Question 1

A macroeconomist would be most likely to study

Accepted Answer

A) the effects of changing apple prices on the market for oranges. 
B) the effect of increased union wages on the cost of producing automobiles. 
C) the effects of an increase in wage rates on a woman's decision to enter the labour force. 
D) the effects of a reduction in income tax rates on the nation's output. 
A) the effects of changing apple prices on the market for oranges. 
B) the effect of increased union wages on the cost of producing automobiles. 
C) the effects of an increase in wage rates on a woman's decision to enter the labour force. 
D) the effects of a reduction in income tax rates on the nation's output.

Question 2

Physical capital includes

Accepted Answer

A) training programs for workers. 
B) improvements to natural resources. 
C) money. 
D) natural resources. 
A) training programs for workers. 
B) improvements to natural resources. 
C) money. 
D) natural resources.

Question 3

Normative economic statements

Accepted Answer

A) always contain value judgments. 
B) violate the law of ceteris paribus. 
C) are easily testable. 
D) are usually wrong. 
A) always contain value judgments. 
B) violate the law of ceteris paribus. 
C) are easily testable. 
D) are usually wrong.

Question 4

Which of the following is an example of normative economic statement?

Accepted Answer

A) Labour unions should be allowed to organize in every industry. 
B) When the price of gasoline goes up,people buy less. 
C) Increases in consumer spending generate more jobs. 
D) Government intervention in markets is common in many countries. 
A) Labour unions should be allowed to organize in every industry. 
B) When the price of gasoline goes up,people buy less. 
C) Increases in consumer spending generate more jobs. 
D) Government intervention in markets is common in many countries.

Question 5

Figure 1A-2 Slope  
-In Figure 1A-2,the slope of the solid line passing through point B is

Accepted Answer

A) 1 
B) 1 2/3 
C) - 1 
D) 0)6 
A) 1 
B) 1 2/3 
C) - 1 
D) 0)6

Question 6

"Wants" are

Accepted Answer

A) another term for needs. 
B) all the things people would consume if they had unlimited incomes. 
C) the things people consume with their current incomes. 
D) all the things people really need in order to live comfortably. 
A) another term for needs. 
B) all the things people would consume if they had unlimited incomes. 
C) the things people consume with their current incomes. 
D) all the things people really need in order to live comfortably.

Question 7

Steve and Karen decide to attend the same concert when each is given a free ticket to it.We know that

Accepted Answer

A) both bear the same opportunity cost because they are making the same choice. 
B) both bear the same opportunity cost because the tickets have the same face value. 
C) both bear an opportunity cost but the its value depends on what each person is giving up to attend the concert. 
D) neither bears an opportunity cost since the tickets were given to them for free. 
A) both bear the same opportunity cost because they are making the same choice. 
B) both bear the same opportunity cost because the tickets have the same face value. 
C) both bear an opportunity cost but the its value depends on what each person is giving up to attend the concert. 
D) neither bears an opportunity cost since the tickets were given to them for free.

Question 8

In economics,things that are used to produce goods and services are known as

Accepted Answer

A) resources. 
B) money. 
C) stocks. 
D) aggregates. 
A) resources. 
B) money. 
C) stocks. 
D) aggregates.

Question 9

Which statement most accurately defines economics?

Accepted Answer

A) Economics is the study of how to eliminate scarcity. 
B) Economics is the study of values a society should live by. 
C) Economics is the study of how people make choices to satisfy their wants. 
D) Economics is the study of how people make money. 
A) Economics is the study of how to eliminate scarcity. 
B) Economics is the study of values a society should live by. 
C) Economics is the study of how people make choices to satisfy their wants. 
D) Economics is the study of how people make money.

Question 10

Sam Slapshot graduates from college with a choice of playing professional hockey at $2 million a year or (his best alternative)coaching for $50,000 a year.He decides to play hockey,but eight years later he quits as a player to make movies for $3 million a year.His opportunity cost at graduation was ________ and eight years later was ________.

Accepted Answer

A) $2 million;$2 million 
B) $2 million;$3 million 
C) $50,000;$2 million 
D) $50,000;$50,000 
A) $2 million;$2 million 
B) $2 million;$3 million 
C) $50,000;$2 million 
D) $50,000;$50,000

Question 11

In economic language,when a resource is used to produce output it is referred to as a ________.

Accepted Answer

factor of

A macroeconomist would be most likely to study

Physical capital includes

Normative economic statements

Which of the following is an example of normative economic statement?

Figure 1A-2 Slope -In Figure 1A-2,the slope of the solid line passing through point B is

"Wants" are

Steve and Karen decide to attend the same concert when each is given a free ticket to it.We know that

In economics,things that are used to produce goods and services are known as

Which statement most accurately defines economics?

In economic language,when a resource is used to produce output it is referred to as a ________.

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

A macroeconomist would be most likely to study

Physical capital includes

Normative economic statements

Which of the following is an example of normative economic statement?

Figure 1A-2 Slope -In Figure 1A-2,the slope of the solid line passing through point B is

"Wants" are

Steve and Karen decide to attend the same concert when each is given a free ticket to it.We know that

In economics,things that are used to produce goods and services are known as

Which statement most accurately defines economics?

In economic language,when a resource is used to produce output it is referred to as a ________.

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