Question 1

In what way can additions to human capital be made?

Accepted Answer

A) through increases in the general population of an area 
B) through improved education and on-the-job training 
C) through monthly deposits into a savings account 
D) through the purchase of tools and equipment by workers 
A) through increases in the general population of an area 
B) through improved education and on-the-job training 
C) through monthly deposits into a savings account 
D) through the purchase of tools and equipment by workers

Question 2

The armed forces rely exclusively on volunteers to fill their ranks.According to economic theory,what type of people are the military personnel most likely to consist of?

Accepted Answer

A) People who are motivated primarily by patriotism. 
B) People who would serve for no pay. 
C) People who are motivated exclusively by money. 
D) People who have lower valued opportunities available. 
A) People who are motivated primarily by patriotism. 
B) People who would serve for no pay. 
C) People who are motivated exclusively by money. 
D) People who have lower valued opportunities available.

Question 3

Which of the following statements best describes scarcity?

Accepted Answer

A) Scarcity and poverty are basically the same thing. 
B) Goods are scarce because of greed. 
C) Even in the wealthiest of countries, the desire for material goods is greater than productive capabilities. 
D) The absence of scarcity means that a minimal level of income is provided to all individuals. 
A) Scarcity and poverty are basically the same thing. 
B) Goods are scarce because of greed. 
C) Even in the wealthiest of countries, the desire for material goods is greater than productive capabilities. 
D) The absence of scarcity means that a minimal level of income is provided to all individuals.

Question 4

Which of the following statements most accurately describes the concept of economic theory?

Accepted Answer

A) It should be as detailed as possible in order to model the complexity of an economy. 
B) It is an abstraction from reality. 
C) It is only useful if it rests on realistic assumptions. 
D) It is unrealistic and therefore of questionable usefulness in explaining what occurs in a complex economy. 
A) It should be as detailed as possible in order to model the complexity of an economy. 
B) It is an abstraction from reality. 
C) It is only useful if it rests on realistic assumptions. 
D) It is unrealistic and therefore of questionable usefulness in explaining what occurs in a complex economy.

Question 5

Who makes economic decisions?

Accepted Answer

A) They are only made by government leaders. 
B) They are made in both the private and public sectors. 
C) They are only made where monetary exchanges take place. 
D) They are only made at the management level of corporations. 
A) They are only made by government leaders. 
B) They are made in both the private and public sectors. 
C) They are only made where monetary exchanges take place. 
D) They are only made at the management level of corporations.

Question 6

Which of the following is NOT a reason that economists use theories?

Accepted Answer

A) to explain and help predict human behaviour 
B) to understand economic behaviour 
C) to develop a testable hypothesis 
D) to abstract from the complexities of the world 
A) to explain and help predict human behaviour 
B) to understand economic behaviour 
C) to develop a testable hypothesis 
D) to abstract from the complexities of the world

Question 7

Which of the following statements best describes the idea of opportunity cost and writing a test?

Accepted Answer

A) There is no opportunity cost of writing a test because it only applies to people that are working. 
B) There is no opportunity cost of writing a test because they are so important. 
C) The opportunity cost of writing a test is the wages given up from not working plus the loss of time studying for another test. 
D) The opportunity cost of writing a test is the time given up for doing an important assignment for another class. 
A) There is no opportunity cost of writing a test because it only applies to people that are working. 
B) There is no opportunity cost of writing a test because they are so important. 
C) The opportunity cost of writing a test is the wages given up from not working plus the loss of time studying for another test. 
D) The opportunity cost of writing a test is the time given up for doing an important assignment for another class.

Question 8

Why is economics different from a "hard" science like physics?

Accepted Answer

A) Economists cannot easily control all the variables that might influence human behaviour. 
B) Economists have to control fewer variables than what is found in a physics experiment. 
C) Economic experiments are easier to conduct than those in physics. 
D) Economists abstract from reality in creating their theories. 
A) Economists cannot easily control all the variables that might influence human behaviour. 
B) Economists have to control fewer variables than what is found in a physics experiment. 
C) Economic experiments are easier to conduct than those in physics. 
D) Economists abstract from reality in creating their theories.

Question 9

Which of the following is an example of a capital resource?

