Question 1

Which of the following statements best describes a barter system of exchange?

Accepted Answer

A) It involves the trading of goods directly for other goods. 
B) It requires the use of money. 
C) It does not involve the double coincidence of wants. 
D) It developed late in history. 
E) It is the most efficient form of exchange. 
A) It involves the trading of goods directly for other goods. 
B) It requires the use of money. 
C) It does not involve the double coincidence of wants. 
D) It developed late in history. 
E) It is the most efficient form of exchange.

Question 2

In the current Canadian economy,the majority of choices on how resources are allocated are made by

Accepted Answer

A) consumers and firms through the price system. 
B) the various levels of government. 
C) negotiation between unions and firms. 
D) business firms only. 
E) legal contracts. 
A) consumers and firms through the price system. 
B) the various levels of government. 
C) negotiation between unions and firms. 
D) business firms only. 
E) legal contracts.

Question 3

In general,which of the following statements is an accurate description of economists' assumptions about households? Households

Accepted Answer

A) make consistent decisions,maximize utility,and are the principal owners of the factors of production. 
B) do not make consistent decisions,maximize satisfaction,and are the principal owners of the factors of production. 
C) make consistent decisions,maximize profits,and are the principal users of the factors of production. 
D) do not make consistent decisions,maximize profits,and are the principal users of the factors of production. 
E) make consistent decisions,maximize savings,and are the principal users of the factors of production. 
A) make consistent decisions,maximize utility,and are the principal owners of the factors of production. 
B) do not make consistent decisions,maximize satisfaction,and are the principal owners of the factors of production. 
C) make consistent decisions,maximize profits,and are the principal users of the factors of production. 
D) do not make consistent decisions,maximize profits,and are the principal users of the factors of production. 
E) make consistent decisions,maximize savings,and are the principal users of the factors of production.

Question 4

Karl Marx argued that

Accepted Answer

A) centrally planned economies could provide a more equitable distribution of total output than capitalist economies. 
B) technological change was not important in improving living standards. 
C) a free-market system would produce a low level of total output. 
D) benevolence,not self-interest,produced an effective economic order. 
E) the unfettered market system driven by self-interest leads to the best social outcome. 
A) centrally planned economies could provide a more equitable distribution of total output than capitalist economies. 
B) technological change was not important in improving living standards. 
C) a free-market system would produce a low level of total output. 
D) benevolence,not self-interest,produced an effective economic order. 
E) the unfettered market system driven by self-interest leads to the best social outcome.

Question 5

Money facilitates trade and specialization by

Accepted Answer

A) allowing an efficient barter system to develop. 
B) increasing the value of gold. 
C) eliminating the need for barter. 
D) reducing the shift of resources between uses. 
E) providing employment for coin makers. 
A) allowing an efficient barter system to develop. 
B) increasing the value of gold. 
C) eliminating the need for barter. 
D) reducing the shift of resources between uses. 
E) providing employment for coin makers.

Question 6

Suppose drought destroys many millions of acres of valuable Canadian farmland.The effect on the Canadian economy would be to move

Accepted Answer

A) it along its production possibilities boundary. 
B) its production possibilities boundary inward. 
C) it beyond its production possibilities boundary. 
D) its production possibilities boundary outward. 
E) None of the above.There would be no change in Canada's production possibilities boundary. 
A) it along its production possibilities boundary. 
B) its production possibilities boundary inward. 
C) it beyond its production possibilities boundary. 
D) its production possibilities boundary outward. 
E) None of the above.There would be no change in Canada's production possibilities boundary.

Question 7

Which of the following results from the introduction of money for use in transactions?

Accepted Answer

A) exchange becomes easier and this promotes the specialization of labour 
B) an increased use of barter 
C) the specialization of labour becomes more difficult 
D) self-sufficiency is assured 
E) society is able to satisfy all wants 
A) exchange becomes easier and this promotes the specialization of labour 
B) an increased use of barter 
C) the specialization of labour becomes more difficult 
D) self-sufficiency is assured 
E) society is able to satisfy all wants

Question 8

Society's resources are often divided into broad categories.They are

Accepted Answer

A) goods and services. 
B) factors of consumption. 
C) land,labour,and capital. 
D) population and natural resources. 
E) tangible commodities and intangible commodities. 
A) goods and services. 
B) factors of consumption. 
C) land,labour,and capital. 
D) population and natural resources. 
E) tangible commodities and intangible commodities.

Question 9

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms.   FIGURE 1-2
-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional laptop computer?

Accepted Answer

A) 0 textbooks 
B) 1/10 of a textbook 
C) 10 textbooks 
D) 20 textbooks 
E) 2000 textbooks 
A) 0 textbooks 
B) 1/10 of a textbook 
C) 10 textbooks 
D) 20 textbooks 
E) 2000 textbooks

Question 10

Which countries have mostly public ownership of resources?

Accepted Answer

A) United States and Canada 
B) Cuba and North Korea 
C) France and Germany 
D) Sweden and Norway 
E) Brazil and Argentina 
A) United States and Canada 
B) Cuba and North Korea 
C) France and Germany 
D) Sweden and Norway 
E) Brazil and Argentina

Exam 1: Economic Issues and Concepts

Which of the following statements best describes a barter system of exchange?

In the current Canadian economy,the majority of choices on how resources are allocated are made by

In general,which of the following statements is an accurate description of economists' assumptions about households? Households

Karl Marx argued that

Money facilitates trade and specialization by

Suppose drought destroys many millions of acres of valuable Canadian farmland.The effect on the Canadian economy would be to move

Which of the following results from the introduction of money for use in transactions?

Society's resources are often divided into broad categories.They are

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2 -Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional laptop computer?

Which countries have mostly public ownership of resources?

Economic Theories,Data,and Graphs

Demand, Supply, and Price

Elasticity

Price Controls and Market Efficiency

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Interest Rates and the Capital Market

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Output and Prices in the Short Run

From the Short Run to the Long Run: The Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, Interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters