Question 1

An economic model is tested by

Accepted Answer

A) examining the realism of its assumptions. 
B) comparing its predictions with the facts. 
C) comparing its complexity to other models that deal with similar issues. 
D) the Testing Committee of the Canadian Economic Association. 
E) comparing its descriptions and examining the realism of its assumptions. 
A) examining the realism of its assumptions. 
B) comparing its predictions with the facts. 
C) comparing its complexity to other models that deal with similar issues. 
D) the Testing Committee of the Canadian Economic Association. 
E) comparing its descriptions and examining the realism of its assumptions. B

Question 2

When a firm decides to produce computers using robots instead of people,it is answering the ________ question.

Accepted Answer

A) "what" 
B) "where" 
C) "how" 
D) "who" 
E) "when" 
A) "what" 
B) "where" 
C) "how" 
D) "who" 
E) "when" C

Question 3

Which one of the following topics does microeconomics study?

Accepted Answer

A) reasons for a fall in the price of orange juice 
B) the effect of a rise in the Canadian dollar on Canada's exports 
C) effect of interest rates on national economic growth 
D) effect of the government budget deficit on employment 
E) determination of total production in a country 
A) reasons for a fall in the price of orange juice 
B) the effect of a rise in the Canadian dollar on Canada's exports 
C) effect of interest rates on national economic growth 
D) effect of the government budget deficit on employment 
E) determination of total production in a country A

Question 4

Which of the following is a normative statement?

Accepted Answer

A) Next year's inflation rate will be under 4 percent. 
B) Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer. 
C) Government cuts in welfare spending impose an unfair hardship on the poor. 
D) A wheat shortage or surplus is always the result of federal government policies. 
E) Hurricane Irma caused more damage in the United States than Hurricane Harvey. 
A) Next year's inflation rate will be under 4 percent. 
B) Consumers will buy more gasoline over the December holiday period than they bought during the summer holiday period even if the price of gas is 10 cents a litre higher than it was during the summer. 
C) Government cuts in welfare spending impose an unfair hardship on the poor. 
D) A wheat shortage or surplus is always the result of federal government policies. 
E) Hurricane Irma caused more damage in the United States than Hurricane Harvey.

Question 5

The two big economic questions include all of the following except

Accepted Answer

A) what to produce. 
B) why to produce. 
C) how to produce. 
D) for whom to produce. 
E) a determination of whether the pursuit of self-interest also promotes the social interest. 
A) what to produce. 
B) why to produce. 
C) how to produce. 
D) for whom to produce. 
E) a determination of whether the pursuit of self-interest also promotes the social interest.

Question 6

Use the figure below to answer the following questions.   Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor: Price (dollars per case)
  Refer to Figure 1A.4.5.Which line shows the relationship of cola sales and the temperature when the price of a case is $15.00?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
E) none of the above. 
A) A 
B) B 
C) C 
D) D 
E) none of the above.

Question 7

Which one of the following is an example of capital as a factor of production?

Accepted Answer

A) money held by Tim Hortons 
B) a Bell Canada bond 
C) an automobile factory owned by Ford 
D) a high school teacher 
E) natural gas 
A) money held by Tim Hortons 
B) a Bell Canada bond 
C) an automobile factory owned by Ford 
D) a high school teacher 
E) natural gas

Question 8

Which of the following statements is normative?

Accepted Answer

A) Scientists should not make normative statements. 
B) Warts are caused by handling toads. 
C) As e-book prices fall,people buy more of them. 
D) If income increases,sales of luxury goods fall. 
E) There is more caffeine in a cup of tea than in a cup of coffee. 
A) Scientists should not make normative statements. 
B) Warts are caused by handling toads. 
C) As e-book prices fall,people buy more of them. 
D) If income increases,sales of luxury goods fall. 
E) There is more caffeine in a cup of tea than in a cup of coffee.

Question 9

"The rich should face higher income tax rates than the poor." This is an example of

Accepted Answer

A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) economic reasoning. 
E) neither a normative nor a positive statement. 
A) a normative statement. 
B) a positive statement. 
C) a negative statement. 
D) economic reasoning. 
E) neither a normative nor a positive statement.

Question 10

Use the information below to answer the following question.
Fact 1.3.1 Costs Soar for London Olympics
The regeneration of East London,the site of the 2012 Olympic Games,is set to add extra £1.5 billion to taxpayers' bill.
Source: The Times,London,July 6,2006
-Refer to Fact 1.3.1.The cost of regenerating East London ________ an opportunity cost of hosting the 2012 Olympic Games ________.

Accepted Answer

A) is not;because few people attending the 2012 Olympics will spend much time outside Olympic venues 
B) is;if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics 
C) is;if the regeneration of East London would not occur unless London hosted the 2012 Olympics 
D) is not;because regenerating East London is an unnecessary expense 
E) is;if the property taxes of people living in East London increase 
A) is not;because few people attending the 2012 Olympics will spend much time outside Olympic venues 
B) is;if the costs of the East London regeneration is equal to a significant percentage of the total amount spent by London taxpayers to host the 2012 Olympics 
C) is;if the regeneration of East London would not occur unless London hosted the 2012 Olympics 
D) is not;because regenerating East London is an unnecessary expense 
E) is;if the property taxes of people living in East London increase

Question 11

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

Accepted Answer

A) Canada should cut back on its use of carbon-based fuels such as coal and oil. 
B) Increasing the minimum wage results in more unemployment. 
C) Every Canadian should have equal access to healthcare. 
D) The Bank of Canada ought to cut the interest rate. 
E) Canada should have lower tax rates for wealthier Canadians. 
A) Canada should cut back on its use of carbon-based fuels such as coal and oil. 
B) Increasing the minimum wage results in more unemployment. 
C) Every Canadian should have equal access to healthcare. 
D) The Bank of Canada ought to cut the interest rate. 
E) Canada should have lower tax rates for wealthier Canadians.

Question 12

Which of the following would be considered a microeconomic topic?

Accepted Answer

A) the severity of a recession 
B) the cause of unemployment in the economy 
C) the effect of the government budget deficit on inflation 
D) the determination of aggregate income 
E) the study of how wages are set for mine workers 
A) the severity of a recession 
B) the cause of unemployment in the economy 
C) the effect of the government budget deficit on inflation 
D) the determination of aggregate income 
E) the study of how wages are set for mine workers

Question 13

Use the table below to answer the following questions.
Table 1A.3.3
  
-Refer to Table 1A.3.3.When x equals 5,

Accepted Answer

A) y is at a maximum. 
B) y is at a minimum. 
C) the slope is positive. 
D) the slope is negative. 
E) the slope is first positive and then becomes negative. 
A) y is at a maximum. 
B) y is at a minimum. 
C) the slope is positive. 
D) the slope is negative. 
E) the slope is first positive and then becomes negative.

Question 14

Use the figure below to answer the following questions.   Figure 1A.2.1
-Refer to Figure 1A.2.1.Which graph or graphs indicates no relationship between x and y?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (c)and (d) 
E) (a)and (b) 
A) (a) 
B) (b) 
C) (c) 
D) (c)and (d) 
E) (a)and (b)

Question 15

Use the figure below to answer the following questions.   Figure 1A.3.4
-Refer to Figure 1A.3.4.In Figure 1A.3.4,the slope at point B

Accepted Answer

A) lies between -2/3 and -1. 
B) lies between -3/4 and -3/2. 
C) lies between -2/3 and -4/3. 
D) lies between 1 and 3/2. 
E) is greater than 3/2. 
A) lies between -2/3 and -1. 
B) lies between -3/4 and -3/2. 
C) lies between -2/3 and -4/3. 
D) lies between 1 and 3/2. 
E) is greater than 3/2.

Question 16

Use the table below to answer the following question.
Table 1A.2.1  
-The data in Table 1A.2.1 shows that

Accepted Answer

A) x and y have a negative relationship. 
B) x and y have a positive relationship. 
C) there is no relationship between x and y. 
D) there is first a negative and then a positive relationship between x and y. 
E) there is first a positive and then a negative relationship between x and y. 
A) x and y have a negative relationship. 
B) x and y have a positive relationship. 
C) there is no relationship between x and y. 
D) there is first a negative and then a positive relationship between x and y. 
E) there is first a positive and then a negative relationship between x and y.

Question 17

To make choices,people must

Accepted Answer

A) be risk-takers. 
B) have unlimited resources. 
C) be free from government constraint. 
D) have unlimited access to information at no cost. 
E) evaluate the values of alternative actions. 
A) be risk-takers. 
B) have unlimited resources. 
C) be free from government constraint. 
D) have unlimited access to information at no cost. 
E) evaluate the values of alternative actions.

Question 18

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You ________ a tradeoff and the opportunity cost of your evening at the movies was ________.

Accepted Answer

A) faced;the 15 percent fall in your grade 
B) did not face;zero 
C) did not face;the 15 percent fall in your grade 
D) faced;the mark of 60 percent on your test 
E) faced;the 75 percent that you normally score 
A) faced;the 15 percent fall in your grade 
B) did not face;zero 
C) did not face;the 15 percent fall in your grade 
D) faced;the mark of 60 percent on your test 
E) faced;the 75 percent that you normally score

Question 19

Which of the following would an economist classify as capital?

Accepted Answer

A) natural resources 
B) a deposit of silver 
C) entrepreneurship 
D) a computer 
E) land 
A) natural resources 
B) a deposit of silver 
C) entrepreneurship 
D) a computer 
E) land

Question 20

The branch of economics that studies the performance of the national economy and the global economy is

Accepted Answer

A) macroeconomics. 
B) microeconomics. 
C) Keynesian economics. 
D) positive economics. 
E) normative economics. 
A) macroeconomics. 
B) microeconomics. 
C) Keynesian economics. 
D) positive economics. 
E) normative economics.

An economic model is tested by

When a firm decides to produce computers using robots instead of people,it is answering the ________ question.

Which one of the following topics does microeconomics study?

Which of the following is a normative statement?

The two big economic questions include all of the following except

Which one of the following is an example of capital as a factor of production?

Which of the following statements is normative?

"The rich should face higher income tax rates than the poor." This is an example of

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

Which of the following would be considered a microeconomic topic?

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3.When x equals 5,

Use the figure below to answer the following questions. Figure 1A.2.1 -Refer to Figure 1A.2.1.Which graph or graphs indicates no relationship between x and y?

Use the figure below to answer the following questions. Figure 1A.3.4 -Refer to Figure 1A.3.4.In Figure 1A.3.4,the slope at point B

Use the table below to answer the following question. Table 1A.2.1 -The data in Table 1A.2.1 shows that

To make choices,people must

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .

Which of the following would an economist classify as capital?

The branch of economics that studies the performance of the national economy and the global economy is

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 1: What Is Economics

An economic model is tested by

When a firm decides to produce computers using robots instead of people,it is answering the ________ question.

Which one of the following topics does microeconomics study?

Which of the following is a normative statement?

The two big economic questions include all of the following except

Which one of the following is an example of capital as a factor of production?

Which of the following statements is normative?

"The rich should face higher income tax rates than the poor." This is an example of

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

Which of the following would be considered a microeconomic topic?

Use the table below to answer the following questions. Table 1A.3.3 -Refer to Table 1A.3.3.When x equals 5,

Use the figure below to answer the following questions. Figure 1A.2.1 -Refer to Figure 1A.2.1.Which graph or graphs indicates no relationship between x and y?

Use the figure below to answer the following questions. Figure 1A.3.4 -Refer to Figure 1A.3.4.In Figure 1A.3.4,the slope at point B

Use the table below to answer the following question. Table 1A.2.1 -The data in Table 1A.2.1 shows that

To make choices,people must

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You ________ a tradeoff and the opportunity cost of your evening at the movies was ________.

Which of the following would an economist classify as capital?

The branch of economics that studies the performance of the national economy and the global economy is

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

The night before a history test,you decide to go to the movies instead of reviewing your notes.You get 60 percent on your test compared with the 75 percent that you normally score.You a tradeoff and the opportunity cost of your evening at the movies was .