Question 1

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

Accepted Answer

A)  advising Parliament 
B)  designing tax policy 
C)  writing the annual Economic Report 
D)  studying the relationship between average wages and gender 
A)  advising Parliament 
B)  designing tax policy 
C)  writing the annual Economic Report 
D)  studying the relationship between average wages and gender

Question 2

A production possibilities frontier is a graph that shows the various combinations of outputs the economy can possibly produce given its factors of production and technology.

Accepted Answer

A) True 
 B)False

Question 3

In a simple circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Accepted Answer

A) True 
 B)False

Question 4

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of fire trucks from 0 to 200?

Accepted Answer

A)  50 dolls 
B)  100 dolls 
C)  150 dolls 
D)  200 dolls 
A)  50 dolls 
B)  100 dolls 
C)  150 dolls 
D)  200 dolls

Question 5

Draw a production possibilities frontier showing increasing opportunity cost for hammers and horseshoes.
a. On the graph, identify the area of feasible outcomes and the area of unfeasible outcomes.
b. On the graph, label a point that is efficient as point E and a point that is inefficient as point I.
c. On the graph, illustrate the effect of the discovery of a new vein of iron ore, a resource needed to make both horseshoes and hammers, on this economy.
d. On a separate graph for hammers and horseshoes, illustrate the effect a new computerized assembly line in the production of hammers would have.

Accepted Answer

The graph on the lef

Question 6

What is a duty of Human Resources Canada?

Accepted Answer

A)  to analyze data on workers 
B)  to design tax policy 
C)  to enforce the country's antitrust laws 
D)  to advise the Prime Minister 
A)  to analyze data on workers 
B)  to design tax policy 
C)  to enforce the country's antitrust laws 
D)  to advise the Prime Minister

Question 7

What do good economic models do?

Accepted Answer

A)  They often leave out important variables, causing serious errors. 
B)  They omit many details to allow us to see what is truly important. 
C)  They are designed to give a complete picture of a given relationship. 
D)  They leave economics to be interpreted in many ways by governments. 
A)  They often leave out important variables, causing serious errors. 
B)  They omit many details to allow us to see what is truly important. 
C)  They are designed to give a complete picture of a given relationship. 
D)  They leave economics to be interpreted in many ways by governments.

Question 8

In the factors of production market, how do households and firms interact?

Accepted Answer

A)  Households are sellers and firms are buyers. 
B)  Households are buyers and firms are sellers. 
C)  Households and firms are both buyers. 
D)  Households and firms are both sellers. 
A)  Households are sellers and firms are buyers. 
B)  Households are buyers and firms are sellers. 
C)  Households and firms are both buyers. 
D)  Households and firms are both sellers.

Question 9

Figure 2-9
  
-Refer to Figure 2-9. What is this type of graph known as?

Accepted Answer

A)  a time-series graph 
B)  a bar graph 
C)  a scatterplot graph 
D)  a pie chart 
A)  a time-series graph 
B)  a bar graph 
C)  a scatterplot graph 
D)  a pie chart

Question 10

If Jake chooses to buy fewer pizzas per month at each price, what will happen to his demand curve?

Accepted Answer

A)  It will shift inward. 
B)  It will shift outward. 
C)  It will not shift, but he will move along his demand curve from left to right. 
D)  It will not shift, but he will move along his demand curve from right to left. 
A)  It will shift inward. 
B)  It will shift outward. 
C)  It will not shift, but he will move along his demand curve from left to right. 
D)  It will not shift, but he will move along his demand curve from right to left.

Question 11

What is a coordinate system used for?

Accepted Answer

A)  to show the flow of income and products in an economic system 
B)  to organize labour and other resources in the production process 
C)  to allow economists to show two variables on a single graph 
D)  to teach economists how to draw graphs consistently 
A)  to show the flow of income and products in an economic system 
B)  to organize labour and other resources in the production process 
C)  to allow economists to show two variables on a single graph 
D)  to teach economists how to draw graphs consistently

Question 12

Why are production possibilities frontiers usually bowed outward?

Accepted Answer

A)  constant opportunity cost 
B)  increasing opportunity cost 
C)  decreasing opportunity cost 
D)  increasing productivity 
A)  constant opportunity cost 
B)  increasing opportunity cost 
C)  decreasing opportunity cost 
D)  increasing productivity

Question 13

On a production possibilities frontier, when is production efficient?

Accepted Answer

A)  if the production point is on the frontier 
B)  if the production point is outside the frontier 
C)  if the production point is on or inside the frontier 
D)  if the production point is inside the frontier 
A)  if the production point is on the frontier 
B)  if the production point is outside the frontier 
C)  if the production point is on or inside the frontier 
D)  if the production point is inside the frontier

Question 14

What do economists at Foreign Affairs Canada and International Trade Canada do?

