chapter 1: m/c Flashcards
which one of the following is essential to the scientific method?
a. that the scientist be objective
b. that only incorrect theories are tested
c. that the scientist use precision equipment
d. that the scientist use test tubes and have a clean lab
A
which of the following is MOST likely to produce scientific evidence about a theory
a. a radio talk-show host collecting data on how financial markets respond to taxation
b. a lawyer employed by GM addressing the impact of air bags on passenger safety
c. a tenured economist employed at a leading university analyzing the impact of proposed bank mergers
d. an economist employed by the Canadian auto workers union doing research on the impact of international trade
C
which of the following statements regarding the circular-flow diagram is true
a. the factors of production are owned by firms
b. the factors of production are owned by households
c. if Molson sells a case of beer, the transaction takes place in the market for factors of production
d. If Susan works for bell and receives a paycheck, the transaction takes place in the market for goods and services
B
which one of the following cases presents the MOST reasonable assumption?
a. to address the benefits of trade, an economist assumes that there are two people and two goods
b. to estimate the speed at which a beach ball falls, a physicist assumes that the it falls in a vacuum
c. to address the impact of money growth on inflation, an economist assumes that money is strictly coins
d. to address the impact of taxes on income distribution, an economist assumes that everyone earns the same income.
A
which of the following statements is true of economic models
a. built with assumptions
b. useless if they are simple
c. created to duplicate reality
d. usually made of wood and plastic
A
which of the following is NOT a factor of production
a. land
b. labour
c. capital
d. money
D
which one of the following refers to points inside the production possibilities frontier?
a. efficient
b. inefficient
c. unattainable
d. normative
B
which one of the following will NOT shift a country’s production possibilities frontier outward
a. an increase in the capital stock
b. an advance in technology
c. a reduction in unemployment
d. an increase in the labour force
C
which one of the following is a depiction of economic growth
a. a movement from inside the curve toward the curve
b. a shift in the production possibilities frontier outward
c. a shift in the production possibilities frontier inward
d. a movement along a production possibilities frontier toward capital goods
B
see question 10
B
see question 11
D
see question 12
C
see question 13
C
which one of the following issues is related ot macroeconomics
a. the impact of growth in the quantity of money on inflation
b. the impact of rising gas prices on car sales
c. the impact of government regulations on the airline industry
d. the impact of foreign competition on the wine industry in Canada
A
which one of the following statements about microeconomics and macroeconomics is NOT true
a. microeconomics is a building block for macroeconomics
b. macroeconomics is concerned with economy-wide phenomena
c. microeconomics and macroeconomics each has its own set of models
d. the study of very large industries is a topic within macroeconomics
D