Question 1

The fallacy of composition suggests

Accepted Answer

A)  all for one and one for all. 
B)  the needs of the many outweigh the needs of the few. 
C)  what is true for one is not true for all. 
D)  what goes around, comes around. 
E)  be true to your school. 
A)  all for one and one for all. 
B)  the needs of the many outweigh the needs of the few. 
C)  what is true for one is not true for all. 
D)  what goes around, comes around. 
E)  be true to your school.

Question 2

Government failure can make business cycles worse.

Accepted Answer

A) True 
 B)False

Question 3

Thinking like a macroeconomist means focusing on the connections between

Accepted Answer

A)  input markets and output markets. 
B)  competition and cooperation. 
C)  marginal benefits and marginal costs. 
D)  additional benefits and additional opportunity costs. 
E)  none of the above. 
A)  input markets and output markets. 
B)  competition and cooperation. 
C)  marginal benefits and marginal costs. 
D)  additional benefits and additional opportunity costs. 
E)  none of the above.

Question 4

When there is inflation,

Accepted Answer

A)  average prices fall. 
B)  the value of money falls. 
C)  your standard of living rises if the prices of what you buy rise faster than your income. 
D)  the purchasing power of your savings rises. 
E)  your standard of living falls if your income rises faster than the prices of what you buy. 
A)  average prices fall. 
B)  the value of money falls. 
C)  your standard of living rises if the prices of what you buy rise faster than your income. 
D)  the purchasing power of your savings rises. 
E)  your standard of living falls if your income rises faster than the prices of what you buy.

Question 5

Government fiscal policy involves changes in interest rates.

Accepted Answer

A) True 
 B)False

Question 6

A rise in the value of the Canadian dollar

Accepted Answer

A)  makes cross-border shopping a better bargain for Canadians. 
B)  makes imported products more expensive. 
C)  increases your income taxes. 
D)  decreases your income taxes. 
E)  increases Canadian GDP. 
A)  makes cross-border shopping a better bargain for Canadians. 
B)  makes imported products more expensive. 
C)  increases your income taxes. 
D)  decreases your income taxes. 
E)  increases Canadian GDP.

Question 7

The largest group of macroeconomic players that chooses whether or not to hire Canadian workers is

Accepted Answer

A)  businesses. 
B)  government. 
C)  the Bank of Canada and banking system. 
D)  consumers. 
E)  the rest of the world. 
A)  businesses. 
B)  government. 
C)  the Bank of Canada and banking system. 
D)  consumers. 
E)  the rest of the world.

Question 8

The hands-on camp generally believes that

Accepted Answer

A)  government failure is worse than market failure. 
B)  markets quickly self-adjust. 
C)  that external events are the major cause of business cycles. 
D)  that government failure causes business cycles. 
E)  in the fallacy of composition. 
A)  government failure is worse than market failure. 
B)  markets quickly self-adjust. 
C)  that external events are the major cause of business cycles. 
D)  that government failure causes business cycles. 
E)  in the fallacy of composition.

Question 9

A macroeconomic choice for consumers is whether to buy products and services produced in Canada or imported from other countries.

Accepted Answer

A) True 
 B)False

Question 10

Mortgages issued to people who cannot really afford houses are called sub-prime mortgages.

Accepted Answer

A) True 
 B)False

Question 11

If J.B. Say were alive today and voted in Canadian elections, he would probably support the

Accepted Answer

A)  Conservative Party of Canada. 
B)  Liberal Party. 
C)  Bloc Quebecois. 
D)  Green Party. 
E)  New Democratic Party. 
A)  Conservative Party of Canada. 
B)  Liberal Party. 
C)  Bloc Quebecois. 
D)  Green Party. 
E)  New Democratic Party.

Question 12

Fiscal policy includes government changes in

Accepted Answer

A)  interest rates. 
B)  the supply of money. 
C)  exports. 
D)  imports. 
E)  government purchases. 
A)  interest rates. 
B)  the supply of money. 
C)  exports. 
D)  imports. 
E)  government purchases.

Question 13

Mortgages issued to people who cannot really afford houses are called variable rate mortgages.

Accepted Answer

A) True 
 B)False

Question 14

According to the "No - Markets Fail Often" view,

Accepted Answer

A)  macroeconomic outcomes differ from microeconomic outcomes. 
B)  Say's Law is sometimes true but usually not. 
C)  there are broken connections between input markets and output markets. 
D)  a short run focus is more important than the long run. 
E)  all of the above are true. 
A)  macroeconomic outcomes differ from microeconomic outcomes. 
B)  Say's Law is sometimes true but usually not. 
C)  there are broken connections between input markets and output markets. 
D)  a short run focus is more important than the long run. 
E)  all of the above are true.

Question 15

Low and predictable inflation is good.

Accepted Answer

A) True 
 B)False

Question 16

Say's Law states which of the following?

Accepted Answer

A)  What goes up must come down. 
B)  In the long run, we are all dead. 
C)  Supply creates its own demand. 
D)  What is true for one is not true for all. 
E)  The meek shall inherit the earth. 
A)  What goes up must come down. 
B)  In the long run, we are all dead. 
C)  Supply creates its own demand. 
D)  What is true for one is not true for all. 
E)  The meek shall inherit the earth.

Question 17

The hands-off camp believes that market failure is worse than government failure.

Accepted Answer

A) True 
 B)False

Question 18

When unemployment is low, workers have an advantage in bargaining over wages.

Accepted Answer

A) True 
 B)False

Question 19

The hands-off camp believes that markets quickly self-adjust.

Accepted Answer

A) True 
 B)False

Question 20

When everybody saves their money, aggregate savings decrease. This is an example of

Accepted Answer

A)  the Zero Sum Scenario. 
B)  the Fallacy of Combination. 
C)  the Kobayashi Maru Scenario. 
D)  Say's Law. 
E)  the Paradox of Thrift. 
A)  the Zero Sum Scenario. 
B)  the Fallacy of Combination. 
C)  the Kobayashi Maru Scenario. 
D)  Say's Law. 
E)  the Paradox of Thrift.

The fallacy of composition suggests

Government failure can make business cycles worse.

Thinking like a macroeconomist means focusing on the connections between

When there is inflation,

Government fiscal policy involves changes in interest rates.

A rise in the value of the Canadian dollar

The largest group of macroeconomic players that chooses whether or not to hire Canadian workers is

The hands-on camp generally believes that

A macroeconomic choice for consumers is whether to buy products and services produced in Canada or imported from other countries.

Mortgages issued to people who cannot really afford houses are called sub-prime mortgages.

If J.B. Say were alive today and voted in Canadian elections, he would probably support the

Fiscal policy includes government changes in

Mortgages issued to people who cannot really afford houses are called variable rate mortgages.

According to the "No - Markets Fail Often" view,

Low and predictable inflation is good.

Say's Law states which of the following?

The hands-off camp believes that market failure is worse than government failure.

When unemployment is low, workers have an advantage in bargaining over wages.

The hands-off camp believes that markets quickly self-adjust.

When everybody saves their money, aggregate savings decrease. This is an example of

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters

Exam 5: Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

The fallacy of composition suggests

Government failure can make business cycles worse.

Thinking like a macroeconomist means focusing on the connections between

When there is inflation,

Government fiscal policy involves changes in interest rates.

A rise in the value of the Canadian dollar

The largest group of macroeconomic players that chooses whether or not to hire Canadian workers is

The hands-on camp generally believes that

A macroeconomic choice for consumers is whether to buy products and services produced in Canada or imported from other countries.

Mortgages issued to people who cannot really afford houses are called sub-prime mortgages.

If J.B. Say were alive today and voted in Canadian elections, he would probably support the

Fiscal policy includes government changes in

Mortgages issued to people who cannot really afford houses are called variable rate mortgages.

According to the "No - Markets Fail Often" view,

Low and predictable inflation is good.

Say's Law states which of the following?

The hands-off camp believes that market failure is worse than government failure.

When unemployment is low, workers have an advantage in bargaining over wages.

The hands-off camp believes that markets quickly self-adjust.

When everybody saves their money, aggregate savings decrease. This is an example of

Whats in Economics for You Scarcity, Opportunity Cost, Trade, and Models

Making Smart Choices: the Law of Demand

Show Me the Money: the Law of Supply

Coordinating Smart Choices: Demand and Supply

Up Around the Circular Flow: Gdp, Economic Growth, and Business Cycles

Costs of Not Working and Living: Unemployment and Inflation

Skating to Where the Puck Is Going: Aggregate Supply and Aggregate Demand

Money Is for Lunatics: Demanders and Suppliers of Money

Trading Dollars for Dollars Exchange Rates and Payments With the Rest of the World

Steering Blindly Monetary Policy and the Bank of Canada

Spending Others Money: Fiscal Policy, Deficits, and National Debt

Are Sweatshops All Bad Globalization and Trade Policy

Filters