Question 1

Economics is best described as the study of

Accepted Answer

A) how to be successful in the stock market. 
B) how people allocate resources to try and satisfy their wants. 
C) how people should spend their incomes. 
D) why people choose certain goods and services rather than others. 
A) how to be successful in the stock market. 
B) how people allocate resources to try and satisfy their wants. 
C) how people should spend their incomes. 
D) why people choose certain goods and services rather than others. B

Question 2

Successful models in any science must

Accepted Answer

A) be able to yield useable predictions. 
B) be totally realistic in every detail. 
C) be complete reproductions of the real world. 
D) include every relationship that exists. 
A) be able to yield useable predictions. 
B) be totally realistic in every detail. 
C) be complete reproductions of the real world. 
D) include every relationship that exists. A

Question 3

People behave rationally when they ________.

Accepted Answer

make decisions they believe will make themselves better off.

Question 4

A dependent variable is

Accepted Answer

A) a variable whose value depends on the size of another variable. 
B) a causal variable. 
C) a variable whose value is independent of any other variable. 
D) a variable that cannot be predicted with the information available. 
A) a variable whose value depends on the size of another variable. 
B) a causal variable. 
C) a variable whose value is independent of any other variable. 
D) a variable that cannot be predicted with the information available.

Question 5

In economic language,"wants"

Accepted Answer

A) is another term for needs. 
B) refer to services while needs refer to goods. 
C) is the term used by economists instead of needs because needs are not objectively definable. 
D) are used by economists and refer to the same thing as needs when used by psychologists. 
A) is another term for needs. 
B) refer to services while needs refer to goods. 
C) is the term used by economists instead of needs because needs are not objectively definable. 
D) are used by economists and refer to the same thing as needs when used by psychologists.

Question 6

Opportunity costs are

Accepted Answer

A) subjective because each person determines the value of forgone alternatives. 
B) objective because they can always be put in monetary terms. 
C) subjective because it is impossible to put a monetary value on forgone alternatives. 
D) objective because specific things are given up when making a choice. 
A) subjective because each person determines the value of forgone alternatives. 
B) objective because they can always be put in monetary terms. 
C) subjective because it is impossible to put a monetary value on forgone alternatives. 
D) objective because specific things are given up when making a choice.

Question 7

Microeconomics concentrates on ________.

Accepted Answer

the behavi

Question 8

Which of the following is a factor of production?

Accepted Answer

A) Money 
B) Human capital 
C) Stocks 
D) Bonds 
A) Money 
B) Human capital 
C) Stocks 
D) Bonds

Question 9

Explain the difference in economics between self-interest and selfish behaviour.

Accepted Answer

Self-interest behaviour can include unse

Question 10

A simplified representation of the real world that is used to help explain economic phenomena is

Accepted Answer

A) a conclusion. 
B) an assumption. 
C) an implication. 
D) a model. 
A) a conclusion. 
B) an assumption. 
C) an implication. 
D) a model.

Question 11

What is Economics and what does it try to do?

Accepted Answer

Economics is the study of how people all

Question 12

The income that is earned when capital is used to produce goods and services is ________.

Accepted Answer

The answer of The income that is earned when capital...

Question 13

Marginal benefit refers to

Accepted Answer

A) a small change in benefit. 
B) extra benefits received when a choice is made. 
C) a large change in benefit. 
D) potential rewards. 
A) a small change in benefit. 
B) extra benefits received when a choice is made. 
C) a large change in benefit. 
D) potential rewards.

Question 14

Economists sometimes say that wants are "unlimited" because

Accepted Answer

A) even if everyone could have all of the goods and services they wanted,they would not have enough time to enjoy them all. 
B) studies have shown that they are unlimited. 
C) no one ever has all they want of anything. 
D) there are always going to be some people richer than others. 
A) even if everyone could have all of the goods and services they wanted,they would not have enough time to enjoy them all. 
B) studies have shown that they are unlimited. 
C) no one ever has all they want of anything. 
D) there are always going to be some people richer than others.

Question 15

Marginal cost is defined as

Accepted Answer

A) the cost you incur no matter which choice you make. 
B) a small change in cost. 
C) the addition to total cost incurred as a result of a decision. 
D) the total cost incurred as a result of a decision. 
A) the cost you incur no matter which choice you make. 
B) a small change in cost. 
C) the addition to total cost incurred as a result of a decision. 
D) the total cost incurred as a result of a decision.

Question 16

In economics,the idea that individuals respond predictably to opportunities to advance their self-interest is known as the ________ assumption.

Accepted Answer

The answer of In economics,the idea that individuals respond predictably...

Question 17

What assumption do economists typically make about human motivation? Explain.

Accepted Answer

Economists assume that people act as if

Question 18

Microeconomics is the study of

Accepted Answer

A) the behaviour of the economy as a whole. 
B) how rising prices affect the level of employment in the economy. 
C) the effect that money has in the economic system. 
D) decisions made by individuals and firms. 
A) the behaviour of the economy as a whole. 
B) how rising prices affect the level of employment in the economy. 
C) the effect that money has in the economic system. 
D) decisions made by individuals and firms.

Question 19

A direct relationship is

Accepted Answer

A) one in which an increase in one variable causes an increase in another. 
B) one in which a decrease in one variable cases an increase in another. 
C) one in which there is no connection between two variables. 
D) one in which a small change in one variable causes a larger change in another. 
A) one in which an increase in one variable causes an increase in another. 
B) one in which a decrease in one variable cases an increase in another. 
C) one in which there is no connection between two variables. 
D) one in which a small change in one variable causes a larger change in another.

Question 20

When an economist analyzes the effect of some change under the condition that all other influences remain the same

Accepted Answer

A) the results are meaningless because other things never remain the same. 
B) the results are valuable because other things will not change. 
C) the purpose is to find out what would happen if other influences did not change. 
D) the economist expects other things to remain the same in the real word. 
A) the results are meaningless because other things never remain the same. 
B) the results are valuable because other things will not change. 
C) the purpose is to find out what would happen if other influences did not change. 
D) the economist expects other things to remain the same in the real word.

Economics is best described as the study of

Successful models in any science must

People behave rationally when they ________.

A dependent variable is

In economic language,"wants"

Opportunity costs are

Microeconomics concentrates on ________.

Which of the following is a factor of production?

Explain the difference in economics between self-interest and selfish behaviour.

A simplified representation of the real world that is used to help explain economic phenomena is

What is Economics and what does it try to do?

The income that is earned when capital is used to produce goods and services is ________.

Marginal benefit refers to

Economists sometimes say that wants are "unlimited" because

Marginal cost is defined as

In economics,the idea that individuals respond predictably to opportunities to advance their self-interest is known as the ________ assumption.

What assumption do economists typically make about human motivation? Explain.

Microeconomics is the study of

A direct relationship is

When an economist analyzes the effect of some change under the condition that all other influences remain the same

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 1: The Nature of Economics

Economics is best described as the study of

Successful models in any science must

People behave rationally when they ________.

A dependent variable is

In economic language,"wants"

Opportunity costs are

Microeconomics concentrates on ________.

Which of the following is a factor of production?

Explain the difference in economics between self-interest and selfish behaviour.

A simplified representation of the real world that is used to help explain economic phenomena is

What is Economics and what does it try to do?

The income that is earned when capital is used to produce goods and services is ________.

Marginal benefit refers to

Economists sometimes say that wants are "unlimited" because

Marginal cost is defined as

In economics,the idea that individuals respond predictably to opportunities to advance their self-interest is known as the ________ assumption.

What assumption do economists typically make about human motivation? Explain.

Microeconomics is the study of

A direct relationship is

When an economist analyzes the effect of some change under the condition that all other influences remain the same

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Economic Growth and Development

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters