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Department
Economics
Course
ECN 104
Professor
Frank Trimnell
Semester
Winter

Description
1 of 23 TESTBANK > CONTROL PANEL> POOL MANAGER> POOL CANVAS Pool Canvas Add, modify, and remove questions. Select a question type from the Add Question drop-down list and clickGo to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. Add Creation Settings Name Chapter 1--Ten Principles of Economics Description Instructions Modify Add Question Here Multiple Choice 0 points Modify Remove Question What is the word that comes from the Greek word for "one who manages a household"? Answer market consumer producer economy Add Question Here Multiple Choice 0 points Modify Remove Question From which Greek words is the word economy derived? Answer "environment" "one who manages a household" "one who participates in a market" "conservation" Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following statements is NOT true? Households and economies both Answer must allocate scarce resources. face many decisions. must allocate the goods and services they produce. must have a central decision maker. Add Question Here Multiple Choice 0 points Modify Remove Question With what concept does economics deal primarily with? Answer scarcity poverty change power Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT included in the decisions that every society must make? Answer what goods will be produced who will produce the goods what determines consumer preferences who will consume the goods Add Question Here Multiple Choice 0 points Modify Remove Question For what reason do both households and societies face many decisions? Answer because resources are scarce because populations may increase or decrease over time because wages for households and therefore society fluctuate with business cycles because people, by nature, tend to disagree Add Question Here Multiple Choice 0 points Modify Remove Question When is a good considered scarce in a society? Answer when more output of the good is possible when everyone in that society cannot have all they want of the good when the government restricts production of the good when only the richest people in the economy can buy all they want of the good Add Question Here Multiple Choice 0 points Modify Remove Question When does scarcity exist? Answer when there is less than an infinite amount of a resource or good when society can meet the wants of every individual when there is less of a good or resource available than people wish to have 2 of 23 when the government fails to produce goods Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following would NOT be true in a world without scarcity? Answer There would be no need for the science of economics. Everyone would have all the goods and services they wanted. There would have to be an infinite supply of every resource. There would be opportunity costs. Add Question Here Multiple Choice 0 points Modify Remove Question Approximately what percentage of the world's economies experience scarcity? Answer 25% 50% 75% 100% Add Question Here Multiple Choice 0 points Modify Remove Question What is the economy experiencing when a society cannot produce all the goods and services people wish to have? Answer scarcity communism externalities market failure Add Question Here Multiple Choice 0 points Modify Remove Question For society, when is a good NOT scarce? Answer if at least one individual in society can obtain all he or she wants of the good if firms are producing at full capacity if all members of society can have all they want of it if those who have enough income can buy all they want of the good Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following goods best meets the definition of scarcity? Answer air water in the ocean water in a city wood in a forest Add Question Here Multiple Choice 0 points Modify Remove Question What does economics study? Answer business how society manages its scarce resources central planning government regulation Add Question Here Multiple Choice 0 points Modify Remove Question What does economics study? Answer how society manages its scarce resources the government's role in society how to increase production How firms make profits Add Question Here Multiple Choice 0 points Modify Remove Question In most societies, who allocates resources? Answer a single central planner those who own the resources those firms that use resources to provide goods and services the combined actions of millions of households and firms Add Question Here Multiple Choice 0 points Modify Remove Question Economists study Answer how people make decisions. how governments interact with one another. the forces and trends that affect only the economy as a whole. how societies change over time. 3 of 23 Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is NOT a major area of study for economists? Answer how people make decisions how countries choose national leaders how people interact with each other how forces and trends affect the overall economy Add Question Here Multiple Choice 0 points Modify Remove Question What concept is illustrated by the adage, "There is no such thing as a free lunch"? Answer tradeoffs scarcity productivity efficiency Add Question