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| 1 | |
An economy as a whole faces scarcity because of limited national income. |
| | A) | True |
| | B) | False |
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| 2 | |
The three fundamental questions in economics are what, how, and how many. |
| | A) | True |
| | B) | False |
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| 3 | |
Opportunity cost is the value of the next-best alternative that is given up as a result of making a particular
choice. |
| | A) | True |
| | B) | False |
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| 4 | |
There are only three Cs that humankind has used to coordinate its economies: co-operation, custom, and
competition. |
| | A) | True |
| | B) | False |
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| 5 | |
Wages, interest, rent, and profits are the four factors of production. |
| | A) | True |
| | B) | False |
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| 6 | |
A production possibility curve is a graphical representation of the various combinations of output that are
wanted. |
| | A) | True |
| | B) | False |
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| 7 | |
Macroeconomics focuses on the outcomes of decisions by people and firms, whereas microeconomics is a study of how
the major components of an economy interact. |
| | A) | True |
| | B) | False |
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| 8 | |
Technological improvement can be illustrated graphically by a rightward shift in the production possibilities
curve. |
| | A) | True |
| | B) | False |
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| 9 | |
Tax policy, tariff policy, budget policy, monetary policy, and exchange rate policy are all examples of economic
policies. |
| | A) | True |
| | B) | False |
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| 10 | |
Canada’s highest unemployment rates were recorded in the 1930s. |
| | A) | True |
| | B) | False |
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