Question 1

The field of economics is divided into two subfields:microeconomics and macroeconomics.

Accepted Answer

A) True 
 B)False

Question 2

In a circular-flow diagram,one loop shows the flow of real goods,services,and factors of production,and the other loop shows the corresponding flow of dollars.

Accepted Answer

A) True 
 B)False

Question 3

What do economists at Industry Canada do?

Accepted Answer

A)  assess temporary foreign worker programs 
B)  give advice to overseas development projects 
C)  help design and enforce Canada's competition laws 
D)  decide which industries should be protected 
A)  assess temporary foreign worker programs 
B)  give advice to overseas development projects 
C)  help design and enforce Canada's competition laws 
D)  decide which industries should be protected

Question 4

Table 2-1
​Production Possibilities for Toyland  
-Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 100 to 200?

Accepted Answer

A)  50 fire trucks 
B)  100 fire trucks 
C)  150 fire trucks 
D)  200 fire trucks 
A)  50 fire trucks 
B)  100 fire trucks 
C)  150 fire trucks 
D)  200 fire trucks

Question 5

This is an exercise in model building,based on the idea that one better understands the concept of models when faced with the task of making them.
a.Construct a block diagram showing how different levels of governments interact with taxpayers and with each other in a federal state like Canada.Indicate with arrows what they exchange with each other.Identify the main elements of your model.
b.Describe your model in a few sentences.
c.What makes your description to be a model,instead of an accurate picture of the Canadian economy?
d.What purpose can your model serve,or is there anything that this model helped you understand?

Accepted Answer

a. @#IMG-DLM& b.A federal state has mainly three l

Question 6

A circular-flow diagram is a visual model of how an economy is organized.

Accepted Answer

A) True 
 B)False

Question 7

Figure 2-1  
-Refer to Figure 2-1.Which arrow shows the flow of spending by households?

Accepted Answer

A)  arrow A 
B)  arrow B 
C)  arrow C 
D)  arrow D 
A)  arrow A 
B)  arrow B 
C)  arrow C 
D)  arrow D

Question 8

Why do economists use models?

Accepted Answer

A)  to learn how the economy works 
B)  to attract the attention of government officials 
C)  to make economics accessible to the public 
D)  to make sure that all of the details of the economy are included in their analysis 
A)  to learn how the economy works 
B)  to attract the attention of government officials 
C)  to make economics accessible to the public 
D)  to make sure that all of the details of the economy are included in their analysis

Question 9

What do the two loops in the circular-flow diagram represent?

Accepted Answer

A)  the flow of goods and the flow of services 
B)  the flow of money and the flow of bonds 
C)  the flow of inputs and outputs and the flow of dollars 
D)  the flow of capital goods and the flow of consumer goods 
A)  the flow of goods and the flow of services 
B)  the flow of money and the flow of bonds 
C)  the flow of inputs and outputs and the flow of dollars 
D)  the flow of capital goods and the flow of consumer goods

Question 10

In economics,what does capital refer to?

Accepted Answer

A)  the finances necessary for firms to produce their products 
B)  buildings and machines used in the production process 
C)  the money households use to purchase necessities 
D)  the value of stock market shares issued to investors 
A)  the finances necessary for firms to produce their products 
B)  buildings and machines used in the production process 
C)  the money households use to purchase necessities 
D)  the value of stock market shares issued to investors

Question 11

What is the ordered pair that represents the origin on a graph?

Accepted Answer

A)  (1,1) 
B)  (0,0) 
C)  (0,1) 
D)  (1,0) 
A)  (1,1) 
B)  (0,0) 
C)  (0,1) 
D)  (1,0)

Question 12

How is the slope of a straight line calculated?

Accepted Answer

A)  rise divided by run 
B)  run divided by rise 
C)  the average of rise and run 
D)  rise plus run 
A)  rise divided by run 
B)  run divided by rise 
C)  the average of rise and run 
D)  rise plus run

Question 13

Which concept is NOT illustrated by the production possibilities frontier?

Accepted Answer

A)  efficiency 
B)  opportunity cost 
C)  equity 
D)  tradeoffs 
A)  efficiency 
B)  opportunity cost 
C)  equity 
D)  tradeoffs

Question 14

In a circular-flow diagram,which flows are involved?

Accepted Answer

A)  Taxes flow from households to firms,and transfer payments flow from firms to households. 
B)  Income payments flow from firms to households,and sales revenue flows from households to firms. 
C)  Resources flow from firms to households,and goods and services flow from households to firms. 
D)  Inputs and outputs flow in the same direction as the flow of dollars,from firms to households. 
A)  Taxes flow from households to firms,and transfer payments flow from firms to households. 
B)  Income payments flow from firms to households,and sales revenue flows from households to firms. 
C)  Resources flow from firms to households,and goods and services flow from households to firms. 
D)  Inputs and outputs flow in the same direction as the flow of dollars,from firms to households.

