Question 1

Which of the following would NOT be a result of laws that require firms to reduce pollution?

Accepted Answer

A)  lower spending by government 
B)  higher prices to consumers 
C)  lower wages to workers 
D)  smaller profit to firms 
A)  lower spending by government 
B)  higher prices to consumers 
C)  lower wages to workers 
D)  smaller profit to firms

Question 2

What happened when the German government increased the quantity of money in the German economy in the 1920s?

Accepted Answer

A)  Germany experienced hyperinflation. 
B)  More people in Germany could afford luxury goods. 
C)  Unemployment increased. 
D)  Germany was able to repay all its foreign debts. 
A)  Germany experienced hyperinflation. 
B)  More people in Germany could afford luxury goods. 
C)  Unemployment increased. 
D)  Germany was able to repay all its foreign debts.

Question 3

A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests.

Accepted Answer

A) True 
 B)False

Question 4

What term refers to the amount of goods and services produced from each hour of a worker's time?

Accepted Answer

A)  total output 
B)  productivity 
C)  marginal product 
D)  quantity 
A)  total output 
B)  productivity 
C)  marginal product 
D)  quantity

Question 5

What is the primary determinant of a country's standard of living?

Accepted Answer

A)  the ability to reduce foreign competition 
B)  the ability to produce goods and services 
C)  the total supply of money in the economy 
D)  the average age of the country's labour force 
A)  the ability to reduce foreign competition 
B)  the ability to produce goods and services 
C)  the total supply of money in the economy 
D)  the average age of the country's labour force

Question 6

What is one component necessary for markets to work?

Accepted Answer

A)  government intervention 
B)  a non-profit sector of society 
C)  property rights 
D)  abundant resources 
A)  government intervention 
B)  a non-profit sector of society 
C)  property rights 
D)  abundant resources

Question 7

What does the tenth principle of economics help explain?

Accepted Answer

A)  the business cycle 
B)  supply and demand 
C)  trade balance 
D)  money supply changes 
A)  the business cycle 
B)  supply and demand 
C)  trade balance 
D)  money supply changes

Question 8

When policymakers make policies that change the costs and benefits that people face,what is the result for society?

Accepted Answer

A)  people's behaviours are altered 
B)  people ignore incentives 
C)  inflation occurs 
D)  government revenue is reduced 
A)  people's behaviours are altered 
B)  people ignore incentives 
C)  inflation occurs 
D)  government revenue is reduced

Question 9

The average cost per seat on an airplane trip from Calgary to Kelowna is $250.Suppose no refreshments are served and seven seats are empty.How could the airline company increase its profit?

Accepted Answer

A)  if it charged no less than $250 for the seven remaining seats 
B)  if it charged more than $250 for the seven remaining seats 
C)  if it charged any ticket price above $0 for the remaining seats 
D)  if it left the seats empty 
A)  if it charged no less than $250 for the seven remaining seats 
B)  if it charged more than $250 for the seven remaining seats 
C)  if it charged any ticket price above $0 for the remaining seats 
D)  if it left the seats empty

Question 10

What is one advantage that market economies have over central planning?

Accepted Answer

A)  They provide an equal distribution of goods and services to consumers. 
B)  They establish government economic control. 
C)  They solve the problem of scarcity. 
D)  They are more efficient. 
A)  They provide an equal distribution of goods and services to consumers. 
B)  They establish government economic control. 
C)  They solve the problem of scarcity. 
D)  They are more efficient.

Question 11

Which business most likely has market power?

Accepted Answer

A)  a furniture store in Kingston 
B)  a vineyard in the Okanagan Valley 
C)  a maple sugar candy store in Sherbrooke,Quebec 
D)  a hockey arena in the small town of Invermere,British Columbia 
A)  a furniture store in Kingston 
B)  a vineyard in the Okanagan Valley 
C)  a maple sugar candy store in Sherbrooke,Quebec 
D)  a hockey arena in the small town of Invermere,British Columbia

Question 12

What happens if a sawmill creates too much air pollution?

Accepted Answer

A)  Interference by the government will surely make the matter worse. 
B)  A sense of social responsibility will cause the owners of the mill to reduce pollution. 
C)  The government can raise economic well-being by providing health care to those affected by the pollution. 
D)  The government can raise economic well-being through environmental regulation. 
A)  Interference by the government will surely make the matter worse. 
B)  A sense of social responsibility will cause the owners of the mill to reduce pollution. 
C)  The government can raise economic well-being by providing health care to those affected by the pollution. 
D)  The government can raise economic well-being through environmental regulation.

Question 13

What is a marginal change?

Accepted Answer

A)  a long-term trend 
B)  a large,significant adjustment 
C)  a change for the worse,and so is usually short term 
D)  a small incremental adjustment 
A)  a long-term trend 
B)  a large,significant adjustment 
C)  a change for the worse,and so is usually short term 
D)  a small incremental adjustment

Question 14

In a market economy,what guides economic activity?

Accepted Answer

A)  the government 
B)  businesses 
C)  central planners 
D)  prices 
A)  the government 
B)  businesses 
C)  central planners 
D)  prices

Question 15

What is the definition of inflation?

Accepted Answer

A)  a period of rising productivity in the economy 
B)  a period of rising income in the economy 
C)  an increase in the overall level of output in the economy 
D)  an increase in the overall level of prices in the economy 
A)  a period of rising productivity in the economy 
B)  a period of rising income in the economy 
C)  an increase in the overall level of output in the economy 
D)  an increase in the overall level of prices in the economy

Question 16

Although the tenth principle of economics is controversial,what do most economists believe?

