Question 1

"Reducing the price of prescription drugs in Canada may reduce the quantity of these drugs available" is an example of

Accepted Answer

A)  positive economics. 
B)  normative economics. 
C)  comparative economics. 
D)  classical economics. 
E)  neoclassical economics. 
A)  positive economics. 
B)  normative economics. 
C)  comparative economics. 
D)  classical economics. 
E)  neoclassical economics.

Question 2

Econometrics is the branch of economics that

Accepted Answer

A)  studies individual choices under scarcity. 
B)  studies the performance of national economies. 
C)  examines the role of opportunity costs in rational behaviour. 
D)  applies statistical techniques to economic data. 
E)  offers cause-and-effect relationships which can be confirmed or refuted by data. 
A)  studies individual choices under scarcity. 
B)  studies the performance of national economies. 
C)  examines the role of opportunity costs in rational behaviour. 
D)  applies statistical techniques to economic data. 
E)  offers cause-and-effect relationships which can be confirmed or refuted by data.

Question 3

To avoid spurious correlation,one must recognize that

Accepted Answer

A)  what is true for a part must also be true for the whole. 
B)  what is true for a part is not necessarily true for the whole. 
C)  because one event precedes another,the first event necessarily caused the second. 
D)  because one event precedes another,the first event did not necessarily cause the second. 
E)  correlation implies causation. 
A)  what is true for a part must also be true for the whole. 
B)  what is true for a part is not necessarily true for the whole. 
C)  because one event precedes another,the first event necessarily caused the second. 
D)  because one event precedes another,the first event did not necessarily cause the second. 
E)  correlation implies causation.

Question 4

-The Dean of Finance at What's A Matter U argues that the best number of fundraisers to hire is where average labour costs are the lowest.This would mean __________ employee(s)and a "net benefit" (total donations minus total labour costs)of __________.

Accepted Answer

A)  1;$36,000 
B)  1;$22,000 
C)  2;$21,213 
D)  2;$8,500 
E)  1;$8,000 
A)  1;$36,000 
B)  1;$22,000 
C)  2;$21,213 
D)  2;$8,500 
E)  1;$8,000

Question 5

The logical implication of the scarcity problem is that

Accepted Answer

A)  one will never be satisfied with what one has. 
B)  as wealth increases,making trade-offs becomes less necessary. 
C)  as wealth decreases,making trade-offs becomes less necessary. 
D)  choices must be made. 
E)  resources need to be made unlimited. 
A)  one will never be satisfied with what one has. 
B)  as wealth increases,making trade-offs becomes less necessary. 
C)  as wealth decreases,making trade-offs becomes less necessary. 
D)  choices must be made. 
E)  resources need to be made unlimited.

Question 6

The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity
  
-If the activity in question is ski trips for a novice skier,which of the following is the most appropriate example of Cost A?

Accepted Answer

A)  Ski rental each trip. 
B)  Purchase of second-hand skis. 
C)  Ski lift tickets. 
D)  Food and drinks bought at the ski resort. 
E)  Wages for the ski-lift operator. 
A)  Ski rental each trip. 
B)  Purchase of second-hand skis. 
C)  Ski lift tickets. 
D)  Food and drinks bought at the ski resort. 
E)  Wages for the ski-lift operator.

Question 7

-The President of What's A Matter U decides to hire fundraisers as long as the average benefit exceeds the average cost,resulting in __________ employees being hired and a "net benefit" (total donations minus total labour costs)of __________.

Accepted Answer

A)  5;$17,082 
B)  5;$67,082 
C)  4;$60,000 
D)  4;$22,000 
E)  5;$38,000 
A)  5;$17,082 
B)  5;$67,082 
C)  4;$60,000 
D)  4;$22,000 
E)  5;$38,000

Question 8

To determine the best course of action,one needs to consider

Accepted Answer

A)  the benefits. 
B)  the costs. 
C)  neither the benefits nor the costs. 
D)  both the benefits and the costs. 
E)  either the benefits or the costs,but not both. 
A)  the benefits. 
B)  the costs. 
C)  neither the benefits nor the costs. 
D)  both the benefits and the costs. 
E)  either the benefits or the costs,but not both.

Question 9

Any time one purchases a ticket in advance of an event,if the ticket is non-refundable and non-transferable,then on the day of the event,

Accepted Answer

A)  the ticket is part of the cost of going. 
B)  the ticket is a marginal cost. 
C)  the ticket is part of the cost of going if it was expensive. 
D)  the ticket is a sunk cost and should pay no role in the decision to go or not. 
E)  the ticket is an average cost but not a sunk cost. 
A)  the ticket is part of the cost of going. 
B)  the ticket is a marginal cost. 
C)  the ticket is part of the cost of going if it was expensive. 
D)  the ticket is a sunk cost and should pay no role in the decision to go or not. 
E)  the ticket is an average cost but not a sunk cost.

Question 10

Jack has a ticket to see a concert,which he paid $30 for yesterday.He takes an unpaid day off from work to get ready for the concert.When he arrives at the concert,5 different people offer him $70 for his ticket.The cost to Jack of seeing the concert is now

Accepted Answer

A)  $30. 
B)  $40. 
C)  $70. 
D)  $70 plus his forgone earnings. 
E)  his forgone earnings. 
A)  $30. 
B)  $40. 
C)  $70. 
D)  $70 plus his forgone earnings. 
E)  his forgone earnings.

Question 11

Microeconomics includes the study of

Accepted Answer

A)  inflation. 
B)  unemployment. 
C)  economic growth. 
D)  the distribution of income. 
E)  the national aggregate output. 
A)  inflation. 
B)  unemployment. 
C)  economic growth. 
D)  the distribution of income. 
E)  the national aggregate output.

Question 12

Suppose that a person makes a choice that seems inconsistent with the cost-benefit principle.Which of the following statements represents the most reasonable conclusion to draw?

Accepted Answer

A)  The person (explicitly or implicitly)over-estimated the benefits or under-estimated the costs or both. 
B)  The abstraction of the cost-benefit principle is so great as to be unable to explain behaviour. 
C)  The person does not grasp how decisions should be made. 
D)  The person is simply irrational. 
E)  Because people do not explicitly calculate benefits and costs,it is not surprising that choices are made which violate the cost-benefit principlE. 
A)  The person (explicitly or implicitly)over-estimated the benefits or under-estimated the costs or both. 
B)  The abstraction of the cost-benefit principle is so great as to be unable to explain behaviour. 
C)  The person does not grasp how decisions should be made. 
D)  The person is simply irrational. 
E)  Because people do not explicitly calculate benefits and costs,it is not surprising that choices are made which violate the cost-benefit principlE.

Question 13

With ATMs it is possible to retrieve cash from the bank at any time.One hundred years ago,one could only get cash from the bank during business hours,say,9 am to 3 pm.The difference is because

Accepted Answer

A)  flexibility was not valued 100 years ago. 
B)  it was impossible to provide 24 hour a day service 100 years ago. 
C)  the cost of providing 24 hour a day service is much lower today. 
D)  government forced banks to become more convenient. 
E)  the value of money has increased in the past century. 
A)  flexibility was not valued 100 years ago. 
B)  it was impossible to provide 24 hour a day service 100 years ago. 
C)  the cost of providing 24 hour a day service is much lower today. 
D)  government forced banks to become more convenient. 
E)  the value of money has increased in the past century.

Question 14

Ontel engineers proposed developing a 10-Gigahertz microprocessor in early 2011 at a cost of $20 million for a working prototype.By mid-2012,the $20 million had been spent with no prototype.The engineers request an additional $10 million to finish the project.For convenience,assume the marginal cost of producing the chip once it is developed is zero.
-In early 2011,sunk costs of this project were __________ and,in mid-2012,sunk costs were __________.

Accepted Answer

A)  0;$20 million 
B)  0;$30 million 
C)  $20 million;$30 million 
D)  $20 million;$10 million 
E)  $20 million;0 
A)  0;$20 million 
B)  0;$30 million 
C)  $20 million;$30 million 
D)  $20 million;$10 million 
E)  $20 million;0

Question 15

Suppose Darlene purchased a computer 2 weeks ago for $2,000.Today she can purchase a new computer that is twice as fast for $1,400.She also discovers that her current computer sells used for $300.The sunk cost of her current computer is

Accepted Answer

A)  $0. 
B)  $300. 
C)  $1,100. 
D)  $1,700. 
E)  $2,000. 
A)  $0. 
B)  $300. 
C)  $1,100. 
D)  $1,700. 
E)  $2,000.

Question 16

Which of the following is a macroeconomic issue?

Accepted Answer

A)  Planning a price increase for daily bus fare. 
B)  Predicting inflation rates for next year. 
C)  Determining how many permits should be issued for single homes in Montreal. 
D)  Negotiation a wage increase for faculty at local university. 
E)  Identifying the best location for future department stores in Ontario. 
A)  Planning a price increase for daily bus fare. 
B)  Predicting inflation rates for next year. 
C)  Determining how many permits should be issued for single homes in Montreal. 
D)  Negotiation a wage increase for faculty at local university. 
E)  Identifying the best location for future department stores in Ontario.

Question 17

The Latin expression "ceteris paribus": is essential in ______.

Accepted Answer

A)  collecting data. 
B)  identifying sunk costs. 
C)  evaluating theories. 
D)  recognizing scarcity. 
E)  developing spurious relationships. 
A)  collecting data. 
B)  identifying sunk costs. 
C)  evaluating theories. 
D)  recognizing scarcity. 
E)  developing spurious relationships.

Question 18

The number of Canadian households with access to the Internet is growing rapidly.As an economic naturalist,one could predict that when a major purchase is being considered,families will

Accepted Answer

A)  collect as much information as humanly possible beforehand. 
B)  always buy online. 
C)  never buy online. 
D)  collect more information beforehand because the cost of finding and acquiring it is lower. 
E)  collect more information beforehand because the benefit of information is now larger. 
A)  collect as much information as humanly possible beforehand. 
B)  always buy online. 
C)  never buy online. 
D)  collect more information beforehand because the cost of finding and acquiring it is lower. 
E)  collect more information beforehand because the benefit of information is now larger.

Question 19

The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity
-The additional benefit of consuming two rather than just one unit of activity is

Accepted Answer

A)  $50. 
B)  $100. 
C)  $110 
D)  $150. 
E)  $180 
A)  $50. 
B)  $100. 
C)  $110 
D)  $150. 
E)  $180

Question 20

When wages fall,the

Accepted Answer

A)  opportunity cost of an hour of work increases. 
B)  opportunity cost of an hour of leisure (not working)stays the same. 
C)  cost of working increases. 
D)  opportunity cost of an hour of leisure (not working)decreases. 
E)  opportunity cost of an hour of leisure (not working)increases. 
A)  opportunity cost of an hour of work increases. 
B)  opportunity cost of an hour of leisure (not working)stays the same. 
C)  cost of working increases. 
D)  opportunity cost of an hour of leisure (not working)decreases. 
E)  opportunity cost of an hour of leisure (not working)increases.

"Reducing the price of prescription drugs in Canada may reduce the quantity of these drugs available" is an example of

Econometrics is the branch of economics that

To avoid spurious correlation,one must recognize that

-The Dean of Finance at What's A Matter U argues that the best number of fundraisers to hire is where average labour costs are the lowest.This would mean employee(s)and a "net benefit" (total donations minus total labour costs)of .

The logical implication of the scarcity problem is that

The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity -If the activity in question is ski trips for a novice skier,which of the following is the most appropriate example of Cost A?

-The President of What's A Matter U decides to hire fundraisers as long as the average benefit exceeds the average cost,resulting in employees being hired and a "net benefit" (total donations minus total labour costs)of .

To determine the best course of action,one needs to consider

Any time one purchases a ticket in advance of an event,if the ticket is non-refundable and non-transferable,then on the day of the event,

Jack has a ticket to see a concert,which he paid $30 for yesterday.He takes an unpaid day off from work to get ready for the concert.When he arrives at the concert,5 different people offer him $70 for his ticket.The cost to Jack of seeing the concert is now

Microeconomics includes the study of

Suppose that a person makes a choice that seems inconsistent with the cost-benefit principle.Which of the following statements represents the most reasonable conclusion to draw?

