Question 1

Imagine (assume)you have just met someone who truly means it when they say they "have everything they could want." As a result,

Accepted Answer

A) scarcity would not be a problem. 
B) scarcity would still be a problem unless every person in the world felt that way. 
C) that person would not be rational. 
D) that person's behaviour would not be self-interested. 
A) scarcity would not be a problem. 
B) scarcity would still be a problem unless every person in the world felt that way. 
C) that person would not be rational. 
D) that person's behaviour would not be self-interested.

Question 2

Normative economic analysis always involves

Accepted Answer

A) true statements. 
B) testable hypotheses. 
C) value judgments. 
D) purely descriptive statements. 
A) true statements. 
B) testable hypotheses. 
C) value judgments. 
D) purely descriptive statements.

Question 3

Human capital includes

Accepted Answer

A) money held by people rather than banks. 
B) the skills of workers gained from experience,education,and training. 
C) computer-directed robots. 
D) labour. 
A) money held by people rather than banks. 
B) the skills of workers gained from experience,education,and training. 
C) computer-directed robots. 
D) labour.

Question 4

The income that is earned by entrepreneurs is ________.

Accepted Answer

The answer of The income that is earned by entrepreneurs...

Question 5

A line with a negative slope shows a relationship in which

Accepted Answer

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

Question 6

Figure 1A-1 Slopes  
-In Figure 1A-1,the slope of the line passing through point A is

Accepted Answer

A) 2 
B) 1/2 
C) - 2 
D) -1/2 
A) 2 
B) 1/2 
C) - 2 
D) -1/2

Question 7

Macroeconomics is concerned with

Accepted Answer

A) the effects on a corporation of a strike by the union workers. 
B) government decision making concerning farm price supports. 
C) economic aggregates. 
D) individual consumers. 
A) the effects on a corporation of a strike by the union workers. 
B) government decision making concerning farm price supports. 
C) economic aggregates. 
D) individual consumers.

Question 8

An economic theory is also known as an economic ________.

Accepted Answer

The answer of An economic theory is also known as...

Question 9

Economics can usefully be defined as

Accepted Answer

A) the process by which goods are sold in free markets. 
B) the study of how government can most effectively raise funds through taxation. 
C) the study of how people allocate limited resources to try and satisfy their many wants. 
D) the study of individual self-interests. 
A) the process by which goods are sold in free markets. 
B) the study of how government can most effectively raise funds through taxation. 
C) the study of how people allocate limited resources to try and satisfy their many wants. 
D) the study of individual self-interests.

Question 10

Good economic models

Accepted Answer

A) generate predictions that cannot be tested. 
B) represent every detail of the real world. 
C) yield usable predictions and implications for the real world. 
D) utilize only two factors to analyse the problem under consideration. 
A) generate predictions that cannot be tested. 
B) represent every detail of the real world. 
C) yield usable predictions and implications for the real world. 
D) utilize only two factors to analyse the problem under consideration.

Question 11

Economists do NOT refer to individual resources (such as oil)as scarce because ________.

Accepted Answer

scarcity refers to the inabili

Question 12

An inverse relationship between two variables is

Accepted Answer

A) one in which a decrease in one variable causes an increase in the value of another. 
B) one in which an increase in one variable causes an increase in the value of 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 a decrease in one variable causes an increase in the value of another. 
B) one in which an increase in one variable causes an increase in the value of 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 13

Macroeconomists study which of the following?

Accepted Answer

A) the impact of a change in consumer income on the sales of corn 
B) the most efficient means for General Motors to produce an automobile 
C) the impact of a snowstorm on the sales of snow shovels 
D) the effect of a change in income taxes on the nation's rate of unemployment 
A) the impact of a change in consumer income on the sales of corn 
B) the most efficient means for General Motors to produce an automobile 
C) the impact of a snowstorm on the sales of snow shovels 
D) the effect of a change in income taxes on the nation's rate of unemployment

Question 14

Giving money to a charity is rational behaviour as long as

Accepted Answer

A) you receive an income tax deduction for your donation. 
B) you are as wealthy as Bill Gates. 
C) you gain more satisfaction from the donation than from spending it on yourself or giving it to a different charity or person. 
D) the charity spends the money on a cause you support. 
A) you receive an income tax deduction for your donation. 
B) you are as wealthy as Bill Gates. 
C) you gain more satisfaction from the donation than from spending it on yourself or giving it to a different charity or person. 
D) the charity spends the money on a cause you support.

Question 15

Suppose you are the product manager for a prominent computer manufacturer.Your research indicates that equipping all new laptop computers with wireless communications will improve sales by $10 million but increase costs by $12 million.Should you go ahead and implement the wireless plan? Explain fully.

Accepted Answer

Although sales would rise,the increase i

Question 16

A decision made by a rational individual

Accepted Answer

A) never would make the person worse off than they would be following a different choice. 
B) would always make the person wealthier than any other decision. 
C) is identical to the decision that would be made by any other person facing the same choices. 
D) is made with the intention of making the person better off. 
A) never would make the person worse off than they would be following a different choice. 
B) would always make the person wealthier than any other decision. 
C) is identical to the decision that would be made by any other person facing the same choices. 
D) is made with the intention of making the person better off.

Question 17

Human resources that organize,manage,and assemble the other factors of production are called ________.

Accepted Answer

The answer of Human resources that organize,manage,and assemble the other...

Question 18

Which of the following is a normative economic statement?

Accepted Answer

A) The teenage unemployment rate is over 10 percent. 
B) An increase in the corporate income tax will cause the unemployment rate to increase. 
C) The costs of medical care are increasing faster than the incomes of Canadians. 
D) The teenage unemployment rate is too high. 
A) The teenage unemployment rate is over 10 percent. 
B) An increase in the corporate income tax will cause the unemployment rate to increase. 
C) The costs of medical care are increasing faster than the incomes of Canadians. 
D) The teenage unemployment rate is too high.

Question 19

Services can be thought of as

Accepted Answer

A) free goods. 
B) intangible goods. 
C) unvalued goods. 
D) unwanted goods. 
A) free goods. 
B) intangible goods. 
C) unvalued goods. 
D) unwanted goods.

Question 20

Normative economic analysis always involves

Accepted Answer

A) positive analysis. 
B) objective descriptions of the way things are. 
C) value judgments. 
D) testable if-then statements. 
A) positive analysis. 
B) objective descriptions of the way things are. 
C) value judgments. 
D) testable if-then statements.

Imagine (assume)you have just met someone who truly means it when they say they "have everything they could want." As a result,

Normative economic analysis always involves

Human capital includes

The income that is earned by entrepreneurs is ________.

A line with a negative slope shows a relationship in which

Figure 1A-1 Slopes -In Figure 1A-1,the slope of the line passing through point A is

Macroeconomics is concerned with

An economic theory is also known as an economic ________.

Economics can usefully be defined as

Good economic models

Economists do NOT refer to individual resources (such as oil)as scarce because ________.

An inverse relationship between two variables is

Macroeconomists study which of the following?

Giving money to a charity is rational behaviour as long as

A decision made by a rational individual

Human resources that organize,manage,and assemble the other factors of production are called ________.

Which of the following is a normative economic statement?

Services can be thought of as

Normative economic analysis always involves

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

Imagine (assume)you have just met someone who truly means it when they say they "have everything they could want." As a result,

Normative economic analysis always involves

Human capital includes

The income that is earned by entrepreneurs is ________.

A line with a negative slope shows a relationship in which

Figure 1A-1 Slopes -In Figure 1A-1,the slope of the line passing through point A is

Macroeconomics is concerned with

An economic theory is also known as an economic ________.

Economics can usefully be defined as

Good economic models

Economists do NOT refer to individual resources (such as oil)as scarce because ________.

An inverse relationship between two variables is

Macroeconomists study which of the following?

Giving money to a charity is rational behaviour as long as

A decision made by a rational individual

Human resources that organize,manage,and assemble the other factors of production are called ________.

Which of the following is a normative economic statement?

Services can be thought of as

Normative economic analysis always involves

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