Accepted Answer

A)  Society faces a tradeoff between unemployment and inflation in the short run only. 
B)  Society faces a tradeoff between unemployment and inflation in the long run only. 
C)  No tradeoff exists between unemployment and inflation. 
D)  Society faces a continuous tradeoff between unemployment and inflation. 
A)  Society faces a tradeoff between unemployment and inflation in the short run only. 
B)  Society faces a tradeoff between unemployment and inflation in the long run only. 
C)  No tradeoff exists between unemployment and inflation. 
D)  Society faces a continuous tradeoff between unemployment and inflation.

Question 17

Which statement best describes the concept represented by the adage "There is no such thing as a free lunch"?

Accepted Answer

A)  Melissa can only attend the concert if she takes her sister with her. 
B)  Greg is hungry and homeless. 
C)  Brian must repair the tire on his bike before he can ride it to class. 
D)  Olivia must decide between skiing at Whistler or Lake Louise for spring break. 
A)  Melissa can only attend the concert if she takes her sister with her. 
B)  Greg is hungry and homeless. 
C)  Brian must repair the tire on his bike before he can ride it to class. 
D)  Olivia must decide between skiing at Whistler or Lake Louise for spring break.

Question 18

How does the government enforce property rights?

Accepted Answer

A)  by requiring property owners to pay property taxes 
B)  by providing police and courts 
C)  by allowing people to decide whether or not they wish to own property 
D)  by providing a system of recording property deeds 
A)  by requiring property owners to pay property taxes 
B)  by providing police and courts 
C)  by allowing people to decide whether or not they wish to own property 
D)  by providing a system of recording property deeds

Question 19

Henry decides to spend two hours playing golf rather than working at his job,which pays $8 per hour.What is Henry's tradeoff?

Accepted Answer

A)  the $16 he could have earned working for two hours 
B)  nothing,because he enjoys playing golf more than working 
C)  the increase in skill he obtains from playing golf for those two hours 
D)  nothing,because he spent $16 for green fees to play golf 
A)  the $16 he could have earned working for two hours 
B)  nothing,because he enjoys playing golf more than working 
C)  the increase in skill he obtains from playing golf for those two hours 
D)  nothing,because he spent $16 for green fees to play golf

Question 20

Which situation best illustrates a marginal change?

Accepted Answer

A)  Nancy retires and takes a part-time job.She was working 40 hours per week,but now works 10 hours per week. 
B)  Provincial University has announced that due to provincial budget deficits,tuition must rise by 25% next year. 
C)  Adam moved from Edmonton to Toronto and now pays 40% more for rent than before. 
D)  Banff,which usually receives 600 cm of snow per year,received 620cm last year. 
A)  Nancy retires and takes a part-time job.She was working 40 hours per week,but now works 10 hours per week. 
B)  Provincial University has announced that due to provincial budget deficits,tuition must rise by 25% next year. 
C)  Adam moved from Edmonton to Toronto and now pays 40% more for rent than before. 
D)  Banff,which usually receives 600 cm of snow per year,received 620cm last year.

Which of the following would NOT be a result of laws that require firms to reduce pollution?

What happened when the German government increased the quantity of money in the German economy in the 1920s?

A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests.

What term refers to the amount of goods and services produced from each hour of a worker's time?

What is the primary determinant of a country's standard of living?

What is one component necessary for markets to work?

What does the tenth principle of economics help explain?

When policymakers make policies that change the costs and benefits that people face,what is the result for society?

The average cost per seat on an airplane trip from Calgary to Kelowna is $250.Suppose no refreshments are served and seven seats are empty.How could the airline company increase its profit?

What is one advantage that market economies have over central planning?

Which business most likely has market power?

What happens if a sawmill creates too much air pollution?

What is a marginal change?

In a market economy,what guides economic activity?

What is the definition of inflation?

Although the tenth principle of economics is controversial,what do most economists believe?

Which statement best describes the concept represented by the adage "There is no such thing as a free lunch"?

How does the government enforce property rights?

Henry decides to spend two hours playing golf rather than working at his job,which pays $8 per hour.What is Henry's tradeoff?

Which situation best illustrates a marginal change?

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

Which of the following would NOT be a result of laws that require firms to reduce pollution?

What happened when the German government increased the quantity of money in the German economy in the 1920s?

A market economy cannot produce a socially desirable outcome because individuals are motivated by their own selfish interests.

What term refers to the amount of goods and services produced from each hour of a worker's time?

What is the primary determinant of a country's standard of living?

What is one component necessary for markets to work?

What does the tenth principle of economics help explain?

When policymakers make policies that change the costs and benefits that people face,what is the result for society?

The average cost per seat on an airplane trip from Calgary to Kelowna is $250.Suppose no refreshments are served and seven seats are empty.How could the airline company increase its profit?

What is one advantage that market economies have over central planning?

Which business most likely has market power?

What happens if a sawmill creates too much air pollution?

What is a marginal change?

In a market economy,what guides economic activity?

What is the definition of inflation?

Although the tenth principle of economics is controversial,what do most economists believe?

Which statement best describes the concept represented by the adage "There is no such thing as a free lunch"?

How does the government enforce property rights?

Henry decides to spend two hours playing golf rather than working at his job,which pays $8 per hour.What is Henry's tradeoff?

Which situation best illustrates a marginal change?

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