With ATMs it is possible to retrieve cash from the bank at any time.One hundred years ago,one could only get cash from the bank during business hours,say,9 am to 3 pm.The difference is because

Suppose Darlene purchased a computer 2 weeks ago for $2,000.Today she can purchase a new computer that is twice as fast for $1,400.She also discovers that her current computer sells used for $300.The sunk cost of her current computer is

Which of the following is a macroeconomic issue?

The Latin expression "ceteris paribus": is essential in ______.

The number of Canadian households with access to the Internet is growing rapidly.As an economic naturalist,one could predict that when a major purchase is being considered,families will

The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity -The additional benefit of consuming two rather than just one unit of activity is

When wages fall,the

Measuring Macroeconomic Performance: Saving and Wealth

Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

Short-Term Economic Fluctuations

Spending and Output in the Short Run

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

Exam 1: Measuring Macroeconomic Performance: Output and Prices

"Reducing the price of prescription drugs in Canada may reduce the quantity of these drugs available" is an example of

Econometrics is the branch of economics that

To avoid spurious correlation,one must recognize that

-The Dean of Finance at What's A Matter U argues that the best number of fundraisers to hire is where average labour costs are the lowest.This would mean __________ employee(s)and a "net benefit" (total donations minus total labour costs)of __________.

The logical implication of the scarcity problem is that

The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity -If the activity in question is ski trips for a novice skier,which of the following is the most appropriate example of Cost A?

-The President of What's A Matter U decides to hire fundraisers as long as the average benefit exceeds the average cost,resulting in __________ employees being hired and a "net benefit" (total donations minus total labour costs)of __________.

To determine the best course of action,one needs to consider

Any time one purchases a ticket in advance of an event,if the ticket is non-refundable and non-transferable,then on the day of the event,

Jack has a ticket to see a concert,which he paid $30 for yesterday.He takes an unpaid day off from work to get ready for the concert.When he arrives at the concert,5 different people offer him $70 for his ticket.The cost to Jack of seeing the concert is now

Microeconomics includes the study of

Suppose that a person makes a choice that seems inconsistent with the cost-benefit principle.Which of the following statements represents the most reasonable conclusion to draw?

With ATMs it is possible to retrieve cash from the bank at any time.One hundred years ago,one could only get cash from the bank during business hours,say,9 am to 3 pm.The difference is because

Suppose Darlene purchased a computer 2 weeks ago for $2,000.Today she can purchase a new computer that is twice as fast for $1,400.She also discovers that her current computer sells used for $300.The sunk cost of her current computer is

Which of the following is a macroeconomic issue?

The Latin expression "ceteris paribus": is essential in ______.

The number of Canadian households with access to the Internet is growing rapidly.As an economic naturalist,one could predict that when a major purchase is being considered,families will

The following table provides the costs (Cost A and Cost B)and the benenfits associated with each unit of activity -The additional benefit of consuming two rather than just one unit of activity is

When wages fall,the

Measuring Macroeconomic Performance: Saving and Wealth

Measuring Macroeconomic Performance: Wages, Employment and the Labour Market

Short-Term Economic Fluctuations

Spending and Output in the Short Run

Fiscal Policy

Money, Prices and the Reserve Bank

The Reserve Bank and the Economy

The Aggregate Demand - Aggregate Supply Model

Macroeconomic Policy

The Economy in the Long Run: an Introduction to Economic Growth

The Production Function Approach to Understanding Growth

Savings, Capital Formation and Comparative Economic Growth

International Trade

Exchange Rates and the Open Economy

The Balance of Payments: Net Exports and International Capital Flows

Filters

-The Dean of Finance at What's A Matter U argues that the best number of fundraisers to hire is where average labour costs are the lowest.This would mean employee(s)and a "net benefit" (total donations minus total labour costs)of .

-The President of What's A Matter U decides to hire fundraisers as long as the average benefit exceeds the average cost,resulting in employees being hired and a "net benefit" (total donations minus total labour costs)of .