Question 15

What famous economist said,"The ideas of economists and political philosophers … are more powerful than is commonly understood"?

Accepted Answer

A)  Gregory Mankiw 
B)  John Maynard Keynes 
C)  Paul Krugman 
D)  David Ricardo 
A)  Gregory Mankiw 
B)  John Maynard Keynes 
C)  Paul Krugman 
D)  David Ricardo

Question 16

Figure 2-9  
-Refer to Figure 2-9.What is the correct designation of point A?

Accepted Answer

A)  (6,0) 
B)  (0,24) 
C)  (6,24) 
D)  (24,6) 
A)  (6,0) 
B)  (0,24) 
C)  (6,24) 
D)  (24,6)

Question 17

Figure 2-9  
-Refer to Figure 2-9.What do cups of coffee per day and the hours that someone can go without sleep have?

Accepted Answer

A)  a positive correlation 
B)  a negative correlation 
C)  a random correlation 
D)  no correlation 
A)  a positive correlation 
B)  a negative correlation 
C)  a random correlation 
D)  no correlation

Question 18

Because it is difficult for economists to use experiments to generate data,what must they generally do?

Accepted Answer

A)  do without data 
B)  use whatever data the world gives them 
C)  select a committee of economists to make up data for all economists to use 
D)  use hypothetical,computer-generated data 
A)  do without data 
B)  use whatever data the world gives them 
C)  select a committee of economists to make up data for all economists to use 
D)  use hypothetical,computer-generated data

Question 19

For economists,what are often used as substitutes for laboratory experiments?

Accepted Answer

A)  natural experiments offered by history 
B)  computer-generated experiments 
C)  studies conducted by other disciplines,such as sociologists 
D)  well-constructed simulations 
A)  natural experiments offered by history 
B)  computer-generated experiments 
C)  studies conducted by other disciplines,such as sociologists 
D)  well-constructed simulations

Question 20

What do economists from the Department of Finance provide?

Accepted Answer

A)  the annual Economic Report of the Prime Minister 
B)  the Senate with the annual budget 
C)  enforcement of the competition laws 
D)  advice on tax policy to the Prime Minister 
A)  the annual Economic Report of the Prime Minister 
B)  the Senate with the annual budget 
C)  enforcement of the competition laws 
D)  advice on tax policy to the Prime Minister

The field of economics is divided into two subfields:microeconomics and macroeconomics.

In a circular-flow diagram,one loop shows the flow of real goods,services,and factors of production,and the other loop shows the corresponding flow of dollars.

What do economists at Industry Canada do?

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 100 to 200?

A circular-flow diagram is a visual model of how an economy is organized.

Figure 2-1 -Refer to Figure 2-1.Which arrow shows the flow of spending by households?

Why do economists use models?

What do the two loops in the circular-flow diagram represent?

In economics,what does capital refer to?

What is the ordered pair that represents the origin on a graph?

How is the slope of a straight line calculated?

Which concept is NOT illustrated by the production possibilities frontier?

In a circular-flow diagram,which flows are involved?

What famous economist said,"The ideas of economists and political philosophers … are more powerful than is commonly understood"?

Figure 2-9 -Refer to Figure 2-9.What is the correct designation of point A?

Figure 2-9 -Refer to Figure 2-9.What do cups of coffee per day and the hours that someone can go without sleep have?

Because it is difficult for economists to use experiments to generate data,what must they generally do?

For economists,what are often used as substitutes for laboratory experiments?

What do economists from the Department of Finance provide?

Ten Principles of Economics

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

Exam 2: Thinking Like an Economist

The field of economics is divided into two subfields:microeconomics and macroeconomics.

In a circular-flow diagram,one loop shows the flow of real goods,services,and factors of production,and the other loop shows the corresponding flow of dollars.

What do economists at Industry Canada do?

Table 2-1 ​Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 100 to 200?

A circular-flow diagram is a visual model of how an economy is organized.

Figure 2-1 -Refer to Figure 2-1.Which arrow shows the flow of spending by households?

Why do economists use models?

What do the two loops in the circular-flow diagram represent?

In economics,what does capital refer to?

What is the ordered pair that represents the origin on a graph?

How is the slope of a straight line calculated?

Which concept is NOT illustrated by the production possibilities frontier?

In a circular-flow diagram,which flows are involved?

What famous economist said,"The ideas of economists and political philosophers … are more powerful than is commonly understood"?

Figure 2-9 -Refer to Figure 2-9.What is the correct designation of point A?

Figure 2-9 -Refer to Figure 2-9.What do cups of coffee per day and the hours that someone can go without sleep have?

Because it is difficult for economists to use experiments to generate data,what must they generally do?

For economists,what are often used as substitutes for laboratory experiments?

What do economists from the Department of Finance provide?

Ten Principles of Economics

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

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 100 to 200?