In poorer countries, free trade ________ the demand for labour in these countries and
________ the wages paid in these countries.
A) decreases; lowers
B) decreases; raises
C) increases; lowers
D) increases; raises
E) increases the supply and decreases; lowers
What is the effect of a decrease in expected profit?
A) The demand curve for loanable funds shifts leftward and the real interest rate falls.
B) The supply curve of loanable funds shifts rightward and the nominal interest rate
rises.
C) A movement down along the demand curve for loanable funds occurs.
D) The real interest rate rises as saving increases.
E) The demand curve for loanable funds shifts rightward and the real interest rate rises.
Potential GDP
A) increases as the price level rises.
B) is the level of real GDP when unemployment is zero.
C) increases as the quantity of money in the economy increases.
D) does not vary with the price level.
E) never changes.
The goods and services we sell to people in other countries are our
A) tariffs.
B) quotas.
C) exports.
D) imports.
E) investment goods and services.
Use the figure below to answer the following question.
Figure 5.3.3
Consider the demand and supply curves in Figure 5.3.3. If the market is at the
competitive equilibrium, which area in the diagram indicates producer surplus?
A) ABC
B) AEC
C) EBC
D) 0BCD
E) 0ECD
In a perfectly competitive market, a technological advance brings ________ economic
profit for producers and ________ lower prices for consumers.
A) temporary; temporary
B) permanent; permanent
C) permanent; temporary
D) temporary; permanent
E) negative; permanent
The change in Canadian official reserves is recorded in the
A) current account.
B) capital and financial account.
C) consumption expenditure account.
D) international investment account.
E) official settlements account.
Use the information below to answer the following questions.
Fact 19.4.1 Income Gap Growing
In 2009, people in the highest quintile had 24.6 times as much market income as those
in the lowest quintile, but after taxes and transfers the people in the highest quintile had
9.1 times as much income as those in the lowest quintile. In 1989, the people in the
highest quintile had 7.2 times more income after taxes and transfers than those in the
lowest quintile. In 1990, 82.9 percent of the unemployed received unemployment
benefits. In 2009, 47.8 percent of the unemployed received unemployment benefits.
Refer to Fact 19.4.1. Changes in employment insurance ________ the income gap
between the richest and the poorest Canadians.
A) decreased
B) increased
C) had no effect on
D) sometimes increased but mostly decreased
E) eliminated
Discrimination results in ________ compared to a situation with no discrimination.
A) a lower wage rate but no change in the number employed
B) a higher numbered employed and a lower wage rate
C) a smaller number employed but no change in the wage rate
D) a smaller number employed and a lower wage rate
E) none of the above
The supply of coal at Yanzhou Coal Mining is
A) inelastic but not perfectly inelastic.
B) unit elastic.
C) elastic but not perfectly elastic.
D) perfectly inelastic.
E) perfectly elastic.
In a country with a working-age population of 30 million, 18 million are employed, 2
million are unemployed, and 2 million of the employed are working part-time, half of
whom wish to work full-time. The employment-to-population ratio is
A) 73.3 percent.
B) 66.7 percent.
C) 60 percent.
D) 53.3 percent.
E) 18 percent.
Use the table below to answer the following questions.
Table 11.3.2
Refer to Table 11.3.2, which gives Tania’s total cost schedule. The average total cost of
producing 14 teapots is
A) $7.86.
B) $6.75.
C) $7.
D) $1.75.
E) $27.50.
Consider an initial budget line labelled RT in Figure 9.3.3. If the budget line becomes
RS, the income effect is illustrated by the move from point
A) A to B.
B) A to C.
C) B to D.
D) C to B.
E) D to A.
The world goes into an expansion. This event
A) decreases Canada’s aggregate demand and decreases Canada’s short-run aggregate
supply.
B) increases Canada’s short-run aggregate supply.
C) decreases Canada’s aggregate demand.
D) increases Canada’s aggregate demand.
E) increases Canada’s long-run aggregate supply.
To maximize profit, the firm must equate the
A) wage rate to the price of the good.
B) wage rate to the marginal product of labour.
C) value of marginal product to the factor price.
D) marginal factor cost to the price of the output.
E) marginal cost of the factor to the marginal product of the factor.
A profit-maximizing firm is constrained by all of the following except
A) demand for its product.
B) limited resources.
C) available technology.
D) limited information.
E) location.
A firm that temporarily shuts down and produces no output incurs a loss equal to its
A) total fixed cost.
B) total variable cost.
C) marginal cost.
D) average fixed cost.
E) average total cost.
If the demand for a good is unit elastic, then a 5 percent increase in price results in
A) a 5 percent increase in total revenue.
B) a 5 percent decrease in total revenue.
C) no change in total revenue.
D) an increase in total revenue greater than 5 percent.
E) an increase in total revenue less than 5 percent.
If a country’s central bank does not intervene in the foreign exchange market, the
country has
A) a crawling peg exchange rate policy.
B) a fixed exchange rate policy.
C) a flexible exchange rate policy.
D) no exchange rate policy.
E) a responsible exchange rate policy.
A tariff is imposed on a good. This ________ the quantity supplied and ________ the
quantity demanded in the importing country.
A) increases; decreases
B) increases; does not change
C) increases; increases
D) decreases; decreases
E) decreases; increases
Use the figure below to answer the following questions.
Figure 9.3.4
Original equilibrium at A, new equilibrium at B
Refer to Figure 9.3.4. Which graphs show the case where good Y is an inferior good?
A) (a) and (b)
B) (c) and (d)
C) (a) and (c)
D) (b) and (d)
E) none of the graphs
The existence of which one of the following is not a reason for the fact that GDP gives
an incorrect estimate of the value of total output in the economy?
A) social justice
B) political freedom
C) health and life expectancy
D) taxes
E) leisure time
Canada’s anti-combine law is enforced by
A) a Competition Tribunal.
B) the courts.
C) Parliament.
D) A and B.
E) A and C.
Which of the following quotations illustrates an increase in aggregate expenditure?
A) “The new stadium will generate $200 million in spin off spending.”
B) “Higher expected profits are leading to higher investment spending by business, and
will lead to higher consumer spending.”
C) “The projected cuts in government jobs will hurt the local retail industry.”
D) “Taking the grain elevator out of our small town will destroy 300 jobs.”
E) Both A and B
The Federal Budget of 2013 shows
A) a government budget surplus.
B) a balanced budget.
C) a government budget deficit.
D) a decreasing government debt.
E) revenues greater than outlays.
Refer to Figure 14.2.3. Assume this firm faces demand curve D1.To maximize
economic profit, this firm in monopolistic competition will charge a price of ________
and produce an output of ________ units.
A) $100; 200
B) $90; 220
C) $80; 200
D) $70; 100
E) $55; 140
Consider the following information on cola sales by number of cases for a typical
university residence floor:
Temp. Price (dollars per case)
(C) 10.00 12.50 15.00 17.50
15 50 40 30 20
20 60 50 40 30
25 70 60 50 40
30 80 70 60 50
35 90 80 70 60
Refer to Figure 1A.4.5. Which one of the following represents what happens when the
temperature rises from 20C to 25C?
A) The curve shifts from A to B.
B) The curve shifts from C to B.
C) The curve shifts from B to C.
D) The curve shifts along line B.
E) The curve shifts along line C.
Suppose Bryan Adams wants to perform a concert in the City Park in Corner Brook
Newfoundland. The city officials argue that the only way the concert can be given
permission to be performed in the City Park is if it is free of charge. If Bryan Adams
agrees to performing free of charge, then the concert is
A) excludable.
B) a private good.
C) nonexcludable.
D) rival.
E) rival and nonexcludable.
Figure 4.1.2 illustrates a linear demand curve. If the price falls from $4 to $2,
A) total revenue increases.
B) total revenue decreases.
C) total revenue remains unchanged.
D) the quantity demanded increases by more than 10 percent.
E) the percentage change in quantity demanded is more than the percentage change in
price.
The present value of a future payment of money will be higher the
A) higher the interest rate or the further in the future the payment.
B) lower the interest rate or the further in the future the payment.
C) higher the interest rate or the nearer the date of the future payment.
D) lower the interest rate or the nearer the date of the future payment.
E) lower the interest rate, independent of the date of the future payment.
Consider Fact 24.1.2. M2 is
A) $57 billion.
B) $268 billion.
C) $431 billion
D) $460 billion.
E) $763 billion.
Refer to the figure below to answer the following questions.
The figure shows the market for helicopters in Canada, where D is the domestic
demand curve and S is the domestic supply curve. Canada trades helicopters with the
rest of the world at a price of $36 million per helicopter.
Figure 31.1.2
In Figure 31.1.2, with international trade Canadian firms buy ________ helicopters per
year.
A) 240
B) 480
C) 720
D) 360
E) 600