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Ecn quiz 1.docx

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Department
Economics
Course
ECN 104
Professor
Tsogbadral Galaabaatar
Semester
Summer

Description
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. 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 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 12) Which is a normative statement? a) the consumer price index rose 5.6% last month b) an unemployment rate of 6.8% is too high c) the average rate of interest on loans is 8.6% d) the economy will grow by 2.6% next year The correct answer is b. Reference: LO 04: The distinction between microeconomics and macroeconomics Feedback: p. 6 13) A budget line is constructed assuming that a) income is fixed b) the prices of goods are fixed c) all income is spent d) all of the above The correct answer is d. Reference: LO 05: The nature of the economic problem and the categories of scarce resources Feedback: pp. 8-9 14) An increase in income a) will shift the budget line upward b) will make the budget line steeper c) will shift the budget line downward d) will make the budget line flatter The correct answer is a. Reference: LO 05: The nature of the economic problem and the categories of scarce resources Feedback: p. 10 15) Which of the following is not an economic resource a) entrepreneurial ability b) money c) labour d) capital The correct answer is b. Reference: LO 05: The nature of the economic problem and the categories of scarce resources Feedback: pp. 10-11 16) When a production possibilities table is written (or a production possibilities curve is drawn), four assumptions are made. Which of the following is one of those assumptions? a) more than two products are produced b) the state of technology changes c) the economy has both full employment and productive efficiency d) t
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