Question 1

Use the figure below to answer the following question.
  
Figure 1A.3.11
-Refer to Figure 1A.3.11.The graph shows a ________ relationship.The absolute value of the slope of the relationship ________ as the value of x increases.

Accepted Answer

A)  positive; increases
B)  positive; decreases
C)  negative; decreases
D)  negative; increases
E)  negative; does not changeF) None of the above
G) A) and D)

Question 2

Complete the following sentence.Economic models

Accepted Answer

A)  do not answer questions about the economic world.
B)  include most of the details of the economic world.
C)  describe some aspect of the economic world, but include only those features needed for the purpose at hand.
D)  answer questions that arise from normative statements.
E)  were first developed in the 1970s.F) A) and D)
G) B) and E)

Question 3

Use the figure below to answer the following questions.
  
Figure 1A.3.3
-What is the slope across the arc between B and C in Figure 1A.3.3?

Accepted Answer

A)  1/2.
B)  2/3
C)  1
D)  2
E)  3F) A) and E)
G) A) and C)

Question 4

Use the figure below to answer the following questions.
  
Figure 1A.2.1
-In Figure 1A.2.1, the value of y is 5 when x is

Accepted Answer

A)  4.
B)  5.
C)  6.
D)  7.
E)  8.F) D) and E)
G) B) and C)

Question 5

The expansion of international trade, borrowing and lending, and investment is

Accepted Answer

A)  the big tradeoff.
B)  industrial revolution.
C)  corporate revolution.
D)  globalization.
E)  antiglobalization.F) B) and D)
G) All of the above

Question 6

Which one of the following is an example of land?

Accepted Answer

A)  Bono's singing voice
B)  a computer program
C)  Lake Erie
D)  a road
E)  a damF) B) and E)
G) C) and E)

Question 7

Which one of the following is an example of capital?

Accepted Answer

A)  money
B)  a carpenter
C)  pasture
D)  a bread-slicing machine
E)  a university professorF) C) and E)
G) A) and D)

Question 8

When the government chooses to use resources to build a dam, those resources are no longer available to build a highway.This illustrates the concept of

Accepted Answer

A)  a market.
B)  macroeconomics.
C)  opportunity cost.
D)  a "how" tradeoff.
E)  the big tradeoff.F) B) and E)
G) All of the above

Question 9

Which one of the following is a necessary consequence of scarcity?

Accepted Answer

A)  no choices required
B)  high profits
C)  the requirement of making choices
D)  all wants are satisfied
E)  low profitsF) A) and B)
G) All of the above

Question 10

A university decides to change its late night bus service between the campus and student housing from a fare-based service to a free service. This statement means that the incentive to ride the bus ________ and the opportunity cost of a bus ride ________.The university's decision is a ________ decision.

Accepted Answer

A)  changes; decreases; microeconomic
B)  changes; decreases; macroeconomic
C)  remains the same; remains the same; macroeconomic
D)  remains the same; remains the same; microeconomic
E)  changes; increases; microeconomicF) B) and E)
G) A) and D)

Question 11

To graph a relationship among three variables we

Accepted Answer

A)  hold two variables constant to graph the third variable.
B)  hold one variable constant and graph the relationship between the other two variables.
C)  graph each of the three variables using a separate set of axes.
D)  must be able to draw in three dimensions.
E)  must be able to allow all three variables to vary simultaneously in one graph.F) C) and E)
G) A) and E)

Question 12

Use the figure below to answer the following question.
  
Figure 1A.5.2
-The equation of a line is y = 4 + 2x.What is the x-intercept of this line?

Accepted Answer

A)  4
B)  -2
C)  -1/2
D)  1/4
E)  0F) D) and E)
G) C) and D)

Question 13

Use the figure below to answer the following questions.
  
Figure 1A.1.5
-Refer to Figure 1A.1.5.Which graph or graphs indicates a negative relationship between x and y?

Accepted Answer

A)  (a) 
B)  (b) 
C)  (c) 
D)  (d) 
E)  (b) and (d) F) B) and C)
G) A) and E)

Question 14

An economic model is tested by

Accepted Answer

A)  examining the realism of its assumptions.
B)  comparing its predictions with the facts.
C)  comparing its complexity to other models that deal with similar issues.
D)  the Testing Committee of the Canadian Economic Association.
E)  comparing its descriptions and examining the realism of its assumptions.F) All of the above
G) B) and E)

Question 15

Use the table below to answer the following questions.
Table 1A.3.2
 
-Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

Accepted Answer

A)  +3.
B)  -3.
C)  -2/3.
D)  +3/2.
E)  -3/2.F) B) and E)
G) A) and B)

Question 16

Use the figure below to answer the following question.
  
Figure 1A.3.2
-Refer to Figure 1A.3.2.The slope across the arc between A and B is

Accepted Answer

A)  1/2.
B)  2/3.
C)  1.
D)  2.
E)  3.F) All of the above
G) A) and B)

Question 17

The scientific purpose of simplifying assumptions in an economic model is to

Accepted Answer

A)  avoid confronting difficult issues.
B)  eliminate the need for further testing of the implications of the model.
C)  abstract from the complexities of the real world those issues that are not important for the issues under examination.
D)  eliminate the possibility of personal bias in the model.
E)  add necessary hypotheses to the problem.F) A) and E)
G) C) and D)

Question 18

Which one of the following is labour?

Accepted Answer

A)  money
B)  a carpenter's hammer
C)  a shoe factory
D)  a bread-slicing machine
E)  a singer's voiceF) A) and E)
G) A) and B)

Question 19

Use the figure below to answer the following question.
  
Figure 1A.2.6
-Refer to Figure 1A.2.6.Consider the values for x and y given in the following table: 
Which one of the graphs in Figure A1.13 represents the relationship between x and y?

Accepted Answer

A)  (a) 
B)  (b) 
C)  (c) 
D)  (d) 
E)  (a) and (b) F) A) and C)
G) A) and B)

Question 20

Use the table below to answer the following questions.
Table 1A.3.2
 
-In Table 1A.3.2, suppose that w is measured along the x-axis.The slope of the line relating w and u is

Accepted Answer

A)  positive with a decreasing slope.
B)  negative with a decreasing slope.
C)  positive with an increasing slope.
D)  negative with a constant slope.
E)  positive with a constant slope.F) B) and E)
G) B) and D)

Exam 1: What Is Economics

Use the figure below to answer the following question. Figure 1A.3.2 -Refer to Figure 1A.3.2.The slope across the arc between A and B is

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Which one of the following is an example of capital?

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The expansion of international trade, borrowing and lending, and investment is

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Complete the following sentence.Economic models

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Which one of the following is an example of land?

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Use the figure below to answer the following questions. Figure 1A.2.1 -In Figure 1A.2.1, the value of y is 5 when x is

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Which one of the following is labour?

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Use the figure below to answer the following question. Figure 1A.2.6 -Refer to Figure 1A.2.6.Consider the values for x and y given in the following table: Which one of the graphs in Figure A1.13 represents the relationship between x and y?

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To graph a relationship among three variables we

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Use the figure below to answer the following questions. Figure 1A.1.5 -Refer to Figure 1A.1.5.Which graph or graphs indicates a negative relationship between x and y?

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An economic model is tested by

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Use the table below to answer the following questions. Table 1A.3.2 -Refer to Table 1A.3.2.Suppose that w is measured along the x-axis.The slope of the line relating w and u is

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The scientific purpose of simplifying assumptions in an economic model is to

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Use the figure below to answer the following question. Figure 1A.5.2 -The equation of a line is y = 4 + 2x.What is the x-intercept of this line?

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Use the figure below to answer the following questions. Figure 1A.3.3 -What is the slope across the arc between B and C in Figure 1A.3.3?

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Use the figure below to answer the following question. Figure 1A.3.11 -Refer to Figure 1A.3.11.The graph shows a ________ relationship.The absolute value of the slope of the relationship ________ as the value of x increases.

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Which one of the following is a necessary consequence of scarcity?

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When the government chooses to use resources to build a dam, those resources are no longer available to build a highway.This illustrates the concept of

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Use the table below to answer the following questions. Table 1A.3.2 -In Table 1A.3.2, suppose that w is measured along the x-axis.The slope of the line relating w and u is

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Use the figure below to answer the following question. Figure 1A.3.11 -Refer to Figure 1A.3.11.The graph shows a relationship.The absolute value of the slope of the relationship as the value of x increases.

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