Here Multiple Choice 0 points Modify Remove Question What does the adage, "There is no such thing as a free lunch," mean? Answer Even people on welfare have to pay for food. The cost of living is always increasing. To get something we like, we usually have to give up another thing we like. All costs are included in the price of a product. Add Question Here Multiple Choice 0 points Modify Remove Question What do economists illustrate when they use the phrase "There is no such thing as a free lunch"? Answer how inflation increases prices that to get one thing, we must give up something else that nothing is free in a market economy that if something looks too good to be true, it probably is Add Question Here Multiple Choice 0 points Modify Remove Question Which best represents the concept represented by the adage, "There is no such thing as a free lunch"? Answer Melissa can only attend the concert if she takes her sister with her. Greg is hungry and homeless. Brian must repair the tire on his bike before he can ride it to class. Kendra must decide between going to Miami or Cancun for spring break. Add Question Here Multiple Choice 0 points Modify Remove Question Guns and butter are used to represent the classic societal tradeoff between spending on which two items? Answer durable and nondurable goods imports and exports national defense and consumer goods law enforcement and agriculture Add Question Here Multiple Choice 0 points Modify Remove Question Henry decides to spend 2 hours playing golf rather than working at his job which pays $8 per hour. What is Henry's tradeoff? Answer the $16 he could have earned working for 2 hours nothing, because he enjoys playing golf more than working the increase in skill he obtains from playing golf for those 2 hours nothing, because he spent $16 for green fees to play golf Add Question Here Multiple Choice 0 points Modify Remove Question When society requires that firms reduce pollution, what happens? Answer There is a tradeoff because of reduced incomes to the firms' owners, workers, and customers. There is no tradeoff, since everyone benefits from reduced pollution. There is no tradeoff for society as a whole, since the cost of reducing pollution falls only on the firms affected buirements. There is a tradeoff only if some firms are forced to close. Add Question Here Multiple Choice 0 points Modify Remove Question Daniel decides to spend the last two hours of the night before his economics exam studying instead of sleeping. For Daniel, at would his tradeoff be? Answer nothing, since no dollar value can be put on sleep nothing, since studying would be more beneficial than sleep the six hours of sleep he could have had if he had gone to bed before midnight the two hours of rest he would have gotten Add Question Here 4 of 23 Multiple Choice 0 points Modify Remove Question How does a tradeoff exist between a clean environment and a higher level of income? Answer Studies show that individuals with higher levels of income actually pollute less than low-income individuals. To pay for pollution clean-up, the government must increase taxes which lowers income. Laws that reduce pollution raise costs of production and reduce incomes. By employing individuals to clean up pollution, employment and income both rise. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following would NOT be a result of laws that require firms to reduce pollution? Answer lower spending by government higher prices to consumers lower wages to workers smaller profit to firms Add Question Here Multiple Choice 0 points Modify Remove Question What will pollution regulations do? Answer increase profit to firms impose a tradeoff on society allow firms to raise workers' wages lower prices for consumers Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following best defines efficiency? Answer absolute fairness equal distribution minimum waste consumer sovereignty Add Question Here Multiple Choice 0 points Modify Remove Question What does efficiency mean? Answer Society is conserving resources in order to save them for the future. Society’s goods and services are distributed fairly among society's members. Society has lessened its dependence on foreign energy sources. Society is getting the most it can from its scarce resources. Add Question Here Multiple Choice 0 points Modify Remove Question In which of the following situations would economists use the word equity? Answer Each member of society has the same income. Society is getting the most it can from its scarce resources. Those in society who have the least will receive the most. The benefits of society's resources are distributed fairly among society's members. Add Question Here Multiple Choice 0 points Modify Remove Question What is one definition of equity? Answer equality efficiency fairness similarity Add Question Here Multiple Choice 0 points Modify Remove Question What happens when government policies are being designed? Answer There is usually a tradeoff between equity and efficiency. Equity and efficiency goals are usually independent of each other. Equity can usually be achieved without an efficiency loss. Increasing efficiency usually results in more equity. Add Question Here Multiple Choice 0 points Modify Remove Question When government policies such as the welfare system try tohelp the most needy members of society, what happens? Answer It increases equity and reduces efficiency. It reduces charitable contributions in an economy. It increases the productivity of the needy in the society. It causes market failure to occur. Add Question Here Multiple Choice 0 points Modify Remove 5 of 23 Question When the government implements programs such as progressive income tax rates, which of the following is likely to occur? Answer Equity is increased and efficiency is increased. Equity is increased and efficiency is decreased. Equity is decreased and efficiency is increased. Equity is decreased and efficiency is decreased. Add Question Here Multiple Choice 0 points Modify Remove Question When the government attempts to cut the economic pie into more equal slices, what happens? Answer It is easier to cut the pie, and therefore the economy can produce a larger pie. The government can more easily allocate the pie to those most in need. The pie gets smaller, and there will be less pie for everyone. The economy will spend too much time cutting and loses the ability to produce enough pie for everyone. Add Question Here Multiple Choice 0 points Modify Remove Question When the government attempts to improve equity in an economy, what is often the result? Answer an increase in overall output in the economy additional government revenue since overall income will increase an actual reduction in equity reduced efficiency in the economy Add Question Here Multiple Choice 0 points Modify Remove Question When the government redistributes income from the rich to the poor, what is the result? Answer Efficiency is improved, but equity is not. Both rich people and poor people benefit directly. People work less and produce fewer goods and services. Rich people consume fewer goods, but poor people consume more goods, resulting in no real change. Add Question Here Multiple Choice 0 points Modify Remove Question In economics, what is the cost of something? Answer the dollar amount of obtaining it always measured in units of time given up to get it what you give up to get it usually higher than people think it will be Add Question Here Multiple Choice 0 points Modify Remove Question What is the term for what you give up to obtain an item? Answer opportunity cost explicit cost true cost direct cost Add Question Here Multiple Choice 0 points Modify Remove Question Paul receives $300 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices, OptionA, Option B, Option C, and Option D. Each option costs $200. Finally he decides on Option B. What is the opportunity cost of Opn B? Answer the value to him of the Option he would have chosen if Option B were not available the value to him of Options A, C, and D combined $300 $200 Add Question Here Multiple Choice 0 points Modify Remove Question What is the opportunity cost of going to college? Answer the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses the value of the best opportunity a student gives up to attend college zero for students who are fortunate enough to have all of their college expenses paid by someone else zero, since a college education will allow a student to earn a larger income after graduation Add Question Here Multiple Choice 0 points Modify Remove Question For most students, what is the largest single cost of a university education? Answer the wages given up to attend school tuition, fees, and books room and board transportation, parking, and entertainment Add Question Here Multiple Choice 0 points Modify Remove 6 of 23 Question What is the largest single cost of going to university? Answer books room and board tuition lost wages Add Question Here Multiple Choice 0 points Modify Remove Question What is the opportunity cost of an item? Answer the number of hours needed to earn money to buy it what you give up to get that item usually more than the dollar value of the item usually less than the dollar value of the item Add Question Here Multiple Choice 0 points Modify Remove Question Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices, Opiton A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. What is the opportunity cost of n B?o Answer the value to him of the Option he would have chosen if Option B were not available the value to him of Options A, C, and D combined $300 $100 Add Question Here Multiple Choice 0 points Modify Remove Question Mallory decides to spend 3 hours working overtime rather than watching a video with her friends. She earns $8 an hour. What isher opportunity cost of working? Answer the $24 she earns working the $24 minus the enjoyment she would have received from watching the video the enjoyment she would have received had she watched the video nothing, since she would have received less than $24 of enjoyment from the video Add Question Here Multiple Choice 0 points Modify Remove Question Russell spends an hour studying instead of playing tennis. What is the opportunity cost to him of studying? Answer the improvement in his grades from studying for the hour the difference between the improvement in his grades from studying minus the enjoyment of playing tennis the enjoyment and exercise he would have received had he