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ECN 104 Study Guide - Quiz Guide: Microeconomics, Marginal Cost, Macroeconomics


Department
Economics
Course Code
ECN 104
Professor
Tsogbadral Galaabaatar
Study Guide
Quiz

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Ecn quiz 1
1) Which of the following is not among the key concepts related to the
individual?
a) the effectiveness of markets
b) facing tradeoffs
c) choosing a little more or a little less
d) the influence of incentives
The correct answer is a.
Reference: LO 01: Ten key concepts to retain for a lifetime
Feedback: pp. 2-3
2) To say that "choices are made at the margin" means that:
a) we choose the best option
b) we choose a little more or a little less
c) government makes the choices for us
d) we sometimes make incorrect choices
The correct answer is b.
Reference: LO 02: The features of the economic way of thinking
Feedback: pp. 4-5
3) In the economy as a whole, the standard of living improves when there
is more:
a) inflation
b) unemployment
c) government involvement
d) production of goods and services
The correct answer is d.
Reference: LO 01: Ten key concepts to retain for a lifetime
Feedback: p. 2
4) A major feature of the economic perspective is:
a) equating rational self-interest with selfishness
b) comparing marginal benefits with marginal costs
c) the validity of normative economics for decision making
d) the recognition of the abundance of economic resources
The correct answer is b.

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Reference: LO 02: The features of the economic way of thinking
Feedback: pp. 3-5
5) Because our resources are limited:
a) we face the problem of scarcity
b) we must make choices
c) we must incur opportunity costs
d) all of the above
The correct answer is d.
Reference: LO 02: The features of the economic way of thinking
Feedback: p. 3
6) People are behaving rationally only if:
a) they behave selfishly
b) they consistently pursue their own self-interest
c) government makes the choices for us
d) they never make any choices they later regret
The correct answer is b.
Reference: LO 02: The features of the economic way of thinking
Feedback: p. 4
7) When economists state that "consumer spending rises when personal
income increases," this is an example of:
a) a generalization
b) loaded terminology
c) a normative statement
d) a fallacy of composition
The correct answer is a.
Reference: LO 03: The role of theories, principles, and models in
economics
Feedback: p. 5
8) Economists usually test their theories by:
a) mathematical calculations and proofs
b) making assumptions
c) comparing their predictions with data from the real world
d) doing experiments in a laboratory

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

The correct answer is c.
Reference: LO 03: The role of theories, principles, and models in
economics
Feedback: p. 5
9) The other-things-equal assumption means
a) the same thing as ceteris parabus
b) that only variables under immediate consideration are allowed to
change
c) that variables not under immediate consideration are not allowed to
change
d) all of the above
The correct answer is d.
Reference: LO 03: The role of theories, principles, and models in
economics
Feedback: p. 5
10) When we look at the whole economy or its major aggregates, our
analysis would be at the level of:
a) microeconomics
b) macroeconomics
c) positive economics
d) normative economics
The correct answer is b.
Reference: LO 04: The distinction between microeconomics and
macroeconomics
Feedback: p. 6
11) Which would be studied in microeconomics:
a) the output of the entire community
b) the total number of workers employed in Canada
c) the general level of the prices in the Canadian economy
d) the output and price of wheat in Canada
The correct answer is d.
Reference: LO 04: The distinction between microeconomics and
macroeconomics
Feedback: p. 6
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