Question 1

Global warming is a world responsibility and therefore the Canadian government should not involve itself in the matter.

Accepted Answer

A) True 
 B)False

Question 2

The number of Canadian households with access to the Internet and those with broadband connections is growing rapidly. As an economist, one could predict that when a major purchase is being considered, families will:

Accepted Answer

A)  collect as much information as humanly possible beforehand. 
B)  always buy online. 
C)  never buy online. 
D)  collect more information beforehand because the cost of finding and acquiring it is lower. 
A)  collect as much information as humanly possible beforehand. 
B)  always buy online. 
C)  never buy online. 
D)  collect more information beforehand because the cost of finding and acquiring it is lower.

Question 3

Marginalist thinking means that economists have a marginal impact on public policy.

Accepted Answer

A) True 
 B)False

Question 4

When an economy is achieving economic efficiency and is operating on its production possibilities frontier, it is possible to increase production.

Accepted Answer

A) True 
 B)False

Question 5

A pure command economy is best characterized by:

Accepted Answer

A)  a rather large degree of market activities. 
B)  citizens owning and supplying the factors of production. 
C)  the "invisible hand" concept. 
D)  a strong central government deciding what, how, and for whom to produce. 
A)  a rather large degree of market activities. 
B)  citizens owning and supplying the factors of production. 
C)  the "invisible hand" concept. 
D)  a strong central government deciding what, how, and for whom to produce.

Question 6

What does the expression 'invisible hand' denote in economics?

Accepted Answer

This expression means that there is a gu

Question 7

Understanding how individuals make economic decisions is an example of:

Accepted Answer

A)  undertaking normative economic analysis. 
B)  undertaking positive economic analysis. 
C)  making a choice at the margin. 
D)  undertaking microeconomic analysis. 
A)  undertaking normative economic analysis. 
B)  undertaking positive economic analysis. 
C)  making a choice at the margin. 
D)  undertaking microeconomic analysis.

Question 8

The difference between a straight-line production possibilities frontier and one that is concave is that:

Accepted Answer

A)  the concave production possibilities frontier exhibits constant opportunity costs, while the straight line frontier does not. 
B)  the concave frontier reflects the problem of scarcity but the straight line frontier does not. 
C)  the straight line frontier reflects constant opportunity costs but the concave frontier does not. 
D)  neither the straight line nor the concave frontier reflect output limits. 
A)  the concave production possibilities frontier exhibits constant opportunity costs, while the straight line frontier does not. 
B)  the concave frontier reflects the problem of scarcity but the straight line frontier does not. 
C)  the straight line frontier reflects constant opportunity costs but the concave frontier does not. 
D)  neither the straight line nor the concave frontier reflect output limits.

Question 9

On October 20, 1987, some financial newspapers wrote editorials commenting on one of the worst stock market crashes in a century. Many offered suggestions about what the government should do in order to prevent a recession. These editorials were examples of:

Accepted Answer

A)  positive economics. 
B)  microeconomics. 
C)  normative economics. 
D)  applied economics. 
A)  positive economics. 
B)  microeconomics. 
C)  normative economics. 
D)  applied economics.

Question 10

A price system depends on the buying and selling of goods and services to allocate resources.

Accepted Answer

A) True 
 B)False

Question 11

Dynamic aspects of resource allocations help us to understand all of the following issues, except one. Which is the exception?

Accepted Answer

A)  Why some economies grow at a faster rate than others? 
B)  Why some economies are stagnant? 
C)  Why some economies have higher savings and investments than others? 
D)  Why some economies have stronger governmental regulations than others? 
A)  Why some economies grow at a faster rate than others? 
B)  Why some economies are stagnant? 
C)  Why some economies have higher savings and investments than others? 
D)  Why some economies have stronger governmental regulations than others?

Question 12

Which of the following statements is false?

Accepted Answer

A)  In most western economies, markets play a central role in allocating resources among competing uses. 
B)  In a market economy, prices do not play an important role in allocating of society's scarce resources. 
C)  Markets can answer the "what," "how," and "for whom" questions faced by every society. 
D)  Markets consist of both buyers and sellers of a good or service. 
A)  In most western economies, markets play a central role in allocating resources among competing uses. 
B)  In a market economy, prices do not play an important role in allocating of society's scarce resources. 
C)  Markets can answer the "what," "how," and "for whom" questions faced by every society. 
D)  Markets consist of both buyers and sellers of a good or service.

Question 13

All of the following, except one, are normative statements. Which is the exception?

Accepted Answer

A)  The government should lower the goods and services tax (GST). 
B)  There should be more advertisements to discourage smoking among teenagers. 
C)  The degree of monopoly in our economy has been increasing in the last ten years. 
D)  The government needs to balance the budget this year. 
A)  The government should lower the goods and services tax (GST). 
B)  There should be more advertisements to discourage smoking among teenagers. 
C)  The degree of monopoly in our economy has been increasing in the last ten years. 
D)  The government needs to balance the budget this year.

Question 14

The table indicates production possibilities with given resources.
  
-Which of the following statements is false?

Accepted Answer

A)  The opportunity cost one unit of food is one unit of film in country A. 
B)  The opportunity cost one unit of food is one unit of film in country B. 
C)  The opportunity cost one unit of film is one unit of food in country A. 
D)  The opportunity cost one unit of film is two units of food in country B 
A)  The opportunity cost one unit of food is one unit of film in country A. 
B)  The opportunity cost one unit of food is one unit of film in country B. 
C)  The opportunity cost one unit of film is one unit of food in country A. 
D)  The opportunity cost one unit of film is two units of food in country B

Question 15

The study of the complete interaction of the economy as a whole is:

Accepted Answer

A)  macroeconomics. 
B)  microeconomics. 
C)  ergonomics. 
D)  econometrics. 
A)  macroeconomics. 
B)  microeconomics. 
C)  ergonomics. 
D)  econometrics.

Question 16

Maria spends her afternoon at the beach, paying $2 to rent a beach umbrella and $10 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:

Accepted Answer

A)  zero, because she got food, drinks, and an umbrella in return for the money. 
B)  the $12 she spent on the umbrella, food, and drinks. 
C)  only $2 because she would have spent the money on food, and drinks whether or not she went to the beach. 
D)  the movie she missed seeing plus the $12 she spent on the umbrella, food and drinks. 
A)  zero, because she got food, drinks, and an umbrella in return for the money. 
B)  the $12 she spent on the umbrella, food, and drinks. 
C)  only $2 because she would have spent the money on food, and drinks whether or not she went to the beach. 
D)  the movie she missed seeing plus the $12 she spent on the umbrella, food and drinks.

Question 17

The table indicates production possibilities with given resources.
  
-Which of the following statements is false?

Accepted Answer

A)  Country A has comparative advantage in food and the country B has a comparative advantage in film. 
B)  Country B has comparative advantage in food and the country A has a comparative advantage in film. 
C)  The country A should specialize in films. 
D)  The country B should specialize in food. 
A)  Country A has comparative advantage in food and the country B has a comparative advantage in film. 
B)  Country B has comparative advantage in food and the country A has a comparative advantage in film. 
C)  The country A should specialize in films. 
D)  The country B should specialize in food.

Question 18

What is economics sometimes called?

Accepted Answer

A)  The science of choice. 
B)  The most scientific of all sciences. 
C)  The enlightened discipline. 
D)  Practical subject. 
A)  The science of choice. 
B)  The most scientific of all sciences. 
C)  The enlightened discipline. 
D)  Practical subject.

Question 19

Public policy can play at best a marginal role in improving the performance of the economy.

Accepted Answer

A) True 
 B)False

Question 20

Microeconomics studies all of the following except:

Accepted Answer

A)  the consumption behaviour of an individual household. 
B)  why a dozen fresh eggs costs less than a dozen fresh shrimp. 
C)  the effect of price supports on the supply of milk. 
D)  the effect of a tax cut on the nation's spendable income. 
A)  the consumption behaviour of an individual household. 
B)  why a dozen fresh eggs costs less than a dozen fresh shrimp. 
C)  the effect of price supports on the supply of milk. 
D)  the effect of a tax cut on the nation's spendable income.

Global warming is a world responsibility and therefore the Canadian government should not involve itself in the matter.

The number of Canadian households with access to the Internet and those with broadband connections is growing rapidly. As an economist, one could predict that when a major purchase is being considered, families will:

Marginalist thinking means that economists have a marginal impact on public policy.

When an economy is achieving economic efficiency and is operating on its production possibilities frontier, it is possible to increase production.

A pure command economy is best characterized by:

What does the expression 'invisible hand' denote in economics?

Understanding how individuals make economic decisions is an example of:

The difference between a straight-line production possibilities frontier and one that is concave is that:

On October 20, 1987, some financial newspapers wrote editorials commenting on one of the worst stock market crashes in a century. Many offered suggestions about what the government should do in order to prevent a recession. These editorials were examples of:

A price system depends on the buying and selling of goods and services to allocate resources.

Dynamic aspects of resource allocations help us to understand all of the following issues, except one. Which is the exception?

Which of the following statements is false?

All of the following, except one, are normative statements. Which is the exception?

The table indicates production possibilities with given resources. -Which of the following statements is false?

The study of the complete interaction of the economy as a whole is:

Maria spends her afternoon at the beach, paying $2 to rent a beach umbrella and $10 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:

The table indicates production possibilities with given resources. -Which of the following statements is false?

What is economics sometimes called?

Public policy can play at best a marginal role in improving the performance of the economy.

Microeconomics studies all of the following except:

Theories, Models and Data

The Classical Marketplace Demand and Supply

Economic Activity and Performance

Output, Business Cycles, Growth Employment

Aggregate Expenditure Aggregate Demand

The Government Sector

Money, Banking Money Supply

Financial Markets, Interest Rates, Foreign Exchange Rates & AD

Central Banking and Monetary Policy

A Traditional Ad As Model

An AD As Model of the Inflation Rate and Real GDP

Economic Growth

International Macroeconomics

International Trade

Filters

Exam 1: Introduction to Key Ideas

Global warming is a world responsibility and therefore the Canadian government should not involve itself in the matter.

The number of Canadian households with access to the Internet and those with broadband connections is growing rapidly. As an economist, one could predict that when a major purchase is being considered, families will:

Marginalist thinking means that economists have a marginal impact on public policy.

When an economy is achieving economic efficiency and is operating on its production possibilities frontier, it is possible to increase production.

A pure command economy is best characterized by:

What does the expression 'invisible hand' denote in economics?

Understanding how individuals make economic decisions is an example of:

The difference between a straight-line production possibilities frontier and one that is concave is that:

On October 20, 1987, some financial newspapers wrote editorials commenting on one of the worst stock market crashes in a century. Many offered suggestions about what the government should do in order to prevent a recession. These editorials were examples of:

A price system depends on the buying and selling of goods and services to allocate resources.

Dynamic aspects of resource allocations help us to understand all of the following issues, except one. Which is the exception?

Which of the following statements is false?

All of the following, except one, are normative statements. Which is the exception?

The table indicates production possibilities with given resources. -Which of the following statements is false?

The study of the complete interaction of the economy as a whole is:

Maria spends her afternoon at the beach, paying $2 to rent a beach umbrella and $10 for food and drinks rather than spending an equal amount of money to go to a movie. The opportunity cost of going to the beach is:

The table indicates production possibilities with given resources. -Which of the following statements is false?

What is economics sometimes called?

Public policy can play at best a marginal role in improving the performance of the economy.

Microeconomics studies all of the following except:

Theories, Models and Data

The Classical Marketplace Demand and Supply

Economic Activity and Performance

Output, Business Cycles, Growth Employment

Aggregate Expenditure Aggregate Demand

The Government Sector

Money, Banking Money Supply

Financial Markets, Interest Rates, Foreign Exchange Rates & AD

Central Banking and Monetary Policy

A Traditional Ad As Model

An AD As Model of the Inflation Rate and Real GDP

Economic Growth

International Macroeconomics

International Trade

Filters