Question 1

The science of economics has developed because:
A) countries are always attempting to produce the maximum amount of goods and services.
B) resources used to produce goods and services are scarce.
C) countries are trying to reach their production-possibilities curve.
D) unemployment is a serious social and economic problem that has not been completely solved.

Accepted Answer

Economics developed as a science primarily because resources are scarce, and societies need to allocate them efficiently to meet various needs and wants.

Question 2

Economics is the study of:
A) determining an appropriate standard of living for all citizens of a country.
B) decision making regarding the use of scarce resources.
C) decision making about the best way to produce a combination of goods and services depicted by the production-possibilities curve.
D) calculating opportunity costs.

Accepted Answer

Economics is primarily concerned with how individuals and societies make decisions about the allocation of scarce resources to satisfy unlimited wants.

Question 3

Scarcity:
A) is a problem that third-world countries need to solve.
B) forces us to consider the direct costs of our actions.
C) has almost been eliminated in Canada and the United States.
D) will always be a problem as long as people have an unlimited desire for goods and services.

Accepted Answer

Scarcity is a fundamental economic problem that arises because resources are limited while human desires are unlimited. This condition persists regardless of a country's level of development.

Question 4

The discussion regarding cod fishery in the Atlantic Coast is used to demonstrate which concept?
A) opportunity cost
B) law of diminishing returns
C) production possibilities
D) scarcity

Accepted Answer

The cod fishery discussion highlights the concept of scarcity, as it deals with the limited availability of cod due to overfishing and the need to manage resources sustainably.

Question 5

Scarcity could be reduced if:
A) we all work more and want fewer goods.
B) we all work less and want fewer goods.
C) our population expands and production stays the same
D) we do not innovate.

Accepted Answer

Scarcity could be reduced if we all work more and want fewer goods because increased work can lead to higher production, and wanting fewer goods reduces demand, thus balancing supply and demand more effectively.

Question 6

The science of economics is primarily concerned with:
A) how a country decides to use its available resources.
B) how a company manufactures a product and distributes it to customers.
C) how a country provides for its citizens.
D) how individuals make a living.

Accepted Answer

Economics is primarily concerned with how a country decides to use its available resources to meet the needs and wants of its population, which involves allocation, production, and distribution decisions.

Question 7

Economics deals primarily with the problems created by:
A) the balancing of direct and opportunity costs.
B) the free market system of individual initiative.
C) the law of diminishing returns.
D) limited productive resources.

Accepted Answer

Economics primarily addresses the issue of scarcity, which arises because resources are limited while human wants are unlimited. This necessitates the allocation of limited productive resources to meet various needs and desires.

Question 8

An example of a capital resource is:
A) a nuclear-power plant.
B) a truck.
C) a screwdriver.
D) all of the above

Accepted Answer

Capital resources are man-made goods used in the production of other goods and services, such as a nuclear-power plant, a truck, and a screwdriver.

Question 9

The fundamental concept in the study of economics is:
A) scarcity.
B) political decision-making.
C) our natural resources.
D) human wants and desires.

Accepted Answer

Scarcity is the fundamental concept in economics because it addresses the basic economic problem that resources are limited while human wants are unlimited, necessitating choices and trade-offs.

Question 10

In 2006, Canada's population was approximately:
A) 20 million people.
B) 40 million people.
C) 10 million people.
D) 30 million people.

Accepted Answer

In 2006, Canada's population was approximately 31.6 million people, which is closest to 30 million.

Question 11

In 2004-2005, the province or territory with the lowest birth rate per 1000 population was:
A) Ontario.
B) Newfoundland and Labrador.
C) Alberta.
D) Northwest Territories.

Accepted Answer

Newfoundland and Labrador had the lowest birth rate per 1000 population in Canada during the 2004-2005 period.

Question 12

In 2004-2005, the province or territory with the highest birth rate per 1000 population was:
A) Nova Scotia.
B) Yukon Territory.
C) Nunavut.
D) British Columbia.

Accepted Answer

Nunavut had the highest birth rate per 1000 population in Canada during 2004-2005 due to its younger population and higher fertility rates.

Question 13

The proportion of Canada's land mass covered in trees is approximately:
A) 15 percent.
B) 35 percent.
C) 25 percent.
D) 45 percent.

Accepted Answer

Approximately 45 percent of Canada's land mass is covered in forests, making it one of the most forested countries in the world.

Question 14

On average, each Canadian uses the following number of litres of water per day:
A) 3400
B) 7100
C) 210
D) 8900

Accepted Answer

The answer of On average, each Canadian uses the following...

Question 15

The opportunity cost of attending college:
A) depends on the course that an individual is enrolled in.
B) is impossible to measure in dollar terms.
C) can never be greater than the direct costs of going to college.
D) is the most valuable alternative sacrificed in order to attend college.

Accepted Answer

The opportunity cost is defined as the value of the next best alternative that is foregone when a decision is made. In the context of attending college, it refers to what one sacrifices, such as potential earnings from working instead of studying.

Question 16

Your opportunity of taking an economics course is:
A) the net benefit of going skiing instead of taking the course.
B) the net benefit of taking the course.
C) the tuition paid for the course.
D) the cost of going skiing instead of taking the course.

Accepted Answer

The answer of Your opportunity of taking an economics course...

Question 17

If the cost of tuition is $1000; books cost $500; supplies cost $100; and you could have earned $20000 instead of attending college, then the total opportunity cost of attending college is:
A) $1600.
B) $21 600.
C) $20 000.
D) impossible to determine unless an interest rate is known.

Accepted Answer

The answer of If the cost of tuition is $1000;...

Question 18

If you were unemployed and decided to return to college:
A) there would be an opportunity cost associated with the money you spent on books.
B) the opportunity costs associated with both your time and your money must be calculated separately.
C) there would be an opportunity cost associated with the use of your time.
D) all of the above are correct

Accepted Answer

Opportunity cost includes both the money spent on books and the time spent attending college, as both could have been used for other purposes.

Question 19

The saying "There are no free lunches" is associated with the concept of:
A) opportunity cost.
B) direct costs.
C) capitalism.
D) communism.

Accepted Answer

The saying "There are no free lunches" is associated with the concept of opportunity cost, which refers to the idea that every choice has a cost, as choosing one option means forgoing others.

Question 20

The opportunity cost associated with the money spent on a domed stadium for Toronto is:
A) the dollar value of the cost of construction.
B) other goods and services that must be sacrificed in order to build the stadium.
C) the loss of government revenue used for the stadium.
D) not relevant since the stadium will bring in tourist dollars to the City of Toronto.

Accepted Answer

Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made. In this case, it is the other goods and services that could have been provided with the resources used to build the stadium.

Quiz 1: Introductory Concepts

The science of economics has developed because:

Economics is the study of:

Scarcity:

The discussion regarding cod fishery in the Atlantic Coast is used to demonstrate which concept?

Scarcity could be reduced if:

The science of economics is primarily concerned with:

Economics deals primarily with the problems created by:

An example of a capital resource is:

The fundamental concept in the study of economics is:

In 2006, Canada's population was approximately:

In 2004-2005, the province or territory with the lowest birth rate per 1000 population was:

In 2004-2005, the province or territory with the highest birth rate per 1000 population was:

The proportion of Canada's land mass covered in trees is approximately:

On average, each Canadian uses the following number of litres of water per day:

The opportunity cost of attending college:

Your opportunity of taking an economics course is:

If the cost of tuition is $1000; books cost $500; supplies cost $100; and you could have earned $20000 instead of attending college, then the total opportunity cost of attending college is:

If you were unemployed and decided to return to college:

The saying "There are no free lunches" is associated with the concept of:

The opportunity cost associated with the money spent on a domed stadium for Toronto is: