1. Agricultureis not that much profitable business. Usually, the government determines theminimum guaranteed pricetomotivatefarmers for agriculture production. Consider the following options.Which would be an example of agovernment floor price?

A. Higher-wage rates for skilled agricultural workers

B. Rent control in highly populated urban areas

C. Minimum Price Supports for agricultural products

D. Upper limiton interest rates charged by credit card companies

2.TheCircular Flow Modeldescribes two types of flows:Real flows and Monetary flows.

A.False

B.True

3.Acurvethat shows the variouscombinations of two products a producer can producewithgiven resources and technologyis known as

A. Marginal cost curve

B. Budget line

C. Production possibility curve

D. Marginal benefit curve

4.The employers are required by law to payat least $14 per hour to an employee in Ontario.Thiswage ratecan be considered as anexampleof

A.Price ceiling

B.Rent control

C.Price floor

D.Labour exploitation

5.HarrisonpurchasedBMW car last week from Mississauga. Hepaid$41200 to thesellerof the car. This transaction is an example ofmoney functioningas a

A.Medium of exchange

B.Store of value

C.Unit of account

D.Barter system

6.Suppose that C = a + b(Y). (Where 'a' is the intercept, 'b' is the slope, Y means income and C means Consumption). What is theslopeif a = 80, Y = 400 and C =136?

A.1.4

B.56

C.0.14

D.36

7.Suppose thatequilibrium rent is $1500 per month. The government determined therent ceilingas$1200per month. It willleadto

A.Surplus of houses

B.Very good maintenance of houses by the owners

C.Lower upfront payments

D.Shortage of houses

8.Suppose that the price of ashirt changed from $40 to $50whereas the price of apant changed from $100 to $120.In thisscenario,

A.Both relative and absolute change in the price of a shirt and a pant are the same

B.Relative change in the price of a shirt is 10% but the relative change in the price of a pant is 25%

C.Relative change in the price of a shirt is 25% but the relative change in the price of a pant is 20%

D.Absolute change in the price of these two products is $20