Economic Issues And Concepts

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Questions Bank

Economic Issues and Concepts
Economic Theories,Data,and Graphs
Demand,Supply,and Price
Elasticity
Price Controls and Market Efficiency
Consumer Behaviour
Producers in the Short Run
Producers in the Long Run
Competitive Markets
Monopoly,cartels,and Price Discrimination
Imperfect Competition and Strategic Behaviour
Economic Efficiency and Public Policy
How Factor Markets Work
Labour Markets and Income Inequality
Interest Rates and the Capital Market
Market Failures and Government Intervention
The Economics of Environmental Protection
Taxation and Public Expenditure
What Macroeconomics Is All About
The Measurement of National Income
The Simplest Short-Run Macro Model
Adding Government and Trade to the Simple Macro Model
Output and Prices in the Short Run
From the Short Run to the Long Run: The Adjustment of Factor Prices
Long-Run Economic Growth
Money and Banking
Money,Interest Rates,and Economic Activity
Monetary Policy in Canada
Inflation and Disinflation
Unemployment Fluctuations and the Nairu
Government Debt and Deficits
The Gains From International Trade
Trade Policy
Exchange Rates and the Balance of Payments

All Questions

Question 1

Free

Multiple Choice

Which of the following statements provides the best definition of economics?

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The study of the most equitable distribution of scarce resources.

The study of the use of scarce resources to satisfy unlimited human wants.

The study of the production of goods and services.

The study of the productive capacity of a nation's factors of production.

The study of production and increasing its efficiency.

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Question 2

Free

Multiple Choice

Society's resources are often divided into broad categories.They are

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goods and services.

factors of consumption.

land,labour,and capital.

population and natural resources.

tangible commodities and intangible commodities.

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Question 3

Free

Multiple Choice

Consider the following list: a worker with training in video gaming technology,10 hectares of arable land in southern Ontario,a fishing trawler in Nova Scotia,an ice-cream truck at a park in Quebec.Each of these is an example of

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a factor of production.

a capital resource.

a commodity.

goods and services.

an economic service.

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Question 4

Free

Multiple Choice

A basic underlying point in economics is that

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people have unlimited wants in the face of limited resources.

there are unlimited resources.

governments should satisfy the needs of the people.

people have limited wants in the face of limited resources.

governments should never interfere in the workings of a market economy.

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Question 5

Free

Multiple Choice

Which of the following best describes the study of economics?

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how to plan an economy

how to limit human wants so that scarce resources are sufficient

why resources are scarce

the allocation of scarce resources among alternative uses

how to distribute income as equally as possible

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Question 6

Multiple Choice

Economics can best be described as

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the study of how a society ought to allocate its resources.

the study of the use of scarce resources to satisfy unlimited human wants.

the application of sophisticated mathematical models to address social problems.

a normative science.

the study of how to reduce inflation and unemployment.

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Question 7

Multiple Choice

Scarcity is likely to be

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a problem that will be solved by the proper use of available resources.

unique to the twentieth century.

a problem that will always exist.

a result of the work ethic.

eliminated with a better understanding of economics.

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Question 8

Multiple Choice

Which of the following statements best describes the economic concept of scarcity?

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Society is not employing all of its available resources in an efficient manner.

People's wants can never be satisfied by the available resources.

Scarcity afflicts only poor countries.

Too many frivolous goods and services are produced at the expense of socially desirable goods and services.

Production is efficient,but distribution is inefficient.

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Question 9

Multiple Choice

Which of the following statements best describes the underlying feature in most economic problems?

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People have unlimited wants in the face of limited resources.

There are unlimited resources.

Our country is rich; we just don't realize it.

People have limited wants in the face of limited resources.

Governments should never interfere in the workings of a market economy.

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Question 10

Multiple Choice

Because resources are scarce,individuals are required to

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make choices among alternatives.

use resources inefficiently.

sacrifice production but not consumption.

improve distribution but not production.

improve production but not distribution.

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Question 11

Multiple Choice

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.For the government,the opportunity cost of one search and rescue helicopter is

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0 kilometres of highway repair.

50 kilometres of highway repair.

100 kilometres of highway repair.

150 kilometres of highway repair.

200 kilometres of highway repair.

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Question 12

Multiple Choice

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.For the government,the opportunity cost of one kilometre of highway repair is

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1 search and rescue helicopter.

1/2 of a search and rescue helicopter.

1/10 of a search and rescue helicopter.

1/50 of a search and rescue helicopter.

1/100 of a search and rescue helicopter.

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Question 13

Multiple Choice

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.If the government chooses to allocate all $200 million to highway repair,we can say that

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the opportunity cost of the highway repair is uncertain.

the opportunity cost of the highway repair is $0.

the opportunity cost of the highway repair is 4 search and rescue helicopters.

there is no opportunity cost involved because the government has achieved its objectives.

there is no opportunity cost involved because the government stayed within its budget.

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Question 14

Multiple Choice

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.Which of the following combinations of kilometres of highway repair and helicopters is unaffordable,given the government's budget of $200 million?

Choose correct answer/s

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Question 15

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional laptop computer?

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0 textbooks

1/10 of a textbook

10 textbooks

20 textbooks

2000 textbooks

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Question 16

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional textbook?

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2000 laptops

1000 laptops

1/100 of a laptop

1/1000 of a laptop

1/10 of a laptop

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Question 17

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.Suppose the school board chooses to allocate all $500 000 to the purchase of laptop computers.What is the opportunity cost of this entire purchase?

Choose correct answer/s

The opportunity cost is 2000 laptops.

The opportunity cost is 20,000 textbooks.

The opportunity cost is uncertain.

The opportunity cost is $0.

There is no opportunity cost because the purchase was made within the available budget.

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Question 18

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.Which of the following combinations of textbooks and laptops is unaffordable,given the school board's budget of $500 000?

Choose correct answer/s

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Question 19

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.What is the price of a textbook in this example?

Choose correct answer/s

$25

$40

$50

$100

$250

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Question 20

Multiple Choice

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.What is the price of a laptop computer in this example?

Choose correct answer/s

$25

$40

$50

$100

$250

To unlock the question

Economic Issues And Concepts

Which of the following statements provides the best definition of economics?

Society's resources are often divided into broad categories.They are

Consider the following list: a worker with training in video gaming technology,10 hectares of arable land in southern Ontario,a fishing trawler in Nova Scotia,an ice-cream truck at a park in Quebec.Each of these is an example of

A basic underlying point in economics is that

Which of the following best describes the study of economics?

Economics can best be described as

Scarcity is likely to be

Which of the following statements best describes the economic concept of scarcity?

Which of the following statements best describes the underlying feature in most economic problems?

Because resources are scarce,individuals are required to

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1-Refer to Figure 1-1.For the government,the opportunity cost of one search and rescue helicopter is

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1-Refer to Figure 1-1.For the government,the opportunity cost of one kilometre of highway repair is

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1-Refer to Figure 1-1.If the government chooses to allocate all $200 million to highway repair,we can say that

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1-Refer to Figure 1-1.Which of the following combinations of kilometres of highway repair and helicopters is unaffordable,given the government's budget of $200 million?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional laptop computer?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional textbook?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2-Refer to Figure 1-2.What is the price of a textbook in this example?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2-Refer to Figure 1-2.What is the price of a laptop computer in this example?

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.For the government,the opportunity cost of one search and rescue helicopter is

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.For the government,the opportunity cost of one kilometre of highway repair is

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.If the government chooses to allocate all $200 million to highway repair,we can say that

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1
-Refer to Figure 1-1.Which of the following combinations of kilometres of highway repair and helicopters is unaffordable,given the government's budget of $200 million?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional laptop computer?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional textbook?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.What is the price of a textbook in this example?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2
-Refer to Figure 1-2.What is the price of a laptop computer in this example?