Question 1

Certain inherently desirable products such as education and health care should be produced so long as resources are available.

Accepted Answer

A) True 
 B)False

Question 2

Macroeconomics explains the behaviour of individual households and business firms;microeconomics is concerned with the behaviour of aggregates or the economy as a whole.

Accepted Answer

A) True 
 B)False

Question 3

-Refer to the above graph.Which of the following schedules correctly reflects "supply"?

Accepted Answer

A)   schedule (
A)  
B)   schedule (
B)  
C)   schedule (
C)  
D)   schedule (
D)  E) A) and B)
F) B) and C)

Question 4

Assume an economy is incurring unemployment and failing to realize least-cost production.The immediate effect of resolving these problems will be to:

Accepted Answer

A)   move the level of actual output closer to the economy's production possibilities curve.
B)   create a less equal distribution of income.
C)   shift its production possibilities curve to the left.
D)   shift its production possibilities curve to the right.E) C) and D)
F) B) and C)

Question 5

The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Qd,where Qd is the amount of pizzas purchased per week and P is the price of pizzas.On the basis of this information we can say that:

Accepted Answer

A)   if pizzas were free,people would consume 800 per week.
B)   more pizzas will be purchased at a high price than at a low price.
C)   if the price of pizzas is $6,then 150 will be purchased.
D)   50 fewer pizzas will be purchased per week for every $1 increase in price.E) B) and C)
F) None of the above

Question 6

The basic difference between consumer goods and capital goods is that:

Accepted Answer

A)   consumer goods are produced in the private sector and capital goods are produced in the public sector.
B)   an economy that commits a relatively large proportion of its resources to capital goods must accept a lower growth rate.
C)   the production of capital goods is not subject to the law of increasing opportunity costs.
D)   consumer goods satisfy wants directly while capital goods satisfy wants indirectly.E) B) and C)
F) None of the above

Question 7

Products and services are scarce because resources are scarce.

Accepted Answer

A) True 
 B)False

Question 8

d for quantity demanded and P for price,which of the following equations correctly states the demand for this product? A)  P = Qd/10. B)  P = 50 - P/2. C)  P = 10 - .2Qd. D)  P = 10 - 2Qd." class="answers-bank-image d-inline" rel="preload" >
-Refer to the above graph.Using Qd for quantity demanded and P for price,which of the following equations correctly states the demand for this product?

Accepted Answer

A)   P = Qd/10.
B)   P = 50 - P/2.
C)   P = 10 - .2Qd.
D)   P = 10 - 2Qd.E) A) and B)
F) None of the above

Question 9

1,then: A)  society would consider additional units of shoes to be more valuable than alternative products. B)  society would consider additional units of shoes to be less valuable than alternative products. C)  society would experience a net loss by producing more shoes. D)  resources are being allocated efficiently to the production of shoes." class="answers-bank-image d-inline" rel="preload" >
-Refer to the above diagram for athletic shoes.If the current output of shoes is Q1,then:

Accepted Answer

A)   society would consider additional units of shoes to be more valuable than alternative products.
B)   society would consider additional units of shoes to be less valuable than alternative products.
C)   society would experience a net loss by producing more shoes.
D)   resources are being allocated efficiently to the production of shoes.E) All of the above
F) B) and C)

Question 10

If the production possibilities curve were a straight downsloping line,this would suggest that:

Accepted Answer

A)   resources are perfectly substitutable between the production of these two goods.
B)   it is possible to produce more of both products.
C)   both products are equally capable of satisfying consumer wants.
D)   the two products have identical prices.E) All of the above
F) None of the above

Question 11

Microeconomics:

Accepted Answer

A)   is concerned with the aggregate or total levels of income,employment,and output.
B)   is not concerned with details,but only with the overall "big picture" of the economy.
C)   is concerned with individual economic units and specific markets.
D)   describes the aggregate flows of output and income.E) A) and B)
F) None of the above

Question 12

Most of the disagreement among economists involves:

Accepted Answer

A)   facts.
B)   theories.
C)   positive statements.
D)   normative statements.E) A) and C)
F) B) and D)

Question 13

The economic concept that serves as the basis for the study of economics is:

Accepted Answer

A)   inflation.
B)   unemployment.
C)   money.
D)   scarcity.E) None of the above
F) A) and C)

Question 14

Which one of the following statements is correct?

Accepted Answer

A)   Relative scarcity is no longer a central notion in economics because we are in an age of abundance.
B)   Most production possibilities curves are convex as viewed from the origin.
C)   The production possibilities curve shows society's preferences for consumer goods relative to capital goods.
D)   The central concept underlying the production possibilities curve is that of limited resources.E) A) and B)
F) A) and C)

Question 15

Recessions are typically characterised by points:

Accepted Answer

A)   inside the production possibilities curve.
B)   outside the production possibilities curve.
C)   on the production possibilities curve.
D)   that are not attainable on the production possibilities curve.E) A) and C)
F) A) and B)

Question 16

The global financial crisis that spread to Canada in late 2008 has been dubbed:

Accepted Answer

A)   The housing bubble crash.
B)   The great financial crisis.
C)   The great recession.
D)   The great depression.E) A) and B)
F) A) and C)

Question 17

-In line (3) on the above graph,variables x and y are:

Accepted Answer

A)   directly related.
B)   negatively related.
C)   positively related.
D)   nonlinearly related.E) B) and C)
F) A) and D)

Question 18

-The above data indicates that:

Accepted Answer

A)   consumers spend 80 percent of their after-tax incomes.
B)   consumers spend 90 percent of their after-tax incomes.
C)   a tax reduction will reduce consumption.
D)   the relationship between consumption and after-tax income is random.E) B) and D)
F) None of the above

Question 19

Deltonia produces both consumer and capital goods.If it reduces the percentage of its output devoted to capital goods,then:

Accepted Answer

A)   its rate of growth will tend to decline.
B)   its production possibilities curve will necessarily shift to the left.
C)   it must also reduce the percentage of its output devoted to consumer goods.
D)   its rate of growth will tend to increase.E) B) and C)
F) A) and C)

Question 20

Individuals face an economic problem but not the society.

Accepted Answer

A) True 
 B)False

Exam 1: Limits, Alternatives, and Choices

Assume an economy is incurring unemployment and failing to realize least-cost production.The immediate effect of resolving these problems will be to:

Correct AnswerverifiedShow Answer

The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Qd,where Qd is the amount of pizzas purchased per week and P is the price of pizzas.On the basis of this information we can say that:

Correct AnswerverifiedShow Answer

-In line (3) on the above graph,variables x and y are:

Correct AnswerverifiedShow Answer

Most of the disagreement among economists involves:

Correct AnswerverifiedShow Answer

Individuals face an economic problem but not the society.

Correct AnswerverifiedShow Answer

Certain inherently desirable products such as education and health care should be produced so long as resources are available.

Correct AnswerverifiedShow Answer

-Refer to the above graph.Using Qd for quantity demanded and P for price,which of the following equations correctly states the demand for this product?

Correct AnswerverifiedShow Answer

The basic difference between consumer goods and capital goods is that:

Correct AnswerverifiedShow Answer

If the production possibilities curve were a straight downsloping line,this would suggest that:

Correct AnswerverifiedShow Answer

Deltonia produces both consumer and capital goods.If it reduces the percentage of its output devoted to capital goods,then:

Correct AnswerverifiedShow Answer

-The above data indicates that:

Correct AnswerverifiedShow Answer

Microeconomics:

Correct AnswerverifiedShow Answer

The global financial crisis that spread to Canada in late 2008 has been dubbed:

Correct AnswerverifiedShow Answer

Recessions are typically characterised by points:

Correct AnswerverifiedShow Answer

The economic concept that serves as the basis for the study of economics is:

Correct AnswerverifiedShow Answer

-Refer to the above diagram for athletic shoes.If the current output of shoes is Q1,then:

Correct AnswerverifiedShow Answer

Which one of the following statements is correct?

Correct AnswerverifiedShow Answer

Products and services are scarce because resources are scarce.

Correct AnswerverifiedShow Answer

-Refer to the above graph.Which of the following schedules correctly reflects "supply"?

Correct AnswerverifiedShow Answer

Macroeconomics explains the behaviour of individual households and business firms;microeconomics is concerned with the behaviour of aggregates or the economy as a whole.

Correct AnswerverifiedShow Answer

Correct Answer
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The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q_d,where Q_d is the amount of pizzas purchased per week and P is the price of pizzas.On the basis of this information we can say that:

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-Refer to the above graph.Using Q_d for quantity demanded and P for price,which of the following equations correctly states the demand for this product?

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-Refer to the above diagram for athletic shoes.If the current output of shoes is Q₁,then:

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