Question 1

High and unpredictable inflation is good.

Accepted Answer

A) True 
 B)False

Question 2

A macroeconomic choice for businesses is whether or not to build new factories.

Accepted Answer

A) True 
 B)False

Question 3

According to the fallacy of composition, "What is true for one is true for all."

Accepted Answer

A) True 
 B)False

Question 4

The group of macroeconomic players that chooses monetary policy is

Accepted Answer

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

Question 5

In the circular flow of economic life, the government cannot buy products in output markets.

Accepted Answer

A) True 
 B)False

Question 6

There is government failure when

Accepted Answer

A)  policymakers are captured by special interest groups. 
B)  a minority government is defeated in the House of Commons. 
C)  government policy serves the public interest. 
D)  economists lie to politicians. 
E)  markets quickly self-adjust. 
A)  policymakers are captured by special interest groups. 
B)  a minority government is defeated in the House of Commons. 
C)  government policy serves the public interest. 
D)  economists lie to politicians. 
E)  markets quickly self-adjust.

Question 7

Good outcomes for an economy include

Accepted Answer

A)  low GDP, high inflation and low unemployment. 
B)  low GDP, low inflation, and low unemployment. 
C)  high GDP, high inflation, and high unemployment. 
D)  high GDP, low inflation, and low unemployment. 
E)  high GDP, high inflation, and low unemployment. 
A)  low GDP, high inflation and low unemployment. 
B)  low GDP, low inflation, and low unemployment. 
C)  high GDP, high inflation, and high unemployment. 
D)  high GDP, low inflation, and low unemployment. 
E)  high GDP, high inflation, and low unemployment.

Question 8

Inflation is a rise in the

Accepted Answer

A)  average level of all prices. 
B)  value of money. 
C)  number of people looking for work. 
D)  value of savings. 
E)  number of people employed. 
A)  average level of all prices. 
B)  value of money. 
C)  number of people looking for work. 
D)  value of savings. 
E)  number of people employed.

Question 9

Which statement is false?

Accepted Answer

A)  Consumer spending is business income. 
B)  Business spending is consumer income. 
C)  If consumers and businesses both increase spending, everyone's incomes falls. 
D)  If consumers and businesses both increase spending, employment increases. 
E)  Falling wages decrease demand in output markets. 
A)  Consumer spending is business income. 
B)  Business spending is consumer income. 
C)  If consumers and businesses both increase spending, everyone's incomes falls. 
D)  If consumers and businesses both increase spending, employment increases. 
E)  Falling wages decrease demand in output markets.

Question 10

The Conservative Party of Canada (on the political right) believes that left alone, markets quickly self-adjust.

Accepted Answer

A) True 
 B)False

Question 11

Say's Law states, "What is true for one is true for all."

Accepted Answer

A) True 
 B)False

Question 12

Say's Law advises, "Be true to your school."

Accepted Answer

A) True 
 B)False

Question 13

Microeconomics analyzes the performance of the whole Canadian economy and the global economy.

Accepted Answer

A) True 
 B)False

Question 14

There is government failure when

Accepted Answer

A)  policymakers are captured by special interest groups. 
B)  policymakers make mistakes based on poor information. 
C)  government policy fails to serves the public interest. 
D)  lobbying and political pressure cause government to act for special interest groups. 
E)  all of the above. 
A)  policymakers are captured by special interest groups. 
B)  policymakers make mistakes based on poor information. 
C)  government policy fails to serves the public interest. 
D)  lobbying and political pressure cause government to act for special interest groups. 
E)  all of the above.

Question 15

Thinking like a macroeconomist means focusing on connections between the Canadian economy and the rest of the world.

Accepted Answer

A) True 
 B)False

Question 16

The hands-off camp generally believes that

Accepted Answer

A)  supply creates its own demand. 
B)  governments never fail. 
C)  markets never fail. 
D)  demand creates its own supply. 
E)  connection failures between input and output markets cause business cycles. 
A)  supply creates its own demand. 
B)  governments never fail. 
C)  markets never fail. 
D)  demand creates its own supply. 
E)  connection failures between input and output markets cause business cycles.

Question 17

Households are buyers in input markets.

Accepted Answer

A) True 
 B)False

Question 18

Thinking like a macroeconomist means focusing on connections between the banking system and the Canadian economy.

Accepted Answer

A) True 
 B)False

Question 19

Monetary policy is chosen by

Accepted Answer

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

Question 20

The economist most associated with the view that markets are quick to adjust is J.M. Keynes.

Accepted Answer

A) True 
 B)False

High and unpredictable inflation is good.

A macroeconomic choice for businesses is whether or not to build new factories.

According to the fallacy of composition, "What is true for one is true for all."

The group of macroeconomic players that chooses monetary policy is

In the circular flow of economic life, the government cannot buy products in output markets.

There is government failure when

Good outcomes for an economy include

Inflation is a rise in the

Which statement is false?

The Conservative Party of Canada (on the political right) believes that left alone, markets quickly self-adjust.

Say's Law states, "What is true for one is true for all."

Say's Law advises, "Be true to your school."

Microeconomics analyzes the performance of the whole Canadian economy and the global economy.

There is government failure when

Thinking like a macroeconomist means focusing on connections between the Canadian economy and the rest of the world.

The hands-off camp generally believes that

Households are buyers in input markets.

Thinking like a macroeconomist means focusing on connections between the banking system and the Canadian economy.

Monetary policy is chosen by

The economist most associated with the view that markets are quick to adjust is J.M. Keynes.

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

High and unpredictable inflation is good.

A macroeconomic choice for businesses is whether or not to build new factories.

According to the fallacy of composition, "What is true for one is true for all."

The group of macroeconomic players that chooses monetary policy is

In the circular flow of economic life, the government cannot buy products in output markets.

There is government failure when

Good outcomes for an economy include

Inflation is a rise in the

Which statement is false?

The Conservative Party of Canada (on the political right) believes that left alone, markets quickly self-adjust.

Say's Law states, "What is true for one is true for all."

Say's Law advises, "Be true to your school."

Microeconomics analyzes the performance of the whole Canadian economy and the global economy.

There is government failure when

Thinking like a macroeconomist means focusing on connections between the Canadian economy and the rest of the world.

The hands-off camp generally believes that

Households are buyers in input markets.

Thinking like a macroeconomist means focusing on connections between the banking system and the Canadian economy.

Monetary policy is chosen by

The economist most associated with the view that markets are quick to adjust is J.M. Keynes.

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