Question 1

What is the largest single cost of going to university?

Accepted Answer

A)  books 
B)  room and board 
C)  tuition 
D)  lost wages 
A)  books 
B)  room and board 
C)  tuition 
D)  lost wages

Question 2

Mike has spent $500 purchasing and repairing an old fishing boat,which he expects to sell for $800.He discovers that he needs an additional repair,which will cost $600.He can sell the boat as it is now for $300.What should he do?

Accepted Answer

A)  He should take the $300. 
B)  He should never sell something for less than its cost. 
C)  He should complete the repairs and sell the boat. 
D)  It doesn't matter which action he takes; the outcome is the same either way. 
A)  He should take the $300. 
B)  He should never sell something for less than its cost. 
C)  He should complete the repairs and sell the boat. 
D)  It doesn't matter which action he takes; the outcome is the same either way.

Question 3

In economics,what is the cost of something?

Accepted Answer

A)  the dollar amount of obtaining it 
B)  the value of the resources needed to produce it 
C)  what you give up to obtain it 
D)  the amount of labour to produce it 
A)  the dollar amount of obtaining it 
B)  the value of the resources needed to produce it 
C)  what you give up to obtain it 
D)  the amount of labour to produce it

Question 4

What happened to the opportunity cost of gasoline from 1997 to 2014?

Accepted Answer

A)  increased significantly 
B)  decreased significantly 
C)  remained relatively constant 
D)  decreased slightly 
A)  increased significantly 
B)  decreased significantly 
C)  remained relatively constant 
D)  decreased slightly

Question 5

In 2014,what was the average Canadian income?

Accepted Answer

A)  $25,368 
B)  $29,000 
C)  $36,800 
D)  $49,000 
A)  $25,368 
B)  $29,000 
C)  $36,800 
D)  $49,000

Question 6

Which of the following is an example of market power?

Accepted Answer

A)  a fast food restaurant in a university town 
B)  a wheat farmer in Saskatchewan 
C)  the only motel is in a remote Yukon town 
D)  a shoe store in Ontario 
A)  a fast food restaurant in a university town 
B)  a wheat farmer in Saskatchewan 
C)  the only motel is in a remote Yukon town 
D)  a shoe store in Ontario

Question 7

Tuition is the single-largest cost of attending college for most students.

Accepted Answer

A) True 
 B)False

Question 8

In each of the following decision situations,show what tradeoffs are involved.
a)You are driving and need to decide how fast to drive.
b)You meet a young lady at a party and you are considering whether to ask her out.
c)You like a co-worker whom you have known for a couple of years,and you need to decide whether to go on a date with him.
d)You ponder moving back with your parents.
e)You need to decide whether to buy a used or a new car.
f)You are thinking about opening a computer services business in your basement.
g)You are a consultant for the City of Toronto.The city council asks you to analyze the implications of a new high-rise office building in downtown.

Accepted Answer

a)Driving faster gets you earlier to you

Question 9

What is NOT included in the decisions that every society must make?

Accepted Answer

A)  what goods will be produced 
B)  who will produce the goods 
C)  what determines consumer preferences 
D)  who will consume the goods 
A)  what goods will be produced 
B)  who will produce the goods 
C)  what determines consumer preferences 
D)  who will consume the goods

Question 10

A marginal change is a small incremental adjustment to an existing plan of action.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following displays a direct,or positive,relationship?

Accepted Answer

A)  a country's productivity and its standard of living 
B)  a country's government spending and its tax rates 
C)  a country's total population and its per-capita income 
D)  a country's prices for its goods and services and its exports 
A)  a country's productivity and its standard of living 
B)  a country's government spending and its tax rates 
C)  a country's total population and its per-capita income 
D)  a country's prices for its goods and services and its exports

Question 12

Monica has spent $30,000 purchasing and repairing an old cabin,which she expects to sell for $40,000.She discovers that she needs an additional repair,which will cost $15,000.She can sell the cabin as it is now for $25,000.What should she do?

Accepted Answer

A)  She should take the $25,000. 
B)  She should never sell something for less than its cost. 
C)  She should complete the repairs and sell the cabin. 
D)  It doesn't matter which action she takes; the outcome is the same either way. 
A)  She should take the $25,000. 
B)  She should never sell something for less than its cost. 
C)  She should complete the repairs and sell the cabin. 
D)  It doesn't matter which action she takes; the outcome is the same either way.

Question 13

When does scarcity exist?

Accepted Answer

A)  when there is less than an infinite amount of a resource or good 
B)  when society can meet the wants of every individual 
C)  when there is less of a good or resource available than people wish to have 
D)  when the government fails to produce goods 
A)  when there is less than an infinite amount of a resource or good 
B)  when society can meet the wants of every individual 
C)  when there is less of a good or resource available than people wish to have 
D)  when the government fails to produce goods

Question 14

The Students' Union on campus provides free popcorn to all students who attend their annual meeting.In this instance,how will the principle of scarcity apply?

Accepted Answer

A)  It will only apply to students who miss class to attend. 
B)  It will apply in terms of the time given up to attend. 
C)  It will not apply because the popcorn is free. 
D)  It will not apply because no tradeoffs are involved. 
A)  It will only apply to students who miss class to attend. 
B)  It will apply in terms of the time given up to attend. 
C)  It will not apply because the popcorn is free. 
D)  It will not apply because no tradeoffs are involved.

