Question 1

An increase in Canada's unemployment rate would be represented by:

Accepted Answer

A)  a movement along the production-possibilities curve. 
B)  a shift of the production-possibilities curve to the left. 
C)  a shift of the production-possibilities curve to the right. 
D)  no change in the production-possibilities curve but the combination of goods produced would be to the left of the current production-possibilities curve. 
A)  a movement along the production-possibilities curve. 
B)  a shift of the production-possibilities curve to the left. 
C)  a shift of the production-possibilities curve to the right. 
D)  no change in the production-possibilities curve but the combination of goods produced would be to the left of the current production-possibilities curve. D

Question 2

The command approach is based on:

Accepted Answer

A)  public and private resources ownership. 
B)  private resource ownership and individual decision makers. 
C)  public resource ownership and centralized decision makers. 
D)  individual and centralized decision makers. 
A)  public and private resources ownership. 
B)  private resource ownership and individual decision makers. 
C)  public resource ownership and centralized decision makers. 
D)  individual and centralized decision makers. C

Question 3

The opportunity cost of attending a Friday afternoon economics class is:

Accepted Answer

A)  nothing. 
B)  the cost of tuition divided by the number of individual classes. 
C)  another activity that you could otherwise participate in. 
D)  the cost of your economics textbook. 
A)  nothing. 
B)  the cost of tuition divided by the number of individual classes. 
C)  another activity that you could otherwise participate in. 
D)  the cost of your economics textbook. C

Question 4

Assuming that consumption goods are on the y-axis and capital goods are on the x-axis, a technological improvement in producing capital goods will:

Accepted Answer

A)  shift the production function outward. 
B)  shift the production function out on the y-axis but it will stay the same on the y-axis. 
C)  shift the production function inward. 
D)  shift the production function out on the x-axis but it will stay the same on the y-axis. 
A)  shift the production function outward. 
B)  shift the production function out on the y-axis but it will stay the same on the y-axis. 
C)  shift the production function inward. 
D)  shift the production function out on the x-axis but it will stay the same on the y-axis.

Question 5

Economists do not use the laboratory methods of the physical sciences because:

Accepted Answer

A)  economic problems are more complex than those of the physical sciences. 
B)  the scarce resources that are of concern to economists cannot be found in a laboratory. 
C)  it is impossible to control all the variables that influence the results of the experiment. 
D)  economic theories cannot be applied to individual situations, only to problems faced by the entire country. 
A)  economic problems are more complex than those of the physical sciences. 
B)  the scarce resources that are of concern to economists cannot be found in a laboratory. 
C)  it is impossible to control all the variables that influence the results of the experiment. 
D)  economic theories cannot be applied to individual situations, only to problems faced by the entire country.

Question 6

A shift in the production-possibilities curve will occur if:

Accepted Answer

A)  factories are not used to capacity. 
B)  the population changes. 
C)  technological change fails to take place. 
D)  workers become unemployed. 
A)  factories are not used to capacity. 
B)  the population changes. 
C)  technological change fails to take place. 
D)  workers become unemployed.

Question 7

In a free market system, decisions regarding the use of scarce resources are made:

Accepted Answer

A)  by private companies alone. 
B)  by individuals and private companies. 
C)  by individuals alone. 
D)  by individuals, private companies, and government officials. 
A)  by private companies alone. 
B)  by individuals and private companies. 
C)  by individuals alone. 
D)  by individuals, private companies, and government officials.

Question 8

The discussion regarding cod fishery in the Atlantic Coast is used to demonstrate which concept?

Accepted Answer

A)  opportunity cost 
B)  law of diminishing returns 
C)  production possibilities 
D)  scarcity 
A)  opportunity cost 
B)  law of diminishing returns 
C)  production possibilities 
D)  scarcity

Question 9

The saying "Time is money" refers to:

Accepted Answer

A)  capitalism. 
B)  direct costs. 
C)  opportunity costs. 
D)  socialism. 
A)  capitalism. 
B)  direct costs. 
C)  opportunity costs. 
D)  socialism.

Question 10

Scarcity could be reduced if:

Accepted Answer

A)  we all work more and want fewer goods. 
B)  we all work less and want fewer goods. 
C)  our population expands and production stays the same 
D)  we do not innovate. 
A)  we all work more and want fewer goods. 
B)  we all work less and want fewer goods. 
C)  our population expands and production stays the same 
D)  we do not innovate.

Question 11

Theories developed by economists:

Accepted Answer

A)  need 100 percent backing from fellow economists before being included in economics textbooks. 
B)  are not the result of laboratory research and are therefore useless. 
C)  are never applicable to real-world situations. 
D)  are only applicable to real-world situations when certain conditions exist. 
A)  need 100 percent backing from fellow economists before being included in economics textbooks. 
B)  are not the result of laboratory research and are therefore useless. 
C)  are never applicable to real-world situations. 
D)  are only applicable to real-world situations when certain conditions exist.

Question 12

The science of economics is primarily concerned with:

Accepted Answer

A)  how a country decides to use its available resources. 
B)  how a company manufactures a product and distributes it to customers. 
C)  how a country provides for its citizens. 
D)  how individuals make a living. 
A)  how a country decides to use its available resources. 
B)  how a company manufactures a product and distributes it to customers. 
C)  how a country provides for its citizens. 
D)  how individuals make a living.

Question 13

If whenever the value of the variable X increases, the value of the variable Y increases, then the relationship between the variables X and Y is:

Accepted Answer

A)  indirect or negative. 
B)  linear. 
C)  direct or positive. 
D)  concave. 
A)  indirect or negative. 
B)  linear. 
C)  direct or positive. 
D)  concave.

Question 14

Which of the following economic concepts is not represented by a production-possibilities curve?

