Question 1

Figure 2-8  
-Refer to Figure 2-8. What would be an efficient combination of bathtubs and barrels?

Accepted Answer

A) 30 barrels and 6 bathtubs 
B) 20 barrels and 8 bathtubs 
C) 25 barrels and 10 bathtubs 
D) 15 barrels and 12 bathtubs 
A) 30 barrels and 6 bathtubs 
B) 20 barrels and 8 bathtubs 
C) 25 barrels and 10 bathtubs 
D) 15 barrels and 12 bathtubs

Question 2

What is another term for factors of production?

Accepted Answer

A) inputs 
B) output 
C) goods 
D) services 
A) inputs 
B) output 
C) goods 
D) services

Question 3

What are factors of production?

Accepted Answer

A) They are used to produce goods and services. 
B) They are owned by firms. 
C) They are abundant in most economies. 
D) They are used by both firms and households. 
A) They are used to produce goods and services. 
B) They are owned by firms. 
C) They are abundant in most economies. 
D) They are used by both firms and households.

Question 4

What did a survey that asked the opinion of academic, business, and government economists on ten propositions about economic policy find?

Accepted Answer

A) The respondents were almost equally divided on the propositions. 
B) The respondents favoured the propositions by a slight margin. 
C) The respondents disagreed with the propositions by a slight margin. 
D) There was overwhelming endorsement of the propositions among the respondents. 
A) The respondents were almost equally divided on the propositions. 
B) The respondents favoured the propositions by a slight margin. 
C) The respondents disagreed with the propositions by a slight margin. 
D) There was overwhelming endorsement of the propositions among the respondents.

Question 5

When economists are trying to explain the world they are acting as scientists, and when they are trying to improve it, they are policymakers.

Accepted Answer

A) True 
 B)False

Question 6

Figure 2-2  
-Refer to Figure 2-2. What do boxes C and D represent?

Accepted Answer

A) households and firms 
B) the goods and services market and the factors of production market 
C) the goods and services market and the financial market 
D) households and government 
A) households and firms 
B) the goods and services market and the factors of production market 
C) the goods and services market and the financial market 
D) households and government

Question 7

Which of the following best describes the decision by a scientist of which assumption to make?

Accepted Answer

A) the easiest part of the scientific method. 
B) the flip of a coin. 
C) almost impossible. 
D) part art. 
A) the easiest part of the scientific method. 
B) the flip of a coin. 
C) almost impossible. 
D) part art.

Question 8

What can good assumptions do?

Accepted Answer

A) cause economists to leave out important variables that make their theories worthless 
B) simplify the complex world and make it easier to understand 
C) further complicate an already difficult topic 
D) allow economists to see the 'big picture' instead of only small segments 
A) cause economists to leave out important variables that make their theories worthless 
B) simplify the complex world and make it easier to understand 
C) further complicate an already difficult topic 
D) allow economists to see the 'big picture' instead of only small segments

Question 9

Which of the following concepts is NOT illustrated by the production possibilities frontier?

Accepted Answer

A) efficiency 
B) opportunity cost 
C) equity 
D) tradeoffs 
A) efficiency 
B) opportunity cost 
C) equity 
D) tradeoffs

Question 10

What does Human Resources Canada do?

Accepted Answer

A) enforce the country's antitrust laws 
B) analyze economic developments in Canada 
C) set the country's monetary policy 
D) help formulate labour market policies 
A) enforce the country's antitrust laws 
B) analyze economic developments in Canada 
C) set the country's monetary policy 
D) help formulate labour market policies

Question 11

What is the ordered pair that represents the origin on a graph?

Accepted Answer

A) (1, 1) 
B) (0, 0) 
C) (0, 1) 
D) (1, 0) 
A) (1, 1) 
B) (0, 0) 
C) (0, 1) 
D) (1, 0)

Question 12

The country of Econoland produces two goods, textbooks and widgets. Last year it produced 300 textbooks and 600 widgets. This year it produced 350 textbooks and 700 widgets. Given no other information, which of the following could NOT explain the change?

Accepted Answer

A) Econoland experienced a reduction in unemployment. 
B) Econoland experienced an improvement in widget-making technology. 
C) Econoland acquired more resources. 
D) Econoland experienced a high level of emigration out of the country. 
A) Econoland experienced a reduction in unemployment. 
B) Econoland experienced an improvement in widget-making technology. 
C) Econoland acquired more resources. 
D) Econoland experienced a high level of emigration out of the country.

Question 13

Figure 2-3  
-What is the opportunity cost of obtaining more of one good as shown on the production possibilities frontier?

Accepted Answer

A) the amount of the other good that must be given up. 
B) the market price of the additional amount produced. 
C) the amount of resources that must be devoted to its production. 
D) the number of dollars that must be spent to produce it. 
A) the amount of the other good that must be given up. 
B) the market price of the additional amount produced. 
C) the amount of resources that must be devoted to its production. 
D) the number of dollars that must be spent to produce it.

Question 14

Complete the following statement: When economists are trying to help improve the world they are

Accepted Answer

A) concerned with positive economics. 
B) policy advisors. 
C) scientists. 
D) politicians. 
A) concerned with positive economics. 
B) policy advisors. 
C) scientists. 
D) politicians.

Question 15

In order to provide information on two variables, what must an economist use?

Accepted Answer

A) a bar graph 
B) pie chart 
C) the coordinate system 
D) a time-series graph 
A) a bar graph 
B) pie chart 
C) the coordinate system 
D) a time-series graph

Question 16

In a circular-flow diagram, which flows are involved?

Accepted Answer

A) Taxes flow from households to firms, and transfer payments flow from firms to households. 
B) Income payments flow from firms to households, and sales revenue flows from households to firms. 
C) Resources flow from firms to households, and goods and services flow from households to firms. 
D) Inputs and outputs flow in the same direction as the flow of dollars, from firms to households. 
A) Taxes flow from households to firms, and transfer payments flow from firms to households. 
B) Income payments flow from firms to households, and sales revenue flows from households to firms. 
C) Resources flow from firms to households, and goods and services flow from households to firms. 
D) Inputs and outputs flow in the same direction as the flow of dollars, from firms to households.

Question 17

An efficient outcome in economics is one in which the economy is conserving the largest possible amount of resources, while still meeting the needs of society.

Accepted Answer

A) True 
 B)False

Question 18

Figure 2-1  
-Refer to Figure 2-1. Which arrow shows the flow of income payments?

Accepted Answer

A) arrow A 
B) arrow B 
C) arrow C 
D) arrow D 
A) arrow A 
B) arrow B 
C) arrow C 
D) arrow D

Question 19

What is the y-coordinate?

Accepted Answer

A) the first number of an ordered pair and represents the point's horizontal location 
B) the second number of an ordered pair and represents the point's horizontal location 
C) the first number of an ordered pair and represents the point's vertical location 
D) the second number of an ordered pair and represents the point's vertical location 
A) the first number of an ordered pair and represents the point's horizontal location 
B) the second number of an ordered pair and represents the point's horizontal location 
C) the first number of an ordered pair and represents the point's vertical location 
D) the second number of an ordered pair and represents the point's vertical location

Question 20

What happens when economists test theories?

Accepted Answer

A) They must make do with whatever data the world gives them. 
B) They can manipulate economic conditions easier than other scientific fields. 
C) They can enlist the government's help to manipulate economic conditions. 
D) They can achieve statistically valid results with much smaller sample sizes. 
A) They must make do with whatever data the world gives them. 
B) They can manipulate economic conditions easier than other scientific fields. 
C) They can enlist the government's help to manipulate economic conditions. 
D) They can achieve statistically valid results with much smaller sample sizes.

Figure 2-8 -Refer to Figure 2-8. What would be an efficient combination of bathtubs and barrels?

What is another term for factors of production?

What are factors of production?

What did a survey that asked the opinion of academic, business, and government economists on ten propositions about economic policy find?

When economists are trying to explain the world they are acting as scientists, and when they are trying to improve it, they are policymakers.

Figure 2-2 -Refer to Figure 2-2. What do boxes C and D represent?

Which of the following best describes the decision by a scientist of which assumption to make?

What can good assumptions do?

Which of the following concepts is NOT illustrated by the production possibilities frontier?

What does Human Resources Canada do?

What is the ordered pair that represents the origin on a graph?

The country of Econoland produces two goods, textbooks and widgets. Last year it produced 300 textbooks and 600 widgets. This year it produced 350 textbooks and 700 widgets. Given no other information, which of the following could NOT explain the change?

Figure 2-3 -What is the opportunity cost of obtaining more of one good as shown on the production possibilities frontier?

Complete the following statement: When economists are trying to help improve the world they are

In order to provide information on two variables, what must an economist use?

In a circular-flow diagram, which flows are involved?

An efficient outcome in economics is one in which the economy is conserving the largest possible amount of resources, while still meeting the needs of society.

Figure 2-1 -Refer to Figure 2-1. Which arrow shows the flow of income payments?

What is the y-coordinate?

What happens when economists test theories?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 2: Thinking Like an Economist

Figure 2-8 -Refer to Figure 2-8. What would be an efficient combination of bathtubs and barrels?

What is another term for factors of production?

What are factors of production?

What did a survey that asked the opinion of academic, business, and government economists on ten propositions about economic policy find?

When economists are trying to explain the world they are acting as scientists, and when they are trying to improve it, they are policymakers.

Figure 2-2 -Refer to Figure 2-2. What do boxes C and D represent?

Which of the following best describes the decision by a scientist of which assumption to make?

What can good assumptions do?

Which of the following concepts is NOT illustrated by the production possibilities frontier?

What does Human Resources Canada do?

What is the ordered pair that represents the origin on a graph?

The country of Econoland produces two goods, textbooks and widgets. Last year it produced 300 textbooks and 600 widgets. This year it produced 350 textbooks and 700 widgets. Given no other information, which of the following could NOT explain the change?

Figure 2-3 -What is the opportunity cost of obtaining more of one good as shown on the production possibilities frontier?

Complete the following statement: When economists are trying to help improve the world they are

In order to provide information on two variables, what must an economist use?

In a circular-flow diagram, which flows are involved?

An efficient outcome in economics is one in which the economy is conserving the largest possible amount of resources, while still meeting the needs of society.

Figure 2-1 -Refer to Figure 2-1. Which arrow shows the flow of income payments?

What is the y-coordinate?

What happens when economists test theories?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters