Question 1

What do economists always do when they are constructing theories or models?

Accepted Answer

A) They make simplifying assumptions. 
B) They attempt to duplicate the real world. 
C) They ensure that the theory can be expressed mathematically. 
D) They try to include as much information as possible. 
A) They make simplifying assumptions. 
B) They attempt to duplicate the real world. 
C) They ensure that the theory can be expressed mathematically. 
D) They try to include as much information as possible.

Question 2

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 3

The following table shows the production possibilities for the country of Erewhon:
  
-Refer to the table above to answer this question.Erewhon is producing 21 units of wine,approximately how many units of cheese can it produce?

Accepted Answer

A) 7 units of cheese 
B) 9 units of cheese 
C) 14 units of cheese 
D) 19 units of cheese 
A) 7 units of cheese 
B) 9 units of cheese 
C) 14 units of cheese 
D) 19 units of cheese

Question 4

What fundamental question is implied by the following statement: Should scarce resources be devoted to persuading people to quit smoking or to developing a less harmful form of tobacco?

Accepted Answer

A) What to produce? 
B) How to produce? 
C) For whom? 
D) How much competition? 
E) How much command? 
A) What to produce? 
B) How to produce? 
C) For whom? 
D) How much competition? 
E) How much command?

Question 5

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

Accepted Answer

A) Cooperation. 
B) Command. 
C) Custom. 
D) Competition. 
E) Consumer. 
A) Cooperation. 
B) Command. 
C) Custom. 
D) Competition. 
E) Consumer.

Question 6

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 A What is the opportunity cost of producing 4 units of Arrows.

Accepted Answer

A) Zero. 
B) 4 units of Viners. 
C) 5 units of Viners. 
D) 20 units of Viners. 
A) Zero. 
B) 4 units of Viners. 
C) 5 units of Viners. 
D) 20 units of Viners.

Question 7

The following table shows the production possibilities for producing rice and beans in the country of Aipotu:
  
-Refer to the table above to answer this question.If Aipotu is presently producing 100 rice,what is the cost of producing 80 more rice?

Accepted Answer

A) 10 beans 
B) 20 beans 
C) 60 beans 
D) 100 beans 
A) 10 beans 
B) 20 beans 
C) 60 beans 
D) 100 beans

Question 8

Using the table below,identify and explain the four factors of production and the names given to payments received by each.

Accepted Answer

The answer of Using the table below,identify and explain the...

Question 9

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks.
  
-Refer to the graph above to answer this question.If Mendork's current production is at point B,what is the opportunity cost of one more quark as output changes from point B to A?

Accepted Answer

A) 0.04 quirks. 
B) 4 quirks. 
C) 400 quirks. 
D) 1 quirk. 
E) 0.4 quirks. 
A) 0.04 quirks. 
B) 4 quirks. 
C) 400 quirks. 
D) 1 quirk. 
E) 0.4 quirks.

Question 10

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

Accepted Answer

A) The government needs to reduce its budget deficit. 
B) A decrease in price will lead to a larger quantity bought. 
C) Production is subject to the law of increasing costs. 
D) The degree of competition in our economy has been increasing in the last ten years. 
A) The government needs to reduce its budget deficit. 
B) A decrease in price will lead to a larger quantity bought. 
C) Production is subject to the law of increasing costs. 
D) The degree of competition in our economy has been increasing in the last ten years.

Question 11

Given the following production possibility curve.
   a)What is the total cost of producing 27 units of peanut butter?
b)What is the total cost of producing 8 units of jelly?
c)What is the opportunity cost from point B to point D?
d)What is the per unit cost of going from point B to point A?

Accepted Answer

a)7 units of jelly
b

Question 12

In reference to voluntary trade,what was Adam Smith the first to recognize?

Accepted Answer

A) It does not happen very often. 
B) It may or may not benefit one or both of the parties to the trade. 
C) It benefits one party to the trade but only at the expense of the other. 
D) It benefits both parties to the trade. 
A) It does not happen very often. 
B) It may or may not benefit one or both of the parties to the trade. 
C) It benefits one party to the trade but only at the expense of the other. 
D) It benefits both parties to the trade.

Question 13

Distinguish between a capital good and a consumer good.

Accepted Answer

Consumer goods are products used by cons

Question 14

How does microeconomics differ from macroeconomics?

Accepted Answer

Microeconomics involves an analysis of i

Question 15

There are only three Cs that humankind has used to coordinate its economies: cooperation,custom,and competition.

Accepted Answer

A) True 
 B)False

Question 16

Define economics.

Accepted Answer

Economics is a social science that studi

Question 17

Explain why voluntary trade is mutual beneficial.

Accepted Answer

Voluntary trade always benefit

Question 18

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 19

Which pair of the four Cs plays the dominant role in Canada today?

Accepted Answer

A) Custom and competition. 
B) Cooperation and competition. 
C) Command and competition. 
D) Command and cooperation. 
A) Custom and competition. 
B) Cooperation and competition. 
C) Command and competition. 
D) Command and cooperation.

Question 20

All of the following,except one,are factors of production.Which is the exception?

Accepted Answer

A) Labour. 
B) Capital. 
C) Land. 
D) Enterprise. 
E) Competition. 
A) Labour. 
B) Capital. 
C) Land. 
D) Enterprise. 
E) Competition.

What do economists always do when they are constructing theories or models?

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

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.Erewhon is producing 21 units of wine,approximately how many units of cheese can it produce?

What fundamental question is implied by the following statement: Should scarce resources be devoted to persuading people to quit smoking or to developing a less harmful form of tobacco?

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

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 A What is the opportunity cost of producing 4 units of Arrows.

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.If Aipotu is presently producing 100 rice,what is the cost of producing 80 more rice?

Using the table below,identify and explain the four factors of production and the names given to payments received by each.

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.If Mendork's current production is at point B,what is the opportunity cost of one more quark as output changes from point B to A?

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

Given the following production possibility curve. a)What is the total cost of producing 27 units of peanut butter? b)What is the total cost of producing 8 units of jelly? c)What is the opportunity cost from point B to point D? d)What is the per unit cost of going from point B to point A?

In reference to voluntary trade,what was Adam Smith the first to recognize?

Distinguish between a capital good and a consumer good.

How does microeconomics differ from macroeconomics?

There are only three Cs that humankind has used to coordinate its economies: cooperation,custom,and competition.

Define economics.

Explain why voluntary trade is mutual beneficial.

Which of the following is a consumer good or service?

Which pair of the four Cs plays the dominant role in Canada today?

All of the following,except one,are factors of production.Which is the exception?

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 1: The Economic Problem

What do economists always do when they are constructing theories or models?

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

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.Erewhon is producing 21 units of wine,approximately how many units of cheese can it produce?

What fundamental question is implied by the following statement: Should scarce resources be devoted to persuading people to quit smoking or to developing a less harmful form of tobacco?

Which type of economy would involve a central governing body making all of the fundamental economic decisions?

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 A What is the opportunity cost of producing 4 units of Arrows.

The following table shows the production possibilities for producing rice and beans in the country of Aipotu: -Refer to the table above to answer this question.If Aipotu is presently producing 100 rice,what is the cost of producing 80 more rice?

Using the table below,identify and explain the four factors of production and the names given to payments received by each.

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.If Mendork's current production is at point B,what is the opportunity cost of one more quark as output changes from point B to A?

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

Given the following production possibility curve. a)What is the total cost of producing 27 units of peanut butter? b)What is the total cost of producing 8 units of jelly? c)What is the opportunity cost from point B to point D? d)What is the per unit cost of going from point B to point A?

In reference to voluntary trade,what was Adam Smith the first to recognize?

Distinguish between a capital good and a consumer good.

How does microeconomics differ from macroeconomics?

There are only three Cs that humankind has used to coordinate its economies: cooperation,custom,and competition.

Define economics.

Explain why voluntary trade is mutual beneficial.

Which of the following is a consumer good or service?

Which pair of the four Cs plays the dominant role in Canada today?

All of the following,except one,are factors of production.Which is the exception?

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters