TEST BANK for Christopher Ragan, Microeconomics 11th Canadian Edition by Christopher Ragan All Chapters 1 - 20

,Economicsg-
gCanadiangEdition,g16eg(Ragan)gChapterg1g E

conomicgIssuesgandgConcepts

1.1 WhatgIsgEconomics?

1) Whichgofgthegfollowinggstatementsgprovidesgthegbestgdefinitiongofgeconomics?
A) Thegstudygofgthegmostgequitablegdistributiongofgscarcegresources.
B) Thegstudygofgthegusegofgscarcegresourcesgtogsatisfygunlimitedghumangwants.
C) Thegstudygofgthegproductiongofggoodsgandgservices.
D) Thegstudygofgthegproductivegcapacitygofgagnation'sgfactorsgofgproduction.
E) Thegstudygofgproductiongandgincreasinggitsgefficiency.g
Answer:g B
Diff:g1 Type:gMC
Topic:g 1.1a.geconomics/resourcesg
Skill:g Recall
LearninggObj.:g 1-
1gExplaingthegimportancegofgscarcity,gchoice,gandgopportunitygcost,gandghowgeachgisgillustratedgbygt
hegproductiongpossibilitiesgboundary.
Category:g Qualitative

2) Society'sgresourcesgaregoftengdividedgintogbroadgcategories.gTheygare
A) goodsgandgservices.
B) factorsgofgconsumption.
C) land,glabour,gandgcapital.
D) populationgandgnaturalgresources.
E) tangiblegcommoditiesgandgintangiblegcommodities.g
Answer:g C
Diff:g1 Type:gMC
Topic:g 1.1a.geconomics/resourcesg
Skill:g Recall
LearninggObj.:g 1-
1gExplaingthegimportancegofgscarcity,gchoice,gandgopportunitygcost,gandghowgeachgisgillustratedgbygt
hegproductiongpossibilitiesgboundary.
Category:g Qualitative




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,3) Considergthegfollowingglist:gagworkergwithgtraininggingvideoggaminggtechnology,g10ghectaresgofga
rableglandgingsoutherngOntario,gagfishinggtrawlergingNovagScotia,gangice-
creamgtruckgatgagparkgingQuebec.gEachgofgthesegisgangexamplegof
A) agfactorgofgproduction.
B) agcapitalgresource.
C) agcommodity.
D) goodsgandgservices.
E) angeconomicgservice.g
Answer:g A
Diff:g1 Type:gMC
Topic:g 1.1a.geconomics/resourcesg
Skill:g Applied
LearninggObj.:g 1-
1gExplaingthegimportancegofgscarcity,gchoice,gandgopportunitygcost,gandghowgeachgisgillustratedgbygt
hegproductiongpossibilitiesgboundary.
Category:g Qualitative

4) WhichgofgthegfollowinggisgNOTgconsideredgag"factorgofgproduction"gingeconomics?
A) thegespressogmachinegatgyourglocalgcafe
B) thegbaristagwhogmakesgthegcoffee
C) thegespressogdrinkgyougpurchase
D) thegwoodgstirgsticks
E) theglandgongwhichgthegcafegsitsg
Answer:g C
Diff:g2 Type:gMC
Topic:g 1.1a.geconomics/resourcesg
Skill:g Applied
LearninggObj.:g 1-
1gExplaingthegimportancegofgscarcity,gchoice,gandgopportunitygcost,gandghowgeachgisgillustratedgbygt
hegproductiongpossibilitiesgboundary.
Category:g Qualitative




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, 5) Considergthegfollowinggfactorsgofgproduction:
- agpharmaceuticalgresearchgcentre
- aghairstylist'sgscissors
- Googlegheadquarters
- agcloudgcomputinggsystem
- agstaplergatgagcheckoutgcounter.g
Eachgofgthesegisgangexamplegof
A) land.
B) goods.
C) services.
D) capital.
E) labour.g
Answer:g D
Diff:g2 Type:gMC
Topic:g 1.1a.geconomics/resourcesg
Skill:g Applied
LearninggObj.:g 1-
1gExplaingthegimportancegofgscarcity,gchoice,gandgopportunitygcost,gandghowgeachgisgillustratedgbygt
hegproductiongpossibilitiesgboundary.
Category:g Qualitative

6) Ingeconomics,gwhatgwordgisgusedgtogdescribegthegactgofgusingggoodsgorgservicesgtogsatisfyg
wants?
A) consumption
B) production
C) purchasinggpower
D) investment
E) shopping
gAnswer:g A

Diff:g2 Type:gMC
Topic:g 1.1a.geconomics/resourcesg
Skill:g Recall
LearninggObj.:g 1-
1gExplaingthegimportancegofgscarcity,gchoice,gandgopportunitygcost,gandghowgeachgisgillustratedgbygt
hegproductiongpossibilitiesgboundary.
Category:g Qualitative




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Copyrightg©g2020gPearsongCanadagInc.