Question 1

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

Accepted Answer

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

Question 2

In a free market economy, the decisions concerning which goods and services to produce are primarily made by:

Accepted Answer

A)  business and government consultation. 
B)  individual consumers. 
C)  the interaction of consumer wants and business concerns. 
D)  corporations and small businesses. 
A)  business and government consultation. 
B)  individual consumers. 
C)  the interaction of consumer wants and business concerns. 
D)  corporations and small businesses.

Question 3

In which of the following countries does the command system predominate?

Accepted Answer

A)  Mexico 
B)  Spain 
C)  Canada 
D)  China 
A)  Mexico 
B)  Spain 
C)  Canada 
D)  China

Question 4

An unemployment rate of 9 percent in Canada means:

Accepted Answer

A)  that Canada is at a point to the right of its production-possibilities curve. 
B)  that population increases are necessary in order to reach maximum production. 
C)  that Canada can only be producing at a point on its production-possibilities curve if technological change occurs. 
D)  that Canada is producing at a point to the left of its production-possibilities curve. 
A)  that Canada is at a point to the right of its production-possibilities curve. 
B)  that population increases are necessary in order to reach maximum production. 
C)  that Canada can only be producing at a point on its production-possibilities curve if technological change occurs. 
D)  that Canada is producing at a point to the left of its production-possibilities curve.

Question 5

Which of the following would be most likely to cause a shift to the right in the production-possibilities curve?

Accepted Answer

A)  an increase in the unemployment rate of the labour force 
B)  the introduction of skill-training courses to labour-force participants 
C)  a shift in production from corn to spears 
D)  a shift in consumer desires away from durable goods to services 
A)  an increase in the unemployment rate of the labour force 
B)  the introduction of skill-training courses to labour-force participants 
C)  a shift in production from corn to spears 
D)  a shift in consumer desires away from durable goods to services

Question 6

Economics is the study of:

Accepted Answer

A)  determining an appropriate standard of living for all citizens of a country. 
B)  decision making regarding the use of scarce resources. 
C)  decision making about the best way to produce a combination of goods and services depicted by the production-possibilities curve. 
D)  calculating opportunity costs. 
A)  determining an appropriate standard of living for all citizens of a country. 
B)  decision making regarding the use of scarce resources. 
C)  decision making about the best way to produce a combination of goods and services depicted by the production-possibilities curve. 
D)  calculating opportunity costs.

Question 7

The saying "There are no free lunches" is associated with the concept of:

Accepted Answer

A)  opportunity cost. 
B)  direct costs. 
C)  capitalism. 
D)  communism. 
A)  opportunity cost. 
B)  direct costs. 
C)  capitalism. 
D)  communism.

Question 8

In which of the following countries does the free market approach predominate?

Accepted Answer

A)  China 
B)  Cuba 
C)  Canada 
D)  North Korea 
A)  China 
B)  Cuba 
C)  Canada 
D)  North Korea

Question 9

If the cost of tuition is $1000; books cost $500; supplies cost $100; and you could have earned $20000 instead of attending college, then the total opportunity cost of attending college is:

Accepted Answer

A)  $1600. 
B)  $21 600. 
C)  $20 000. 
D)  impossible to determine unless an interest rate is known. 
A)  $1600. 
B)  $21 600. 
C)  $20 000. 
D)  impossible to determine unless an interest rate is known.

Question 10

A country's production-possibilities curve:

Accepted Answer

A)  shows the maximum amount of two goods that can be produced at this time. 
B)  shows all possible combinations of two goods that can be produced. 
C)  is normally depicted on a graph as a straight line. 
D)  shows the combinations of two goods that the country is currently producing. 
A)  shows the maximum amount of two goods that can be produced at this time. 
B)  shows all possible combinations of two goods that can be produced. 
C)  is normally depicted on a graph as a straight line. 
D)  shows the combinations of two goods that the country is currently producing.

Question 11

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

Accepted Answer

A)  Nova Scotia. 
B)  Yukon Territory. 
C)  Nunavut. 
D)  British Columbia. 
A)  Nova Scotia. 
B)  Yukon Territory. 
C)  Nunavut. 
D)  British Columbia.

Question 12

Scarcity:

Accepted Answer

A)  is a problem that third-world countries need to solve. 
B)  forces us to consider the direct costs of our actions. 
C)  has almost been eliminated in Canada and the United States. 
D)  will always be a problem as long as people have an unlimited desire for goods and services. 
A)  is a problem that third-world countries need to solve. 
B)  forces us to consider the direct costs of our actions. 
C)  has almost been eliminated in Canada and the United States. 
D)  will always be a problem as long as people have an unlimited desire for goods and services.

Question 13

Which of the following statements is incorrect?

Accepted Answer

A)  it is not possible for economists to use the laboratory methods of research practised in the physical sciences 
B)  opportunity cost must be considered when making decisions regarding the use of scarce resources 
C)  the law of diminishing returns influences the shape of the production-possibilities curve 
D)  the free market approach to economic decision-making allows for some government decisions in important economic matters 
A)  it is not possible for economists to use the laboratory methods of research practised in the physical sciences 
B)  opportunity cost must be considered when making decisions regarding the use of scarce resources 
C)  the law of diminishing returns influences the shape of the production-possibilities curve 
D)  the free market approach to economic decision-making allows for some government decisions in important economic matters

Question 14

Which of the following examples demonstrates a positive relationship?

Accepted Answer

A)  Unemployment and inflation rates change at the same rate. 
B)  Production decreases with less employment. 
C)  Positive economic growth is associated with good technology. 
D)  Production increases with less unemployment. 
A)  Unemployment and inflation rates change at the same rate. 
B)  Production decreases with less employment. 
C)  Positive economic growth is associated with good technology. 
D)  Production increases with less unemployment.

Question 15

The science of economics has developed because:

Accepted Answer

A)  countries are always attempting to produce the maximum amount of goods and services. 
B)  resources used to produce goods and services are scarce. 
C)  countries are trying to reach their production-possibilities curve. 
D)  unemployment is a serious social and economic problem that has not been completely solved. 
A)  countries are always attempting to produce the maximum amount of goods and services. 
B)  resources used to produce goods and services are scarce. 
C)  countries are trying to reach their production-possibilities curve. 
D)  unemployment is a serious social and economic problem that has not been completely solved.

Question 16

In 2006, Canada's population was approximately:

Accepted Answer

A)  20 million people. 
B)  40 million people. 
C)  10 million people. 
D)  30 million people. 
A)  20 million people. 
B)  40 million people. 
C)  10 million people. 
D)  30 million people.

Question 17

On average, each Canadian uses the following number of litres of water per day:

Accepted Answer

A)  3400 
B)  7100 
C)  210 
D)  8900 
A)  3400 
B)  7100 
C)  210 
D)  8900

Question 18

Which of the following Canadian political parties is most closely associated with the free market approach to economic decision-making?

Accepted Answer

A)  the Canadian Alliance 
B)  the Liberal party 
C)  the Progressive Conservative party 
D)  the New Democratic Party 
A)  the Canadian Alliance 
B)  the Liberal party 
C)  the Progressive Conservative party 
D)  the New Democratic Party

Question 19

The production possibilities curve of a socialist country that suddenly switches to a free-market economy is likely going to:

Accepted Answer

A)  shift to the right and then to the left. 
B)  shift to the left and then to the right. 
C)  shift to the right. 
D)  shift to the left. 
A)  shift to the right and then to the left. 
B)  shift to the left and then to the right. 
C)  shift to the right. 
D)  shift to the left.

Question 20

Which of the following will not cause a shift to the right in the production-possibilities curve?

Accepted Answer

A)  the acquisition of more capital goods such as factories 
B)  the introduction of a training program that improves worker productivity 
C)  reducing the unemployment rate of the labour force 
D)  an advance in technology 
A)  the acquisition of more capital goods such as factories 
B)  the introduction of a training program that improves worker productivity 
C)  reducing the unemployment rate of the labour force 
D)  an advance in technology

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

In a free market economy, the decisions concerning which goods and services to produce are primarily made by:

In which of the following countries does the command system predominate?

An unemployment rate of 9 percent in Canada means:

Which of the following would be most likely to cause a shift to the right in the production-possibilities curve?

Economics is the study of:

The saying "There are no free lunches" is associated with the concept of:

In which of the following countries does the free market approach predominate?

If the cost of tuition is $1000; books cost $500; supplies cost $100; and you could have earned $20000 instead of attending college, then the total opportunity cost of attending college is:

A country's production-possibilities curve:

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

Scarcity:

Which of the following statements is incorrect?

Which of the following examples demonstrates a positive relationship?

The science of economics has developed because:

In 2006, Canada's population was approximately:

On average, each Canadian uses the following number of litres of water per day:

Which of the following Canadian political parties is most closely associated with the free market approach to economic decision-making?

The production possibilities curve of a socialist country that suddenly switches to a free-market economy is likely going to:

Which of the following will not cause a shift to the right in 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

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

In a free market economy, the decisions concerning which goods and services to produce are primarily made by:

In which of the following countries does the command system predominate?

An unemployment rate of 9 percent in Canada means:

Which of the following would be most likely to cause a shift to the right in the production-possibilities curve?

Economics is the study of:

The saying "There are no free lunches" is associated with the concept of:

In which of the following countries does the free market approach predominate?

If the cost of tuition is $1000; books cost $500; supplies cost $100; and you could have earned $20000 instead of attending college, then the total opportunity cost of attending college is:

A country's production-possibilities curve:

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

Scarcity:

Which of the following statements is incorrect?

Which of the following examples demonstrates a positive relationship?

The science of economics has developed because:

In 2006, Canada's population was approximately:

On average, each Canadian uses the following number of litres of water per day:

Which of the following Canadian political parties is most closely associated with the free market approach to economic decision-making?

The production possibilities curve of a socialist country that suddenly switches to a free-market economy is likely going to:

Which of the following will not cause a shift to the right in 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