Question 1

Markets promote

Accepted Answer

A)  equity and competition. 
B)  voluntary exchange and equality. 
C)  equity and equality. 
D)  competition and voluntary exchange. 
A)  equity and competition. 
B)  voluntary exchange and equality. 
C)  equity and equality. 
D)  competition and voluntary exchange.

Question 2

Consider the following economic agents:
A.the government
B.consumers
C.producers
Who,in a market economy,decides what goods and services will be produced with the scarce resources available in that economy?

Accepted Answer

A)  the government 
B)  producers 
C)  consumers 
D)  consumers and producers 
E)  the government, consumers, and producers 
A)  the government 
B)  producers 
C)  consumers 
D)  consumers and producers 
E)  the government, consumers, and producers

Question 3

Economists reason that the optimal decision is to continue any activity up to the point where the

Accepted Answer

A)  marginal benefit is zero. 
B)  marginal benefit is greater than the marginal cost. 
C)  marginal cost is zero. 
D)  marginal benefit equals the marginal cost. 
A)  marginal benefit is zero. 
B)  marginal benefit is greater than the marginal cost. 
C)  marginal cost is zero. 
D)  marginal benefit equals the marginal cost.

Question 4

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.What is the opportunity cost of buying a goldfish?

Accepted Answer

A)  5 angelfish 
B)  1/5 of an angelfish 
C)  $10 
D)  $2 
A)  5 angelfish 
B)  1/5 of an angelfish 
C)  $10 
D)  $2

Question 5

In economics,tangible merchandise is referred to as

Accepted Answer

A)  invention. 
B)  human capital. 
C)  services. 
D)  goods. 
A)  invention. 
B)  human capital. 
C)  services. 
D)  goods.

Question 6

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomic topic.

Accepted Answer

A) True 
 B)False

Question 7

In economics,the total amount received for selling a good or service is referred to as

Accepted Answer

A)  revenue. 
B)  profit. 
C)  capital gains. 
D)  factor payments. 
A)  revenue. 
B)  profit. 
C)  capital gains. 
D)  factor payments.

Question 8

How does a market system prevent people from getting as many goods and services as they wish?

Accepted Answer

A)  Governments interfere with the market mechanism to influence the allocation of goods and services. 
B)  In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish. 
C)  The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. 
D)  The government imposes taxes on those who earn beyond a certain amount of income. 
A)  Governments interfere with the market mechanism to influence the allocation of goods and services. 
B)  In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish. 
C)  The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor. 
D)  The government imposes taxes on those who earn beyond a certain amount of income.

Question 9

What is technology and what factors does it depend on?

Accepted Answer

Technology is the processes a firm uses

Question 10

In economics,the practical application of an invention is known as

Accepted Answer

A)  technology. 
B)  entrepreneurship. 
C)  physical capital. 
D)  innovation. 
A)  technology. 
B)  entrepreneurship. 
C)  physical capital. 
D)  innovation.

Question 11

What is the difference between accounting profit and economic profit?

Accepted Answer

Profit is the difference between revenue

Question 12

The branch of economics which studies how households and firms make choices,interact in markets,and how government attempts to influence their choices is called

Accepted Answer

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

Question 13

The government makes all economic decisions in a centrally planned economy.

Accepted Answer

A) True 
 B)False

Question 14

The revenue received from the sale of an additional unit of a product

Accepted Answer

A)  is a marginal benefit to the firm. 
B)  is called profit. 
C)  is called gross sales. 
D)  is called a net gain. 
A)  is a marginal benefit to the firm. 
B)  is called profit. 
C)  is called gross sales. 
D)  is called a net gain.

Question 15

How are the fundamental economic decisions determined in Canada?

Accepted Answer

A)  Individuals, firms, and the government interact in a market to make these economic decisions. 
B)  These decisions are made by the country's elders who have had much experience in answering these questions. 
C)  The government decides because Canada is a centrally planned economy. 
D)  The United Nations decides because Canada is a developing economy. 
A)  Individuals, firms, and the government interact in a market to make these economic decisions. 
B)  These decisions are made by the country's elders who have had much experience in answering these questions. 
C)  The government decides because Canada is a centrally planned economy. 
D)  The United Nations decides because Canada is a developing economy.

Question 16

Human capital refers to the accumulated skills and training that workers possess.

Accepted Answer

A) True 
 B)False

Question 17

"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

Accepted Answer

A) True 
 B)False

Question 18

What is an economic variable? Give an example of an economic variable.

Accepted Answer

An economic variable is someth

Question 19

Consider the following statements:
A.Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area.
B.Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment.
C.Manufacturers produce less of a particular cell phone when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?

Accepted Answer

A)  a only. 
B)  b only. 
C)  c only. 
D)  a and b. 
E)  a, b, and c. 
A)  a only. 
B)  b only. 
C)  c only. 
D)  a and b. 
E)  a, b, and c.

Question 20

Economic models

Accepted Answer

A)  make no assumptions in order to remain as accurate as possible. 
B)  are simplified versions of reality. 
C)  can not be used to analyze real-world issues. 
D)  magnify the complexity of economic issues in order to provide useful data. 
A)  make no assumptions in order to remain as accurate as possible. 
B)  are simplified versions of reality. 
C)  can not be used to analyze real-world issues. 
D)  magnify the complexity of economic issues in order to provide useful data.

Markets promote

Consider the following economic agents: A.the government B.consumers C.producers Who,in a market economy,decides what goods and services will be produced with the scarce resources available in that economy?

Economists reason that the optimal decision is to continue any activity up to the point where the

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.What is the opportunity cost of buying a goldfish?

In economics,tangible merchandise is referred to as

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomic topic.

In economics,the total amount received for selling a good or service is referred to as

How does a market system prevent people from getting as many goods and services as they wish?

What is technology and what factors does it depend on?

In economics,the practical application of an invention is known as

What is the difference between accounting profit and economic profit?

The branch of economics which studies how households and firms make choices,interact in markets,and how government attempts to influence their choices is called

The government makes all economic decisions in a centrally planned economy.

The revenue received from the sale of an additional unit of a product

How are the fundamental economic decisions determined in Canada?

Human capital refers to the accumulated skills and training that workers possess.

"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

What is an economic variable? Give an example of an economic variable.

Economic models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters

Exam 1: Economics: Foundations and Models

Markets promote

Consider the following economic agents: A.the government B.consumers C.producers Who,in a market economy,decides what goods and services will be produced with the scarce resources available in that economy?

Economists reason that the optimal decision is to continue any activity up to the point where the

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.What is the opportunity cost of buying a goldfish?

In economics,tangible merchandise is referred to as

Suppose that to move more people off the wait list for organ donations,surgeons and hospitals are developing a market for organ swapping.This is an example of a macroeconomic topic.

In economics,the total amount received for selling a good or service is referred to as

How does a market system prevent people from getting as many goods and services as they wish?

What is technology and what factors does it depend on?

In economics,the practical application of an invention is known as

What is the difference between accounting profit and economic profit?

The branch of economics which studies how households and firms make choices,interact in markets,and how government attempts to influence their choices is called

The government makes all economic decisions in a centrally planned economy.

The revenue received from the sale of an additional unit of a product

How are the fundamental economic decisions determined in Canada?

Human capital refers to the accumulated skills and training that workers possess.

"An increase in the price of gasoline will increase the demand for hybrid vehicles." This statement is an example of a positive economic statement.

What is an economic variable? Give an example of an economic variable.

Economic models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, The Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology,Production,and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, International Trade, and Exchange Rates

Filters