Question 1

Marginal analysis:

Accepted Answer

A)  refers to decisions about whether or not to engage in a particular activity. 
B)  is primarily used when making an either-or choice. 
C)  is used primarily when deciding how much of an activity should be done. 
D)  does not help when making a "how much" choice. 
A)  refers to decisions about whether or not to engage in a particular activity. 
B)  is primarily used when making an either-or choice. 
C)  is used primarily when deciding how much of an activity should be done. 
D)  does not help when making a "how much" choice.

Question 2

According to economic models of trade,when Canada and Mexico trade:

Accepted Answer

A)  Canada will be worse off because wages in Mexico are so low. 
B)  Mexico will be worse off because Canada is a stronger economic power. 
C)  both Mexico and Canada will be better off. 
D)  both Mexico and Canada will be worse off. 
A)  Canada will be worse off because wages in Mexico are so low. 
B)  Mexico will be worse off because Canada is a stronger economic power. 
C)  both Mexico and Canada will be better off. 
D)  both Mexico and Canada will be worse off.

Question 3

A resource is anything that:

Accepted Answer

A)  can be used in production. 
B)  you pay for. 
C)  is in scarce supply. 
D)  can be consumed. 
A)  can be used in production. 
B)  you pay for. 
C)  is in scarce supply. 
D)  can be consumed.

Question 4

The concept of the margin decision deals with:

Accepted Answer

A)  making incremental choices. 
B)  choosing all or none of something. 
C)  engaging in unethical activities. 
D)  making difficult choices. 
A)  making incremental choices. 
B)  choosing all or none of something. 
C)  engaging in unethical activities. 
D)  making difficult choices.

Question 5

Using marginal analysis to decide whether to consume an additional slice of pizza requires making a comparison of the benefits and costs associated with the consumption of an additional slice of pizza.

Accepted Answer

A) True 
 B)False

Question 6

Which resource is NOT one that pertains to the production of rice?

Accepted Answer

A)  fertile land 
B)  labour 
C)  capital equipment 
D)  money 
A)  fertile land 
B)  labour 
C)  capital equipment 
D)  money

Question 7

The existence of government intervention often suggests that:

Accepted Answer

A)  markets may not be able to provide for efficient results all of the time. 
B)  individual actions have no side effects. 
C)  an equitable outcome will necessarily be achieved through this intervention. 
D)  markets can efficiently manage the allocation of goods. 
A)  markets may not be able to provide for efficient results all of the time. 
B)  individual actions have no side effects. 
C)  an equitable outcome will necessarily be achieved through this intervention. 
D)  markets can efficiently manage the allocation of goods.

Question 8

You can spend $100 on either a new economics textbook or a new tablet computer.If you choose to buy the new economics textbook,the opportunity cost is:

Accepted Answer

A)  $100. 
B)  your enjoyment of the new tablet computer. 
C)  both the $100 and your enjoyment of the new tablet computer. 
D)  impossible to determine. 
A)  $100. 
B)  your enjoyment of the new tablet computer. 
C)  both the $100 and your enjoyment of the new tablet computer. 
D)  impossible to determine.

Question 9

If an economy has NOT achieved efficiency,there must be ways to:

Accepted Answer

A)  increase opportunity costs. 
B)  eliminate inequity. 
C)  make some people better off without making others worse off. 
D)  increase the incentives for its citizens to follow their own self-interest. 
A)  increase opportunity costs. 
B)  eliminate inequity. 
C)  make some people better off without making others worse off. 
D)  increase the incentives for its citizens to follow their own self-interest.

Question 10

When someone says resources are scarce,this suggests that:

Accepted Answer

A)  lower-income individuals must be especially careful about the choices they make. 
B)  choices must be made to utilize resources in the best manner possible. 
C)  additional resources could be found if there were additional funds allocated to the effort. 
D)  we have enough resources to meet all of our needs and wants. 
A)  lower-income individuals must be especially careful about the choices they make. 
B)  choices must be made to utilize resources in the best manner possible. 
C)  additional resources could be found if there were additional funds allocated to the effort. 
D)  we have enough resources to meet all of our needs and wants.

Question 11

Khalil is offered a free ticket to the opera which he cannot resell.His opportunity cost of going to the opera is:

Accepted Answer

A)  zero-the tickets were free. 
B)  the price listed on the ticket. 
C)  whatever Khalil would have done had he not gone to the opera. 
D)  the price listed on the ticket and whatever Khalil would have done had he not gone to the opera. 
A)  zero-the tickets were free. 
B)  the price listed on the ticket. 
C)  whatever Khalil would have done had he not gone to the opera. 
D)  the price listed on the ticket and whatever Khalil would have done had he not gone to the opera.

Question 12

Which statement is NOT a reason that markets usually lead to efficiency?

Accepted Answer

A)  People are naturally efficient. 
B)  Individuals have incentives to offer what people want. 
C)  Trade encourages efficiency. 
D)  Inefficient firms will lose business. 
A)  People are naturally efficient. 
B)  Individuals have incentives to offer what people want. 
C)  Trade encourages efficiency. 
D)  Inefficient firms will lose business.

Question 13

Grades are low in your biology class,so your professor offers an optional 10-point extra credit assignment.Most of the students turn in the assignment.Which economic principle does this statement BEST represent?

Accepted Answer

A)  The true cost of something is its opportunity cost. 
B)  "How much" is a decision at the margin. 
C)  People usually respond to incentives,exploiting opportunities to make themselves better off. 
D)  There are gains from trade. 
A)  The true cost of something is its opportunity cost. 
B)  "How much" is a decision at the margin. 
C)  People usually respond to incentives,exploiting opportunities to make themselves better off. 
D)  There are gains from trade.

Question 14

An economy is efficient if one person can be made better off by reallocating resources without making anyone else worse off.

Accepted Answer

A) True 
 B)False

Question 15

Handicapped-designated parking spaces are an example of the market economy achieving efficiency.

Accepted Answer

A) True 
 B)False

Question 16

In the Niagara region,Ontario,strawberry production is limited by the number of hectares available for agriculture production.Which economic concept does this statement BEST represent?

Accepted Answer

A)  Scarcity 
B)  Marginal analysis 
C)  Equilibrium 
D)  Opportunity cost 
A)  Scarcity 
B)  Marginal analysis 
C)  Equilibrium 
D)  Opportunity cost

Question 17

An economic situation is in equilibrium when no individual would be better off taking a different action.

Accepted Answer

A) True 
 B)False

Question 18

Because one person's spending is another person's income:

Accepted Answer

A)  if one group in the economy spends more,the incomes of other groups will decrease. 
B)  if one group in the economy spends less,the incomes of other groups will increase. 
C)  if one group in the economy spends more,the incomes of other groups will increase. 
D)  spending by one group does not influence the income of any other group. 
A)  if one group in the economy spends more,the incomes of other groups will decrease. 
B)  if one group in the economy spends less,the incomes of other groups will increase. 
C)  if one group in the economy spends more,the incomes of other groups will increase. 
D)  spending by one group does not influence the income of any other group.

Question 19

If the value of beach-front property in Vancouver decreases,the people of Vancouver will likely spend _____,causing incomes in Vancouver to _____.

Accepted Answer

A)  more;increase 
B)  more;decrease 
C)  less;increase 
D)  less;decrease 
A)  more;increase 
B)  more;decrease 
C)  less;increase 
D)  less;decrease

Question 20

A dozen friends got together to celebrate a birthday.If the birthday cake is cut into 12 pieces of the same size and each of the 12 partygoers gets a slice,this cake distribution is:

Accepted Answer

A)  efficient but not equitable. 
B)  equitable but not efficient. 
C)  efficient and equitable. 
D)  equitable. 
A)  efficient but not equitable. 
B)  equitable but not efficient. 
C)  efficient and equitable. 
D)  equitable.

Marginal analysis:

According to economic models of trade,when Canada and Mexico trade:

A resource is anything that:

The concept of the margin decision deals with:

Using marginal analysis to decide whether to consume an additional slice of pizza requires making a comparison of the benefits and costs associated with the consumption of an additional slice of pizza.

Which resource is NOT one that pertains to the production of rice?

The existence of government intervention often suggests that:

You can spend $100 on either a new economics textbook or a new tablet computer.If you choose to buy the new economics textbook,the opportunity cost is:

If an economy has NOT achieved efficiency,there must be ways to:

When someone says resources are scarce,this suggests that:

Khalil is offered a free ticket to the opera which he cannot resell.His opportunity cost of going to the opera is:

Which statement is NOT a reason that markets usually lead to efficiency?

Grades are low in your biology class,so your professor offers an optional 10-point extra credit assignment.Most of the students turn in the assignment.Which economic principle does this statement BEST represent?

An economy is efficient if one person can be made better off by reallocating resources without making anyone else worse off.

Handicapped-designated parking spaces are an example of the market economy achieving efficiency.

In the Niagara region,Ontario,strawberry production is limited by the number of hectares available for agriculture production.Which economic concept does this statement BEST represent?

An economic situation is in equilibrium when no individual would be better off taking a different action.

Because one person's spending is another person's income:

If the value of beach-front property in Vancouver decreases,the people of Vancouver will likely spend _,causing incomes in Vancouver to _.

A dozen friends got together to celebrate a birthday.If the birthday cake is cut into 12 pieces of the same size and each of the 12 partygoers gets a slice,this cake distribution is:

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Gdp and the Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Graphs in Economics

Filters

Exam 1: First Principles

Marginal analysis:

According to economic models of trade,when Canada and Mexico trade:

A resource is anything that:

The concept of the margin decision deals with:

Using marginal analysis to decide whether to consume an additional slice of pizza requires making a comparison of the benefits and costs associated with the consumption of an additional slice of pizza.

Which resource is NOT one that pertains to the production of rice?

The existence of government intervention often suggests that:

You can spend $100 on either a new economics textbook or a new tablet computer.If you choose to buy the new economics textbook,the opportunity cost is:

If an economy has NOT achieved efficiency,there must be ways to:

When someone says resources are scarce,this suggests that:

Khalil is offered a free ticket to the opera which he cannot resell.His opportunity cost of going to the opera is:

Which statement is NOT a reason that markets usually lead to efficiency?

Grades are low in your biology class,so your professor offers an optional 10-point extra credit assignment.Most of the students turn in the assignment.Which economic principle does this statement BEST represent?

An economy is efficient if one person can be made better off by reallocating resources without making anyone else worse off.

Handicapped-designated parking spaces are an example of the market economy achieving efficiency.

In the Niagara region,Ontario,strawberry production is limited by the number of hectares available for agriculture production.Which economic concept does this statement BEST represent?

An economic situation is in equilibrium when no individual would be better off taking a different action.

Because one person's spending is another person's income:

If the value of beach-front property in Vancouver decreases,the people of Vancouver will likely spend _____,causing incomes in Vancouver to _____.

A dozen friends got together to celebrate a birthday.If the birthday cake is cut into 12 pieces of the same size and each of the 12 partygoers gets a slice,this cake distribution is:

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

Gdp and the Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Graphs in Economics

Filters

If the value of beach-front property in Vancouver decreases,the people of Vancouver will likely spend _,causing incomes in Vancouver to _.