Question 1

Economics is relevant because

Accepted Answer

A) economists have all the right answers. 
B) many issues have an economic dimension. 
C) it teaches us how to make money. 
D) none of these. 
A) economists have all the right answers. 
B) many issues have an economic dimension. 
C) it teaches us how to make money. 
D) none of these. B

Question 2

Refer to the table above to answer this question.What is the total cost of producing 100 beans?

Accepted Answer

A) 40 rice 
B) 60 rice 
C) 120 rice 
D) 180 rice 
A) 40 rice 
B) 60 rice 
C) 120 rice 
D) 180 rice B

Question 3

Distinguish between a capital good and a consumer good.

Accepted Answer

Consumer goods are products used by consumers to satisfy their wants and needs,for example bread and beer.Capital goods are goods used to produce consumer goods and they do not directly satisfy consumer wants and needs.

Question 4

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of rye?

Accepted Answer

A) 0.5 units of wheat. 
B) 2 units of wheat. 
C) 5 units of wheat. 
D) $400. 
A) 0.5 units of wheat. 
B) 2 units of wheat. 
C) 5 units of wheat. 
D) $400.

Question 5

Suppose both Alpha and Beta has 10 units of economic resource.
One unit of economic resource can produce:
   a)What is the opportunity cost of 1 cup for Alpha?
b)What is the opportunity cost of 1 saucer for Beta?
c)If Alpha and Beta are allow to trade,would Alpha specialize in the production of cups or saucer? Explain

Accepted Answer

a)The opportunity cost of 1 cup in Alpha

Question 6

Which pair of the four Cs plays the dominant role in Canada today?

Accepted Answer

A) Custom and competition. 
B) Cooperation and competition. 
C) Command and competition. 
D) Command and cooperation. 
A) Custom and competition. 
B) Cooperation and competition. 
C) Command and competition. 
D) Command and cooperation.

Question 7

The three fundamental questions in economics are what,how,and how many.

Accepted Answer

A) True 
 B)False

Question 8

There are only three Cs that humankind has used to coordinate its economies: cooperation,custom,and competition.

Accepted Answer

A) True 
 B)False

Question 9

Below is a production possibilities curve involving tea and videos.
  
-Refer to the graph above to answer this question.Assume that the economy is facing PPI and that 2,000 tons of tea are produced;how many videos could be produced?

Accepted Answer

A) 600,000. 
B) 500,000. 
C) 2,000. 
D) 0. 
A) 600,000. 
B) 500,000. 
C) 2,000. 
D) 0.

Question 10

Identify and briefly explain the four Cs used to organize an economy.Which one is the most recent,and when did it emerge.

Accepted Answer

Co-operation means that decisions in soc

Question 11

A production possibility curve is a graphical representation of the various combinations of output that are wanted.

Accepted Answer

A) True 
 B)False

Question 12

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of wheat?

Accepted Answer

A) 0.5 units of rye. 
B) 2 units of rye. 
C) 5 units of rye. 
D) $2. 
A) 0.5 units of rye. 
B) 2 units of rye. 
C) 5 units of rye. 
D) $2.

Question 13

All of the following except one are true of economic theories or models.Which one is the exception?

Accepted Answer

A) They attempt to establish cause and effect between economic variables. 
B) They always perfectly reflect reality. 
C) They are built with assumptions and then tested with facts. 
D) They are generalizations used to give context to our observations. 
A) They attempt to establish cause and effect between economic variables. 
B) They always perfectly reflect reality. 
C) They are built with assumptions and then tested with facts. 
D) They are generalizations used to give context to our observations.

Question 14

What is the difference between a positive and a normative statement?

Accepted Answer

Positive statements are assertions about

Question 15

Choice implies opportunity cost.Explain.

Accepted Answer

Since the economy cannot produce all the

Question 16

Given the following production possibility curve.
   a)What is the per unit opportunity cost from point A to point B?
b)What is the per unit opportunity cost from point B to point C?
c)What is the per unit opportunity cost from point C to point D?
d)What is the per unit opportunity cost from point D to point E?

Accepted Answer

a)The per unit opportunity cost from poi

Question 17

What is the difference between productive and allocative efficiency?

Accepted Answer

Productive efficiency refers to 'the pro

Question 18

Wages,interest,rent,and profits are the four factors of production.

Accepted Answer

A) True 
 B)False

Question 19

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.If 300 units of rye are being produced,how many units of wheat are possible?

Accepted Answer

A) 200 units of wheat. 
B) 300 units of wheat. 
C) 600 units of wheat. 
D) 0 units of wheat. 
A) 200 units of wheat. 
B) 300 units of wheat. 
C) 600 units of wheat. 
D) 0 units of wheat.

Question 20

Define normative statement.Give an example.

Accepted Answer

Normative statements are based

Economics is relevant because

Refer to the table above to answer this question.What is the total cost of producing 100 beans?

Distinguish between a capital good and a consumer good.

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of rye?

Which pair of the four Cs plays the dominant role in Canada today?

The three fundamental questions in economics are what,how,and how many.

There are only three Cs that humankind has used to coordinate its economies: cooperation,custom,and competition.

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.Assume that the economy is facing PPI and that 2,000 tons of tea are produced;how many videos could be produced?

Identify and briefly explain the four Cs used to organize an economy.Which one is the most recent,and when did it emerge.

A production possibility curve is a graphical representation of the various combinations of output that are wanted.

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of wheat?

All of the following except one are true of economic theories or models.Which one is the exception?

What is the difference between a positive and a normative statement?

Choice implies opportunity cost.Explain.

What is the difference between productive and allocative efficiency?

Wages,interest,rent,and profits are the four factors of production.

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.If 300 units of rye are being produced,how many units of wheat are possible?

Define normative statement.Give an example.

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 1: The Economic Problem

Economics is relevant because

Refer to the table above to answer this question.What is the total cost of producing 100 beans?

Distinguish between a capital good and a consumer good.

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of rye?

Which pair of the four Cs plays the dominant role in Canada today?

The three fundamental questions in economics are what,how,and how many.

There are only three Cs that humankind has used to coordinate its economies: cooperation,custom,and competition.

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.Assume that the economy is facing PPI and that 2,000 tons of tea are produced;how many videos could be produced?

Identify and briefly explain the four Cs used to organize an economy.Which one is the most recent,and when did it emerge.

A production possibility curve is a graphical representation of the various combinations of output that are wanted.

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the opportunity cost of 1 unit of wheat?

All of the following except one are true of economic theories or models.Which one is the exception?

What is the difference between a positive and a normative statement?

Choice implies opportunity cost.Explain.

What is the difference between productive and allocative efficiency?

Wages,interest,rent,and profits are the four factors of production.

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.If 300 units of rye are being produced,how many units of wheat are possible?

Define normative statement.Give an example.

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

An Evaluation of Competitive Markets

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters