Question 1

How are the fundamental economic decisions determined in Canada?

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 Canada is a centrally planned economy. 
D) The United Nations decides because Canada 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 Canada is a centrally planned economy. 
D) The United Nations decides because Canada is a developing economy.

Question 2

________ involves undertaking an activity until its marginal benefits equal marginal costs.

Accepted Answer

A) Scarcity reduction 
B) Central planning 
C) Marginal analysis 
D) Market intervention 
A) Scarcity reduction 
B) Central planning 
C) Marginal analysis 
D) Market intervention

Question 3

In economics,the practical application of an invention is known as

Accepted Answer

A) technology. 
B) entrepreneurship. 
C) physical capital. 
D) innovation. 
A) technology. 
B) entrepreneurship. 
C) physical capital. 
D) innovation.

Question 4

Examining the conditions that could lead to economic growth is an example of macroeconomic topic.

Accepted Answer

A) True 
 B)False

Question 5

Table 1-4
  
-Refer to Table 1-4.The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

Accepted Answer

The answer of Table 1-4
  
-Refer to Table 1-4.The...

Question 6

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

Accepted Answer

A) 4 machine-made cigars 
B) one-quarter of a machine-made cigar 
C) $10.00 
D) $2.50 
A) 4 machine-made cigars 
B) one-quarter of a machine-made cigar 
C) $10.00 
D) $2.50

Question 7

Physical capital refers to stocks and bonds.

Accepted Answer

A) True 
 B)False

Question 8

When voluntary exchange takes place,only one party gains from the exchange.

Accepted Answer

A) True 
 B)False

Question 9

The study of economics arises due to

Accepted Answer

A) money. 
B) scarcity. 
C) greed. 
D) resources. 
A) money. 
B) scarcity. 
C) greed. 
D) resources.

Question 10

If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Accepted Answer

A) True 
 B)False

Question 11

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

Accepted Answer

A) True 
 B)False

Question 12

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

Accepted Answer

A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit 
A) marginal revenue 
B) gross earnings 
C) pure profit 
D) marginal costs 
E) net benefit

Question 13

In economics,tangible merchandise is referred to as

Accepted Answer

A) invention. 
B) human capital. 
C) services. 
D) goods. 
A) invention. 
B) human capital. 
C) services. 
D) goods.

Question 14

Suppose a doctor can earn an additional $10,000 in revenue per year from keeping her office open on Saturdays.What must the additional cost of keeping the office open on Saturdays be to make this decision economically rational?

Accepted Answer

The additional cost of keeping

Question 15

Which of the following is counted as "capital" in economics?

Accepted Answer

A) the money people have 
B) the machines workers have to work with 
C) the accumulated skills and training workers have 
D) the wealth people have 
A) the money people have 
B) the machines workers have to work with 
C) the accumulated skills and training workers have 
D) the wealth people have

Question 16

Cassie's Quilts alters,reconstructs and restores heirloom quilts.Cassie has just spent $800 purchasing,cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished.After having spent $800,Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task.Alternatively,she can sell the quilt "as is" now for $900.What is the marginal cost of completing the task?

Accepted Answer

A) $200 
B) $500 
C) $1,000 
D) $1,000 plus the value of her time 
A) $200 
B) $500 
C) $1,000 
D) $1,000 plus the value of her time

Question 17

Zane's Vanes is a service that restores old weather vanes.Zane has just spent $125 purchasing a 1920s era weather vane which he expects to restore and sell for $500 once the work is completed.After having spent $125,Zane realizes that he will need to spend an additional $200 on materials to complete the restoration.Alternatively,he can sell the weather vane without restoring it for $200.What is his marginal cost to complete the restoration?

Accepted Answer

A) $75 
B) $125 
C) $200 
D) $300 
A) $75 
B) $125 
C) $200 
D) $300

Question 18

Which of the following statements is true?

Accepted Answer

A) An inverse relationship has a positive slope value. 
B) A direct relationship has a negative slope value. 
C) A curved line has slope values that change at every point. 
D) A straight line has a slope of one. 
A) An inverse relationship has a positive slope value. 
B) A direct relationship has a negative slope value. 
C) A curved line has slope values that change at every point. 
D) A straight line has a slope of one.

Question 19

If the marginal cost of producing a television is constant at $200,then a firm should produce this item

Accepted Answer

A) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin. 
B) as long as the marginal benefit it receives is just equal to or greater than $200. 
C) as long as its marginal cost does not rise. 
D) until the marginal benefit it receives reaches zero. 
A) only if the marginal benefit it receives is greater than $200 plus an acceptable profit margin. 
B) as long as the marginal benefit it receives is just equal to or greater than $200. 
C) as long as its marginal cost does not rise. 
D) until the marginal benefit it receives reaches zero.

Question 20

Which of the following is motivated by an efficiency concern?

Accepted Answer

A) In 2009,the Obama administration increased unemployment benefits. 
B) As part of an economic stimulus package,each taxpayer received a $3,000 tax rebate check. 
C) Following a six-month drought,a city banned homeowners from watering their lawns in an effort to conserve water. 
D) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need. 
A) In 2009,the Obama administration increased unemployment benefits. 
B) As part of an economic stimulus package,each taxpayer received a $3,000 tax rebate check. 
C) Following a six-month drought,a city banned homeowners from watering their lawns in an effort to conserve water. 
D) Some U.S.colleges have cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need.

How are the fundamental economic decisions determined in Canada?

________ involves undertaking an activity until its marginal benefits equal marginal costs.

In economics,the practical application of an invention is known as

Examining the conditions that could lead to economic growth is an example of macroeconomic topic.

Table 1-4 -Refer to Table 1-4.The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

Physical capital refers to stocks and bonds.

When voluntary exchange takes place,only one party gains from the exchange.

The study of economics arises due to

If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

In economics,tangible merchandise is referred to as

Suppose a doctor can earn an additional $10,000 in revenue per year from keeping her office open on Saturdays.What must the additional cost of keeping the office open on Saturdays be to make this decision economically rational?

Which of the following is counted as "capital" in economics?

Which of the following statements is true?

If the marginal cost of producing a television is constant at $200,then a firm should produce this item

Which of the following is motivated by an efficiency concern?

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

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 Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 1: Economics: Foundations and Models

How are the fundamental economic decisions determined in Canada?

________ involves undertaking an activity until its marginal benefits equal marginal costs.

In economics,the practical application of an invention is known as

Examining the conditions that could lead to economic growth is an example of macroeconomic topic.

Table 1-4 -Refer to Table 1-4.The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

Physical capital refers to stocks and bonds.

When voluntary exchange takes place,only one party gains from the exchange.

The study of economics arises due to

If it costs Vijay $150 to design 5 websites and $175 to design 6 websites,then $175 is the marginal cost of producing the 6th Websites.

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?

In economics,tangible merchandise is referred to as

Suppose a doctor can earn an additional $10,000 in revenue per year from keeping her office open on Saturdays.What must the additional cost of keeping the office open on Saturdays be to make this decision economically rational?

Which of the following is counted as "capital" in economics?

Which of the following statements is true?

If the marginal cost of producing a television is constant at $200,then a firm should produce this item

Which of the following is motivated by an efficiency concern?

Trade-Offs,comparative Advantage,and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms,the Stock Market,and Corporate Governance

Comparative Advantage and the Gains From International Trade

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 Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters