Question 1

In the circular flow of economic life, which players are the main buyers in output markets?

Accepted Answer

A)  economists 
B)  households 
C)  governments 
D)  banks 
E)  businesses 
A)  economists 
B)  households 
C)  governments 
D)  banks 
E)  businesses

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

When the total value of products and services produced goes up, unemployment increases.

Accepted Answer

A) True 
 B)False

Question 4

Higher GDP per person usually means

Accepted Answer

A)  higher living standards. 
B)  lower living standards. 
C)  increasing population. 
D)  decreasing population. 
E)  none of the above answers. 
A)  higher living standards. 
B)  lower living standards. 
C)  increasing population. 
D)  decreasing population. 
E)  none of the above answers.

Question 5

Consumers can choose to spend or save their income.

Accepted Answer

A) True 
 B)False

Question 6

Say's Law states, "What is true for one is not true for all."

Accepted Answer

A) True 
 B)False

Question 7

Thinking like a macroeconomist means focusing on the connections between

Accepted Answer

A)  additional benefits and additional opportunity costs. 
B)  competition and cooperation. 
C)  marginal benefit and marginal cost. 
D)  the Canadian economy and the rest of the world. 
E)  none of the above. 
A)  additional benefits and additional opportunity costs. 
B)  competition and cooperation. 
C)  marginal benefit and marginal cost. 
D)  the Canadian economy and the rest of the world. 
E)  none of the above.

Question 8

An economy performs well if it has all of the following except

Accepted Answer

A)  low unemployment. 
B)  high GDP. 
C)  low inflation. 
D)  high living standards. 
E)  unpredictable inflation. 
A)  low unemployment. 
B)  high GDP. 
C)  low inflation. 
D)  high living standards. 
E)  unpredictable inflation.

Question 9

The economist most associated with the "No - Markets Fail Often" view is

Accepted Answer

A)  Joseph Stiglitz. 
B)  John Maynard Keynes. 
C)  George Costanza. 
D)  Jean-Baptiste Say. 
E)  James Tiberius Kirk. 
A)  Joseph Stiglitz. 
B)  John Maynard Keynes. 
C)  George Costanza. 
D)  Jean-Baptiste Say. 
E)  James Tiberius Kirk.

Question 10

The inflation rate is measured by the Consumer Price Index.

Accepted Answer

A) True 
 B)False

Question 11

The largest group of macroeconomic players that chooses whether or not to save is

Accepted Answer

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

Question 12

If your income does not rise as fast as the prices of what you buy, your standard of living increases.

Accepted Answer

A) True 
 B)False

Question 13

A rise in the value of the Canadian dollar

Accepted Answer

A)  creates jobs in exporting businesses. 
B)  makes imported products more expensive. 
C)  increases your income taxes. 
D)  decreases your income taxes. 
E)  decreases Canadian exports. 
A)  creates jobs in exporting businesses. 
B)  makes imported products more expensive. 
C)  increases your income taxes. 
D)  decreases your income taxes. 
E)  decreases Canadian exports.

Question 14

The hands-off camp generally believes that business cycles are caused by

Accepted Answer

A)  government policy. 
B)  banking. 
C)  expectations. 
D)  money. 
E)  connection failures between input and output markets. 
A)  government policy. 
B)  banking. 
C)  expectations. 
D)  money. 
E)  connection failures between input and output markets.

Question 15

A fall in the value of the Canadian dollar

Accepted Answer

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

Question 16

According to the "Yes - Markets Self-Adjust" view,

Accepted Answer

A)  macroeconomic outcomes are different 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)  supply creates its own demand. 
E)  all of the above are true. 
A)  macroeconomic outcomes are different 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)  supply creates its own demand. 
E)  all of the above are true.

Question 17

Macroeconomists agree

Accepted Answer

A)  that prices and markets adjust, but differ on how long it takes. 
B)  that business cycles happen even without government failure. 
C)  that there is some role for government, but differ on how big a role. 
D)  on all of the above. 
E)  on none of the above. 
A)  that prices and markets adjust, but differ on how long it takes. 
B)  that business cycles happen even without government failure. 
C)  that there is some role for government, but differ on how big a role. 
D)  on all of the above. 
E)  on none of the above.

Question 18

When unemployment is high, employers have an advantage in bargaining over wages.

Accepted Answer

A) True 
 B)False

Question 19

A fall in the value of the Canadian dollar

Accepted Answer

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

Question 20

A macroeconomic choice for banks is whether to make loans or not.

Accepted Answer

A) True 
 B)False

In the circular flow of economic life, which players are the main buyers in output markets?

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

When the total value of products and services produced goes up, unemployment increases.

Higher GDP per person usually means

Consumers can choose to spend or save their income.

Say's Law states, "What is true for one is not true for all."

Thinking like a macroeconomist means focusing on the connections between

An economy performs well if it has all of the following except

The economist most associated with the "No - Markets Fail Often" view is

The inflation rate is measured by the Consumer Price Index.

The largest group of macroeconomic players that chooses whether or not to save is

If your income does not rise as fast as the prices of what you buy, your standard of living increases.

A rise in the value of the Canadian dollar

The hands-off camp generally believes that business cycles are caused by

A fall in the value of the Canadian dollar

According to the "Yes - Markets Self-Adjust" view,

Macroeconomists agree

When unemployment is high, employers have an advantage in bargaining over wages.

A fall in the value of the Canadian dollar

A macroeconomic choice for banks is whether to make loans or not.

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

In the circular flow of economic life, which players are the main buyers in output markets?

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

When the total value of products and services produced goes up, unemployment increases.

Higher GDP per person usually means

Consumers can choose to spend or save their income.

Say's Law states, "What is true for one is not true for all."

Thinking like a macroeconomist means focusing on the connections between

An economy performs well if it has all of the following except

The economist most associated with the "No - Markets Fail Often" view is

The inflation rate is measured by the Consumer Price Index.

The largest group of macroeconomic players that chooses whether or not to save is

If your income does not rise as fast as the prices of what you buy, your standard of living increases.

A rise in the value of the Canadian dollar

The hands-off camp generally believes that business cycles are caused by

A fall in the value of the Canadian dollar

According to the "Yes - Markets Self-Adjust" view,

Macroeconomists agree

When unemployment is high, employers have an advantage in bargaining over wages.

A fall in the value of the Canadian dollar

A macroeconomic choice for banks is whether to make loans or not.

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