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ECON 101 (101)


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ECON 101
Wokia Kumase

Practice Exercise: 1) In a world characterized by scarcity A) all goods are free. B) opportunity cost is zero. C) we are not limited by time. D) individuals need not work to obtain goods. E) people must make choices among alternatives. Answer: E 2) Which of the following is the best definition of economics? A) The study of how a provincial government allocates tax dollars. B) The study of how consumers spend their income. C) The study of how producers decide what inputs to hire and what outputs to produce. D) The study of how individuals, businesses, governments, and entire societies make choices as they cope with scarcity and the incentives that influence and reconcile those choices. E) The study of how consumers and producers meet each other at the market. Answer: D 3) Which of the following is a microeconomic topic? A) the reasons why a consumer buys less honey B) the reasons why the average price level in a country falls C) the cause of increasing unemployment D) the effect of the government budget deficit on inflation E) the reasons why the labour force in a country decreases Answer: A 4) The study of how wages are set for New Brunswick teachers is classified as A) a macroeconomic topic. B) a microeconomic topic. C) economics of social interest. D) economics of private interest. E) normative economics. Answer: B 5) Which of the following newspaper headlines concerns a macroeconomic issue? A) Why are people buying more SUVs and fewer minivans? B) How would a tax on e-commerce affect C) How would an unexpected freeze in Oxford, Nova Scotia change the price of blueberries in the Maritimes? D) Why is Japan's economy stagnant? E) Why do grain producers purchase less pesticides? Answer: D 6) The branch of economics that studies the choices of individuals and businesses is A) macroeconomics. B) microeconomics. C) positive economics. D) normative economics. E) social economics. Answer: B 7) Each of the following would be considered a macroeconomic topic except A) the reasons for a decrease in the unemployment rate. B) the cause of recessions. C) the effect of the government budget deficit on inflation. D) the determination of aggregate income. E) the selection of production techniques. Answer: E 8) Complete the following sentence. Macroeconomics A) is primarily concern
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