Question 1

The usefulness of a model is determined by ________.

Accepted Answer

whether it yields us

Question 2

A widely accepted socio-economic goal is

Accepted Answer

A) unemployment. 
B) inefficiency. 
C) economic growth. 
D) inflation. 
A) unemployment. 
B) inefficiency. 
C) economic growth. 
D) inflation.

Question 3

Suppose you have four choices go to a movie,read a book,watch television,or go to a concert.You choose to go to a movie.The opportunity cost of the movie is ________.

Accepted Answer

the value of the act

Question 4

To be useful,an economic model must

Accepted Answer

A) predict accurately all of the time. 
B) predict more accurately than other models developed to analyse the same phenomena. 
C) explain and predict the behaviour of every individual consumer or business. 
D) only include assumptions that have been verified by empirical testing. 
A) predict accurately all of the time. 
B) predict more accurately than other models developed to analyse the same phenomena. 
C) explain and predict the behaviour of every individual consumer or business. 
D) only include assumptions that have been verified by empirical testing.

Question 5

One area of study within microeconomics would be

Accepted Answer

A) the effects of inflation. 
B) the effects of government spending. 
C) the effects on a producer of an increase in the price of labour. 
D) aggregate demand for goods and services. 
A) the effects of inflation. 
B) the effects of government spending. 
C) the effects on a producer of an increase in the price of labour. 
D) aggregate demand for goods and services.

Question 6

Fred and Ann both decide to see the same movie when they are given free tickets to it.We know that

Accepted Answer

A) both bear the same opportunity cost since they are doing the same thing. 
B) the cost of going to the movie is greater for the one who had more choices to do other things. 
C) both bear an opportunity cost since they could have done other things instead of see the movie. 
D) neither bear an opportunity cost because the tickets were free. 
A) both bear the same opportunity cost since they are doing the same thing. 
B) the cost of going to the movie is greater for the one who had more choices to do other things. 
C) both bear an opportunity cost since they could have done other things instead of see the movie. 
D) neither bear an opportunity cost because the tickets were free.

Question 7

Economists rarely refer to "needs" even though non-economists routinely use that term.Explain why economists prefer not to do so..

Accepted Answer

When people use the word "need" they usu

Question 8

When an economist refers to land as a factor of production,land includes

Accepted Answer

A) all natural resources. 
B) only land that has been cleared for farming. 
C) only land that has buildings on it. 
D) only land that has valuable timber on it. 
A) all natural resources. 
B) only land that has been cleared for farming. 
C) only land that has buildings on it. 
D) only land that has valuable timber on it.

Question 9

Why do economists always mean "opportunity cost" even when they just refer to "cost"?

Accepted Answer

In analysing choice,the only cost that m

Question 10

The economic model of crime

Accepted Answer

A) is not scientific because it is so highly simplified. 
B) is not scientific because it cannot be replicated in a laboratory. 
C) cannot be used to predict real-world behaviour because it assumes criminals are rational 
D) can have details added to it in order to predict behaviour not included in the simple model. 
A) is not scientific because it is so highly simplified. 
B) is not scientific because it cannot be replicated in a laboratory. 
C) cannot be used to predict real-world behaviour because it assumes criminals are rational 
D) can have details added to it in order to predict behaviour not included in the simple model.

Question 11

The opportunity cost of missing an economics class and going skiing for the day in fresh powder snow is

Accepted Answer

A) the amount by which your course grade falls as a result of missing the class. 
B) the satisfaction you lose because your course grade will be lower as a result of missing the class. 
C) the wages you could have earned that day at your part-time job had you not gone skiing. 
D) the value of whatever would have been the best use of your day other than going skiing. 
A) the amount by which your course grade falls as a result of missing the class. 
B) the satisfaction you lose because your course grade will be lower as a result of missing the class. 
C) the wages you could have earned that day at your part-time job had you not gone skiing. 
D) the value of whatever would have been the best use of your day other than going skiing.

Question 12

The goal of legislation aimed at lowering the use of marijuana in Canada is best described as

Accepted Answer

A) positive. 
B) normative. 
C) scientific. 
D) legislative. 
A) positive. 
B) normative. 
C) scientific. 
D) legislative.

Question 13

Using the ceteris paribus condition involves

Accepted Answer

A) making all necessary adjustments to a model. 
B) simplifying a model by removing unnecessary assumptions. 
C) analyzing a cause-and-effect relationship. 
D) holding all things constant. 
A) making all necessary adjustments to a model. 
B) simplifying a model by removing unnecessary assumptions. 
C) analyzing a cause-and-effect relationship. 
D) holding all things constant.

Question 14

Holding all variables but one constant and assessing the impact of the one variable which has changed is an example of using

Accepted Answer

A) Keynesian economic analysis. 
B) an untestable proposition. 
C) the ceteris paribus assumption. 
D) the assumption of self-interest. 
A) Keynesian economic analysis. 
B) an untestable proposition. 
C) the ceteris paribus assumption. 
D) the assumption of self-interest.

Question 15

Scarcity means

Accepted Answer

A) not being able to satisfy all of everyone's needs. 
B) not being able to satisfy all of everyone's wants. 
C) having too little of a product to serve all customers who wish to buy it. 
D) the same thing as shortage. 
A) not being able to satisfy all of everyone's needs. 
B) not being able to satisfy all of everyone's wants. 
C) having too little of a product to serve all customers who wish to buy it. 
D) the same thing as shortage.

Question 16

An example of an economic model is

Accepted Answer

A) a predicted change in the price of a stock. 
B) the rate of teenage unemployment. 
C) an explanation of crime rates based on unemployment rates and prison sentences. 
D) a forecast of next year's unemployment and inflation rates. 
A) a predicted change in the price of a stock. 
B) the rate of teenage unemployment. 
C) an explanation of crime rates based on unemployment rates and prison sentences. 
D) a forecast of next year's unemployment and inflation rates.

Question 17

Which of the following statements about economic models is TRUE?

Accepted Answer

A) Economic models are designed so that every detail of the real world can be analysed. 
B) Economic models are not empirically testable. 
C) Every economic model is based on a set of assumptions. 
D) The predictive power of models is not particularly important. 
A) Economic models are designed so that every detail of the real world can be analysed. 
B) Economic models are not empirically testable. 
C) Every economic model is based on a set of assumptions. 
D) The predictive power of models is not particularly important.

Question 18

One topic of study for a microeconomist would be

Accepted Answer

A) the effects of an increase in the price of gasoline on sales of gasoline 
B) the effects of an increase in government spending on unemployment levels 
C) the causes of aggregate unemployment 
D) the causes of inflation 
A) the effects of an increase in the price of gasoline on sales of gasoline 
B) the effects of an increase in government spending on unemployment levels 
C) the causes of aggregate unemployment 
D) the causes of inflation

Question 19

Economics is an empirical science because

Accepted Answer

A) economic analysis is only useful in a capitalistic society. 
B) economic models have no predictive power. 
C) economists use real-world evidence to test their models. 
D) economists use assumptions in their models. 
A) economic analysis is only useful in a capitalistic society. 
B) economic models have no predictive power. 
C) economists use real-world evidence to test their models. 
D) economists use assumptions in their models.

Question 20

Scarcity exists because human wants ________.

Accepted Answer

are greater than can

The usefulness of a model is determined by ________.

A widely accepted socio-economic goal is

Suppose you have four choices go to a movie,read a book,watch television,or go to a concert.You choose to go to a movie.The opportunity cost of the movie is ________.

To be useful,an economic model must

One area of study within microeconomics would be

Fred and Ann both decide to see the same movie when they are given free tickets to it.We know that

Economists rarely refer to "needs" even though non-economists routinely use that term.Explain why economists prefer not to do so..

When an economist refers to land as a factor of production,land includes

Why do economists always mean "opportunity cost" even when they just refer to "cost"?

The economic model of crime

The opportunity cost of missing an economics class and going skiing for the day in fresh powder snow is

The goal of legislation aimed at lowering the use of marijuana in Canada is best described as

Using the ceteris paribus condition involves

Holding all variables but one constant and assessing the impact of the one variable which has changed is an example of using

Scarcity means

An example of an economic model is

Which of the following statements about economic models is TRUE?

One topic of study for a microeconomist would be

Economics is an empirical science because

Scarcity exists because human wants ________.

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

The usefulness of a model is determined by ________.

A widely accepted socio-economic goal is

Suppose you have four choices go to a movie,read a book,watch television,or go to a concert.You choose to go to a movie.The opportunity cost of the movie is ________.

To be useful,an economic model must

One area of study within microeconomics would be

Fred and Ann both decide to see the same movie when they are given free tickets to it.We know that

Economists rarely refer to "needs" even though non-economists routinely use that term.Explain why economists prefer not to do so..

When an economist refers to land as a factor of production,land includes

Why do economists always mean "opportunity cost" even when they just refer to "cost"?

The economic model of crime

The opportunity cost of missing an economics class and going skiing for the day in fresh powder snow is

The goal of legislation aimed at lowering the use of marijuana in Canada is best described as

Using the ceteris paribus condition involves

Holding all variables but one constant and assessing the impact of the one variable which has changed is an example of using

Scarcity means

An example of an economic model is

Which of the following statements about economic models is TRUE?

One topic of study for a microeconomist would be

Economics is an empirical science because

Scarcity exists because human wants ________.

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