Question 1

Which of the following statements concerning capitalism and socialism is false?

Accepted Answer

A) Sweden is more of a socialist economy than is Hong Kong. 
B) Government plays a larger role in a capitalist economy. 
C) There is more economic planning in a socialist economy. 
D) The Canadian economy is more socialist than is the US economy. 
A) Sweden is more of a socialist economy than is Hong Kong. 
B) Government plays a larger role in a capitalist economy. 
C) There is more economic planning in a socialist economy. 
D) The Canadian economy is more socialist than is the US economy.

Question 2

What is the opportunity cost of a particular product?

Accepted Answer

A) The price paid for that product. 
B) The value put on that product by the person who bought it. 
C) The value of the next-best alternative that is given up as a result of buying that particular product. 
D) The combined value of all the other alternatives that are given up as a result of buying that particular product. 
A) The price paid for that product. 
B) The value put on that product by the person who bought it. 
C) The value of the next-best alternative that is given up as a result of buying that particular product. 
D) The combined value of all the other alternatives that are given up as a result of buying that particular product.

Question 3

All of the following except one are considered to be among the three fundamental questions in economics? Which one is the exception?

Accepted Answer

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

Question 4

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 produces 60 beans,how much rice can it produce?

Accepted Answer

A) 20 rice 
B) 100 rice 
C) 130 rice 
D) 280 rice 
A) 20 rice 
B) 100 rice 
C) 130 rice 
D) 280 rice

Question 5

Below is a production possibilities curve for a large tract of prairie farm land.
  
-Refer to the graph above to answer this question.What is the total cost of producing 300 units of rye?

Accepted Answer

A) 0 units of wheat. 
B) 0.5 units of wheat. 
C) 2 units of wheat. 
D) 600 units of wheat. 
A) 0 units of wheat. 
B) 0.5 units of wheat. 
C) 2 units of wheat. 
D) 600 units of wheat.

Question 6

Define normative statement.Give an example.

Accepted Answer

Normative statements are based

Question 7

Allocative efficiency is also referred to as productivity.

Accepted Answer

A) True 
 B)False

Question 8

Below are some production possibilities data for the mystical land of Ghandor.
  
-Refer to the information above to answer this question.What is the opportunity cost of producing the third unit of Arrows?

Accepted Answer

A) 1 unit of Viners. 
B) 6 units of Viners. 
C) 8 units of Viners. 
D) 14 units of Viners. 
A) 1 unit of Viners. 
B) 6 units of Viners. 
C) 8 units of Viners. 
D) 14 units of Viners.

Question 9

What do economists assume is true about human wants?

Accepted Answer

A) They are easily defined. 
B) That we are on the verge of being able to satisfy them. 
C) They are unlimited. 
D) They haven't changed much over the centuries. 
A) They are easily defined. 
B) That we are on the verge of being able to satisfy them. 
C) They are unlimited. 
D) They haven't changed much over the centuries.

Question 10

Macroeconomics focuses on the outcomes of decisions by people and firms,whereas microeconomics is a study of how the major components of an economy interact.

Accepted Answer

A) True 
 B)False

Question 11

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 A,what is the (approximate)cost of producing one more quirk?

Accepted Answer

A) 100 quarks. 
B) 50 quarks. 
C) 25 quarks. 
D) 200 quarks. 
E) One more quark. 
A) 100 quarks. 
B) 50 quarks. 
C) 25 quarks. 
D) 200 quarks. 
E) One more quark.

Question 12

Which of the following is the factor payment received for the ability to give practical applications to ideas?

Accepted Answer

A) Rent. 
B) Interest. 
C) Wages. 
D) Profit. 
E) Capital. 
A) Rent. 
B) Interest. 
C) Wages. 
D) Profit. 
E) Capital.

Question 13

Below are some production possibilities data for the mystical land of Lhanor.
  
-Refer to the information above to answer this question.Approximately how many units of Kaldors can be produced if 48 units of Bouldings are being produced?

Accepted Answer

A) 0 Kaldors. 
B) 4 Kaldors. 
C) 6 Kaldors. 
D) 8 Kaldors. 
E) 16 Kaldors. 
A) 0 Kaldors. 
B) 4 Kaldors. 
C) 6 Kaldors. 
D) 8 Kaldors. 
E) 16 Kaldors.

Question 14

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

Accepted Answer

A) The price of wheat declined by 5% in Canada last year. 
B) GDP increased by 1.8% in Canada last year. 
C) The cost of production in the mining industry has recently declined. 
D) The profits of The Canadian Corporation last year was $25 million. 
E) The demand for Turbinado sugar is increasing. 
A) The price of wheat declined by 5% in Canada last year. 
B) GDP increased by 1.8% in Canada last year. 
C) The cost of production in the mining industry has recently declined. 
D) The profits of The Canadian Corporation last year was $25 million. 
E) The demand for Turbinado sugar is increasing.

Question 15

Which of the following is correct?

Accepted Answer

A) Scarcity forces choice which involves opportunity costs. 
B) Choice causes scarcity which involves increasing costs. 
C) Choice causes scarcity which involves opportunity costs. 
D) Scarcity forces choice which involves increasing costs. 
A) Scarcity forces choice which involves opportunity costs. 
B) Choice causes scarcity which involves increasing costs. 
C) Choice causes scarcity which involves opportunity costs. 
D) Scarcity forces choice which involves increasing costs.

Question 16

Ensuring the right type of products are produced is referred to as _________ efficiency.

Accepted Answer

A) Technical 
B) Economic 
C) Allocative 
D) Productive 
A) Technical 
B) Economic 
C) Allocative 
D) Productive

Question 17

Below is a production possibilities curve involving tea and videos.
  
-Refer to the graph above to answer this question.Assume that the economy is facing PPI and that the economy is currently producing the combination of tea and videos represented by point A What is the opportunity cost of increasing the output of videos to 400,000?

Accepted Answer

A) 400 tons of tea. 
B) 800 tons of tea. 
C) 100,000 videos. 
D) 300,000 videos. 
A) 400 tons of tea. 
B) 800 tons of tea. 
C) 100,000 videos. 
D) 300,000 videos.

Question 18

Gwen had only $10 yesterday.She was uncertain whether to go out for lunch or to buy beer.In the end she bought beer.Which of the following statements is correct?

Accepted Answer

A) The choice of the beer and not lunch is an example of constant costs. 
B) The cost of buying beer is less than lunch. 
C) The opportunity cost of beer is lunch. 
D) The opportunity cost of beer is $10. 
A) The choice of the beer and not lunch is an example of constant costs. 
B) The cost of buying beer is less than lunch. 
C) The opportunity cost of beer is lunch. 
D) The opportunity cost of beer is $10.

Question 19

All of the following except one are true of economic theories or models.Which one is the exception?

Accepted Answer

A) They attempt to establish cause and effect between economic variables. 
B) They always perfectly reflect reality. 
C) They are built with assumptions and then tested with facts. 
D) They are generalizations used to give context to our observations. 
A) They attempt to establish cause and effect between economic variables. 
B) They always perfectly reflect reality. 
C) They are built with assumptions and then tested with facts. 
D) They are generalizations used to give context to our observations.

Question 20

Which of the following is a microeconomic topic?

Accepted Answer

A) Inflation rates. 
B) Unemployment. 
C) Interest rate determination. 
D) Tax policies. 
E) Supply and demand analysis of a factor market. 
A) Inflation rates. 
B) Unemployment. 
C) Interest rate determination. 
D) Tax policies. 
E) Supply and demand analysis of a factor market.

Which of the following statements concerning capitalism and socialism is false?

What is the opportunity cost of a particular product?

All of the following except one are considered to be among the three fundamental questions in economics? Which one is the exception?

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 produces 60 beans,how much rice can it produce?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the total cost of producing 300 units of rye?

Define normative statement.Give an example.

Allocative efficiency is also referred to as productivity.

Below are some production possibilities data for the mystical land of Ghandor. -Refer to the information above to answer this question.What is the opportunity cost of producing the third unit of Arrows?

What do economists assume is true about human wants?

Macroeconomics focuses on the outcomes of decisions by people and firms,whereas microeconomics is a study of how the major components of an economy interact.

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 A,what is the (approximate)cost of producing one more quirk?

Which of the following is the factor payment received for the ability to give practical applications to ideas?

Below are some production possibilities data for the mystical land of Lhanor. -Refer to the information above to answer this question.Approximately how many units of Kaldors can be produced if 48 units of Bouldings are being produced?

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

Which of the following is correct?

Ensuring the right type of products are produced is referred to as _________ efficiency.

Gwen had only $10 yesterday.She was uncertain whether to go out for lunch or to buy beer.In the end she bought beer.Which of the following statements is correct?

All of the following except one are true of economic theories or models.Which one is the exception?

Which of the following is a microeconomic topic?

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

Which of the following statements concerning capitalism and socialism is false?

What is the opportunity cost of a particular product?

All of the following except one are considered to be among the three fundamental questions in economics? Which one is the exception?

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 produces 60 beans,how much rice can it produce?

Below is a production possibilities curve for a large tract of prairie farm land. -Refer to the graph above to answer this question.What is the total cost of producing 300 units of rye?

Define normative statement.Give an example.

Allocative efficiency is also referred to as productivity.

Below are some production possibilities data for the mystical land of Ghandor. -Refer to the information above to answer this question.What is the opportunity cost of producing the third unit of Arrows?

What do economists assume is true about human wants?

Macroeconomics focuses on the outcomes of decisions by people and firms,whereas microeconomics is a study of how the major components of an economy interact.

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 A,what is the (approximate)cost of producing one more quirk?

Which of the following is the factor payment received for the ability to give practical applications to ideas?

Below are some production possibilities data for the mystical land of Lhanor. -Refer to the information above to answer this question.Approximately how many units of Kaldors can be produced if 48 units of Bouldings are being produced?

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

Which of the following is correct?

Ensuring the right type of products are produced is referred to as _________ efficiency.

Gwen had only $10 yesterday.She was uncertain whether to go out for lunch or to buy beer.In the end she bought beer.Which of the following statements is correct?

All of the following except one are true of economic theories or models.Which one is the exception?

Which of the following is a microeconomic topic?

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