1.The economic problem stems from the fact that:

A.T he production possibilities curve bows out to the right

B.resources are scarce relative to people's demand for goods and services

C.people act to maximize their own welfare

D.historically the production possibilities curve has been shifting down toward the origin

2.Microeconomics is concerned with the:

A.total levels of income, employment, and output

B.behaviour of individual participants in various markets

C.causes of inflation and unemployment

D.overall view of the operation of the economic system

E.way governments can stabilize the economy

3.One reason that the quantity demanded of a product increases when its price falls is that:

A.consumer incomes have decreased

B.the product is no longer new on the market

C.the product has greater value in terms of satisfaction per dollar spent

D.the product is being produced in Canada

E.the prices of other products must have fallen as well

4.Which of the following is not an illustration of the notion of opportunity cost?

A.A growing economy can produce more ice cream and more ice cream cones at the same time.

B.If I buy a pizza, I will not be able to afford a movie.

C.Resources devoted to the production of computers are not available for the production of computer software.

D.The land on which a Saskatchewan farmer plants wheat is not available for barley production.

E.The more time it takes to commute to work, the less time is available for other activities.

5.Consider the Canadian market for bicycles. A successful lobbying campaign by consumer groups has resulted in the removal of all tariffs on imported bicyclessubstantially increasing the number of competitors in the market. At the same time, many cities across the country, in an effort to combat climate change, have announced their intentions to increase the number of bike lanes and offer a generous property tax rebate for anyone commuting to work with their bike. The demand and supply model predicts these scenarios would cause:

A.the price and quantity of bicycles to certainly increase.

B.the price to increase but the change in the quantity sold cannot be determined with the information provided.

C.the quantity sold to increase but the change in price cannot be determined with the information provided.

D.the price to decrease but the change in the quantity sold cannot be determined with the information provided.

E.the price and quantity of fidget spinners to certainly decrease.

6.Which of the following is a macroeconomic statement?

A.The total value production in was $850 billion last year.

B.The price of smartphones increased by 10 percent since last year.

C.Boeing's profits substantially decreased since last year.

D.The productivity of Canadian steelworkers increased by 1 percent last year.

E.The prices of all social media stocks rose by 25 percent last year.

7.Given a downward-sloping demand curve and an upward-sloping supply curve for product A, an increase in the price of complementary product B and the decrease in the price of a resource used in making product A will:

A.increase equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply

B.decrease equilibrium quantity, but the change in equilibrium price will depend on the relative sizes of the shifts in demand and supply

C.increase equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply

D.decrease equilibrium price, but the change in equilibrium quantity will depend on the relative sizes of the shifts in demand and supply

E.keep equilibrium price and quantity the same

8.The law of supply:

A.reflects the amounts businesses will demand at each price in a series of prices

B.is reflected in a downward-sloping supply curve

C.shows that the relationship between price and quantity supplied is inverse

D.reflects the amounts consumers will supply at each price in a series of prices

E.reflects the direct relationship between price and quantity supplied, ceteris paribus

9.If businesses offer a lower quantity supplied than previously at every possible price, the result is a(n):

A.decrease in demand

B.increase in demand

C.decrease in supply

D.increase in supply

E.an increase in supply and a simultaneous decrease in demand

10.At the end of World War II, Canada's economic adjustment from wartime to peacetime can best be described by the movement from:

A.point a to point b

B.point a to point c

C.point b to point c

D.point b to point d

E.point c to point b