Question 1

By charging users that skip workouts, the designers of GymPact are

Accepted Answer

A) increasing the marginal cost of exercise 
B) increasing the marginal benefit of exercise 
C) increasing the marginal cost and the marginal benefit of exercise by the same amount. 
D) decreasing the marginal cost and the marginal benefit of exercise. 
A) increasing the marginal cost of exercise 
B) increasing the marginal benefit of exercise 
C) increasing the marginal cost and the marginal benefit of exercise by the same amount. 
D) decreasing the marginal cost and the marginal benefit of exercise.

Question 2

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

Accepted Answer

A) True 
 B)False

Question 3

The decision about what goods and services will be produced made in a market economy is made by

Accepted Answer

A) lawmakers in the government voting on what will be produced. 
B) workers deciding to produce only what the boss says must be produced. 
C) producers deciding what society wants most. 
D) consumers and firms choosing which goods and services to buy or produce. 
E) consumers dictating to firms what they need most. 
A) lawmakers in the government voting on what will be produced. 
B) workers deciding to produce only what the boss says must be produced. 
C) producers deciding what society wants most. 
D) consumers and firms choosing which goods and services to buy or produce. 
E) consumers dictating to firms what they need most.

Question 4

Changes in global weather patterns can lead to

Accepted Answer

A) more Canadians drinking coffee. 
B) Canadians having to pay more for coffee. 
C) wage increases for coffee shop employees. 
D) the destruction of the Canadian coffee harvest. 
A) more Canadians drinking coffee. 
B) Canadians having to pay more for coffee. 
C) wage increases for coffee shop employees. 
D) the destruction of the Canadian coffee harvest.

Question 5

Obesity is one of the biggest health challenges facing Canadians, with few Canadians getting the recommended amount of daily physical activity. Economists would expect

Accepted Answer

A) people who value physical appearance to exercise less than others. 
B) people will exercise more when the cost of skipping exercise increases. 
C) people who agree to pay a fine for skipping exercise sessions will be less healthy than those who do not. 
D) there is no correlation between fines for skipping exercise and how often people will go to the gym. 
A) people who value physical appearance to exercise less than others. 
B) people will exercise more when the cost of skipping exercise increases. 
C) people who agree to pay a fine for skipping exercise sessions will be less healthy than those who do not. 
D) there is no correlation between fines for skipping exercise and how often people will go to the gym.

Question 6

Voluntary exchange between buyers and sellers generates ________ in a market economy.

Accepted Answer

A) scarcity 
B) allocative efficiency 
C) productive efficiency 
D) equity 
A) scarcity 
B) allocative efficiency 
C) productive efficiency 
D) equity

Question 7

Which of the following is a positive economic statement?

Accepted Answer

A) The standard of living in Canada should be higher. 
B) If the price of iPhones falls, a larger quantity of iPhones will be purchased. 
C) The government should restructure the health care system. 
D) The Ontario government should not have bailed out Canadian auto manufacturers. 
A) The standard of living in Canada should be higher. 
B) If the price of iPhones falls, a larger quantity of iPhones will be purchased. 
C) The government should restructure the health care system. 
D) The Ontario government should not have bailed out Canadian auto manufacturers.

Question 8

Suppose when the price of laptops fall, university students buy more laptops.This implies that

Accepted Answer

A) there is a positive relationship between laptop prices and quantities purchased by college students. 
B) there is a negative relationship between laptop prices and quantities purchased by college students. 
C) there is a direct relationship between laptop prices and quantities purchased by college students. 
D) there is a one-to-one relationship between laptop prices and quantities purchased by college students. 
A) there is a positive relationship between laptop prices and quantities purchased by college students. 
B) there is a negative relationship between laptop prices and quantities purchased by college students. 
C) there is a direct relationship between laptop prices and quantities purchased by college students. 
D) there is a one-to-one relationship between laptop prices and quantities purchased by college students.

Question 9

The extra cost associated with undertaking an activity is called

Accepted Answer

A) net loss. 
B) marginal cost. 
C) opportunity cost. 
D) foregone cost. 
A) net loss. 
B) marginal cost. 
C) opportunity cost. 
D) foregone cost.

Question 10

Table 1.2  
-Refer to Table 1.2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

Accepted Answer

The answer of Table 1.2  
-Refer to Table 1.2.The...

Question 11

In economics, the term ________ means "additional" or "extra."

Accepted Answer

A) allocative 
B) marginal 
C) equity 
D) optimal 
A) allocative 
B) marginal 
C) equity 
D) optimal

Question 12

Which of the following statements is true about competition in a market?

Accepted Answer

A) Competition forces firms to out source the production of their labour-intensive products. 
B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. 
C) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. 
D) Competition forces firms to add only low profit margins to their costs of production. 
A) Competition forces firms to out source the production of their labour-intensive products. 
B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. 
C) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. 
D) Competition forces firms to add only low profit margins to their costs of production.

Question 13

Figure 1.1   Alt text for Figure 1.1: In figure 1.1, a graph illustrates the revenue from sales of alcoholic beverages between 2006 and 2011.
Long description for Figure 1.1: The x-axis is labelled in years from 2006 to 2011.The y-axis is labelled, revenue, in millions of dollars, with the quantities 30, 42, 52 and 60 marked.The points (2007, 30), (2008, 42), (2010, 52), and (2011, 60)are plotted on the graph and joined with the vertex to form a curve.These plotted points are joined to the respective axes using dotted lines.
-Refer to Figure 1.1.Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

Accepted Answer

A) 23.1% 
B) 23.8% 
C) 30% 
D) 42.9% 
A) 23.1% 
B) 23.8% 
C) 30% 
D) 42.9%

Question 14

As professors and teachers get closer to retirement age they typically spend more time reading and thinking about the financial planning as well as the stock market.By gathering and using all available information as they act to achieve their goals, these teachers are exemplifying the economic idea that

Accepted Answer

A) people are rational. 
B) people respond to economic incentives. 
C) optimal decisions are made at the margin. 
D) equity is more important than efficiency. 
A) people are rational. 
B) people respond to economic incentives. 
C) optimal decisions are made at the margin. 
D) equity is more important than efficiency.

Question 15

How are the fundamental economic decisions determined in North Korea?

Accepted Answer

A) Individuals, firms, and the government interact in a market to make these economic decisions. 
B) These decisions are made by the country's elders who have had much experience in answering these questions. 
C) The government decides because North Korea is a centrally planned economy. 
D) The United Nations decides because North Korea is a developing economy. 
A) Individuals, firms, and the government interact in a market to make these economic decisions. 
B) These decisions are made by the country's elders who have had much experience in answering these questions. 
C) The government decides because North Korea is a centrally planned economy. 
D) The United Nations decides because North Korea is a developing economy.

Question 16

In 2010, Hooverville consumed 205,000 tonnes of sugar.In 2011, sugar consumption rose to 245,000 tonnes.Calculate the percentage change in sugar consumption.

Accepted Answer

A) 8.37% 
B) 11.95% 
C) 19.51% 
D) 26.33% 
A) 8.37% 
B) 11.95% 
C) 19.51% 
D) 26.33%

Question 17

"The distribution of income should be left to the market" is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 18

The highest valued alternative that must be given up to engage in an activity is the definition of

Accepted Answer

A) economic equity. 
B) marginal benefit. 
C) opportunity cost. 
D) marginal cost. 
A) economic equity. 
B) marginal benefit. 
C) opportunity cost. 
D) marginal cost.

Question 19

Which of the following is a normative economic statement?

Accepted Answer

A) Rising global demand for coal has led to increases in the price of coal. 
B) With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased. 
C) Toronto is considering increasing funds for light-rail development to promote the use of public transportation. 
D) Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable. 
A) Rising global demand for coal has led to increases in the price of coal. 
B) With rising mortgage rates and rising unemployment rates, the number of unsold homes has increased. 
C) Toronto is considering increasing funds for light-rail development to promote the use of public transportation. 
D) Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable.

Question 20

Which of the following questions or statements regarding minimum wage is normative?

Accepted Answer

A) How do changes in minimum wages affect the employment opportunities of teens? 
B) People working in the retail sector deserve higher pay. 
C) Wages play a role in causing someone to apply for a job. 
D) Higher minimum wages will cause firms to employ fewer people. 
A) How do changes in minimum wages affect the employment opportunities of teens? 
B) People working in the retail sector deserve higher pay. 
C) Wages play a role in causing someone to apply for a job. 
D) Higher minimum wages will cause firms to employ fewer people.

By charging users that skip workouts, the designers of GymPact are

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

The decision about what goods and services will be produced made in a market economy is made by

Changes in global weather patterns can lead to

Obesity is one of the biggest health challenges facing Canadians, with few Canadians getting the recommended amount of daily physical activity. Economists would expect

Voluntary exchange between buyers and sellers generates ________ in a market economy.

Which of the following is a positive economic statement?

Suppose when the price of laptops fall, university students buy more laptops.This implies that

The extra cost associated with undertaking an activity is called

Table 1.2 -Refer to Table 1.2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

In economics, the term ________ means "additional" or "extra."

Which of the following statements is true about competition in a market?

How are the fundamental economic decisions determined in North Korea?

In 2010, Hooverville consumed 205,000 tonnes of sugar.In 2011, sugar consumption rose to 245,000 tonnes.Calculate the percentage change in sugar consumption.

"The distribution of income should be left to the market" is an example of a positive economic statement.

The highest valued alternative that must be given up to engage in an activity is the definition of

Which of the following is a normative economic statement?

Which of the following questions or statements regarding minimum wage is normative?

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 1: Economics: Foundations and Models

By charging users that skip workouts, the designers of GymPact are

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

The decision about what goods and services will be produced made in a market economy is made by

Changes in global weather patterns can lead to

Obesity is one of the biggest health challenges facing Canadians, with few Canadians getting the recommended amount of daily physical activity. Economists would expect

Voluntary exchange between buyers and sellers generates ________ in a market economy.

Which of the following is a positive economic statement?

Suppose when the price of laptops fall, university students buy more laptops.This implies that

The extra cost associated with undertaking an activity is called

Table 1.2 -Refer to Table 1.2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

In economics, the term ________ means "additional" or "extra."

Which of the following statements is true about competition in a market?

How are the fundamental economic decisions determined in North Korea?

In 2010, Hooverville consumed 205,000 tonnes of sugar.In 2011, sugar consumption rose to 245,000 tonnes.Calculate the percentage change in sugar consumption.

"The distribution of income should be left to the market" is an example of a positive economic statement.

The highest valued alternative that must be given up to engage in an activity is the definition of

Which of the following is a normative economic statement?

Which of the following questions or statements regarding minimum wage is normative?

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters