Question 1

Constructing an economic model requires all of the following except:

Accepted Answer

A) explicit assumptions. 
B) empirical tests of deductions. 
C) predictions deduced from assumptions. 
D) comparison with other economic models. 
A) explicit assumptions. 
B) empirical tests of deductions. 
C) predictions deduced from assumptions. 
D) comparison with other economic models.

Question 2

Suppose that two book stores are located at a = 1/4 and b = 5/8. What is the point of market segmentation according to Harold Hotelling's model?

Accepted Answer

A) 1/3 
B) 7/16 
C) 9/16 
D) 1/2 
A) 1/3 
B) 7/16 
C) 9/16 
D) 1/2

Question 3

Common property problems occur so frequently because:

Accepted Answer

A) Canadians are concerned with the social implications of economic activity. 
B) property systems are highly interdependent. 
C) people are greedy. 
D) oil extraction and fisheries play a prominent role in the Canadian economy. 
A) Canadians are concerned with the social implications of economic activity. 
B) property systems are highly interdependent. 
C) people are greedy. 
D) oil extraction and fisheries play a prominent role in the Canadian economy.

Question 4

The market reaches the equilibrium because:

Accepted Answer

A) the government indicates the equilibrium price and quantity. 
B) of luck. 
C) the market forces will push prices up or down until quantity supplied equals quantity demanded. 
D) entrepreneurs know their way around. 
A) the government indicates the equilibrium price and quantity. 
B) of luck. 
C) the market forces will push prices up or down until quantity supplied equals quantity demanded. 
D) entrepreneurs know their way around.

Question 5

Normative economics:

Accepted Answer

A) tells us what has been, is, and will be. 
B) is concerned with value judgments. 
C) determines which social state is most desirable. 
D) establishes fixed standards for behaviour. 
A) tells us what has been, is, and will be. 
B) is concerned with value judgments. 
C) determines which social state is most desirable. 
D) establishes fixed standards for behaviour.

Question 6

An equilibrium is determined by all of the following except:

Accepted Answer

A) government directives to produce particular goods. 
B) relationships among endogenous variables. 
C) equality between the quantities demanded and supplied. 
D) intersection of a demand curve and a supply curve. 
A) government directives to produce particular goods. 
B) relationships among endogenous variables. 
C) equality between the quantities demanded and supplied. 
D) intersection of a demand curve and a supply curve.

Question 7

Discuss the following remark from an economist's point of view: "Safe driving is the only concern in today's busy streets."

Accepted Answer

An economist would realize instantly tha

Question 8

The building blocks of the economy are the following except:

Accepted Answer

A) resource endowments. 
B) international trade. 
C) preferences of individuals. 
D) technology. 
A) resource endowments. 
B) international trade. 
C) preferences of individuals. 
D) technology.

Question 9

The only way to eliminate all competition from social life would be through:

Accepted Answer

A) eliminating all scarcity. 
B) abolishing money. 
C) eliminating all selfishness. 
D) giving government the power to control everything. 
A) eliminating all scarcity. 
B) abolishing money. 
C) eliminating all selfishness. 
D) giving government the power to control everything.

Question 10

Suppose that you found a trade that made you better off but no one else would be made worse off. From this information, we can tell that::

Accepted Answer

A) the new social state is not Pareto optimal 
B) the new social state is Pareto optimal 
C) the previous social state was not Pareto optimal 
D) the previous social state was Pareto optimal 
A) the new social state is not Pareto optimal 
B) the new social state is Pareto optimal 
C) the previous social state was not Pareto optimal 
D) the previous social state was Pareto optimal

Question 11

Assumptions characterising an economic model need to be:

Accepted Answer

A) numerous. 
B) implicit. 
C) realistic. 
D) simple. 
A) numerous. 
B) implicit. 
C) realistic. 
D) simple.

Question 12

A social state is:

Accepted Answer

A) membership in the Social Register. 
B) a society whose government follows socialist precepts. 
C) a specific allocation of goods to individuals. 
D) a society which chooses to have many social events. 
A) membership in the Social Register. 
B) a society whose government follows socialist precepts. 
C) a specific allocation of goods to individuals. 
D) a society which chooses to have many social events.

Question 13

Economics is:

Accepted Answer

A) the study of how to make money on the stock market. 
B) the study of consumer preferences. 
C) a tough subject matter. 
D) the study of the allocation of scarce resources to the production of alternative goods. 
A) the study of how to make money on the stock market. 
B) the study of consumer preferences. 
C) a tough subject matter. 
D) the study of the allocation of scarce resources to the production of alternative goods.

Question 14

Which of the following is not part of economics?

Accepted Answer

A) an increased individual wealth 
B) the production of goods and services 
C) among alternative uses 
D) allocation of scarce resources 
A) an increased individual wealth 
B) the production of goods and services 
C) among alternative uses 
D) allocation of scarce resources

Question 15

Explain how the resource endowment is important for an economy. Does that mean that an economy with no significant natural resources has little chances to do well?

Accepted Answer

Since producing goods and services requi

Question 16

The circular flow diagram:

Accepted Answer

A) focuses on the flow of knowledge. 
B) abstracts from the complexity of the real life economies. 
C) does not include the resource markets and goods markets. 
D) is not concerned with the interaction of individuals and firms in the economy. 
A) focuses on the flow of knowledge. 
B) abstracts from the complexity of the real life economies. 
C) does not include the resource markets and goods markets. 
D) is not concerned with the interaction of individuals and firms in the economy.

Question 17

Define cost- benefit analysis and discuss a couple of its limitations .

Accepted Answer

The cost- benefit analysis trades off ga

Question 18

The Pareto criterion selects a social state by finding:

Accepted Answer

A) the profit stores would earn in each social state. 
B) the welfare budget required to support indigent people in each social state. 
C) whether at least one person is better off than in other social states. 
D) the number of people who would vote for each social state. 
A) the profit stores would earn in each social state. 
B) the welfare budget required to support indigent people in each social state. 
C) whether at least one person is better off than in other social states. 
D) the number of people who would vote for each social state.

Question 19

Comment on the following statement: "Pure positive economic analysis does not exist. In building their models economists use some of the inherent biases they possess."

Accepted Answer

This statement indicates that a purely o

Question 20

Institutions exclude:

Accepted Answer

A) ministry of industry. 
B) social customs. 
C) the common law. 
D) religious orders. 
A) ministry of industry. 
B) social customs. 
C) the common law. 
D) religious orders.

Constructing an economic model requires all of the following except:

Suppose that two book stores are located at a = 1/4 and b = 5/8. What is the point of market segmentation according to Harold Hotelling's model?

Common property problems occur so frequently because:

The market reaches the equilibrium because:

Normative economics:

An equilibrium is determined by all of the following except:

Discuss the following remark from an economist's point of view: "Safe driving is the only concern in today's busy streets."

The building blocks of the economy are the following except:

The only way to eliminate all competition from social life would be through:

Suppose that you found a trade that made you better off but no one else would be made worse off. From this information, we can tell that::

Assumptions characterising an economic model need to be:

A social state is:

Economics is:

Which of the following is not part of economics?

Explain how the resource endowment is important for an economy. Does that mean that an economy with no significant natural resources has little chances to do well?

The circular flow diagram:

Define cost- benefit analysis and discuss a couple of its limitations .

The Pareto criterion selects a social state by finding:

Comment on the following statement: "Pure positive economic analysis does not exist. In building their models economists use some of the inherent biases they possess."

Institutions exclude:

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters

Exam 1: Microeconomics: a Working Methodology

Constructing an economic model requires all of the following except:

Suppose that two book stores are located at a = 1/4 and b = 5/8. What is the point of market segmentation according to Harold Hotelling's model?

Common property problems occur so frequently because:

The market reaches the equilibrium because:

Normative economics:

An equilibrium is determined by all of the following except:

Discuss the following remark from an economist's point of view: "Safe driving is the only concern in today's busy streets."

The building blocks of the economy are the following except:

The only way to eliminate all competition from social life would be through:

Suppose that you found a trade that made you better off but no one else would be made worse off. From this information, we can tell that::

Assumptions characterising an economic model need to be:

A social state is:

Economics is:

Which of the following is not part of economics?

Explain how the resource endowment is important for an economy. Does that mean that an economy with no significant natural resources has little chances to do well?

The circular flow diagram:

Define cost- benefit analysis and discuss a couple of its limitations .

The Pareto criterion selects a social state by finding:

Comment on the following statement: "Pure positive economic analysis does not exist. In building their models economists use some of the inherent biases they possess."

Institutions exclude:

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Introduction to Game Theory

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters