Question 1

Marginal analysis involves undertaking an activity

Accepted Answer

A) until its marginal costs start declining. 
B) only when its marginal benefits are positive. 
C) until its marginal benefits equal marginal costs. 
D) only if its marginal costs are greater than its marginal benefits. 
A) until its marginal costs start declining. 
B) only when its marginal benefits are positive. 
C) until its marginal benefits equal marginal costs. 
D) only if its marginal costs are greater than its marginal benefits. C

Question 2

On average women in Quebec have

Accepted Answer

A) fewer children than women in other provinces. 
B) more children than women in other provinces. 
C) the same number of children was women in other provinces. 
D) exactly the number of children required to maintain a stable population. 
A) fewer children than women in other provinces. 
B) more children than women in other provinces. 
C) the same number of children was women in other provinces. 
D) exactly the number of children required to maintain a stable population. B

Question 3

Which of the following is a microeconomics question?

Accepted Answer

A) How much will be saved and how much will be produced in the entire economy? 
B) What will the level of economic growth be in the entire economy? 
C) What factors determine the price of carrots? 
D) What determines the average price level and inflation? 
A) How much will be saved and how much will be produced in the entire economy? 
B) What will the level of economic growth be in the entire economy? 
C) What factors determine the price of carrots? 
D) What determines the average price level and inflation? C

Question 4

Holding all other personal characteristics-such as age, ethnicity, and income-constant, economists would expect that

Accepted Answer

A) women in provinces making payments for having more children will have fewer children than women in other provinces. 
B) women in provinces making payments for having more children will have more children than women in other provinces. 
C) women in provinces making payments for having children will have the same number of children as women in other provinces. 
D) there is no correlation between payments for having children and the number of children women choose to have. 
A) women in provinces making payments for having more children will have fewer children than women in other provinces. 
B) women in provinces making payments for having more children will have more children than women in other provinces. 
C) women in provinces making payments for having children will have the same number of children as women in other provinces. 
D) there is no correlation between payments for having children and the number of children women choose to have.

Question 5

Which of the following is a positive economic statement?

Accepted Answer

A) The standard of living in Canada should be higher. 
B) If the price of iPhones falls, a larger quantity of iPhones will be purchased. 
C) The government should restructure the health care system. 
D) The Ontario government should not have bailed out Canadian auto manufacturers. 
A) The standard of living in Canada should be higher. 
B) If the price of iPhones falls, a larger quantity of iPhones will be purchased. 
C) The government should restructure the health care system. 
D) The Ontario government should not have bailed out Canadian auto manufacturers.

Question 6

List the five main factors of production.

Accepted Answer

The five main factors of produ

Question 7

Which of the following statements is true about competition in a market?

Accepted Answer

A) Competition forces firms to out source the production of their labor-intensive products. 
B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. 
C) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. 
D) Competition forces firms to add only low profit margins to their costs of production. 
A) Competition forces firms to out source the production of their labor-intensive products. 
B) Competition forces firms to undercut their selling price, thus benefiting consumers who will be able to purchase products at the lowest price possible. 
C) Competition forces firms to produce and sell products as long as the marginal benefit to consumers exceeds the marginal cost of production. 
D) Competition forces firms to add only low profit margins to their costs of production.

Question 8

How are the fundamental economic questions answered in a market economy?

Accepted Answer

A) The government alone decides the answers. 
B) Individuals, firms, and the government interact in markets to decide the answers to these questions. 
C) Households and firms interact in markets to decide the answers to these questions. 
D) Large corporations alone decide the answers. 
A) The government alone decides the answers. 
B) Individuals, firms, and the government interact in markets to decide the answers to these questions. 
C) Households and firms interact in markets to decide the answers to these questions. 
D) Large corporations alone decide the answers.

Question 9

DeShawn's Detailing is a service that details cars at the customers' homes or places of work.DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service.For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package.What is DeShawn's marginal benefit if he sells a basic detailing package?

Accepted Answer

A) $35 
B) $75 
C) He makes a marginal loss of $15, not a marginal benefit. 
D) The marginal benefit cannot be determined. 
A) $35 
B) $75 
C) He makes a marginal loss of $15, not a marginal benefit. 
D) The marginal benefit cannot be determined.

Question 10

Arlene quits her $125,000-a-year job to take care of her ailing parents.What is the opportunity cost of her decision?

Accepted Answer

A) zero, since she will no longer be earning a salary 
B) It depends on the "going rate" for home-care providers. 
C) at least $125,000 
D) the value she attributes to the satisfaction she receives from taking care of her parents 
A) zero, since she will no longer be earning a salary 
B) It depends on the "going rate" for home-care providers. 
C) at least $125,000 
D) the value she attributes to the satisfaction she receives from taking care of her parents

Question 11

A university must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

Accepted Answer

A) True 
 B)False

Question 12

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Accepted Answer

A) an additional unit 
B) the total number of units 
C) no units 
D) only profitable units 
A) an additional unit 
B) the total number of units 
C) no units 
D) only profitable units

Question 13

Table 1.2
 $\begin{array}{|c|c|}
\hline \text { Year } & \begin{array}{c}
\text { DVD Recorders } \
\text { (millions) }
\end{array} \
\hline 2007 & 12.5 \
\hline 2008 & 14.0 \
\hline 2009 & 17.2 \
\hline 2010 & 20.0 \
\hline 2011 & 21.7 \
\hline
\end{array}$
-Refer to Table 1.2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

Accepted Answer

The answer of Table 1.2
 \(\begin{array}{|c|c|}
\hline \text { Year }...

