1) Explain what is the source of surplus and what it has to do with the conflict over the surplus. In other words, why a capitalist (owner of the production means) can sell a commodity at price higher than the marginal cost and why it creates a conflict over the

surplus.

2) For political economists preferences are mostly: which choices for this question are correct

a) reciprocal.

b) exogenous.

c) endogenous.

3) In terms of the principle of limited liability, which of the following statement is not true?

a) Stockholders would risk only the dollar amount of value of the stock but would not incur any legal responsibility beyond that.

b) The Introduction of limited liability indicates that the development of the capitalist economy Inspired capital owners to press for changes in the rules of the game.

c) if the corporation went bankrupt, stockholders need to help pay the debts of the corporation.

d) The Introduction of limited liability indicates that government has the power to alter the conditions under which businesses operate.

4) From the perspective of political economy, how would you understand the concept of class? which is correct

a) Class relationships are hierarchical, or vertical. Thus, the group on top is better people or more productive.

b) A class can be defined by its status, the income of its members, or by the social esteem that others may attribute to its members.

c) The Interests in producing and controlling classes are always in conflict as a gain for workers will show up as a loss for employers.

d) A class is a group of people who share a common position in the economy with respect to the production and control of the surplus product.

5) Over the years the government-business connection has increasingly come to dominate the triangle (the government, private businesses, and the people). Which of the following statements does not show this idea? which is correct

a) Time after time bidding for government contracts allow a larger number of private business to participate which promote bid-rigging. This discourages keeping quality up and cost down.

b) Firms obtain tax breaks or more favourable rules, raising their profits and the war chest they use for campaign donations, hiring lobbyists, and operating a revolving door.

c) Instead of producing products and services of better quality, firms spend more money on influencing government (rules) to increase their profit.

d) The burden of taxes has shifted from corporations and the wealthy to working households, partly through the channel of government contracting with private businesses.

6) Consumption of the producer at a customary standard of living = necessary product - replacement of capital goods (depreciation) and materials. is it true or false.

7) Which of the following statement is not the central idea of the relationship between the government and the economy? which is correct

a) Capital owners and labour (or the public) each try to influence government policy to shift the distribution of income, wealth, and welfare in their favour.

b) The government's activities have consequences for the distribution of income, wealth, and welfare; but the economy also a]ects the government.

c) A democratic government should manage e^ciently the public Snance for which public companies should give profits

d) A democratic government can ideally be thought of as a process in which the people collectively provide for their own welfare.

8) Which of the following examples show the impact of ISDS (Investor-state dispute settlement)? which is correct

a) Canada had to pay a $13 million settlement to U.S. chemical manufacturer Ethyl Corporation, whose fuel Canada had decided to ban due to its environmental toxicity.

b) The UK nationalized coal companies and France nationalized the Renault auto company after World War II.

c) Oll Srms drilling in a certain territory in eastern Canada must turn 25% of the discovered oil to PetroCanada, a "crown corporation".

d) Mexico expropriated American oil companies' operations in 1938.

9) What option is not the potential reason that shifted the tax burden from corporations and wealthy households toward the middle

class and poor households? which is correct

a) The incomes of the middle class and poor households have advanced dramatically since World War II.

b) The government's principal source of revenue is the personal income tax.

c) The increasing business lobbying to government and the business funding donations to political champagnes.

d) The rich increasingly moved their wealth and income to tax havens and paid less tax.

10) Is the following statement false or true?

"The concentration of wealth based on the possession of Financial assets in Canada is larger regarding another kind of wealth

because most of the Canadian people can buy corporation shares in the stock market which not only increases their assets but

also increases their income through dividends".

11) Which group has the highest voter participation rate in Canada? which is correct

a) less-educated youth.

b) educated adults and the elderly.

c) educated youth.

d) less-educated adults.

12) Which of the following statements is not correct about Adam Smith's definition of economics? which is correct

a) The government, Instead of trying to direct the economy, should leave it working alone.

b) Establishing a powerful government is the only way to make order out of the chaos of the self-seeking activities of large numbers of people.

c) No choice answer for this question is correct.

d) Markets would coordinate and regulate the economy, harnessing self-interest to achieve material progress for the whole society.

13) briefly explain why labour market contracts are incomplete?

14) when J. Stiglitz proposes to end "too big to fail to make capitalism more equitable, he means: which is correct

a) Avoid that private Financial organizations or other businesses become so important for the economy that the taxpayer must pay to prevent those organizations to go bankrupt.

b) The nationalization of the entire Financial system and private business to make them enough strong and stable to avoid bankruptcy.

c) Avoid that government banks and other public organizations become so important for the economy that the taxpayer must pay to prevent those organizations to go bankrupt.

d) Encourage the formation of private Financial organization trusts to become so strong that it is impossible they go bankrupt.

15) How can we understand the ownership of capital goods in a capitalist economy? which is correct

a) All answer choices for this question are correct.

b) It gives control over the disposition of the surplus product to the capitalist class.

c) It can be seen as granting income rights to capitalists. These are the rights that establish claims on the Interest, rent, dividends,

and other payments. all answer choices for this question are correct.

d) It gives employers control rights that establish their right to control what goes on in the workplace, including how it is organized.

16) Refer to the paragraph below. What market failure (s) show the situation depicted in the paragraph? how it can be solved?

"Lake Winnipeg is "just the tip of the iceberg," says UBC water expert Hans Schreier. Globally, the problem is known as

"eutrophication"-is the "No. 1" water quality issue we face says Saki. The culprit isn't oil spills, toxic waste or even pesticides, but

nutrient overloading from fertilizers, human and animal waste. Nitrogen and phosphorus do precisely in water what they do on land:

cause plant life to run wild and multiply like crazy. The process is accelerated by the channelization of waterways to allow rapid

rob from farmer's Fields and the destruction of wetlands and riverbank areas. Wetlands, "nature's kidneys," which act as natural

Planters and nutrient traps have been reduced by 70 percent in Canada. In the Red River Valley. which contributes 66 percent of

Lake Winnipeg's phosphorus load, wetlands have seen a hundredfold reduction. Manitoba's so-called "hog boom," meanwhile, has

seen the number of hogs on the watershed swell to 8.2 million, dumping an annual excrement load equivalent to at least 30 million

humans. Alberta, the western limit of the lake's catchment area, has another eight million head of hogs and cattle ( MacDonald,

2009)".

17) How do prices act as a decentralized system of Information and motivation?

a) As for consumers, the price measures how much they have to give up for an additional unit of a commodity and motivates them to satisfy their wants as cheaply as possible in conjunction with the need to stay within one's budget.

b) As for consumers, prices measure how much demand there is for an additional unit of the commodity and how much it costs to acquire the necessary inputs. It motivates the lowest-cost production of goods and services that consumers want to stay in business.

c) As for producers, the price measures how much it costs to produce an additional un of a commodity and motivates the lowest cost production of goods and services that they demand.

d) As for producers, the price measures how much it costs to produce an additional unit of a commodity and motivates them to satisfy their wants as cheaply as possible in conjunction with the need to stay within one's budget.

18) The situation depicted by the graph above is an outcome of the fact that before 1900 there was in America huge income

inequality against labourers, which encouraged the labour class to participate in the political elections to Pght for their rights

through influencing policies. Because time after time, there is a lower income gap between labourers and corporation owners, the

majority of potential voters have nothing to ask in the political elections so they are indifferent to who is going to govern the nation.

it is True or False. please see the picture below.