Question 1

Use the figure below to answer the following question.
   
Figure 1A.5.1
-The equation of the line in Figure 1A.5.1 is

Accepted Answer

A) y = 1.5 - 0.5x. 
B) y =1.5 + 2x. 
C) y = 1.5 + 0.5x. 
D) y = -3 + 2x. 
E) dependent on where you measure it. 
A) y = 1.5 - 0.5x. 
B) y =1.5 + 2x. 
C) y = 1.5 + 0.5x. 
D) y = -3 + 2x. 
E) dependent on where you measure it.

Question 2

When a farmer decides to harvest tomatoes using machines instead of migrant workers, the farmer is answering the ________ question.

Accepted Answer

A) "what" 
B) "how" 
C) "who" 
D) "where" 
E) "when" 
A) "what" 
B) "how" 
C) "who" 
D) "where" 
E) "when"

Question 3

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

Accepted Answer

A) y is at a maximum. 
B) y is at a minimum. 
C) the slope is positive. 
D) the slope is negative. 
E) the slope is first positive and then becomes negative. 
A) y is at a maximum. 
B) y is at a minimum. 
C) the slope is positive. 
D) the slope is negative. 
E) the slope is first positive and then becomes negative.

Question 4

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park ________.
The operators' decision is a ________.

Accepted Answer

A) remains the same; macroeconomic decision 
B) changes; microeconomic decision 
C) remains the same; microeconomic decision 
D) changes; macroeconomic decision 
E) changes; decision in the self-interest but not in the social interest 
A) remains the same; macroeconomic decision 
B) changes; microeconomic decision 
C) remains the same; microeconomic decision 
D) changes; macroeconomic decision 
E) changes; decision in the self-interest but not in the social interest

Question 5

Use the figure below to answer the following questions.
   
Figure 1A.2.4
-Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

Accepted Answer

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

Question 6

Which of the following statements are positive? 1. The federal government should increase production of biofuels.
2. Air travel has increased since September 11.
3. The greatest number of accidents are caused by drunk drivers.
4. We ought to have a cure for cancer.

Accepted Answer

A) Statements 1 and 4 are positive. 
B) Statements 2 and 3 are positive. 
C) Statements 1 and 2 are positive. 
D) Statements 3 and 4 are positive. 
E) Statements 2 and 4 are positive. 
A) Statements 1 and 4 are positive. 
B) Statements 2 and 3 are positive. 
C) Statements 1 and 2 are positive. 
D) Statements 3 and 4 are positive. 
E) Statements 2 and 4 are positive.

Question 7

Use the figure below to answer the following questions.
   
Figure 1A.1.5
-Refer to Figure 1A.1.5.Which graph or graphs indicates a positive relationship between x and y?

Accepted Answer

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

Question 8

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 B is

Accepted Answer

A) 2. 
B) -2. 
C) 0.25. 
D) -0.25. 
E) 0.5. 
A) 2. 
B) -2. 
C) 0.25. 
D) -0.25. 
E) 0.5.

Question 9

Which of the following is a microeconomic topic?

Accepted Answer

A) the reasons why a consumer buys less honey 
B) the reasons why the average price level in a country falls 
C) the cause of increasing unemployment 
D) the effect of the government budget deficit on inflation 
E) the reasons why the labour force in a country decreases 
A) the reasons why a consumer buys less honey 
B) the reasons why the average price level in a country falls 
C) the cause of increasing unemployment 
D) the effect of the government budget deficit on inflation 
E) the reasons why the labour force in a country decreases

Question 10

Use the figure below to answer the following questions.
   
Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor:  
Refer to Figure 1A.4.5.Which line shows the relationship of cola sales and the temperature when the price of a case is $15.00?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) none of the above. 
A) A 
B) B 
C) C 
D) D 
E) none of the above.

Question 11

Use the figure below to answer the following questions.
   
Figure 1A.3.3
-Figure 1A.3.3 illustrates two variables, x and y, which are

Accepted Answer

A) negatively related, with a decreasing slope as x increases. 
B) negatively related, with an increasing slope as x increases. 
C) positively related, with a decreasing slope as x increases. 
D) positively related, with an increasing slope as x increases. 
E) positively related, with slope first increasing then decreasing. 
A) negatively related, with a decreasing slope as x increases. 
B) negatively related, with an increasing slope as x increases. 
C) positively related, with a decreasing slope as x increases. 
D) positively related, with an increasing slope as x increases. 
E) positively related, with slope first increasing then decreasing.

Question 12

Which factor of production includes the "gifts of nature"?

Accepted Answer

A) labour 
B) capital 
C) human capital 
D) entrepreneurship 
E) land 
A) labour 
B) capital 
C) human capital 
D) entrepreneurship 
E) land

Question 13

A good economic model

Accepted Answer

A) does not include more than two variables. 
B) includes only those features of the world that are needed for the purpose at hand. 
C) describes all aspects of the economic world. 
D) includes only features of the world that can be described numerically. 
E) includes more than two variables but less than 10 variables. 
A) does not include more than two variables. 
B) includes only those features of the world that are needed for the purpose at hand. 
C) describes all aspects of the economic world. 
D) includes only features of the world that can be described numerically. 
E) includes more than two variables but less than 10 variables.

Question 14

Which of the following statements are true regarding "positive" statements? I. They describe what "ought to be."
II. They describe what is believed about how the world appears.
III. They can be tested as to their truthfulness.

Accepted Answer

A) I and II 
B) II and III 
C) I and III 
D) I, II and III 
E) None of the statements are true. 
A) I and II 
B) II and III 
C) I and III 
D) I, II and III 
E) None of the statements are true.

Question 15

Use the figure below to answer the following questions.
   
Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor:  
70 60
Refer to Figure 1A.4.5.Which line shows the relationship of cola sales and its price when the temperature is 30°C?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) E 
A) A 
B) B 
C) C 
D) D 
E) E

Question 16

In a world characterized by scarcity

Accepted Answer

A) all goods are free. 
B) opportunity cost is zero. 
C) we are not limited by time. 
D) individuals need not work to obtain goods. 
E) people must make choices among alternatives. 
A) all goods are free. 
B) opportunity cost is zero. 
C) we are not limited by time. 
D) individuals need not work to obtain goods. 
E) people must make choices among alternatives.

Question 17

Statements about "what is" are called

Accepted Answer

A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses. 
A) positive statements. 
B) normative statements. 
C) economic statements. 
D) scientific statements. 
E) hypotheses.

Question 18

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 19

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 20

Which of the following statements is normative?

Accepted Answer

A) Scientists should not make normative statements. 
B) Warts are caused by handling toads. 
C) As e-book prices fall, people buy more of them. 
D) If income increases, sales of luxury goods fall. 
E) There is more caffeine in a cup of tea than in a cup of coffee. 
A) Scientists should not make normative statements. 
B) Warts are caused by handling toads. 
C) As e-book prices fall, people buy more of them. 
D) If income increases, sales of luxury goods fall. 
E) There is more caffeine in a cup of tea than in a cup of coffee.

Use the figure below to answer the following question. Figure 1A.5.1 -The equation of the line in Figure 1A.5.1 is

When a farmer decides to harvest tomatoes using machines instead of migrant workers, the farmer is answering the ________ question.

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

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park . The operators' decision is a .

Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

Which of the following statements are positive? 1. The federal government should increase production of biofuels. 2. Air travel has increased since September 11. 3. The greatest number of accidents are caused by drunk drivers. 4. We ought to have a cure for cancer.

Use the figure below to answer the following questions. Figure 1A.1.5 -Refer to Figure 1A.1.5.Which graph or graphs indicates a positive relationship between x and y?

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 B is

Which of the following is a microeconomic topic?

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables, x and y, which are

Which factor of production includes the "gifts of nature"?

A good economic model

Which of the following statements are true regarding "positive" statements? I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

In a world characterized by scarcity

Statements about "what is" are called

Which of the following statements is correct?

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

Which of the following statements is normative?

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

Use the figure below to answer the following question. Figure 1A.5.1 -The equation of the line in Figure 1A.5.1 is

When a farmer decides to harvest tomatoes using machines instead of migrant workers, the farmer is answering the ________ question.

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

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park ________. The operators' decision is a ________.

Use the figure below to answer the following questions. Figure 1A.2.4 -Which curve or curves in Figure 1A.2.4 shows no relationship between unemployment and inflation?

Which of the following statements are positive? 1. The federal government should increase production of biofuels. 2. Air travel has increased since September 11. 3. The greatest number of accidents are caused by drunk drivers. 4. We ought to have a cure for cancer.

Use the figure below to answer the following questions. Figure 1A.1.5 -Refer to Figure 1A.1.5.Which graph or graphs indicates a positive relationship between x and y?

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 B is

Which of the following is a microeconomic topic?

Use the figure below to answer the following questions. Figure 1A.3.3 -Figure 1A.3.3 illustrates two variables, x and y, which are

Which factor of production includes the "gifts of nature"?

A good economic model

Which of the following statements are true regarding "positive" statements? I. They describe what "ought to be." II. They describe what is believed about how the world appears. III. They can be tested as to their truthfulness.

In a world characterized by scarcity

Statements about "what is" are called

Which of the following statements is correct?

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

Which of the following statements is normative?

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

Operators of private dog parks in your city decide to eliminate their fees and allow dog owners to exercise their dogs in the parks at no charge. This statement means that the incentive to exercise dogs at the dog park . The operators' decision is a .

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