Accepted Answer

A) yellow-fin tuna 
B) an unskilled worker 
C) a large coal deposit 
D) a fishing boat 
A) yellow-fin tuna 
B) an unskilled worker 
C) a large coal deposit 
D) a fishing boat

Question 10

What do economists mean when they say goods are scarce?

Accepted Answer

A) Government programs are needed to lift families out of poverty. 
B) At the current price, consumers are willing to buy more of a good than suppliers are willing to produce. 
C) Consumers do not have enough money to purchase the goods. 
D) The desire for goods and services exceeds our ability to produce them with limited resources. 
A) Government programs are needed to lift families out of poverty. 
B) At the current price, consumers are willing to buy more of a good than suppliers are willing to produce. 
C) Consumers do not have enough money to purchase the goods. 
D) The desire for goods and services exceeds our ability to produce them with limited resources.

Question 11

What is the basic difference between macroeconomics and microeconomics?

Accepted Answer

A) Microeconomics explores the causes of inflation, while macroeconomics focuses on the causes of unemployment. 
B) Microeconomics concentrates on the behaviour of individual consumers, while macroeconomics focuses on the behaviour of firms. 
C) Microeconomics concentrates on the behaviour of individual consumers and firms, while macroeconomics focuses on the performance of the entire economy. 
D) Microeconomics concentrates on individual markets, while macroeconomics focuses primarily on international trade. 
A) Microeconomics explores the causes of inflation, while macroeconomics focuses on the causes of unemployment. 
B) Microeconomics concentrates on the behaviour of individual consumers, while macroeconomics focuses on the behaviour of firms. 
C) Microeconomics concentrates on the behaviour of individual consumers and firms, while macroeconomics focuses on the performance of the entire economy. 
D) Microeconomics concentrates on individual markets, while macroeconomics focuses primarily on international trade.

Question 12

What happens to us because of scarcity?

Accepted Answer

A) We can obtain more of a desirable good without sacrificing other goods and services. 
B) We face shortages of goods that prevail at current market prices. 
C) We must sacrifice valuable alternatives to obtain more goods and services we desire. 
D) We have an opportunity cost of consumption which is zero. 
A) We can obtain more of a desirable good without sacrificing other goods and services. 
B) We face shortages of goods that prevail at current market prices. 
C) We must sacrifice valuable alternatives to obtain more goods and services we desire. 
D) We have an opportunity cost of consumption which is zero.

Question 13

You consider purchasing one more cup of coffee before you go to class.What is this an example of?

Accepted Answer

A) average thinking 
B) positive thinking 
C) marginal thinking 
D) total thinking 
A) average thinking 
B) positive thinking 
C) marginal thinking 
D) total thinking

Question 14

A university offers a free shuttle service around campus.What is the opportunity cost of the shuttle service equal to?

Accepted Answer

A) the wages paid to the shuttle drivers, plus the gasoline expenses 
B) the wages paid to the shuttle drivers 
C) the highest valued alternative use of the resources devoted to the shuttle program 
D) zero, since it is free to students who want to ride 
A) the wages paid to the shuttle drivers, plus the gasoline expenses 
B) the wages paid to the shuttle drivers 
C) the highest valued alternative use of the resources devoted to the shuttle program 
D) zero, since it is free to students who want to ride

Question 15

Tractors,shovels,copy machines,and computer programming expertise are all examples of scarce resources.

Accepted Answer

A) True 
 B)False

Question 16

When U.S.President Harry Truman said that he wanted to find a one-armed economist because his economic advisors always said,"On the one hand ...and on the other hand ..." he recognized that the advice of economists is often ambiguous.Why is their advice often ambiguous?

Accepted Answer

A) Economists are often unable to identify the critical questions involved in policy issues. 
B) Economists are aware that trade-offs are involved in most policy questions. 
C) Economists have difficulty seeing the fallacy of composition. 
D) Economists disagree a lot over positive statements. 
A) Economists are often unable to identify the critical questions involved in policy issues. 
B) Economists are aware that trade-offs are involved in most policy questions. 
C) Economists have difficulty seeing the fallacy of composition. 
D) Economists disagree a lot over positive statements.

Question 17

As defined by an economist,what does the word scarcity mean?

Accepted Answer

A) Consumers are too poor to purchase the available goods and services. 
B) Demand exceeds supply at the current market price. 
C) The desire for goods exceeds our ability to produce them with limited available resources. 
D) Supply exceeds demand at the current market price. 
A) Consumers are too poor to purchase the available goods and services. 
B) Demand exceeds supply at the current market price. 
C) The desire for goods exceeds our ability to produce them with limited available resources. 
D) Supply exceeds demand at the current market price.

Question 18

Which of the following statements best illustrates the fallacy of composition?

Accepted Answer

A) the error of omitting relevant variables from an economic model 
B) the error of confusing normative economics with positive economics 
C) the error of generalizing from the individual to the whole 
D) the error of confusing correlation with causation 
A) the error of omitting relevant variables from an economic model 
B) the error of confusing normative economics with positive economics 
C) the error of generalizing from the individual to the whole 
D) the error of confusing correlation with causation

Question 19

What topic does microeconomics NOT usually include?

Accepted Answer

A) how firms choose output to maximize profits 
B) how consumers maximize utility subject to a budget constraint 
C) how wages are determined in the labour market 
D) how national income is calculated 
A) how firms choose output to maximize profits 
B) how consumers maximize utility subject to a budget constraint 
C) how wages are determined in the labour market 
D) how national income is calculated

Question 20

Rational individuals act to advance their own self-interest; therefore,charitable giving must constitute irrational behaviour.

Accepted Answer

A) True 
 B)False

In what way can additions to human capital be made?

The armed forces rely exclusively on volunteers to fill their ranks.According to economic theory,what type of people are the military personnel most likely to consist of?

Which of the following statements best describes scarcity?

Which of the following statements most accurately describes the concept of economic theory?

Who makes economic decisions?

Which of the following is NOT a reason that economists use theories?

Which of the following statements best describes the idea of opportunity cost and writing a test?

Why is economics different from a "hard" science like physics?

Which of the following is an example of a capital resource?

What do economists mean when they say goods are scarce?

What is the basic difference between macroeconomics and microeconomics?

What happens to us because of scarcity?

You consider purchasing one more cup of coffee before you go to class.What is this an example of?

A university offers a free shuttle service around campus.What is the opportunity cost of the shuttle service equal to?

Tractors,shovels,copy machines,and computer programming expertise are all examples of scarce resources.

When U.S.President Harry Truman said that he wanted to find a one-armed economist because his economic advisors always said,"On the one hand ...and on the other hand ..." he recognized that the advice of economists is often ambiguous.Why is their advice often ambiguous?

As defined by an economist,what does the word scarcity mean?

Which of the following statements best illustrates the fallacy of composition?

What topic does microeconomics NOT usually include?

Rational individuals act to advance their own self-interest; therefore,charitable giving must constitute irrational behaviour.

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 1: The Role and Method of Economics

In what way can additions to human capital be made?

The armed forces rely exclusively on volunteers to fill their ranks.According to economic theory,what type of people are the military personnel most likely to consist of?

Which of the following statements best describes scarcity?

Which of the following statements most accurately describes the concept of economic theory?

Who makes economic decisions?

Which of the following is NOT a reason that economists use theories?

Which of the following statements best describes the idea of opportunity cost and writing a test?

Why is economics different from a "hard" science like physics?

Which of the following is an example of a capital resource?

What do economists mean when they say goods are scarce?

What is the basic difference between macroeconomics and microeconomics?

What happens to us because of scarcity?

You consider purchasing one more cup of coffee before you go to class.What is this an example of?

A university offers a free shuttle service around campus.What is the opportunity cost of the shuttle service equal to?

Tractors,shovels,copy machines,and computer programming expertise are all examples of scarce resources.

When U.S.President Harry Truman said that he wanted to find a one-armed economist because his economic advisors always said,"On the one hand ...and on the other hand ..." he recognized that the advice of economists is often ambiguous.Why is their advice often ambiguous?

As defined by an economist,what does the word scarcity mean?

Which of the following statements best illustrates the fallacy of composition?

What topic does microeconomics NOT usually include?

Rational individuals act to advance their own self-interest; therefore,charitable giving must constitute irrational behaviour.

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Economic Growth in the Global Economy

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters