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m m m m m m m m m m
onment 11th Edition Parkin m m m
MULTIPLEm CHOICE.m Choose m the m one m alternative m thatmbestm completesmthe m statementmorm answersm the m question.
1) In m a m worldmcharacterizedmbymscarcity
A) wemaremnotmlimitedmbymtime.
B) allmgoods maremfree.
C) peoplem mustm makem choices m amongm alternatives.
D) individuals mneedmnotmworkm tomobtain mgoods.
E) opportunitymcostmis mzer
o.mAnswer:m C
2) Which mofmthemfollowingmis mthembestmdefinition mofmeconomics?
A) themstudym ofm howm a m provincialm governmentmallocates mtaxm dollars
B) themstudym ofm howm consumers mandmproducers mmeetmeach mothermin mthemmarket
C) themstudymofmhowm consumers mspendmtheirmincome
D) themstudymofmhowmindividuals,mbusinesses,mgovernments,mandmentiremsocieties mmakemchoicesmas mtheymcope
mwith mscarcitymandmthemincentives mthatminfluencemandmreconcilemthosemchoices
E) themstudymofmhowmproducersmdecidemwhatminputs mtomhiremandmwhatmoutputs mtompr
oducemAnswer:m D
3) Which mofm them followingmis ma m microeconomic m topic?
A) themreasons mwhymthemaveragem pricem levelm in ma m countrym falls
B) themreasons mwhyma m consumerm buys mless mhoney
C) themeffectmofmthem governmentmbudgetmdeficitmon m inflation
D) themcausemofm increasingm unemployment
E) themreasons mwhymthemlabourmforceminma mcountrymdecre
ases mAnswer:m B
4) Themstudymofmhowm wages marem setmform Newm Brunswickmteachers mis mclassifiedmas
A) a m microeconomic m topic.
B) economics mofm privatem interest.
C) a m macroeconomic m topic.
D) economics mofm socialm interest.
E) normativemeconomics.
mAnswer:m A
5) Which m ofm them followingm newspaperm headlines m concerns m a m macroeconomic m issue?
A) Whymis mthem U.S.m economymexperiencingm slowm growth?
B) Whymdom grain m producers m purchasem less mpesticides?
C) Howm wouldmanmunexpectedmfreezem inmOxford,mNovam Scotiam changem thempricem ofmblueberries min mthemMariti
mes?
D) Howm wouldm a m taxm on m e-commercem affectm chapters.indigo.ca?
E) WhymarempeoplembuyingmmoremSUVs mandmfewermminiva
ns?mAnswer:m A
6) Thembranch mofm economics mthatm studies mthemchoices m ofm individuals m andmbusinesses mis
A) macroeconomics.
B) microeconomics.
C) socialm economics.
D) positivem economics.
E) normativemeconomics.
mAnswer:m B
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m m m m m m m m m m
onment 11th Edition Parkin m m m
7) Each mofm them followingmwouldm bemconsideredm a m macroeconomic m topicm except
A) themcausemofmrecessions.
B) themselection m ofmproduction m techniques.
C) themreasons mform a m decreasemin m themunemploymentmrate.
D) them determination m ofm aggregatem income.
E) themeffectmofmthemgovernmentmbudgetmdeficitmonminflati
on.mAnswer:m B
8) Completem them followingm sentence.m Macroeconomics
A) deals mmainlym with m them economicm behaviourm ofm households.
B) is mthemonlympartmofm economics mtomdealmwith m governmentmdecisions.
C) is mprimarilym concernedmwith mthem behaviourm ofm them stockmmarket.
D) is mprimarilym concernedmwith mthem operation m ofm individual m markets min mthem economy.
E) is mthemstudymofmthemperformancemofmthemnationalmeconomymandmthemglobalmecon
omy.mAnswer:m E
9) Them determination m ofm prices m in m individual m markets m is m primarilym a m concern m of
A) positivem economics.
B) descriptivem economics.
C) macroeconomics.
D) microeconomics.
E) negativemeconomics.
m Answer:m D
10) Which m onem ofm them followingm topics m does m macroeconomics m study?
A) effects mofm governmentmsafetymregulations mon m thempricemofm cars
B) decisions mofm individual m firms
C) themperformancemofm them globalmeconomy
D) effects mofmtaxes mon mthempricemofmgasoline
E) prices mofmindividualmgoodsmandmservic
es mAnswer:m C
11) Which m onem ofm them followingm topics m does m microeconomics m study?
A) effectmofm interestmrates mon m nationalm economicm growth
B) reasons mforma mfallmin mthempricemofmorangemjuice
C) themeffectmofma m risemin mthem Canadian mdollarmon mCanada's mexports
D) determination mofmtotalm production min ma m country
E) effectmofmthemgovernmentmbudgetmdeficitmon memploym
entmAnswer:m B
12) Completem them followingm sentence.m Microeconomics m is
A) concernedmwith mthem sizem ofmthemtotalmamountmofmincomemearnedmbymallm households min man meconomy.
B) concernedmexclusivelymwith mthem rolem ofm them governmentmin mthem economy.
C) notmconcernedmwith mfactors mofmproduction.
D) thembranch mofm economics mthatmstudies mthem choices mofm individuals mandmbusinesses.
E) concernedmwithmnormativemissues monl
y.mAnswer:m D
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m m m m m m m m m m
onment 11th Edition Parkinm m m
13) Which m ofm them followingm wouldm bem consideredm a m microeconomic m topic?
A) themstudym ofmhowmwages maremsetmform childcaremworkers
B) them effectmofmthemgovernmentmbudgetmdeficitmon m inflation
C) them determination m ofm aggregatem income
D) themseveritymofma mrecession
E) themcausemofmunemploymentmin mthemecono
mymAnswer:m A
14) Thembranch mofm economicsmthatmstudies mthemperformancemofm themnationalm economym andmthem globalm economymis
A) macroeconomics.
B) normativem economics.
C) Keynesian m economics.
D) positivem economics.
E) microeconomics.
m Answer:m A
15) Themfactm thatm human m wants m cannotmbem fullym satisfiedm with mavailablem resources m is mcalledm them problem m of
A) opportunitym cost.
B) thembigmtradeoff.
C) marginalm cost.
D) scarcity.
E) normativemeconomics.
m Answer:m D
16) Themproblem m ofm scarcitym exists
A) nowm butm willm bem eliminatedmwith m economicm growth.
B) in mallmeconomies.
C) onlym in meconomies mthatmhavem incentives.
D) onlym when mpeoplemarem unemployed.
E) onlymin meconomiesmthatmlackmincentive
s.mAnswer:m B
17) Them inescapablem economicm factm is m that
A) resources mcostmtoommuch.
B) therem arem unlimitedm wants m andm limitedmresources.
C) therem arem unlimitedmresources,mandmwem havem tomdecidemhowm tom allocatem them.
D) therem arem limitedmwants mandmlimitedm resources.
E) resources mcannotmbemallocatedmwithoutmgovernmentminterventi
on mAnswer:m B
18) An mincentive
A) couldmbemeitherma mrewardmorma mpenalty.
B) is mthemoppositemofma mtradeoff.
C) occurs min mthem macroeconomymbutmnotmin mthem microeconomy.
D) couldmbema m rewardmbutmcouldmnotmbema m penalty.
E) couldmbema mpenaltymbutmcouldmnotmbema mrew
ard.mAnswer:m A
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m m m m m m m m m m
onment 11th Edition Parkin m m m
19) Scarcitym confronts
A) thempoormbutmnotmthemrich.
B) themrich mbutmnotmthempoor.
C) themrich mandmthempoor.
D) neithermthempoormnormthemrich.
E) onlymfamiliesmwith mincomesmlessmthanm$25,000 ma mye
ar.mAnswer:m C
20) Themproblem m ofm scarcitym applies
A) onlym tom developingm countries mbecausem resources marem scarcem in m thesemcountries.
B) onlymtomcountries mthatmaremover-populated.
C) onlym tomcountries mthatmusemnaturalmresources min mmostmofm theirmproduction m processes.
D) onlym tom industriallym developedm countries m becausem theym createm pollution.
E) tomallmcountries,mregardlessmofmtheirmlevelmofmdevelopme
nt.mAnswer:m E
21) Operators mofmprivatemdogmparksminmyourmcitymdecidemtomeliminatemtheirmfees mandmallowmdogmowners mtomexercis
emtheirmdogs min mthemparks matmnomcharge.
This mstatementmmeans mthatmthemincentivemtomexercisemdogs matmthemdogmparkm
.mThemoperators' mdecision mis ma .
A) changes;m decision m in m them self-interestm butm notm in m them socialm interest
B) remains m them same;m microeconomic m decision
C) remains m them same;m macroeconomic m decision
D) changes;m microeconomic m decision
E) changes;mmacroeconomic mdecisio
n mAnswer:m D
22) Choosem themstatementmaboutmincentives mthatmis m incorrect.
A) Ifmthempricemofma m bus mridemfalls,mJillmhas mless mincentivemtomdrivemherselfmtomschool.
B) An mincentivem can mbema m penaltymthatmdiscourages man maction.
C) With mstifferm penalties mform fraud,m companymdirectors mhavem an mincentivem tom playm bymthemrules.
D) Incentives m createm scarcity.
E) An mincentivemcan mbema mrewardmthatmencourages manmacti
on.mAnswer:m D
23) Themtwom bigmeconomicmquestions
A) involvem neitherm self-interestm norm socialm interest.
B) involvem onlymsocialm interest.
C) domnotmarisemfrom mscarcity.
D) involvemself-interestmonly.
E) involvemboth mself-
interestmandmsocialminterest.mAnswer:m E
24) Themtwom bigmeconomicmquestions
A) arem "whymarem goods mandmservices mproduced?"mandm"when m arem goods mandmservices m produced?"
B) dealm with m macroeconomics m butm notm microeconomics.
C) summarizem themscopem ofm economics.
D) arem "wherem arem goods mandmservices m produced?"mandm"whatmgoods m andm services marem produced?"
E) arem"whatmgoodsmandmservices maremproduced?"mandm"howmaremgoods mandmservices mprodu
ced?"mAnswer:m C
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m m m m m m m m m m
onment 11th Edition Parkin m m m
MULTIPLEm CHOICE.m Choose m the m one m alternative m thatmbestm completesmthe m statementmorm answersm the m question.
1) In m a m worldmcharacterizedmbymscarcity
A) wemaremnotmlimitedmbymtime.
B) allmgoods maremfree.
C) peoplem mustm makem choices m amongm alternatives.
D) individuals mneedmnotmworkm tomobtain mgoods.
E) opportunitymcostmis mzer
o.mAnswer:m C
2) Which mofmthemfollowingmis mthembestmdefinition mofmeconomics?
A) themstudym ofm howm a m provincialm governmentmallocates mtaxm dollars
B) themstudym ofm howm consumers mandmproducers mmeetmeach mothermin mthemmarket
C) themstudymofmhowm consumers mspendmtheirmincome
D) themstudymofmhowmindividuals,mbusinesses,mgovernments,mandmentiremsocieties mmakemchoicesmas mtheymcope
mwith mscarcitymandmthemincentives mthatminfluencemandmreconcilemthosemchoices
E) themstudymofmhowmproducersmdecidemwhatminputs mtomhiremandmwhatmoutputs mtompr
oducemAnswer:m D
3) Which mofm them followingmis ma m microeconomic m topic?
A) themreasons mwhymthemaveragem pricem levelm in ma m countrym falls
B) themreasons mwhyma m consumerm buys mless mhoney
C) themeffectmofmthem governmentmbudgetmdeficitmon m inflation
D) themcausemofm increasingm unemployment
E) themreasons mwhymthemlabourmforceminma mcountrymdecre
ases mAnswer:m B
4) Themstudymofmhowm wages marem setmform Newm Brunswickmteachers mis mclassifiedmas
A) a m microeconomic m topic.
B) economics mofm privatem interest.
C) a m macroeconomic m topic.
D) economics mofm socialm interest.
E) normativemeconomics.
mAnswer:m A
5) Which m ofm them followingm newspaperm headlines m concerns m a m macroeconomic m issue?
A) Whymis mthem U.S.m economymexperiencingm slowm growth?
B) Whymdom grain m producers m purchasem less mpesticides?
C) Howm wouldmanmunexpectedmfreezem inmOxford,mNovam Scotiam changem thempricem ofmblueberries min mthemMariti
mes?
D) Howm wouldm a m taxm on m e-commercem affectm chapters.indigo.ca?
E) WhymarempeoplembuyingmmoremSUVs mandmfewermminiva
ns?mAnswer:m A
6) Thembranch mofm economics mthatm studies mthemchoices m ofm individuals m andmbusinesses mis
A) macroeconomics.
B) microeconomics.
C) socialm economics.
D) positivem economics.
E) normativemeconomics.
mAnswer:m B
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m m m m m m m m m m
onment 11th Edition Parkin m m m
7) Each mofm them followingmwouldm bemconsideredm a m macroeconomic m topicm except
A) themcausemofmrecessions.
B) themselection m ofmproduction m techniques.
C) themreasons mform a m decreasemin m themunemploymentmrate.
D) them determination m ofm aggregatem income.
E) themeffectmofmthemgovernmentmbudgetmdeficitmonminflati
on.mAnswer:m B
8) Completem them followingm sentence.m Macroeconomics
A) deals mmainlym with m them economicm behaviourm ofm households.
B) is mthemonlympartmofm economics mtomdealmwith m governmentmdecisions.
C) is mprimarilym concernedmwith mthem behaviourm ofm them stockmmarket.
D) is mprimarilym concernedmwith mthem operation m ofm individual m markets min mthem economy.
E) is mthemstudymofmthemperformancemofmthemnationalmeconomymandmthemglobalmecon
omy.mAnswer:m E
9) Them determination m ofm prices m in m individual m markets m is m primarilym a m concern m of
A) positivem economics.
B) descriptivem economics.
C) macroeconomics.
D) microeconomics.
E) negativemeconomics.
m Answer:m D
10) Which m onem ofm them followingm topics m does m macroeconomics m study?
A) effects mofm governmentmsafetymregulations mon m thempricemofm cars
B) decisions mofm individual m firms
C) themperformancemofm them globalmeconomy
D) effects mofmtaxes mon mthempricemofmgasoline
E) prices mofmindividualmgoodsmandmservic
es mAnswer:m C
11) Which m onem ofm them followingm topics m does m microeconomics m study?
A) effectmofm interestmrates mon m nationalm economicm growth
B) reasons mforma mfallmin mthempricemofmorangemjuice
C) themeffectmofma m risemin mthem Canadian mdollarmon mCanada's mexports
D) determination mofmtotalm production min ma m country
E) effectmofmthemgovernmentmbudgetmdeficitmon memploym
entmAnswer:m B
12) Completem them followingm sentence.m Microeconomics m is
A) concernedmwith mthem sizem ofmthemtotalmamountmofmincomemearnedmbymallm households min man meconomy.
B) concernedmexclusivelymwith mthem rolem ofm them governmentmin mthem economy.
C) notmconcernedmwith mfactors mofmproduction.
D) thembranch mofm economics mthatmstudies mthem choices mofm individuals mandmbusinesses.
E) concernedmwithmnormativemissues monl
y.mAnswer:m D
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m m m m m m m m m m
onment 11th Edition Parkinm m m
13) Which m ofm them followingm wouldm bem consideredm a m microeconomic m topic?
A) themstudym ofmhowmwages maremsetmform childcaremworkers
B) them effectmofmthemgovernmentmbudgetmdeficitmon m inflation
C) them determination m ofm aggregatem income
D) themseveritymofma mrecession
E) themcausemofmunemploymentmin mthemecono
mymAnswer:m A
14) Thembranch mofm economicsmthatmstudies mthemperformancemofm themnationalm economym andmthem globalm economymis
A) macroeconomics.
B) normativem economics.
C) Keynesian m economics.
D) positivem economics.
E) microeconomics.
m Answer:m A
15) Themfactm thatm human m wants m cannotmbem fullym satisfiedm with mavailablem resources m is mcalledm them problem m of
A) opportunitym cost.
B) thembigmtradeoff.
C) marginalm cost.
D) scarcity.
E) normativemeconomics.
m Answer:m D
16) Themproblem m ofm scarcitym exists
A) nowm butm willm bem eliminatedmwith m economicm growth.
B) in mallmeconomies.
C) onlym in meconomies mthatmhavem incentives.
D) onlym when mpeoplemarem unemployed.
E) onlymin meconomiesmthatmlackmincentive
s.mAnswer:m B
17) Them inescapablem economicm factm is m that
A) resources mcostmtoommuch.
B) therem arem unlimitedm wants m andm limitedmresources.
C) therem arem unlimitedmresources,mandmwem havem tomdecidemhowm tom allocatem them.
D) therem arem limitedmwants mandmlimitedm resources.
E) resources mcannotmbemallocatedmwithoutmgovernmentminterventi
on mAnswer:m B
18) An mincentive
A) couldmbemeitherma mrewardmorma mpenalty.
B) is mthemoppositemofma mtradeoff.
C) occurs min mthem macroeconomymbutmnotmin mthem microeconomy.
D) couldmbema m rewardmbutmcouldmnotmbema m penalty.
E) couldmbema mpenaltymbutmcouldmnotmbema mrew
ard.mAnswer:m A
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m m m m m m m m m m
onment 11th Edition Parkin m m m
19) Scarcitym confronts
A) thempoormbutmnotmthemrich.
B) themrich mbutmnotmthempoor.
C) themrich mandmthempoor.
D) neithermthempoormnormthemrich.
E) onlymfamiliesmwith mincomesmlessmthanm$25,000 ma mye
ar.mAnswer:m C
20) Themproblem m ofm scarcitym applies
A) onlym tom developingm countries mbecausem resources marem scarcem in m thesemcountries.
B) onlymtomcountries mthatmaremover-populated.
C) onlym tomcountries mthatmusemnaturalmresources min mmostmofm theirmproduction m processes.
D) onlym tom industriallym developedm countries m becausem theym createm pollution.
E) tomallmcountries,mregardlessmofmtheirmlevelmofmdevelopme
nt.mAnswer:m E
21) Operators mofmprivatemdogmparksminmyourmcitymdecidemtomeliminatemtheirmfees mandmallowmdogmowners mtomexercis
emtheirmdogs min mthemparks matmnomcharge.
This mstatementmmeans mthatmthemincentivemtomexercisemdogs matmthemdogmparkm
.mThemoperators' mdecision mis ma .
A) changes;m decision m in m them self-interestm butm notm in m them socialm interest
B) remains m them same;m microeconomic m decision
C) remains m them same;m macroeconomic m decision
D) changes;m microeconomic m decision
E) changes;mmacroeconomic mdecisio
n mAnswer:m D
22) Choosem themstatementmaboutmincentives mthatmis m incorrect.
A) Ifmthempricemofma m bus mridemfalls,mJillmhas mless mincentivemtomdrivemherselfmtomschool.
B) An mincentivem can mbema m penaltymthatmdiscourages man maction.
C) With mstifferm penalties mform fraud,m companymdirectors mhavem an mincentivem tom playm bymthemrules.
D) Incentives m createm scarcity.
E) An mincentivemcan mbema mrewardmthatmencourages manmacti
on.mAnswer:m D
23) Themtwom bigmeconomicmquestions
A) involvem neitherm self-interestm norm socialm interest.
B) involvem onlymsocialm interest.
C) domnotmarisemfrom mscarcity.
D) involvemself-interestmonly.
E) involvemboth mself-
interestmandmsocialminterest.mAnswer:m E
24) Themtwom bigmeconomicmquestions
A) arem "whymarem goods mandmservices mproduced?"mandm"when m arem goods mandmservices m produced?"
B) dealm with m macroeconomics m butm notm microeconomics.
C) summarizem themscopem ofm economics.
D) arem "wherem arem goods mandmservices m produced?"mandm"whatmgoods m andm services marem produced?"
E) arem"whatmgoodsmandmservices maremproduced?"mandm"howmaremgoods mandmservices mprodu
ced?"mAnswer:m C
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