Question 1

Which of the following best demonstrates marginal thinking?

Accepted Answer

A) measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake 
B) choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time 
C) acquiring the information relevant to a choice before making that choice 
D) deciding to never purchase a coat made with animal skins or furs 
A) measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake 
B) choosing to spend one more hour studying economics because you think the improvement in your score on the next quiz will be worth the sacrifice of time 
C) acquiring the information relevant to a choice before making that choice 
D) deciding to never purchase a coat made with animal skins or furs

Question 2

Which of the following does the term "opportunity cost" refer to?

Accepted Answer

A) the price paid for the opportunity to buy stock in an initial public offering 
B) the finder's fee paid to a job placement agency for locating employment for workers 
C) the dollar price paid for a good 
D) the value of the best forgone alternative 
A) the price paid for the opportunity to buy stock in an initial public offering 
B) the finder's fee paid to a job placement agency for locating employment for workers 
C) the dollar price paid for a good 
D) the value of the best forgone alternative

Question 3

Which of the following statements best describes the effects of price controls?

Accepted Answer

A) They always lower the price. 
B) They efficiently allocate resources. 
C) They always benefit those that the price is trying to help. 
D) They distort market prices. 
A) They always lower the price. 
B) They efficiently allocate resources. 
C) They always benefit those that the price is trying to help. 
D) They distort market prices.

Question 4

If a student enrols in an additional course at the university,what would an economist conclude?

Accepted Answer

A) The total benefit that the student expects to receive as a result of completing her university degree exceeds the total cost of her university education. 
B) The student is not following the rule of rational choice. 
C) The student is not looking at the opportunity costs. 
D) The expected marginal benefit of an additional course must exceed the expected marginal cost of the course. 
A) The total benefit that the student expects to receive as a result of completing her university degree exceeds the total cost of her university education. 
B) The student is not following the rule of rational choice. 
C) The student is not looking at the opportunity costs. 
D) The expected marginal benefit of an additional course must exceed the expected marginal cost of the course.

Question 5

Economists believe that the stiff penalties for drug trafficking in Singapore do not affect the decision making of those who traffic in drugs.

Accepted Answer

A) True 
 B)False

Question 6

In a parliamentary debate about agricultural price supports,Members of Parliament and other experts made the following four statements.Which one of these is a normative statement?

Accepted Answer

A) "Without price supports, the price of wheat and corn will fall by over 20 percent." 
B) "Price supports are important because Canada should preserve the small family farm." 
C) "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." 
D) "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in Canada." 
A) "Without price supports, the price of wheat and corn will fall by over 20 percent." 
B) "Price supports are important because Canada should preserve the small family farm." 
C) "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." 
D) "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in Canada."

Question 7

In order for a student to acquire an education,many resources are required.Which of the following might be categorized as capital resources?

Accepted Answer

A) the work effort of registrars, clerical assistants, and teaching assistants 
B) chalkboards, overhead projectors, and the expertise of professors 
C) water, trees, and the acreage a campus rests on 
D) exams, natural gas (which heats the buildings), and electricity 
A) the work effort of registrars, clerical assistants, and teaching assistants 
B) chalkboards, overhead projectors, and the expertise of professors 
C) water, trees, and the acreage a campus rests on 
D) exams, natural gas (which heats the buildings), and electricity

Question 8

What is economics the study of?

Accepted Answer

A) how people deal with limited human wants 
B) how people cope with fluctuations in stock prices 
C) how people deal with greed 
D) how people cope with limited resources 
A) how people deal with limited human wants 
B) how people cope with fluctuations in stock prices 
C) how people deal with greed 
D) how people cope with limited resources

Which of the following best demonstrates marginal thinking?

Which of the following does the term "opportunity cost" refer to?

Which of the following statements best describes the effects of price controls?

If a student enrols in an additional course at the university,what would an economist conclude?

Economists believe that the stiff penalties for drug trafficking in Singapore do not affect the decision making of those who traffic in drugs.

In a parliamentary debate about agricultural price supports,Members of Parliament and other experts made the following four statements.Which one of these is a normative statement?

In order for a student to acquire an education,many resources are required.Which of the following might be categorized as capital resources?

What is economics the study of?

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

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Exam 1: The Role and Method of Economics

Which of the following best demonstrates marginal thinking?

Which of the following does the term "opportunity cost" refer to?

Which of the following statements best describes the effects of price controls?

If a student enrols in an additional course at the university,what would an economist conclude?

Economists believe that the stiff penalties for drug trafficking in Singapore do not affect the decision making of those who traffic in drugs.

In a parliamentary debate about agricultural price supports,Members of Parliament and other experts made the following four statements.Which one of these is a normative statement?

In order for a student to acquire an education,many resources are required.Which of the following might be categorized as capital resources?

What is economics the study of?

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