Question 1

If people make their choices rationally,then

Accepted Answer

A) the behaviour of a typical individual will be predictable. 
B) they will never have regrets over the decision they made. 
C) everyone facing the same alternatives will make the same choice. 
D) they do not behave in a self-interested manner. 
A) the behaviour of a typical individual will be predictable. 
B) they will never have regrets over the decision they made. 
C) everyone facing the same alternatives will make the same choice. 
D) they do not behave in a self-interested manner.

Question 2

When a graph is used to show a cause-and-effect relationship,the combinations of y and x values plotted on the curve must satisfy the ________ condition.

Accepted Answer

A) sui generis 
B) ceteris paribus 
C) opportunity cost 
D) non-linearity 
A) sui generis 
B) ceteris paribus 
C) opportunity cost 
D) non-linearity

Question 3

"If A occurs then B will be the result" is a ________ statement.

Accepted Answer

The answer of "If A occurs then B will be...

Question 4

An economist who says "assume that the price of pizza rises" means

Accepted Answer

A) she expects the price of pizza to increase. 
B) she wants to consider what would happen if the price of pizza were to increase. 
C) she does not believe the price of pizza will fall. 
D) she is not using the ceteris paribus assumption. 
A) she expects the price of pizza to increase. 
B) she wants to consider what would happen if the price of pizza were to increase. 
C) she does not believe the price of pizza will fall. 
D) she is not using the ceteris paribus assumption.

Question 5

Which of the following statements is an example of a positive economic statement?

Accepted Answer

A) The inflation rate is too high. 
B) Since the elderly live on fixed incomes,the government has an obligation to keep inflation rates low. 
C) If the government increases the rate of growth of the money supply,the inflation rate will increase. 
D) Governments should worry less about inflation and more about unemployment. 
A) The inflation rate is too high. 
B) Since the elderly live on fixed incomes,the government has an obligation to keep inflation rates low. 
C) If the government increases the rate of growth of the money supply,the inflation rate will increase. 
D) Governments should worry less about inflation and more about unemployment.

Question 6

The most basic concept in economics is

Accepted Answer

A) wealth. 
B) income. 
C) scarcity. 
D) spending. 
A) wealth. 
B) income. 
C) scarcity. 
D) spending.

Question 7

One of the benefits claimed for projects such as the Olympic Games is their "economic impact" or the dollar value of direct spending on the games plus indirect spending by people whose incomes result from the original expenditures,the incomes generated by that second round of spending,and so on.Focusing on opportunity cost concepts,explain why these expenditures should be viewed as costs rather than benefits.

Accepted Answer

Since resources are scarce,using them to

Question 8

Figure 1A-1 Slopes  
-In Figure 1A-1,the lines passing through points A and B both have

Accepted Answer

A) positive slopes. 
B) negative slopes. 
C) indeterminate slopes. 
D) zero slopes. 
A) positive slopes. 
B) negative slopes. 
C) indeterminate slopes. 
D) zero slopes.

Question 9

Economists assume people behave rationally.Rationality means that people

Accepted Answer

A) always understand the consequences of their decisions. 
B) always weigh their decisions carefully. 
C) have the necessary information to always make correct decisions. 
D) do not intentionally make choices that cause themselves to be worse off. 
A) always understand the consequences of their decisions. 
B) always weigh their decisions carefully. 
C) have the necessary information to always make correct decisions. 
D) do not intentionally make choices that cause themselves to be worse off.

Question 10

When a particular choice is being considered,its opportunity cost is

Accepted Answer

A) the combined value of all the alternatives not selected. 
B) the same thing as the money price of a good. 
C) the value of the best alternative that was given up. 
D) based on the intrinsic value of the good itself. 
A) the combined value of all the alternatives not selected. 
B) the same thing as the money price of a good. 
C) the value of the best alternative that was given up. 
D) based on the intrinsic value of the good itself.

Question 11

Explain how economic models can be useful even if some of their assumptions seem to be unrealistic.

Accepted Answer

Models are judged by whether they succes

Question 12

The concept of marginal cost refers to ________.

Accepted Answer

the extra

Question 13

The assumption that "all other things remain constant" is also known as the

Accepted Answer

A) rational self-interest assumption. 
B) ceteris paribus assumption. 
C) relationships assumption. 
D) distinguishing characteristic of economics as a science. 
A) rational self-interest assumption. 
B) ceteris paribus assumption. 
C) relationships assumption. 
D) distinguishing characteristic of economics as a science.

Question 14

The primary goal of economics is to understand

Accepted Answer

A) how people make money. 
B) how households purchase goods and services. 
C) the choices people make. 
D) how people earn a comfortable living. 
A) how people make money. 
B) how households purchase goods and services. 
C) the choices people make. 
D) how people earn a comfortable living.

Question 15

A line with a positive slope shows a relationship in which

Accepted Answer

A) the larger is the value of variable x,the larger is the value of y. 
B) the larger is the value of variable x,the smaller is the value of y. 
C) the smaller is the value of variable y,the larger is the value of x. 
D) variables y and x are independent of one another. 
A) the larger is the value of variable x,the larger is the value of y. 
B) the larger is the value of variable x,the smaller is the value of y. 
C) the smaller is the value of variable y,the larger is the value of x. 
D) variables y and x are independent of one another.

Question 16

A widely accepted socio-economic goal is

Accepted Answer

A) inefficiency. 
B) price stability. 
C) inflation. 
D) unemployment. 
A) inefficiency. 
B) price stability. 
C) inflation. 
D) unemployment.

Question 17

In producing goods and services,trade-offs exist between different items because

Accepted Answer

A) human wants and needs are limited at a particular point in time. 
B) buyers and sellers often must negotiate prices. 
C) not all production is efficient. 
D) society has only a limited amount of productive resources. 
A) human wants and needs are limited at a particular point in time. 
B) buyers and sellers often must negotiate prices. 
C) not all production is efficient. 
D) society has only a limited amount of productive resources.

Question 18

Canadians have been spending more time on line each year.One change we can be sure has resulted is

Accepted Answer

A) they have increased their incomes. 
B) they have increased their satisfaction levels 
C) they have purchased more pizza 
D) they have had to give up time spent on other activities. 
A) they have increased their incomes. 
B) they have increased their satisfaction levels 
C) they have purchased more pizza 
D) they have had to give up time spent on other activities.

Question 19

If a government wishes to make the best use of its resources in combatting smuggling,it must

Accepted Answer

A) lower taxes and customs duties. 
B) hire more border guards and customs officers. 
C) hire police officers to monitor the behaviour of border guards and customs officers 
D) balance resources used in reducing smuggling against the benefits from reducing it. 
A) lower taxes and customs duties. 
B) hire more border guards and customs officers. 
C) hire police officers to monitor the behaviour of border guards and customs officers 
D) balance resources used in reducing smuggling against the benefits from reducing it.

Question 20

Economic models

Accepted Answer

A) are used only in normative economics. 
B) are useful in determining how specific policies affect society's goals. 
C) are only useful if their assumptions are realistic. 
D) cannot be used for normative purposes. 
A) are used only in normative economics. 
B) are useful in determining how specific policies affect society's goals. 
C) are only useful if their assumptions are realistic. 
D) cannot be used for normative purposes.

If people make their choices rationally,then

When a graph is used to show a cause-and-effect relationship,the combinations of y and x values plotted on the curve must satisfy the ________ condition.

"If A occurs then B will be the result" is a ________ statement.

An economist who says "assume that the price of pizza rises" means

Which of the following statements is an example of a positive economic statement?

The most basic concept in economics is

Figure 1A-1 Slopes -In Figure 1A-1,the lines passing through points A and B both have

Economists assume people behave rationally.Rationality means that people

When a particular choice is being considered,its opportunity cost is

Explain how economic models can be useful even if some of their assumptions seem to be unrealistic.

The concept of marginal cost refers to ________.

The assumption that "all other things remain constant" is also known as the

The primary goal of economics is to understand

A line with a positive slope shows a relationship in which

A widely accepted socio-economic goal is

In producing goods and services,trade-offs exist between different items because

Canadians have been spending more time on line each year.One change we can be sure has resulted is

If a government wishes to make the best use of its resources in combatting smuggling,it must

Economic models

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

Exam 1: The Nature of Economics

If people make their choices rationally,then

When a graph is used to show a cause-and-effect relationship,the combinations of y and x values plotted on the curve must satisfy the ________ condition.

"If A occurs then B will be the result" is a ________ statement.

An economist who says "assume that the price of pizza rises" means

Which of the following statements is an example of a positive economic statement?

The most basic concept in economics is

Figure 1A-1 Slopes -In Figure 1A-1,the lines passing through points A and B both have

Economists assume people behave rationally.Rationality means that people

When a particular choice is being considered,its opportunity cost is

Explain how economic models can be useful even if some of their assumptions seem to be unrealistic.

The concept of marginal cost refers to ________.

The assumption that "all other things remain constant" is also known as the

The primary goal of economics is to understand

A line with a positive slope shows a relationship in which

A widely accepted socio-economic goal is

In producing goods and services,trade-offs exist between different items because

Canadians have been spending more time on line each year.One change we can be sure has resulted is

If a government wishes to make the best use of its resources in combatting smuggling,it must

Economic models

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