Accepted Answer

A)  help negotiate trade agreements with other countries 
B)  offer advice on overseas economic development projects 
C)  analyze financial markets 
D)  compile databases on the economy 
A)  help negotiate trade agreements with other countries 
B)  offer advice on overseas economic development projects 
C)  analyze financial markets 
D)  compile databases on the economy

Question 15

In a simple circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 16

Figure 2-2
  
-Refer to Figure 2-2. Who owns the factors of production?

Accepted Answer

A)  Box A 
B)  Box B 
C)  Box C 
D)  Box D 
A)  Box A 
B)  Box B 
C)  Box C 
D)  Box D

Question 17

Figure 2-3
  
-Refer to Figure 2-3. Which point represents the maximum possible production of tubas?

Accepted Answer

A)  point A 
B)  point B 
C)  point C 
D)  point E 
A)  point A 
B)  point B 
C)  point C 
D)  point E

Question 18

The country of Econoland produces two goods:textbooks and widgets. Last year, it produced at a point inside its production possibilities frontier and currently it is operating at a point on the (same) production possibilities frontier. Which statement best explains the change?

Accepted Answer

A)  Econoland was originally experiencing unemployment but is now employing all its resources. 
B)  Econoland experienced an improvement in widget-making technology. 
C)  Econoland acquired more resources. 
D)  Econoland experienced a high level of emigration out of the country. 
A)  Econoland was originally experiencing unemployment but is now employing all its resources. 
B)  Econoland experienced an improvement in widget-making technology. 
C)  Econoland acquired more resources. 
D)  Econoland experienced a high level of emigration out of the country.

Question 19

Identify each of the following topics as being part of microeconomics or macroeconomics:?
a. the impact of a change in consumer income on the purchase of vacation properties?
b. the effect of a change in the price of eggs on the consumption of bacon?
c. the impact of a war in the Middle East on the rate of inflation in Canada?
d. factors influencing the rate of economic growth?
e. factors influencing the demand for cellphones?
f. the impact of tax policy on national saving?
g. the effect of pollution taxes on the Canadian coal industry?
h. the degree of competition in the airline industry?
i. the effect of an increase in the money supply on interest rates?
j. the impact of deregulation on the financial industry

Accepted Answer

a, b, e, g, h, and j

Question 20

What is NOT a common characteristic of economic models?

Accepted Answer

A)  They are often built using the tools of mathematics. 
B)  They are useful to economists, but not to policymakers. 
C)  They include only the important features of an economy. 
D)  They are built using assumptions. 
A)  They are often built using the tools of mathematics. 
B)  They are useful to economists, but not to policymakers. 
C)  They include only the important features of an economy. 
D)  They are built using assumptions.

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

A production possibilities frontier is a graph that shows the various combinations of outputs the economy can possibly produce given its factors of production and technology.

In a simple circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of fire trucks from 0 to 200?

What is a duty of Human Resources Canada?

What do good economic models do?

In the factors of production market, how do households and firms interact?

Figure 2-9 -Refer to Figure 2-9. What is this type of graph known as?

If Jake chooses to buy fewer pizzas per month at each price, what will happen to his demand curve?

What is a coordinate system used for?

Why are production possibilities frontiers usually bowed outward?

On a production possibilities frontier, when is production efficient?

What do economists at Foreign Affairs Canada and International Trade Canada do?

In a simple circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Figure 2-2 -Refer to Figure 2-2. Who owns the factors of production?

Figure 2-3 -Refer to Figure 2-3. Which point represents the maximum possible production of tubas?

The country of Econoland produces two goods:textbooks and widgets. Last year, it produced at a point inside its production possibilities frontier and currently it is operating at a point on the (same) production possibilities frontier. Which statement best explains the change?

What is NOT a common characteristic of economic models?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 2: Thinking Like an Economist

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

A production possibilities frontier is a graph that shows the various combinations of outputs the economy can possibly produce given its factors of production and technology.

In a simple circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of fire trucks from 0 to 200?

What is a duty of Human Resources Canada?

What do good economic models do?

In the factors of production market, how do households and firms interact?

Figure 2-9 -Refer to Figure 2-9. What is this type of graph known as?

If Jake chooses to buy fewer pizzas per month at each price, what will happen to his demand curve?

What is a coordinate system used for?

Why are production possibilities frontiers usually bowed outward?

On a production possibilities frontier, when is production efficient?

What do economists at Foreign Affairs Canada and International Trade Canada do?

In a simple circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Figure 2-2 -Refer to Figure 2-2. Who owns the factors of production?

Figure 2-3 -Refer to Figure 2-3. Which point represents the maximum possible production of tubas?

The country of Econoland produces two goods:textbooks and widgets. Last year, it produced at a point inside its production possibilities frontier and currently it is operating at a point on the (same) production possibilities frontier. Which statement best explains the change?

What is NOT a common characteristic of economic models?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters