Wanda has a $5,500 deposit that earns 4% at Scotia Bank. Darryl proposes that she withdraw this money and invest it in his e-commerce business. There is a 90% chance she can double her money, but a 10% chance she will lose the entire investment. Wanda'sexpected returnon this risky investment is

Select one:

a.

200 percent.

b.

80 percent.

c.

90 percent.

d.

10 percent.

e.

180 percent.

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When prices are fixedbelowmarket-clearing levels, all of the following happenexcept

Select one:

a.

undesired decreases in inventories.

b.

surpluses.

c.

shortages.

d.

quantity adjustments.

e.

frustrated buyers.

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In two hours of work, Doug can catch 4 deer or he can pick 5 pints of cherries. In two hours, Flora can catch 6 deer or she can pick 9 pints of cherries. Which statement istrue?

Select one:

a.

Doug has an absolute advantage in catching deer.

b.

Doug will lose if he trades.

c.

Doug has a comparative advantage in catching deer.

d.

Doug has an absolute advantage in picking cherries.

e.

Doug has a comparative advantage in picking cherries.

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An economics class is a substitute for a history class if

Select one:

a.

the tuition for the two classes is the same.

b.

both classes are taught by the same professor.

c.

attending the two classes has the same opportunity cost.

d.

the two classes satisfy the same want.

e.

both classes are at the same time.

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Market demand is the

Select one:

a.

demand for stock markets.

b.

sum of the quantities demanded by all individuals at each price.

c.

sum of the prices each individual is willing and able to pay for each quantity demanded.

d.

difference between the minimum amount each individual is willing to pay and the market price.

e.

difference between the maximum amount each individual is willing to pay and the market price.

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When supply increases,

Select one:

a.

price rises with no change in demand.

b.

price falls and quantity demanded increases.

c.

price falls and demand decreases.

d.

demand increases so that price remains the same.

e.

price rises and quantity demanded decreases.

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Which event leads to a rise in the price of oranges?

Select one:

a.

a rise in the price of apples

b.

a decrease in income if oranges are a normal good

c.

a scientific discovery that oranges cause hair loss

d.

a decrease in income if oranges are a normal good

e.

technological improvements in orange growing

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Ulga and Sajan are the only two people in the country Yorkoslavia.

It takes Ulga 6 hours to produce a computer and 6 hours to produce a car.

It takes Sajan 2 hour to produce a computer and 4 hours to produce a car.

Based on the information above, Ulga and Sajan

Select one:

a.

cannot both gain from trade because Ulga has an absolute advantage in producing computers and cars.

b.

can both gain from trade if Ulga specializes in producing cars and Sajan specializes in producing computers.

c.

can trade, but only Ulga will gain.

d.

can both gain from trade if Ulga specializes in producing computers and Sajan specializes in producing cars.

e.

can trade, but only Sajan will gain.

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The Toronto Transit Commission decidesnotto change subway fares. Based on the relationship between total revenue and elasticity, total revenue will ________ if they ________ subway fares because consumer demand is ________.

Select one:

a.

increase; raise; elastic

b.

increase; lower; inelastic

c.

stay the same; raise; elastic

d.

decrease; raise; elastic

e.

decrease; lower; elastic

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Taylor Swift (TS) and Justin Bieber (JB) record an album together. TS claims they would be better off raising the price of their albums, while JB claims they would be better off lowering the price. That means

Select one:

a.

TS and JB should stick to singing and forget about economics.

b.

TS thinks price elasticity of demand for albums equals 1 and JB thinks it equals zero.

c.

TS thinks demand for albums is price inelastic and JB thinks it is price elastic.

d.

TS thinks demand for albums is price elastic and JB thinks it is price inelastic.

e.

TS thinks demand for albums has price elasticity of demand zero and JB thinks price elasticity of demand equals 1.

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The Toronto Symphony pays Victor $10 an hour to collect tickets. He works 20 hours a week. He told his manager that he would work 25 hours a week for a $2 wage raise. Victor's elasticity of supply using the simple formula is

Select one:

a.

0.80.

b.

0.50.

c.

1.20.

d.

1.25.

e.

1.50.

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If a rise in the price of productAcauses the demand curve for productBto shift leftward, then

Select one:

a.

Bis a normal good.

b.

AandBcomplements.

c.

AandBare both inferior goods.

d.

AandBare substitutes.

e.

Bis an inferior good.

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Teresa wants to be a country singer. She cashes in all of her bank accounts that were paying her 5% interest. She takes this $2,000 and spends it to produce a CD. Teresa didnotquit her day job at Aritzia. After one year, her CD sales had earned $800 in accounting profits. Tina'seconomic profitsare

Select one:

a.

$800.

b.

-$1,200.

c.

$900.

d.

$100.

e.

$700.

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What "signals the way" for businesses to enter or exit an industry?

Select one:

a.

opportunity costs

b.

flashing orange lights

c.

revenues

d.

accounting profits

e.

economic profits

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Raising the minimum wage results in large job losses if

Select one:

a.

labour supply is inelastic.

b.

it is difficult for business to find substitutes for workers.

c.

labour supply is elastic.

d.

labour demand is inelastic.

e.

businesses can easily substitute robots for workers.

Macroeconomics looks at

Select one:

a.

shopping.

b.

why you might work more hours after a pay raise.

c.

choices made by business people.

d.

individual choices.

e.

the global economy.

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Speculative bubbles that helped trigger the Great Depression and the Global Financial Crisis involve

Select one:

a.

money.

b.

banks.

c.

expectations.

d.

all of the above.

e.

none of the above.

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Which statement isfalse?

Select one:

a.

If consumers and businesses both cut spending, employment increases.

b.

Consumer spending is business income.

c.

Falling wages decrease demand in output markets.

d.

If consumers and businesses both cut spending, everyone's incomes falls.

e.

Business spending is consumer income.

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The hands-off camp generally believes that

Select one:

a.

socialism is better than capitalism.

b.

markets fail to quickly self-adjust.

c.

supply creates its own demand.

d.

government is part of the solution.

e.

macroeconomic and microeconomic outcomes are different.

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The hands-on camp generally believes that

Select one:

a.

external events are the major cause of business cycles.

b.

markets adjust quickly.

c.

market failure is worse than government failure.

d.

demand creates its own supply.

e.

supply creates its own demand.

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Good outcomes for an economy include

Select one:

a.

high GDP, high inflation, and low unemployment.

b.

low GDP, low inflation, and low unemployment.

c.

low GDP, high inflation and low unemployment.

d.

high GDP, high inflation, and high unemployment.

e.

high GDP, low inflation, and low unemployment.

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When unemployment is low,

Select one:

a.

workers compete against many other unemployed workers.

b.

employers can choose from a large number of applicants for a job.

c.

workers have an advantage in bargaining over wages.

d.

jobs are hard to find.

e.

employers have an advantage in bargaining over wages.

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When there is inflation,

Select one:

a.

the purchasing power of your savings rises.

b.

the value of money rises.

c.

average prices fall.

d.

your standard of living falls if your income rises faster than the prices of what you buy.

e.

your standard of living rises if your income rises faster than the prices of what you buy.

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Real GDP uses

Select one:

a.

constant prices to value the quantities of product and services.

b.

quantities but does not use prices.

c.

constant quantities to value the prices of product and services.

d.

prices for several years to value the quantities of product and services.

e.

quantities for several years to value the prices of product and services.

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Which event increases Canada's nominal GDP?

Select one:

a.

Andreas steals $200 worth of cosmetics from Shopper's Drug Mart.

b.

The Middletons sell a Nova Scotia cottage that has been in the family for six generations.

c.

A millionaire from Michigan buys $400 of fresh Ontario blueberries while on vacation in Canada.

d.

Brad buys $240 of crack cocaine from Smokie Joe.

e.

Ian buys a 2009 Honda Civic for $3,000.

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In calculating Canadian GDP, imports are subtracted from aggregate spending because

Select one:

a.

some consumption spending is on imports.

b.

some business investment spending is on imports.

c.

some government spending is on imports.

d.

all of the above are true.

e.

none of the above are true.

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Technological change is represented on a macro production possibilities frontier (PPF) by a

Select one:

a.

point outside thePPF.

b.

movement from a point inside thePPFto a point on thePPF.

c.

point inside thePPF.

d.

outward shift of thePPF.

e.

movement along thePPF.

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Amazonia's growth rate of real GDP per person is 7 percent. How many years will it take for real GDP per person to double?

Select one:

a.

10

b.

impossible to calculate without more information

c.

7

d.

14.3

e.

3.5

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In 2015, Adanac produced 20 kilos of apples and 30 kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was produced. In 2015, a kilo of apples sold for $5 while a kilo of bananas sold for $10. Using the same prices, economists estimate that potential GDP is $800. The output gap is

Select one:

a.

+$400.

b.

-$100.

c.

-$400.

d.

+$100.

e.

-$200.

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When a wealthy businesswoman marries her chauffeur and he continues to drive her around for free, they are engaged in

Select one:

a.

non-market production.

b.

leisure.

c.

tax avoidance.

d.

illegal activity.

e.

illicit activity.