Question 1

Government policies are coercive, whereas markets are NOT.What does this imply?

Accepted Answer

A)  Government activity will always be less efficient than market activity. 
B)  Households cannot maximize utility if they consume any government goods and services. 
C)  Self-interest and public interest are always in conflict. 
D)  Government can provide some goods and services when private markets fail to do so. 
A)  Government activity will always be less efficient than market activity. 
B)  Households cannot maximize utility if they consume any government goods and services. 
C)  Self-interest and public interest are always in conflict. 
D)  Government can provide some goods and services when private markets fail to do so. D

Question 2

Why has there been a movement, over time, of the Canadian population from farms to urban areas?

Accepted Answer

A)  because individual members of farm families are specializing in particular sets of tasks 
B)  because of a sharp increase in farm productivity 
C)  because of a decline in the demand for labour in urban areas 
D)  because of a sharp decline in the demand for agricultural products 
A)  because individual members of farm families are specializing in particular sets of tasks 
B)  because of a sharp increase in farm productivity 
C)  because of a decline in the demand for labour in urban areas 
D)  because of a sharp decline in the demand for agricultural products B

Question 3

When is Martha more likely to hire a plumber to repair a leaky drainpipe?

Accepted Answer

A)  when the tax rate on Martha's earned income rises 
B)  if Martha already owns the specialized tools required to complete the plumbing repair work 
C)  following an increase in the opportunity cost of Martha's time 
D)  when Martha obtains more knowledge and experience in plumbing repair work 
A)  when the tax rate on Martha's earned income rises 
B)  if Martha already owns the specialized tools required to complete the plumbing repair work 
C)  following an increase in the opportunity cost of Martha's time 
D)  when Martha obtains more knowledge and experience in plumbing repair work C

Question 4

When is household production more likely to occur?

Accepted Answer

A)  when it requires few specialized resources 
B)  when technology makes it more costly than market production 
C)  when tax avoidance is undesirable 
D)  when less control over the final product is desirable 
A)  when it requires few specialized resources 
B)  when technology makes it more costly than market production 
C)  when tax avoidance is undesirable 
D)  when less control over the final product is desirable

Question 5

What is the largest source of federal government revenue?

Accepted Answer

A)  corporate taxes 
B)  individual income taxes 
C)  payroll taxes 
D)  sales and excise taxes 
A)  corporate taxes 
B)  individual income taxes 
C)  payroll taxes 
D)  sales and excise taxes

Question 6

Katie had a before-tax income of $40,000, and she paid $6,000 in taxes.Rinji had a before-tax income of $35,000, and he paid taxes of $5,250.Based on this information, what is the taxation system?

Accepted Answer

A)  progressive 
B)  transgressive 
C)  regressive 
D)  proportional 
A)  progressive 
B)  transgressive 
C)  regressive 
D)  proportional

Question 7

Which term describes the system of individual taxation in Canada?

Accepted Answer

A)  regressive tax 
B)  proportional tax 
C)  flat tax 
D)  progressive tax 
A)  regressive tax 
B)  proportional tax 
C)  flat tax 
D)  progressive tax

Question 8

Which of the following is a common assumption that economists make about the behaviour of elected officials?

Accepted Answer

A)  that elected officials try to maximize the size of their government salaries 
B)  that elected officials try to maximize their control over the budget process 
C)  that elected officials try to maximize the number of votes they receive in the next election 
D)  that elected officials try to maximize the government's expenditures 
A)  that elected officials try to maximize the size of their government salaries 
B)  that elected officials try to maximize their control over the budget process 
C)  that elected officials try to maximize the number of votes they receive in the next election 
D)  that elected officials try to maximize the government's expenditures

Question 9

How are externalities defined?

Accepted Answer

A)  as any transaction external to the firm 
B)  as costs or benefits that fall on third parties 
C)  as policies that firms undertake to sell products outside the country 
D)  as managers' dealings with shareholders outside the firm 
A)  as any transaction external to the firm 
B)  as costs or benefits that fall on third parties 
C)  as policies that firms undertake to sell products outside the country 
D)  as managers' dealings with shareholders outside the firm

Question 10

Which of the following is an example of a positive externality?

Accepted Answer

A)  pollution, because it affects people NOT directly involved with producing it 
B)  a homeowner's maintenance of a beautiful lawn, because this creates a benefit for neighbours 
C)  a monopoly 
D)  police services 
A)  pollution, because it affects people NOT directly involved with producing it 
B)  a homeowner's maintenance of a beautiful lawn, because this creates a benefit for neighbours 
C)  a monopoly 
D)  police services

Question 11

Which of the following would NOT be considered a role of the government?

Accepted Answer

A)  providing public goods 
B)  providing externalities 
C)  regulating natural monopolies 
D)  safeguarding private property and enforcing contracts 
A)  providing public goods 
B)  providing externalities 
C)  regulating natural monopolies 
D)  safeguarding private property and enforcing contracts

Question 12

Which statement reflects the main purpose of private sector firms in the Canadian economy? Firms:

Accepted Answer

A)  They are assumed to be socially responsible. 
B)  They have responsibilities for providing services that the government cannot provide. 
C)  They are assumed to try to maximize profit. 
D)  They seek to maximize sales. 
A)  They are assumed to be socially responsible. 
B)  They have responsibilities for providing services that the government cannot provide. 
C)  They are assumed to try to maximize profit. 
D)  They seek to maximize sales.

Question 13

Which of the following is NOT an example of a business operated by a consumer cooperative?