Accepted Answer

A)  direct costs 
B)  scarcity 
C)  law of diminishing returns 
D)  opportunity costs 
A)  direct costs 
B)  scarcity 
C)  law of diminishing returns 
D)  opportunity costs

Question 15

In 2004-2005, the province or territory with the lowest birth rate per 1000 population was:

Accepted Answer

A)  Ontario. 
B)  Newfoundland and Labrador. 
C)  Alberta. 
D)  Northwest Territories. 
A)  Ontario. 
B)  Newfoundland and Labrador. 
C)  Alberta. 
D)  Northwest Territories.

Question 16

Which of the following is not a characteristic of a command system?

Accepted Answer

A)  state ownership of resources 
B)  centralized decision-making 
C)  reduced individual freedom 
D)  private ownership of resources 
A)  state ownership of resources 
B)  centralized decision-making 
C)  reduced individual freedom 
D)  private ownership of resources

Question 17

Malthus believed that:

Accepted Answer

A)  advances in birth-control technology would save the world. 
B)  contagious diseases could not check population growth. 
C)  population would grow at a faster rate than would food production. 
D)  charity should not be provided for anyone. 
A)  advances in birth-control technology would save the world. 
B)  contagious diseases could not check population growth. 
C)  population would grow at a faster rate than would food production. 
D)  charity should not be provided for anyone.

Question 18

Assume that a country can only produce two products: corn and spears. A technological advance in spear production will:

Accepted Answer

A)  permit the production of both more spears and more corn. 
B)  will not influence the production of spears or corn unless there is an accompanying increase in resources. 
C)  permit the production of more spears but less corn. 
D)  permit only the production of more spears. 
A)  permit the production of both more spears and more corn. 
B)  will not influence the production of spears or corn unless there is an accompanying increase in resources. 
C)  permit the production of more spears but less corn. 
D)  permit only the production of more spears.

Question 19

Centralized decision-making regarding the use of all resources:

Accepted Answer

A)  appears in command systems only. 
B)  predominates in a free market system. 
C)  appears in both command and free market systems. 
D)  is necessary in all economic systems because resource use affects all citizens. 
A)  appears in command systems only. 
B)  predominates in a free market system. 
C)  appears in both command and free market systems. 
D)  is necessary in all economic systems because resource use affects all citizens.

Question 20

Combinations of goods that are to the left of the production-possibilities curve:

Accepted Answer

A)  will be attainable if people work harder. 
B)  can be obtained with an increase in resources. 
C)  indicate that resources are fully employed. 
D)  are possible combinations for society to produce. 
A)  will be attainable if people work harder. 
B)  can be obtained with an increase in resources. 
C)  indicate that resources are fully employed. 
D)  are possible combinations for society to produce.

An increase in Canada's unemployment rate would be represented by:

The command approach is based on:

The opportunity cost of attending a Friday afternoon economics class is:

Assuming that consumption goods are on the y-axis and capital goods are on the x-axis, a technological improvement in producing capital goods will:

Economists do not use the laboratory methods of the physical sciences because:

A shift in the production-possibilities curve will occur if:

In a free market system, decisions regarding the use of scarce resources are made:

The discussion regarding cod fishery in the Atlantic Coast is used to demonstrate which concept?

The saying "Time is money" refers to:

Scarcity could be reduced if:

Theories developed by economists:

The science of economics is primarily concerned with:

If whenever the value of the variable X increases, the value of the variable Y increases, then the relationship between the variables X and Y is:

Which of the following economic concepts is not represented by a production-possibilities curve?

In 2004-2005, the province or territory with the lowest birth rate per 1000 population was:

Which of the following is not a characteristic of a command system?

Malthus believed that:

Assume that a country can only produce two products: corn and spears. A technological advance in spear production will:

Centralized decision-making regarding the use of all resources:

Combinations of goods that are to the left of the production-possibilities curve:

The Operation of a Market

The Role of Government in a Market Economy

Government in Canada

Economic Indicators

Determination of National Income

Money and the Canadian Banking System

Stabilization Policy

International Economics

Industrial Organization in Canada

Production Costs

Perfect Competition : Theory and Practice

How Imperfect Competition Functions

The Labour Market

Filters

Exam 1: Introductory Concepts

An increase in Canada's unemployment rate would be represented by:

The command approach is based on:

The opportunity cost of attending a Friday afternoon economics class is:

Assuming that consumption goods are on the y-axis and capital goods are on the x-axis, a technological improvement in producing capital goods will:

Economists do not use the laboratory methods of the physical sciences because:

A shift in the production-possibilities curve will occur if:

In a free market system, decisions regarding the use of scarce resources are made:

The discussion regarding cod fishery in the Atlantic Coast is used to demonstrate which concept?

The saying "Time is money" refers to:

Scarcity could be reduced if:

Theories developed by economists:

The science of economics is primarily concerned with:

If whenever the value of the variable X increases, the value of the variable Y increases, then the relationship between the variables X and Y is:

Which of the following economic concepts is not represented by a production-possibilities curve?

In 2004-2005, the province or territory with the lowest birth rate per 1000 population was:

Which of the following is not a characteristic of a command system?

Malthus believed that:

Assume that a country can only produce two products: corn and spears. A technological advance in spear production will:

Centralized decision-making regarding the use of all resources:

Combinations of goods that are to the left of the production-possibilities curve:

The Operation of a Market

The Role of Government in a Market Economy

Government in Canada

Economic Indicators

Determination of National Income

Money and the Canadian Banking System

Stabilization Policy

International Economics

Industrial Organization in Canada

Production Costs

Perfect Competition : Theory and Practice

How Imperfect Competition Functions

The Labour Market

Filters