Question 1

FIGURE 2-7
  
-Refer to Figure 2-7.What does Point B indicate about the economy?

Accepted Answer

A) It is using its resources efficiently while producing food but no clothing. 
B) It is using its resources efficiently to produce both food and clothing. 
C) It is not using its resources efficiently. 
D) It is using its resources efficiently while producing clothing but no food. 
A) It is using its resources efficiently while producing food but no clothing. 
B) It is using its resources efficiently to produce both food and clothing. 
C) It is not using its resources efficiently. 
D) It is using its resources efficiently while producing clothing but no food.

Question 2

Natural gas prices in Halifax,Nova Scotia,decrease because new wells are brought into production.At the same time,local oil prices rise because of increased shipping costs.As a result,what might you expect to find in the Halifax industrial sector?

Accepted Answer

A) Less natural gas will likely be used. 
B) Oil consumption will likely be reduced. 
C) Oil will be used to heat more homes. 
D) Natural gas will be used to heat fewer homes. 
A) Less natural gas will likely be used. 
B) Oil consumption will likely be reduced. 
C) Oil will be used to heat more homes. 
D) Natural gas will be used to heat fewer homes.

Question 3

Under what circumstances will an economy's production possibility curve be a straight line?

Accepted Answer

A) if the opportunity cost of production of a good is constant as more of it is produced 
B) if the opportunity cost of production of a good decreases as more of it is produced 
C) if resources are not equally substitutable among productive tasks 
D) if the economy experiences significant unemployment 
A) if the opportunity cost of production of a good is constant as more of it is produced 
B) if the opportunity cost of production of a good decreases as more of it is produced 
C) if resources are not equally substitutable among productive tasks 
D) if the economy experiences significant unemployment

Question 4

FIGURE 2-1
  
-Refer to Figure 2-1.Which of the following statements about goods and services is the most accurate?

Accepted Answer

A) They are purchased by households in the factor market. 
B) They flow in a clockwise direction. 
C) They are sold by businesses in the factor market. 
D) They flow in a counter clockwise direction. 
A) They are purchased by households in the factor market. 
B) They flow in a clockwise direction. 
C) They are sold by businesses in the factor market. 
D) They flow in a counter clockwise direction.

Question 5

FIGURE 2-1
  
-Refer to Figure 2-1.What does the arrow from the firms to the factor markets represent?

Accepted Answer

A) wages, rent interest, and profits 
B) goods and services sold 
C) money income 
D) revenue 
A) wages, rent interest, and profits 
B) goods and services sold 
C) money income 
D) revenue

Question 6

What does a market economy depend on market mechanisms to do?

Accepted Answer

A) provide everyone with a minimum level of income 
B) decide how much government regulation there should be 
C) determine how large the government's budget deficit should be 
D) determine the most efficient way of using resources 
A) provide everyone with a minimum level of income 
B) decide how much government regulation there should be 
C) determine how large the government's budget deficit should be 
D) determine the most efficient way of using resources

FIGURE 2-7 -Refer to Figure 2-7.What does Point B indicate about the economy?

Natural gas prices in Halifax,Nova Scotia,decrease because new wells are brought into production.At the same time,local oil prices rise because of increased shipping costs.As a result,what might you expect to find in the Halifax industrial sector?

Under what circumstances will an economy's production possibility curve be a straight line?

FIGURE 2-1 -Refer to Figure 2-1.Which of the following statements about goods and services is the most accurate?

FIGURE 2-1 -Refer to Figure 2-1.What does the arrow from the firms to the factor markets represent?

What does a market economy depend on market mechanisms to do?

The Role and Method of Economics

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 2: Scarcity, trade-Offs, and Production Possibilities

FIGURE 2-7 -Refer to Figure 2-7.What does Point B indicate about the economy?

Natural gas prices in Halifax,Nova Scotia,decrease because new wells are brought into production.At the same time,local oil prices rise because of increased shipping costs.As a result,what might you expect to find in the Halifax industrial sector?

Under what circumstances will an economy's production possibility curve be a straight line?

FIGURE 2-1 -Refer to Figure 2-1.Which of the following statements about goods and services is the most accurate?

FIGURE 2-1 -Refer to Figure 2-1.What does the arrow from the firms to the factor markets represent?

What does a market economy depend on market mechanisms to do?

The Role and Method of Economics

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