Question 15

How are goods and services allocated in a market economy?

Accepted Answer

A)  by government decisions 
B)  by giving each individual just enough for a decent standard of living 
C)  by the actions of all firms and consumers 
D)  by inherited rights and properties 
A)  by government decisions 
B)  by giving each individual just enough for a decent standard of living 
C)  by the actions of all firms and consumers 
D)  by inherited rights and properties

Question 16

Which observation was made famous by Adam Smith in his book The Wealth of Nations?

Accepted Answer

A)  There is no such thing as a free lunch. 
B)  People buy more when prices are low than when prices are high. 
C)  People tend to spend more than they earn. 
D)  Markets are guided by an invisible hand that leads to desirable outcomes. 
A)  There is no such thing as a free lunch. 
B)  People buy more when prices are low than when prices are high. 
C)  People tend to spend more than they earn. 
D)  Markets are guided by an invisible hand that leads to desirable outcomes.

Question 17

Your professor loves her work teaching economics.She has been offered other positions in the corporate world making 25 percent more,but has decided to stay in teaching.What might change her decision?

Accepted Answer

A)  if the marginal cost of teaching increased 
B)  if the marginal benefit of teaching increased 
C)  if the marginal cost of teaching decreased 
D)  if the marginal cost of a corporate job increased 
A)  if the marginal cost of teaching increased 
B)  if the marginal benefit of teaching increased 
C)  if the marginal cost of teaching decreased 
D)  if the marginal cost of a corporate job increased

Question 18

Market failure refers to a situation in which the market does not allocate resources efficiently.

Accepted Answer

A) True 
 B)False

Question 19

What does efficiency mean?

Accepted Answer

A)  Society is conserving resources in order to save them for the future. 
B)  Society's goods and services are distributed fairly among society's members. 
C)  Society has lessened its dependence on non-renewable energy sources. 
D)  Society is getting the most it can from its scarce resources. 
A)  Society is conserving resources in order to save them for the future. 
B)  Society's goods and services are distributed fairly among society's members. 
C)  Society has lessened its dependence on non-renewable energy sources. 
D)  Society is getting the most it can from its scarce resources.

Question 20

What does economics study?

Accepted Answer

A)  how society manages its scarce resources 
B)  the government's role in society 
C)  how to increase production 
D)  how firms make profits 
A)  how society manages its scarce resources 
B)  the government's role in society 
C)  how to increase production 
D)  how firms make profits

What is the largest single cost of going to university?

Mike has spent $500 purchasing and repairing an old fishing boat,which he expects to sell for $800.He discovers that he needs an additional repair,which will cost $600.He can sell the boat as it is now for $300.What should he do?

In economics,what is the cost of something?

What happened to the opportunity cost of gasoline from 1997 to 2014?

In 2014,what was the average Canadian income?

Which of the following is an example of market power?

Tuition is the single-largest cost of attending college for most students.

What is NOT included in the decisions that every society must make?

A marginal change is a small incremental adjustment to an existing plan of action.

Which of the following displays a direct,or positive,relationship?

Monica has spent $30,000 purchasing and repairing an old cabin,which she expects to sell for $40,000.She discovers that she needs an additional repair,which will cost $15,000.She can sell the cabin as it is now for $25,000.What should she do?

When does scarcity exist?

The Students' Union on campus provides free popcorn to all students who attend their annual meeting.In this instance,how will the principle of scarcity apply?

How are goods and services allocated in a market economy?

Which observation was made famous by Adam Smith in his book The Wealth of Nations?

Your professor loves her work teaching economics.She has been offered other positions in the corporate world making 25 percent more,but has decided to stay in teaching.What might change her decision?

Market failure refers to a situation in which the market does not allocate resources efficiently.

What does efficiency mean?

What does economics study?

Thinking Like an Economist

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 Small 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 1: Ten Principles of Economics

What is the largest single cost of going to university?

Mike has spent $500 purchasing and repairing an old fishing boat,which he expects to sell for $800.He discovers that he needs an additional repair,which will cost $600.He can sell the boat as it is now for $300.What should he do?

In economics,what is the cost of something?

What happened to the opportunity cost of gasoline from 1997 to 2014?

In 2014,what was the average Canadian income?

Which of the following is an example of market power?

Tuition is the single-largest cost of attending college for most students.

What is NOT included in the decisions that every society must make?

A marginal change is a small incremental adjustment to an existing plan of action.

Which of the following displays a direct,or positive,relationship?

Monica has spent $30,000 purchasing and repairing an old cabin,which she expects to sell for $40,000.She discovers that she needs an additional repair,which will cost $15,000.She can sell the cabin as it is now for $25,000.What should she do?

When does scarcity exist?

The Students' Union on campus provides free popcorn to all students who attend their annual meeting.In this instance,how will the principle of scarcity apply?

How are goods and services allocated in a market economy?

Which observation was made famous by Adam Smith in his book The Wealth of Nations?

Your professor loves her work teaching economics.She has been offered other positions in the corporate world making 25 percent more,but has decided to stay in teaching.What might change her decision?

Market failure refers to a situation in which the market does not allocate resources efficiently.

What does efficiency mean?

What does economics study?

Thinking Like an Economist

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 Small 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