Question 14

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

Accepted Answer

A) True 
 B)False

Question 15

Society faces a trade-off in all of the following situations except

Accepted Answer

A) when deciding who will receive the goods and services produced. 
B) when deciding what goods and services will be produced. 
C) when deciding how goods and services will be produced. 
D) when some previously unemployed workers find jobs. 
A) when deciding who will receive the goods and services produced. 
B) when deciding what goods and services will be produced. 
C) when deciding how goods and services will be produced. 
D) when some previously unemployed workers find jobs.

Question 16

________ have a horizontal and a vertical axis and are used in economics to illustrate relationships between two economic variables.

Accepted Answer

A) Two-dimensional graphs 
B) One-dimensional graphs 
C) Pie charts 
D) Bar graphs 
A) Two-dimensional graphs 
B) One-dimensional graphs 
C) Pie charts 
D) Bar graphs

Question 17

What is a centrally planned economy?

Accepted Answer

A centrally planned economy is

Question 18

By definition, economics is the study of

Accepted Answer

A) how to make money in the stock market. 
B) how to make money in a market economy. 
C) the choices people make to attain their goals, given their scarce resources. 
D) supply and demand. 
A) how to make money in the stock market. 
B) how to make money in a market economy. 
C) the choices people make to attain their goals, given their scarce resources. 
D) supply and demand.

Question 19

Soo Jin shares a one-bedroom apartment with her classmate.Her share of the rent is $700 per month.She is considering moving to a studio apartment which she will not have to share with anyone.The studio apartment rents for $950 per month.Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment.Soo Jin is as rational as any other person.As an economics major, you rightly conclude that

Accepted Answer

A) Soo Jin did not have a choice; her roommate was a slob. 
B) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing)is at least $250. 
C) Soo Jin figures that the benefit of having her own place (as opposed to sharing)is at least $950. 
D) The cost of having one's own space outweighs the benefits. 
A) Soo Jin did not have a choice; her roommate was a slob. 
B) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing)is at least $250. 
C) Soo Jin figures that the benefit of having her own place (as opposed to sharing)is at least $950. 
D) The cost of having one's own space outweighs the benefits.

Question 20

Making "how much" decisions involve

Accepted Answer

A) calculating the total benefits of the activity and determining if you are satisfied with that amount. 
B) calculating the total costs of the activity and determining if you can afford to incur that expenditure. 
C) calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity. 
D) determining the additional benefits and the additional costs of that activity. 
A) calculating the total benefits of the activity and determining if you are satisfied with that amount. 
B) calculating the total costs of the activity and determining if you can afford to incur that expenditure. 
C) calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity. 
D) determining the additional benefits and the additional costs of that activity.

Marginal analysis involves undertaking an activity

On average women in Quebec have

Which of the following is a microeconomics question?

Holding all other personal characteristics-such as age, ethnicity, and income-constant, economists would expect that

Which of the following is a positive economic statement?

List the five main factors of production.

Which of the following statements is true about competition in a market?

How are the fundamental economic questions answered in a market economy?

Arlene quits her $125,000-a-year job to take care of her ailing parents.What is the opportunity cost of her decision?

A university must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Table 1.2 Year DVD Recorders (millions) 2007 12.5 2008 14.0 2009 17.2 2010 20.0 2011 21.7 -Refer to Table 1.2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

Society faces a trade-off in all of the following situations except

________ have a horizontal and a vertical axis and are used in economics to illustrate relationships between two economic variables.

What is a centrally planned economy?

By definition, economics is the study of

Making "how much" decisions involve

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters

Exam 1: Economics: Foundations and Models

Marginal analysis involves undertaking an activity

On average women in Quebec have

Which of the following is a microeconomics question?

Holding all other personal characteristics-such as age, ethnicity, and income-constant, economists would expect that

Which of the following is a positive economic statement?

List the five main factors of production.

Which of the following statements is true about competition in a market?

How are the fundamental economic questions answered in a market economy?

Arlene quits her $125,000-a-year job to take care of her ailing parents.What is the opportunity cost of her decision?

A university must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Table 1.2 Year DVD Recorders (millions) 2007 12.5 2008 14.0 2009 17.2 2010 20.0 2011 21.7 -Refer to Table 1.2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

Society faces a trade-off in all of the following situations except

________ have a horizontal and a vertical axis and are used in economics to illustrate relationships between two economic variables.

What is a centrally planned economy?

By definition, economics is the study of

Making "how much" decisions involve

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labour and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Pricing Strategy

Firms, the Stock Market, and Corporate Governance

Filters