question 1(1 point)

Asuccessfuladvertising campaign by Coca Cola promoting its products willl have the following impact on the market for Pepsi Cola products, which is a competitor to Coca Cola:

Question 1 options:

	The demand curve for Pepsi Cola productswill shift to the right
	The demand curve for Pepsi Cola products will shift to the left.
	The supply curve for Pepsi Cola products will shift to the right.
	The supply curve for PepsiCola products will shift to the left.

Question 2(1 point)

A capitalist economy has the following characteristic(s):

Question 2 options:

	A capitalist system relies on the functioning of a market system
	In a capitalistic society, there is a freedom of enterprise and freedom of choice
	Government owns and controls the means of production
	All of the above
	a and b above

Question 3(1 point)

Assume that the Ontario Ministryof Health has mailed out cuponseach worth $20 towards the purchase of a flu vaccine. What will be the impact on the market for flu shots.

Question 3 options:

	The demand curveshifts to the left.
	The demand curve shifts to the right.
	The supply curve shifts to the left.
	The supplycurve shifts to the right.

Question 5(1 point)

The law of demand states that:

Question 5 options:

	price and quantity demanded are inversely related
	the larger the number of buyers in a market, the lower will be product price
	price and quantity demanded are directly related
	The demand curve slopes upward Topic: Law of demand

Question 6(1 point)

Select one of the following which would cause a production possibilities frontier to shift outward?

Question 6 options:

	An increase in the production of consumption goods
	An increase in the stock of capital, and/or technological advancement
	Bad weather
	A decision to fully utilize unemployed resources.
	A decrease in the population. Topic: Capitalist Economy

Question 7(1 point)

Assume that in Ontarioon January1,2019 the minimum wage will increase from $12.00to $15.00 per hour. What will be the impact of the increase in minimum wageon the market for workers to work in the hospitality industry and fast food restaurants where traditionally new employees earn the minimum wage?

Question 7 options:

	The demand curve will shift to the left.
	The demand curve will shift to the right.
	The supply curve will shift to the left.
	The supply curve will shift to the right.

Question 8(1 point)

Which of the following is not correct?

Question 8 options:

	Pubic goods are goods that are consumed collectively by people. Some examples include, government provided law and order services, defensive services and health care services
	Public goods are characteristics byrivalry in consumption excludabilitywith respect to the seller's ability to witholdthe good.
	Public goods make a free rider problem.
	Rivalry in consumption applies toprivate goods.

Question 9(1 point)

One of the following will not cause the supply curve to shift?

Question 9 options:

	a change in resource costs
	a technological change
	a change in the price of the good
	a change in the prices of other goods
	amount demanded exceeds the amount supplied. Topic: Market Equilibrium

Question 10(1 point)

An "increase in demand" means:

Question 10 options:

	that the price has increased and consumers purchase more of the product as they see the higher price as an indicatorof good quality.
	that the demand curve has shifted to the right.
	that price has decreased and consumers therefore want to purchase more of the product.
	that the supply curve has shifted to the left.

Question 11(1 point)

If cross price elasticity of demand is positive, then

Question 11 options:

	the two goods are substitutes
	the two goods are complements
	the two goods are inferior goods
	none of the above Topic: Factors determining price elasticity

Question 12(1 point)

The role of marginal analysis in the use of economics as a policy tool is to

Question 12 options:

	find the outcome with the least possible cost
	evaluate marginal benefit and marginal cost to find the solution that provides employment to the greatest number of people
	evaluate marginal benefit and marginal cost to find the solution that brings the greatest available gain
	find the outcome that will give a political party the most votes Topic: Production Possibility

Question 13(1 point)

If two goods are complements:

Question 13 options:

	they are consumed jointly
	an increase in the price of one will reduce the demand for the other
	a decrease in the price of one will increase the demand for the other
	all of the above will be true Topic: Shift in Supply curve

Question 14(1 point)

"When the price of a product falls, the purchasing power of our money income rises and thus permits us to purchase more of the product." This statement describes:

Question 14 options:

	an inferior good
	the rationing function of price.
	the substitution effect
	the income effect Topic: Components of Price Effect

Question 16

Any point inside theproduction possibilities frontier (or curve)indicates:

Question 16 options:

	thatthe economy is working to its fullest potential
	that resources are being utilized to manufacture more of the product that is cheapest to produce
	the economy has chosen to produce only one good,rather than a combination of two goods
	that more output could be produced with the available resources
	that as an economy tires to produce more of a product the opportunity costs decrease

Question 17(1 point)

What to produce in a market economy is ultimately determined by the:

Question 17 options:

	Consumption plans of business firms
	income plans of households
	spending decisions of households
	Choice of technology Topic: Key Choices

Question 18(1 point)

Assume that on June 6 the Provincial government announced that to encourage a reduction in carbonemissions the government will provide a $5,000 rebate on all new hybrid cars (cars that can operate with alternative fuels) purchased after June 30. What will be the impact on the market for hybrid cars during the period from June 6 to June 30?

Question 18 options:

	The demand curve will shift to the right.
	The demand curve will shift to the left.
	The supply curve will shift to the right.
	The supply curve will shift to the left.

Question 19(1 point)

An improvement in production technology will:

Question 19 options:

	increase the equilibrium price and quantity.
	shift the supply curve to the left.
	shift the demand curve to the left.
	shift the supply curve to the right.

Question 20(1 point)

A provincial government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is:

Question 20 options:

	unity
	greater than one
	less than one
	infinity Topic: Revenue Test of Elasticity