Question 1

Below are some production possibilities data for the mystical land of Ghandor.
  
-All of the following except one are microeconomic statements.Which is the exception?

Accepted Answer

A) The price of wheat declined by 5% in Canada last year. 
B) GDP increased by 1.8% in Canada last year. 
C) The cost of production in the mining industry has recently declined. 
D) The profits of The Canadian Corporation last year were $25 million. 
E) The demand for Turbinado sugar is increasing. 
A) The price of wheat declined by 5% in Canada last year. 
B) GDP increased by 1.8% in Canada last year. 
C) The cost of production in the mining industry has recently declined. 
D) The profits of The Canadian Corporation last year were $25 million. 
E) The demand for Turbinado sugar is increasing.

Question 2

The following table shows the production possibilities for the country of Erewhon:
  
-Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 4 more units of wine?

Accepted Answer

A) 2/3 of a unit of cheese 
B) 1 ½ units of cheese 
C) 6 units of cheese 
D) 8 units of cheese 
A) 2/3 of a unit of cheese 
B) 1 ½ units of cheese 
C) 6 units of cheese 
D) 8 units of cheese

Question 3

What is an example of an economic model?

Accepted Answer

A) Opportunity costs. 
B) Scarcity of resources. 
C) Positive statements. 
D) Production possibilities curve. 
A) Opportunity costs. 
B) Scarcity of resources. 
C) Positive statements. 
D) Production possibilities curve.

Question 4

Below are some production possibilities data for the mystical land of Lhanor.
  
-Refer to the information above to answer this question.Approximately how many units of Kaldors can be produced if 48 units of Bouldings are being produced?

Accepted Answer

A) 0 Kaldors. 
B) 4 Kaldors. 
C) 6 Kaldors. 
D) 8 Kaldors. 
E) 16 Kaldors. 
A) 0 Kaldors. 
B) 4 Kaldors. 
C) 6 Kaldors. 
D) 8 Kaldors. 
E) 16 Kaldors.

Question 5

Discuss the pros and cons of economic growth.

Accepted Answer

Pros
· Greater income which allowing con

Question 6

Which of the following statements describes the key assumption behind the law of increasing costs?

Accepted Answer

A) Not all resources are equally suitable for the production of goods and services. 
B) All resources are equally suitable for the production of goods and services. 
C) All resources available are not fixed in the production of goods and services. 
D) Although resources are available in unlimited amounts,their usefulness in production is limited over time. 
A) Not all resources are equally suitable for the production of goods and services. 
B) All resources are equally suitable for the production of goods and services. 
C) All resources available are not fixed in the production of goods and services. 
D) Although resources are available in unlimited amounts,their usefulness in production is limited over time.

Question 7

Below is a production possibilities curve involving tea and videos.
  
-Refer to the graph above to answer this question.What might point U indicate?

Accepted Answer

A) Not all resources available to the economy are being used. 
B) The resources being used are not being used efficiently. 
C) The technology being used is not the most appropriate one. 
D) All of these. 
A) Not all resources available to the economy are being used. 
B) The resources being used are not being used efficiently. 
C) The technology being used is not the most appropriate one. 
D) All of these.

Question 8

The maximum production possible in Rome and in Cathay are as follows:
  
-If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what is the combined output in the two counties?

Accepted Answer

A) 60 bread and 60 figs. 
B) 60 bread and 0 figs. 
C) 0 bread and 60 figs. 
D) 30 bread and 30 figs. 
A) 60 bread and 60 figs. 
B) 60 bread and 0 figs. 
C) 0 bread and 60 figs. 
D) 30 bread and 30 figs.

Question 9

All of the following statements,except one,are positive statements.Which is the exception?

Accepted Answer

A) Economics is a social science. 
B) Economics is sometimes referred as the science of choice. 
C) A majority of economists argue that economics is a very relevant discipline. 
D) Economics should be a mandatory course in all Canadian colleges and universities. 
E) Economics is a possible undergraduate major for students who want to go to law school. 
A) Economics is a social science. 
B) Economics is sometimes referred as the science of choice. 
C) A majority of economists argue that economics is a very relevant discipline. 
D) Economics should be a mandatory course in all Canadian colleges and universities. 
E) Economics is a possible undergraduate major for students who want to go to law school.

Question 10

Which of the following is a consumer good or service?

Accepted Answer

A) An office computer. 
B) A farm tractor. 
C) A haircut. 
D) A menu in a restaurant. 
E) A government bond. 
A) An office computer. 
B) A farm tractor. 
C) A haircut. 
D) A menu in a restaurant. 
E) A government bond.

Question 11

Technological improvement can be illustrated graphically by a rightward shift in the production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 12

Below are some production possibilities data for the mystical land of Ghandor.
  
-Refer to the information above to answer this question.Suppose that Ghandor is currently producing combination B. How many Viners could be produced if the production of Arrows increased by 2?

Accepted Answer

A) 3 units of Viners. 
B) 4 units of Viners. 
C) 8 units of Viners. 
D) 14 units of Viners. 
A) 3 units of Viners. 
B) 4 units of Viners. 
C) 8 units of Viners. 
D) 14 units of Viners.

Question 13

Which of the following statements describes the law of increasing costs?

Accepted Answer

A) As the quantity produced of any particular item decreases,its per unit cost of production rises. 
B) As the quantity produced of any particular item increases,its per unit cost of production rises. 
C) The prices of consumer goods and services always rise and never fall. 
D) If you wait to make a purchase,you will pay a higher price. 
E) The total cost of production rises as output goes up. 
A) As the quantity produced of any particular item decreases,its per unit cost of production rises. 
B) As the quantity produced of any particular item increases,its per unit cost of production rises. 
C) The prices of consumer goods and services always rise and never fall. 
D) If you wait to make a purchase,you will pay a higher price. 
E) The total cost of production rises as output goes up.

Question 14

Below are some production possibilities data for the mystical land of Ghandor.
  
-Why do economists feel that their discipline is relevant?

Accepted Answer

A) It is able to predict the future very well. 
B) It is a value-free study. 
C) Its methodology is so different from other social sciences. 
D) The scope and range of subjects that it addresses is very wide. 
A) It is able to predict the future very well. 
B) It is a value-free study. 
C) Its methodology is so different from other social sciences. 
D) The scope and range of subjects that it addresses is very wide.

Question 15

Below is a production possibilities curve involving tea and videos.
  
-Refer to the graph above to answer this question.What could have caused the shift from PPI to PPII?

Accepted Answer

A) A decrease in the price of videos. 
B) Capital accumulation in the tea industry. 
C) A decrease in the opportunity cost of tea. 
D) Technological change in the video industry. 
A) A decrease in the price of videos. 
B) Capital accumulation in the tea industry. 
C) A decrease in the opportunity cost of tea. 
D) Technological change in the video industry.

Question 16

In general,how to produce depends most on which of the following?

Accepted Answer

A) Demand for goods and services. 
B) Distribution of income. 
C) Opportunity costs and productivity of factors. 
D) The scientific method. 
A) Demand for goods and services. 
B) Distribution of income. 
C) Opportunity costs and productivity of factors. 
D) The scientific method.

Question 17

Refer to the table above to answer this question.What is the total cost of producing 180 rice?

Accepted Answer

A) 30 beans 
B) 40 beans 
C) 60 beans 
D) 100 beans 
A) 30 beans 
B) 40 beans 
C) 60 beans 
D) 100 beans

Below are some production possibilities data for the mystical land of Ghandor. -All of the following except one are microeconomic statements.Which is the exception?

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 4 more units of wine?

What is an example of an economic model?

Below are some production possibilities data for the mystical land of Lhanor. -Refer to the information above to answer this question.Approximately how many units of Kaldors can be produced if 48 units of Bouldings are being produced?

Discuss the pros and cons of economic growth.

Which of the following statements describes the key assumption behind the law of increasing costs?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.What might point U indicate?

The maximum production possible in Rome and in Cathay are as follows: -If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what is the combined output in the two counties?

All of the following statements,except one,are positive statements.Which is the exception?

Which of the following is a consumer good or service?

Technological improvement can be illustrated graphically by a rightward shift in the production possibilities curve.

Below are some production possibilities data for the mystical land of Ghandor. -Refer to the information above to answer this question.Suppose that Ghandor is currently producing combination B. How many Viners could be produced if the production of Arrows increased by 2?

Which of the following statements describes the law of increasing costs?

Below are some production possibilities data for the mystical land of Ghandor. -Why do economists feel that their discipline is relevant?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.What could have caused the shift from PPI to PPII?

In general,how to produce depends most on which of the following?

Refer to the table above to answer this question.What is the total cost of producing 180 rice?

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

Below are some production possibilities data for the mystical land of Ghandor. -All of the following except one are microeconomic statements.Which is the exception?

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.If Erewhon is producing combination D,what is the cost of producing 4 more units of wine?

What is an example of an economic model?

Below are some production possibilities data for the mystical land of Lhanor. -Refer to the information above to answer this question.Approximately how many units of Kaldors can be produced if 48 units of Bouldings are being produced?

Discuss the pros and cons of economic growth.

Which of the following statements describes the key assumption behind the law of increasing costs?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.What might point U indicate?

The maximum production possible in Rome and in Cathay are as follows: -If each country is self-sufficient (no trade)and each allocates one half of its resources to producing each of the two products,what is the combined output in the two counties?

All of the following statements,except one,are positive statements.Which is the exception?

Which of the following is a consumer good or service?

Technological improvement can be illustrated graphically by a rightward shift in the production possibilities curve.

Below are some production possibilities data for the mystical land of Ghandor. -Refer to the information above to answer this question.Suppose that Ghandor is currently producing combination B. How many Viners could be produced if the production of Arrows increased by 2?

Which of the following statements describes the law of increasing costs?

Below are some production possibilities data for the mystical land of Ghandor. -Why do economists feel that their discipline is relevant?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.What could have caused the shift from PPI to PPII?

In general,how to produce depends most on which of the following?

Refer to the table above to answer this question.What is the total cost of producing 180 rice?

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