played tennis Zero, Since Russell chose to study rather than to play tennis, the value of studying must have been greater than the value ofplaying tennis Add Question Here Multiple Choice 0 points Modify Remove Question What do we know about college-age athletes who drop out of college to play professional sports? Answer They are not rational decision makers. They are well aware that their opportunity cost of attending college is very high. They are concerned more about present circumstances than their future. They underestimate the value of a college education. Add Question Here Multiple Choice 0 points Modify Remove Question How do people make decisions at the margin? Answer by following tradition by experience by calculating dollar costs by comparing costs and benefits Add Question Here Multiple Choice 0 points Modify Remove Question What does the word "margin" mean? Answer edge distance space measure Add Question Here Multiple Choice 0 points Modify Remove Question What does making decisions "at the margin" mean? Answer that people make those decisions that do not impose a marginal cost that people evaluate how easily a decision can be reversed if problems arise that people compare the marginal costs and marginal benefits of each decision that people always calculate the marginal dollar costs for each decision Add Question Here Multiple Choice 0 points Modify Remove 7 of 23 Question What is a marginal change? Answer a long-term trend a large, significant adjustment a change for the worse, and so is usually short-term a small incremental adjustment Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is the best example of a marginal change? Answer After graduating from university, Audrey's income increases from $500 per month to $3,000 per month. Morgan gets a raise at her part-time job and is now paid $7.25 per hour instead of $7.00. Housing prices in an area increase by 40% when a new highway is built in a small town. A hard freeze wipes out half of the tobacco crop in Ontario and the price of cigarettes doubles. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is the best example of a marginal change? Answer After graduating from university, Neville’s income increases from $1,000 per month to $1,100 per month. Marliss is granted a raise at her part-time job and is now paid $8.25 per hour instead of $8.00. Housing prices in an area increase by 50% when a new freeway is built in a small town. A hard freeze wipes out half of the potato crop in Prince Edward Island and the price of potatoes doubles. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is the best example of a marginal change? Answer The price of water rose in Calgary by 2% last year. Kim gets a big promotion at work. She also gets a raise from $25,000 per year to $40,000 per year. Mark graduates from university and takes a job. His income increases from $10,000 per year to $50,000 per year. A drought hits Saskatchewan and the price of wheat increases from $4.00 per bushel to $8.00 per bushel. Add Question Here Multiple Choice 0 points Modify Remove Question A marginal change is illustrated by which of the following? Answer Nancy retires and takes a part-time job. She was working 40 hours per week and now works 10 hours per week. Provincial University has announced that due to provincial budget deficits, tuition must rise by 25% next year. Ryan moved to a new apartment and now pays 40% more rent than before. Vancouver, which usually receives 10 inches of rain per year, received 11 inches last year. Add Question Here Multiple Choice 0 points Modify Remove Question After much consideration, you have chosen Cancun over Ft. Lauderdale for your Spring Break trip this year. For this decisionot change, which of the following must occur? Answer The marginal benefit of Cancun must increase. The marginal cost of Cancun must decrease. The marginal benefit of Ft. Lauderdale must increase. The marginal cost of Ft. Lauderdale must increase. Add Question Here Multiple Choice 0 points Modify Remove Question The average cost per seat on a bus trip from Montreal to Toronto is $140. Suppose no refreshments are served and 3 seats are empty. How could the bus company increase its profit? Answer if it charged no less than $140 for the 3 remaining seats if it charged more than $140 for the 3 remaining seats if it charged any ticket price above $0 for the remaining seats if it left the seats empty Add Question Here Multiple Choice 0 points Modify Remove Question The average cost per seat on an airplane trip from Calgary to Edmonton is $105. Suppose no refreshments are served and 7 seast are empty. How could the airline company increase its profit? Answer if it charged no less than $105 for the 7 remaining seats if it charged more than $105 for the 7 remaining seats if it charged any ticket price above $0 for the remaining seats if it left the seats empty Add Question Here Multiple Choice 0 points Modify Remove Question When does a rational decision maker take an action? Answer only if the marginal benefit is less than the marginal cost only if the marginal benefit is greater than the marginal cost only if the average benefit is greater than the average cost only if the marginal benefit is greater than both the average cost and the marginal cost Add Question Here Multiple Choice 0 points Modify Remove 8 of 23 Question Mike has spent $500 purchasing and repairing an old fishing boat, which he expects to sell for $800 once the repairs are compelte. He discovers that he needs an additional repair, which will cost $400, in order to complete the repairs. He can sell the boat as it is now for $300. What should he do? Answer He should cut his losses and take the $300. He should never sell something for less than it cost. He should complete the repairs and sell the boat. It doesn't matter which action he takes; the outcome is the same either way. Add Question Here Multiple Choice 0 points Modify Remove Question Mike has spent $800 purchasing and repairing an old motorcycle, which he expects to sell for $1200 once the repairs are complete. He discovers that he needs an additional repair, which will cost $200, in order to complete the repairs. He can sell the motorcycle as it is now for $400. What should he do? Answer He should cut his losses and take the $400. He should never sell something for less than it cost. He should complete the repairs and sell the motorcycle. It doesn't matter which action he takes; the outcome is the same either way. Add Question Here Multiple Choice 0 points Modify Remove Question Carol has spent $2,000 purchasing and repairing an old car, which she expects to sell for $2,400 once the repairs are complet. She discovers that she needs an additional repair, which will cost $400, in order to complete the repairs. She can sell the car asit is now for $2,000. What should she do? Answer She should cut her losses and take the $2,400. She should never sell something for less than it cost. She should complete the repairs and sell the car. It doesn't matter which action she takes; the outcome is the same either way. Add Question Here Multiple Choice 0 points Modify Remove Question Tim has spent $2,500 purchasing and repairing a Hummer, which he expects to sell for $3,500 once the repairs are complete. He discovers that he needs an additional repair, which will cost $1,100, in order to complete the repairs. He can sell the Hummer as it is now for $900. What should he do? Answer He should cut his losses and take the $900. He should never sell something for less than it cost. He should complete the repairs and sell the Hummer. It doesn't matter which action he takes; the outcome is the same either way. Add Question Here Multiple Choice 0 points Modify Remove Question Monica has spent $30,000 purchasing and repairing an old cabin, which she expects to sell for $40,000 once the repairs are com plete. She discovers that she needs an additional repair, which will cost $20,000, in order to complete the repairs. She can sell thecabin as it is now for $25,000. What should she do? Answer She should cut her losses and take the $25,000. She should never sell something for less than it cost. She should complete the repairs and sell the cabin. It doesn't matter which action she takes; the outcome is the same either way. Add Question Here Multiple Choice 0 points Modify Remove Question Stan buys a 1966 Mustang, which he plans to restore and sell. He anticipates that the cost of the car and the repairs will be $10,000 and that he can sell it for $13,000. When he has spent $10,000, hediscovers he needs to replace the engine, which will cost $4,000. He can sell the car without the new engine for $9,000. What should Stan do? Answer complete the repairs and sell the car for $13,000 cut his losses and sell the car now for $9,000 never try such an expensive project again be totally indifferent between finishing the project and selling the car now Add Question Here Multiple Choice 0 points Modify Remove Question Stan buys a 1966 Mustang, which he plans to restore and sell. He anticipates that the cost of the car and the repairs will be $8,000 and that he can sell it for $10,000. When he has spent $7,000, he discovers he needs to replace the engine, which will cost $4,000. He can sell the car without the new engine for $9,000. What should Stan do? Answer complete the repairs and sell the car for $10,000 cut his losses and sell the car now for $9,000 never try such an expensive project again be totally indifferent between finishing the project and selling the car now Add Question Here Multiple Choice 0 points Modify Remove Question Lisa buys a 1982 BMW, which she plans to restore and sell. She anticipates that the cost of the car and the repairs will be $14,000 and that she can sell it for $20,000. When she has spent $11,000,she discovers she needs to replace the engine, which will cost $5,000. She can sell the car without the new engine for $14,000. What should Lisa do? Answer complete the repairs and sell the car for $20,000 cut her losses and sell the car now for $14,000 never try such an expensive project again be totally indifferent between finishing the project and selling the car now 9 of 23 Add Question Here Multiple Choice 0 points Modify Remove Question Lisa buys a 1982 BMW, which she plans to restore and sell. She anticipates that the cost of the car and the repairs will be $14,000 and that she can sell it for $15,000. When she has spent $10,000,she discovers she needs to replace the engine, which will cost $4,000. She can sell the car without the new engine for $11,000. What should Lisa do? Answer complete the repairs and sell the car for $15,000 cut her losses and sell the car now for $11,000 never try such an expensive project again be totally indifferent between finishing the project and selling the car now Add Question Here Multiple Choice 0 points Modify Remove Question A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day but Sunday. The cost of making and selling a dozen g alzed donuts is $1.00. Since this shop does not sell day-old donuts the next day, what should the manager do if he still has 10 dozenleft at 2:30 p.m.? Answer lower the price of the remaining donuts even if the price falls below $1.00 lower the price of the remaining donuts as long as it's more than $1.00 lower the price on all donuts so they will all be sold earlier in the day throw them away and produce 10 fewer dozen tomorrow Add Question Here Multiple Choice 0 points Modify Remove Question A donut shop sells fresh baked donuts from 5 a.m. until 3 p.m. every day but Sunday. The cost of making and selling a dozen g alzed donuts is $2.00. Since this shop does not sell day-old donuts the next day, what should the manager do if she still has 10 dn left at 2:30 p.m.? Answer lower the price of the remaining donuts even if the price falls below $2.00 lower the price of the remaining donuts as long as it's more than $2.00 lower the price on all donuts so they will all be sold earlier in the day throw them away and produce 10 fewer dozen tomorrow Add Question Here Multiple Choice 0 points Modify Remove Question A furniture maker currently produces 100 tables per week and sells them for a profit. She is considering expanding her operaotin in order to make more tables. Should she expand? Answer Yes, because making tables is profitable. No, because she may not be able to sell the additional tables. It depends on the marginal cost of producing more tables and the marginal revenue she will earn from selling more tables. It depends on the average cost of producingmore tables and the average revenue she will earn from selling more tables. Add Question Here Multiple Choice 0 points Modify Remove Question In the nation of Dictatorland, farmers traditionally feed grain to their livestock. Central planners, however, decided rase the price of grain to make grain farmers happy and to reduce the price of bread made from that grain to make city dwellers happy. Now the pice of bread is lower than the price of grain. What might we now expect? Answer farmers to continue to feed grain to their livestock farmers to start feeding bread to their livestock city dwellers to start buying grain to make bread to eat city dwellers to start buying grain to make bread to sell Add Question Here Multiple Choice 0 points Modify Remove Question Your professor loves her work, teaching economics. She has been offered other positions in the corporate world making 25 perce nt more, but has decided to stay in teaching. What might change her decision? Answer if the marginal cost of teaching increased if the marginal benefit of teaching increased if the marginal cost of teaching decreased if the marginal cost of a corporate job increased Add Question Here Multiple Choice 0 points Modify Remove Question Suppose your management professor has been offered a corporate job with a 30% pay increase. He has decided to take the job. Wh at happened for him? Answer The marginal cost of leaving was greater than the marginal benefit. The marginal benefit of leaving was greater than the marginal cost. The marginal benefit of teaching was greater than the marginal cost. The marginal cost of teaching was greater than the marginal benefit. Add Question Here Multiple Choice 0 points Modify Remove Question Suppose your management professor has been offered a corporate job with a 30% pay increase. He has decided not to take the job . What happened for him? Answer The marginal cost of leaving was greater than the marginal benefit. The marginal benefit of leaving was greater than the marginal cost. The marginal benefit of leaving was less than the marginal cost. The marginal benefit of teaching was greater than the marginal cost. Add Question Here Multiple Choice 0 points Modify Remove 10 of 23 Question When policymakers make policies that change the costs and benefits that people face, what can the policymakers do? Answer alter behaviours make people ignore incentives create inflation reduce government revenue Add Question Here Multiple Choice 0 points Modify Remove Question According to economists, what do people respond to? Answer laws incentives threats more than rewards positives, but not negatives Add Question Here Multiple Choice 0 points Modify Remove Question What did Ralph Nader's bookUnsafe at Any Speed cause the U.S. government to require? Answer safety glass in all new cars seat belts in all new cars air bags in all new cars stricter drunk driving laws Add Question Here Multiple Choice 0 points Modify Remove Question What has been the result of laws requiring that drivers wear seat belts? Answer a reduction in both driver deaths and pedestrian deaths fewer accidents and fewer deaths per accident fewer driver deaths, fewer accidents, and fewer pedestrian deaths little change in the number of driver deaths, but more accidents and more pedestrian deaths Add Question Here Multiple Choice 0 points Modify Remove Question What has been one effect of a government-imposed seat belt law? Answer fewer pedestrian deaths safer driving an increase in the number of accidents everyone now wears seat belts Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following does NOT result when seat belt laws alter a driver's cost-benefit calculation? Answer Fewer drivers are killed More pedestrians are killed Drivers drive faster More accidents occur Add Question Here Multiple Choice 0 points Modify Remove Question In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumsts, what were the economic incentives for producers? Answer to produce good quality products so that society benefits from the resources used to conserve on costs, so as to maintain efficiency in the economy to produce enough to meet the output target, without regard for quality or cost to produce those products that society desires most Add Question Here Multiple Choice 0 points Modify Remove Question How can trade benefit a family? Answer by allowing the family to buy a greater variety of goods and services at a lower cost by allowing each person to buy only the goods and services they want most it can benefit only if the family is not in economic competition with other families trade can only benefit entire nations, not individuals Add Question Here Multiple Choice 0 points Modify Remove Question Which is the most accurate statement about trade? Answer Trade can make every nation better off. Trade makes some nations better off and others worse off. Trading for a good can make a nation better off only if the nation cannot produce that good itself. Trade helps rich nations and hurts poor nations. Add Question Here Multiple Choice 0 points Modify Remove 11 of 23 Question Which of the following statements about trade is NOT true? Answer Trade increases competition. One country wins and one country loses. Canada can benefit from trade with any country. Trade allows people to buy a greater variety of goods and services at lower cost. Add Question Here Multiple Choice 0 points Modify Remove Question What is NOT a benefit from trade? Answer the ability to specialize a greater variety of goods and services becoming available less competition lower prices Add Question Here Multiple Choice 0 points Modify Remove Question What does trade between Canada and India do? Answer benefits both Canada and India is a losing proposition for Canada because India has cheaper labour is like a sports contest: one side wins and the other side loses is a losing proposition for India because Canadian workers are more productive Add Question Here Multiple Choice 0 points Modify Remove Question How can Canada benefit from trade? Answer only with nations that can produce goods Canada cannot produce with any nation with any nation not in economic competition with Canada only with less developed nations Add Question Here Multiple Choice 0 points Modify Remove Question What happens if Japan chooses to engage in trade? Answer It will only benefit if it trades with countries that produce goods it cannot produce. It cannot benefit if it trades with less developed countries. It should first attempt to produce the good itself. It can benefit by trading with any other country. Add Question Here Multiple Choice 0 points Modify Remove Question If Canada decides to trade with Mexico, what do we know? Answer Mexico will be better off, but trade with a less developed country could not help Canada. It will not benefit Mexico because workers in Canada are more productive. It will benefit Mexico because workers in Canada are more productive. Mexico and Canada can both be better off. Add Question Here Multiple Choice 0 points Modify Remove Question If France is better than Belarus at producing wine, but Belarus is better than France at producing crystal, what should h?ppen Answer Belarus should sell crystal to France, and should buy French wine. Belarus should impose a tariff on French wine in order to protect jobs in the Belarusian crystal industry. Belarus should subsidize its wine industry so that it can compete with French wine. Belarus should put a quota on the amount of French wine imported. Add Question Here Multiple Choice 0 points Modify Remove Question Which of the following is the best statement about markets? Answer Markets are usually a good way to organize economic activity. Markets are usually inferior to central planning as a way to organize economic activity. Markets fail and are therefore not an acceptable way to organize economic activity. Markets are a good way to organize economic activity in developed nations, but not in less developed nations. Add Question Here Multiple Choice 0 points Modify Remove Question Which would NOT be true in a market economy? Answer Firms decide whom to hire and what to produce. Government policies do not affect the decisions of firms and households. Households decide which firms to work for and what to buy with their incomes. Profit and self-interest guide the decisions of firms and households. Add Question Here Multiple Choice
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