Question 1

Which of the following best describes the concept of scarcity in economics?

Accepted Answer

Scarcity refers to the inability to satisfy all our wants due to limited resources.

Question 2

Which of the following is an example of a macroeconomic question?

Accepted Answer

How does the unemployment rate in Canada fluctuate over time?

Question 3

According to the economic way of thinking, what is a tradeoff?

Accepted Answer

A tradeoff is the exchange of one thing for another due to scarcity.

Question 4

Which of the following is NOT considered a factor of production?

Accepted Answer

Money

Question 5

In the context of opportunity cost, if you spend $50 and 3 hours to attend a concert, what is your opportunity cost?

Accepted Answer

The highest-valued alternative use of your $50 and your 3 hours.

Question 6

Which of the following statements is a positive statement?

Accepted Answer

Raising taxes will reduce consumer spending.

Question 7

Based on the first image, which country has the highest percentage of its production in agriculture?

Accepted Answer

Ethiopia

Question 8

According to the second image, what trend is observed in the percentage of the Canadian population with a university degree from 1972 to 2022?

Accepted Answer

It has increased.

Question 9

Which of the following best describes marginal benefit?

Accepted Answer

The benefit received from consuming one more unit of an activity.

Question 10

If the marginal cost of producing an additional unit of a good is $$10 and the marginal benefit is 15$$, what should a rational producer do?

Accepted Answer

Produce more units because marginal benefit exceeds marginal cost.

Question 11

Which of the following is a normative statement?

Accepted Answer

The government ought to reduce unemployment.

Question 12

Which factor of production earns interest?

Accepted Answer

Capital

Question 13

Based on the third image, which major has the highest average salary?

Accepted Answer

Economics

Question 14

Which of the following best explains why economists use models?

Accepted Answer

To simplify reality and focus on essential features for analysis.

Question 15

Which of the following is NOT a skill typically required for economics jobs?

Accepted Answer

Mechanical engineering skills

Question 16

According to the fourth image, what percentage of undergraduate economics students are women?

Accepted Answer

About 42%

Question 17

Which of the following best describes the relationship between self-interest and social interest in economics?

Accepted Answer

Choices made in self-interest can sometimes promote the social interest, especially when incentives are aligned.

Question 18

Which of the following is an example of a choice made at the margin?

Accepted Answer

Choosing to study for one more hour instead of watching TV.

Question 19

Why is diversity and inclusion important in the economics profession, according to the study materials?

Accepted Answer

It improves the quality of economic research and policy advice, and makes the economy more prosperous.

Question 20

Which of the following best describes the role of incentives in economics?

Accepted Answer

Incentives are rewards or penalties that influence choices and can align self-interest with social interest.

Chapter 1: Foundations of Economics – Key Concepts and Applications

Study Guide - Practice Questions