Accepted Answer

A)  a grocery store 
B)  an apartment building 
C)  Sunkist, a farm collective owned and operated by citrus growers 
D)  a credit union 
A)  a grocery store 
B)  an apartment building 
C)  Sunkist, a farm collective owned and operated by citrus growers 
D)  a credit union

Question 14

Which of the following did NOT occur during the Industrial Revolution?

Accepted Answer

A)  Production became more reliant on highly specialized equipment. 
B)  A more efficient division of labour was promoted. 
C)  Workers bore much of the costs of production. 
D)  Technological development increased the productivity of most workers. 
A)  Production became more reliant on highly specialized equipment. 
B)  A more efficient division of labour was promoted. 
C)  Workers bore much of the costs of production. 
D)  Technological development increased the productivity of most workers.

Question 15

How are owners of corporations most frequently referred to?

Accepted Answer

A)  as entrepreneurs 
B)  as limited partners 
C)  as managers 
D)  as shareholders 
A)  as entrepreneurs 
B)  as limited partners 
C)  as managers 
D)  as shareholders

Question 16

Which of the following taxes is most likely to be based on the ability-to-pay principle?

Accepted Answer

A)  tolls on a bridge 
B)  income taxes 
C)  gasoline excise taxes 
D)  property taxes 
A)  tolls on a bridge 
B)  income taxes 
C)  gasoline excise taxes 
D)  property taxes

Question 17

Which of the following is a reason why trade will often NOT occur?

Accepted Answer

A)  Transaction costs are too high. 
B)  Neither party has an opportunity cost. 
C)  The benefits to one party just equal the losses to the other party. 
D)  No one expects to gain from the trade. 
A)  Transaction costs are too high. 
B)  Neither party has an opportunity cost. 
C)  The benefits to one party just equal the losses to the other party. 
D)  No one expects to gain from the trade.

Question 18

When is a tax said to be progressive?

Accepted Answer

A)  if the absolute amount of the tax (in dollars) increases as income increases 
B)  if the wealthy pay a smaller percentage of their income than the poor pay 
C)  if the average tax rate falls as income rises 
D)  if the proportion of income paid as taxes increases as income increases 
A)  if the absolute amount of the tax (in dollars) increases as income increases 
B)  if the wealthy pay a smaller percentage of their income than the poor pay 
C)  if the average tax rate falls as income rises 
D)  if the proportion of income paid as taxes increases as income increases

Question 19

Which of the following accounts for the largest source of revenue for the federal government?

Accepted Answer

A)  goods and services taxes 
B)  federal property taxes 
C)  individual income taxes 
D)  corporate taxes 
A)  goods and services taxes 
B)  federal property taxes 
C)  individual income taxes 
D)  corporate taxes

Question 20

Which statement describes the level at which primary education is provided in Canada?

Accepted Answer

A)  at the municipal level 
B)  at the national level 
C)  at the provincial level 
D)  at the regional level 
A)  at the municipal level 
B)  at the national level 
C)  at the provincial level 
D)  at the regional level

Government policies are coercive, whereas markets are NOT.What does this imply?

Why has there been a movement, over time, of the Canadian population from farms to urban areas?

When is Martha more likely to hire a plumber to repair a leaky drainpipe?

When is household production more likely to occur?

What is the largest source of federal government revenue?

Katie had a before-tax income of $40,000, and she paid $6,000 in taxes.Rinji had a before-tax income of $35,000, and he paid taxes of $5,250.Based on this information, what is the taxation system?

Which term describes the system of individual taxation in Canada?

Which of the following is a common assumption that economists make about the behaviour of elected officials?

How are externalities defined?

Which of the following is an example of a positive externality?

Which of the following would NOT be considered a role of the government?

Which statement reflects the main purpose of private sector firms in the Canadian economy? Firms:

Which of the following is NOT an example of a business operated by a consumer cooperative?

Which of the following did NOT occur during the Industrial Revolution?

How are owners of corporations most frequently referred to?

Which of the following taxes is most likely to be based on the ability-to-pay principle?

Which of the following is a reason why trade will often NOT occur?

When is a tax said to be progressive?

Which of the following accounts for the largest source of revenue for the federal government?

Which statement describes the level at which primary education is provided in Canada?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters

Exam 3: Economic Decision Makers

Government policies are coercive, whereas markets are NOT.What does this imply?

Why has there been a movement, over time, of the Canadian population from farms to urban areas?

When is Martha more likely to hire a plumber to repair a leaky drainpipe?

When is household production more likely to occur?

What is the largest source of federal government revenue?

Katie had a before-tax income of $40,000, and she paid $6,000 in taxes.Rinji had a before-tax income of $35,000, and he paid taxes of $5,250.Based on this information, what is the taxation system?

Which term describes the system of individual taxation in Canada?

Which of the following is a common assumption that economists make about the behaviour of elected officials?

How are externalities defined?

Which of the following is an example of a positive externality?

Which of the following would NOT be considered a role of the government?

Which statement reflects the main purpose of private sector firms in the Canadian economy? Firms:

Which of the following is NOT an example of a business operated by a consumer cooperative?

Which of the following did NOT occur during the Industrial Revolution?

How are owners of corporations most frequently referred to?

Which of the following taxes is most likely to be based on the ability-to-pay principle?

Which of the following is a reason why trade will often NOT occur?

When is a tax said to be progressive?

Which of the following accounts for the largest source of revenue for the federal government?

Which statement describes the level at which primary education is provided in Canada?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters