Question 1

Normative economics reflect:

Accepted Answer

A)  society's laws. 
B)  economic analysis based on facts and evidence. 
C)  empirical and significant economic observations. 
D)  subjective values. 
A)  society's laws. 
B)  economic analysis based on facts and evidence. 
C)  empirical and significant economic observations. 
D)  subjective values.

Question 2

Positive economics makes recommendations about how income should be distributed.

Accepted Answer

A) True 
 B)False

Question 3

One of the major challenges today is all of the following, except one. The exception is:

Accepted Answer

A)  climate change. 
B)  global warming. 
C)  emission of greenhouse gases. 
D)  slow population growth rates. 
A)  climate change. 
B)  global warming. 
C)  emission of greenhouse gases. 
D)  slow population growth rates.

Question 4

To one degree or another, all of the economic systems in the world are mixed economic systems.

Accepted Answer

A) True 
 B)False

Question 5

What do economists mean by resource allocation in the dynamic sense?

Accepted Answer

Dynamic denotes an analysis based on tim

Question 6

Worldwide economic melt-down that began in 2008 as a result of high interest rate raises profound questions about the usefulness of the central bank.

Accepted Answer

A) True 
 B)False

Question 7

When we make resource allocation recommendations based upon personal value judgments this is:

Accepted Answer

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

Question 8

High-growth economies are characterized by two key patterns, which are:

Accepted Answer

A)  low saving and high investment. 
B)  high saving and high investment. 
C)  high saving and high consumption. 
D)  low saving and high consumption. 
A)  low saving and high investment. 
B)  high saving and high investment. 
C)  high saving and high consumption. 
D)  low saving and high consumption.

Question 9

All of the following statements are false except:

Accepted Answer

A)  Normative economic statements are statements of fact. 
B)  In positive economics, we are detached scientists and personal values do not enter our description of economic events. 
C)  "The unemployment rate for September, 1987 was 5.9 percent" is a normative statement. 
D)  "The government should provide a minimum income to every citizen" is a positive statement. 
A)  Normative economic statements are statements of fact. 
B)  In positive economics, we are detached scientists and personal values do not enter our description of economic events. 
C)  "The unemployment rate for September, 1987 was 5.9 percent" is a normative statement. 
D)  "The government should provide a minimum income to every citizen" is a positive statement.

Question 10

Comment on the claim that a production possibility frontier is too simple a construct to be of any real analytical value.

Accepted Answer

A production possibility frontier is use

Question 11

Microeconomics best describes the study of the:

Accepted Answer

A)  level of national unemployment. 
B)  growth rate of GNP. 
C)  effects of aggregate inflation. 
D)  behaviour of individual economic agents. 
A)  level of national unemployment. 
B)  growth rate of GNP. 
C)  effects of aggregate inflation. 
D)  behaviour of individual economic agents.

Question 12

Explain the difference between normative and positive economics.

Accepted Answer

Positive economics is concerned with ana

Question 13

What does the term efficient production mean in the context of a production possibility frontier?

Accepted Answer

It means that we are not leaving any of

Question 14

The propositions that emerge from positive economics can generally be supported or refuted:

Accepted Answer

A)  by facts. 
B)  by normative analysis. 
C)  by high ranking government officials, especially high ranking economists. 
D)  only by economic experts in their particular field of studies. 
A)  by facts. 
B)  by normative analysis. 
C)  by high ranking government officials, especially high ranking economists. 
D)  only by economic experts in their particular field of studies.

Question 15

Economics is sometimes described as the science concerned with what is produced, how it is produced and for whom it is produced. What does this mean?

Accepted Answer

Economics is concerned with the use of t

Question 16

The fact that even a rich country like Canada faces the economic problem of scarcity implies that:

Accepted Answer

A)  scarcity must be a problem related to the land and labor stocks in Canada. 
B)  scarcity must be the result of mismanagement of natural resources by Canadian businesses. 
C)  scarcity must be largely due to the inefficiency of the government in Canada. 
D)  wants and human desires in Canada exceed available resources. 
A)  scarcity must be a problem related to the land and labor stocks in Canada. 
B)  scarcity must be the result of mismanagement of natural resources by Canadian businesses. 
C)  scarcity must be largely due to the inefficiency of the government in Canada. 
D)  wants and human desires in Canada exceed available resources.

Question 17

All the following conditions will cause an outward shift of the production possibilities frontier except:

Accepted Answer

A)  an improvement in the overall technology of production. 
B)  existing factors of production become more productive. 
C)  the quantity of the factors of production increases. 
D)  previously unemployed factors of production are put back to work. 
A)  an improvement in the overall technology of production. 
B)  existing factors of production become more productive. 
C)  the quantity of the factors of production increases. 
D)  previously unemployed factors of production are put back to work.

Question 18

Normative economics:

Accepted Answer

A)  makes explanations based upon economic data about the workings of the economy. 
B)  prescribes policies for the economy based upon personal value judgments. 
C)  is a scientific approach to the study of economic events. 
D)  none of the above. 
A)  makes explanations based upon economic data about the workings of the economy. 
B)  prescribes policies for the economy based upon personal value judgments. 
C)  is a scientific approach to the study of economic events. 
D)  none of the above.

Question 19

If a society moves along its production possibilities frontier, then:

Accepted Answer

A)  it is using its scarce resources less and less efficiently. 
B)  it must be giving up more and more of some goods. 
C)  more of all goods are being produced. 
D)  some of its resources are unemployed. 
A)  it is using its scarce resources less and less efficiently. 
B)  it must be giving up more and more of some goods. 
C)  more of all goods are being produced. 
D)  some of its resources are unemployed.

Question 20

"The Canadian Government ought to increase the operating grants to all Canadian Universities and Colleges." This statement is an example of:

Accepted Answer

A)  an empirical statement. 
B)  a positive statement. 
C)  a value free statement. 
D)  a normative statement. 
A)  an empirical statement. 
B)  a positive statement. 
C)  a value free statement. 
D)  a normative statement.

Normative economics reflect:

Positive economics makes recommendations about how income should be distributed.

One of the major challenges today is all of the following, except one. The exception is:

To one degree or another, all of the economic systems in the world are mixed economic systems.

What do economists mean by resource allocation in the dynamic sense?

Worldwide economic melt-down that began in 2008 as a result of high interest rate raises profound questions about the usefulness of the central bank.

When we make resource allocation recommendations based upon personal value judgments this is:

High-growth economies are characterized by two key patterns, which are:

All of the following statements are false except:

Comment on the claim that a production possibility frontier is too simple a construct to be of any real analytical value.

Microeconomics best describes the study of the:

Explain the difference between normative and positive economics.

What does the term efficient production mean in the context of a production possibility frontier?

The propositions that emerge from positive economics can generally be supported or refuted:

Economics is sometimes described as the science concerned with what is produced, how it is produced and for whom it is produced. What does this mean?

The fact that even a rich country like Canada faces the economic problem of scarcity implies that:

All the following conditions will cause an outward shift of the production possibilities frontier except:

Normative economics:

If a society moves along its production possibilities frontier, then:

"The Canadian Government ought to increase the operating grants to all Canadian Universities and Colleges." This statement is an example of:

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

Normative economics reflect:

Positive economics makes recommendations about how income should be distributed.

One of the major challenges today is all of the following, except one. The exception is:

To one degree or another, all of the economic systems in the world are mixed economic systems.

What do economists mean by resource allocation in the dynamic sense?

Worldwide economic melt-down that began in 2008 as a result of high interest rate raises profound questions about the usefulness of the central bank.

When we make resource allocation recommendations based upon personal value judgments this is:

High-growth economies are characterized by two key patterns, which are:

All of the following statements are false except:

Comment on the claim that a production possibility frontier is too simple a construct to be of any real analytical value.

Microeconomics best describes the study of the:

Explain the difference between normative and positive economics.

What does the term efficient production mean in the context of a production possibility frontier?

The propositions that emerge from positive economics can generally be supported or refuted:

Economics is sometimes described as the science concerned with what is produced, how it is produced and for whom it is produced. What does this mean?

The fact that even a rich country like Canada faces the economic problem of scarcity implies that:

All the following conditions will cause an outward shift of the production possibilities frontier except:

Normative economics:

If a society moves along its production possibilities frontier, then:

"The Canadian Government ought to increase the operating grants to all Canadian Universities and Colleges." This statement is an example of:

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