) land. 
A) one of the "gifts of nature." 
B) the tools and machines that are used to produce goods and services. 
C) money, stocks, and bonds. 
D) used in the production of goods and services. 
E) land.

Question 2

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 3

"The rich face higher income tax rates than the poor" is an example of

Accepted Answer

A) a normative statement. 
B) a positive statement. 
C) a predictive statement. 
D) a theoretical statement. 
E) an analytical statement. 
A) a normative statement. 
B) a positive statement. 
C) a predictive statement. 
D) a theoretical statement. 
E) an analytical statement.

Question 4

Use the figure below to answer the following question.
   
Figure 1A.2.5
-Refer to Figure 1A.2.5.Which one of the following statements is true?

Accepted Answer

A) x and y are positively related at all points between A and D. 
B) x and y are negatively related at all points between points B and D. 
C) y reaches a maximum at point C. 
D) y reaches a minimum at point C. 
E) x and y are unrelated. 
A) x and y are positively related at all points between A and D. 
B) x and y are negatively related at all points between points B and D. 
C) y reaches a maximum at point C. 
D) y reaches a minimum at point C. 
E) x and y are unrelated.

Question 5

Use the information below to answer the following questions.
Fact 1.4.1 Costco
When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as drivers lined up to get the discount of 10 cents a litre.
-Refer to Fact 1.4.1.To control the crowd Costco hires traffic police.When Costco hires traffic police, it faces a tradeoff that could include all of the following except

Accepted Answer

A) hiring more customer service representatives. 
B) having a larger inventory of stock. 
C) having large seasonal displays. 
D) taking business away from gas stations in the area. 
E) expansion of the warehouse. 
A) hiring more customer service representatives. 
B) having a larger inventory of stock. 
C) having large seasonal displays. 
D) taking business away from gas stations in the area. 
E) expansion of the warehouse.

Question 6

Use the table below to answer the following question.
Table 1A.2.2
  
-Refer to Table 1A.2.2.What type of relationship exists between y and z?

Accepted Answer

A) negative 
B) positive 
C) inverse 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one 
A) negative 
B) positive 
C) inverse 
D) No consistent relationship exists. 
E) first a positive relationship, then a negative one

Question 7

Each of the following would be considered a macroeconomic topic except

Accepted Answer

A) the reasons for a decrease in the unemployment rate. 
B) the cause of recessions. 
C) the effect of the government budget deficit on inflation. 
D) the determination of aggregate income. 
E) the selection of production techniques. 
A) the reasons for a decrease in the unemployment rate. 
B) the cause of recessions. 
C) the effect of the government budget deficit on inflation. 
D) the determination of aggregate income. 
E) the selection of production techniques.

Question 8

Marginal benefit is

Accepted Answer

A) the cost of an increase in an activity. 
B) the sum of benefit and cost that arises from an increase in an activity. 
C) the cost of a decrease in an activity. 
D) the benefit that arises from an increase in an activity. 
E) the benefit that arises from a decrease in an activity. 
A) the cost of an increase in an activity. 
B) the sum of benefit and cost that arises from an increase in an activity. 
C) the cost of a decrease in an activity. 
D) the benefit that arises from an increase in an activity. 
E) the benefit that arises from a decrease in an activity.

Question 9

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 10

The determination of prices in individual markets is primarily a concern of

Accepted Answer

A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics. 
A) positive economics. 
B) negative economics. 
C) macroeconomics. 
D) microeconomics. 
E) descriptive economics.

Question 11

Use the figure below to answer the following questions.
   
Figure 1A.3.1
-The slope of the line in Figure 1A.3.1 is

Accepted Answer

A) 0.50. 
B) 0.75. 
C) 1.00 
D) 1.25. 
E) 1.50. 
A) 0.50. 
B) 0.75. 
C) 1.00 
D) 1.25. 
E) 1.50.

Question 12

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

Question 13

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 14

Use the figure below to answer the following question.
   
Figure 1A.5.2
-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 15

Use the figure below to answer the following questions.
   
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Accepted Answer

A) A 
B) A and B 
C) B, C, and D 
D) A and D 
E) B and C 
A) A 
B) A and B 
C) B, C, and D 
D) A and D 
E) B and C

Question 16

Use the figure below to answer the following questions.
   
Figure 1A.3.4
-In Figure 1A.3.4, the slope across arc BC is

Accepted Answer

A) -2/3. 
B) -3/2. 
C) -2. 
D) -4/3. 
E) -3/4. 
A) -2/3. 
B) -3/2. 
C) -2. 
D) -4/3. 
E) -3/4.

Question 17

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 18

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 19

Which of the following is the best definition of economics?

Accepted Answer

A) the study of how a provincial government allocates tax dollars 
B) the study of how consumers spend their income 
C) the study of how producers decide what inputs to hire and what outputs to produce 
D) the study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices 
E) the study of how consumers and producers meet each other at the market 
A) the study of how a provincial government allocates tax dollars 
B) the study of how consumers spend their income 
C) the study of how producers decide what inputs to hire and what outputs to produce 
D) the study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices 
E) the study of how consumers and producers meet each other at the market

Question 20

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

Accepted Answer

A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D) the revenue from selling HP's printers as compared to printers from competing companies, such as Lexmark. 
E) the cost of producing HP's printers as compared to printers from competing companies, such as Lexmark. 
A) the total revenue from sales of printers to the total cost of producing all the printers. 
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers. 
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers. 
D) the revenue from selling HP's printers as compared to printers from competing companies, such as Lexmark. 
E) the cost of producing HP's printers as compared to printers from competing companies, such as Lexmark.

Complete the following sentence.Financial capital is

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

"The rich face higher income tax rates than the poor" is an example of

Use the figure below to answer the following question. Figure 1A.2.5 -Refer to Figure 1A.2.5.Which one of the following statements is true?

Use the table below to answer the following question. Table 1A.2.2 -Refer to Table 1A.2.2.What type of relationship exists between y and z?

Each of the following would be considered a macroeconomic topic except

Marginal benefit is

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?

The determination of prices in individual markets is primarily a concern of

Use the figure below to answer the following questions. Figure 1A.3.1 -The slope of the line in Figure 1A.3.1 is

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

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?

Use the figure below to answer the following question. Figure 1A.5.2 -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.2.4 -Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc BC 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

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

Which of the following is the best definition of economics?

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

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

Complete the following sentence.Financial capital is

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

"The rich face higher income tax rates than the poor" is an example of

Use the figure below to answer the following question. Figure 1A.2.5 -Refer to Figure 1A.2.5.Which one of the following statements is true?

Use the table below to answer the following question. Table 1A.2.2 -Refer to Table 1A.2.2.What type of relationship exists between y and z?

Each of the following would be considered a macroeconomic topic except

Marginal benefit is

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?

The determination of prices in individual markets is primarily a concern of

Use the figure below to answer the following questions. Figure 1A.3.1 -The slope of the line in Figure 1A.3.1 is

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

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?

Use the figure below to answer the following question. Figure 1A.5.2 -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.2.4 -Which curve or curves in Figure 1A.2.4 shows a negative relationship between unemployment and inflation?

Use the figure below to answer the following questions. Figure 1A.3.4 -In Figure 1A.3.4, the slope across arc BC 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

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

Which of the following is the best definition of economics?

Laura is a manager for HP.When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares

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