A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop and will even be reversed. How would an economist respond to this report?

Question 1 options:

a)

An economist would agree with the report but wouldn't think it was important because growth will not slow down for several centuries.

b)

An economist would agree with the report and would point to rising natural resource prices as evidence.

c)

An economist would disagree with the report, in part because it ignores the mitigating effects of technological change.

d)

An economist would disagree with the report because labour and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.

Question 2(1 point)

What is the approximate labour-force participation rate of the Canadian adult population (aged 15 and over)?

Question 2 options:

a)

47 percent

b)

55 percent

c)

67 percent

d)

75 percent

Question 3(1 point)

Suppose that increases in the prices of Canadian medical care cause the CPI to increase by 2 percent, while all other prices remain the same. How much will the GDP deflator most likely increase by?

Question 3 options:

a)

2.4 percent

b)

2.0 percent

c)

0.4 percent

d)

0.0 percent

Question 4(1 point)

Which of the following markets is the model of supply and demand most appropriate for?

Question 4 options:

a)

markets in which there are many sellers and many buyers

b)

markets in which there are few sellers and few buyers

c)

markets in which there is one large seller and many buyers

d)

markets in which there is one large buyer and many sellers

Question 5(1 point)

Which of the following topics are studied in macroeconomics?

Question 5 options:

a)

the effect of trade tariffs on prices and patterns of international trade

b)

the price of BCE stock, wage differences between genders, and antitrust laws

c)

national output, the inflation rate, and the trade deficit

d)

differences in market structure and how consumers maximize utility

How is the supply of money determined?

Question 6 options:

a)

by the Bank of Canada

b)

by the demand for money

c)

by the price level

d)

by the Ministry of Finance

Question 7(1 point)

Andrew is offered a job in Calgary where the CPI is 120 and a job in Toronto where the CPI is 150. Andrew's job offer in Calgary is for $65 000. Which of the following salaries would the Toronto job have to pay so that both jobs have the same purchasing power?

Question 7 options:

a)

$52 000

b)

$60 266

c)

$65 625

d)

$81 250

Question 8(1 point)

Stock in Synergistic Corporation is selling at $25 per share. It had earnings of $5 a share and a dividend yield of 5 percent. What is the dividend?

Question 8 options:

a)

$0.05

b)

$0.25

c)

$1.25

d)

$125

Question 9(1 point)

What is the price of a Honda Accord divided by the price of a Honda Civic called?

Question 9 options:

a)

a classical variable

b)

a dichotomous variable

c)

a nominal variable

d)

a real variable

Question 10(1 point)

Which of the following is an important fact about population growth?

Question 10 options:

a)

Higher rate of growth in population implies higher productivity.

b)

There are no substantial differences between rates of growth in population among countries.

c)

Economists generally believe that a country that increases its population growth rate will increase its economic growth rate.

d)

In developed countries, population tends to grow slower than in developing countries.