10/9/22, 11:53 PM Online Quiz 1: Attempt review

Dashboard / My courses /
ECON - Economics /
ECON1007T22F /
Week 2 /
Online Quiz 1

Started on Sunday, 9 October 2022, 11:25 PM

State Finished
Completed on Sunday, 9 October 2022, 11:53 PM
Time taken 27 mins 57 secs
Grade 22.00 out of 30.00 (73%)

Question 1
Correct

Mark 1.00 out of 1.00

What does scarcity result from?

a. wants that exceed the resources necessary to provide them 

b. an increase in globalization
c. people NOT understanding economics
d. government decision making

Question 2
Correct

Mark 1.00 out of 1.00

Which of the following statements best describes equilibrium in a market?

a. Equilibrium is a tendency for price to change, a state of perpetual motion.

b. At equilibrium, there will always be a surplus for consumers to purchase.
c. At equilibrium, quantity demanded equals quantity supplied. 
d. At equilibrium, market forces NO longer apply.

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Question 3

Incorrect

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FIGURE 2-10

Refer to Figure 2-10. Which of the following could make Point Q attainable?

a. policies encouraging full employment of resources 

b. a transfer of available resources from apple to wheat production
c. an increase in the land available for agriculture use
d. technological innovations in the production of apples only

Question 4
Correct

Mark 1.00 out of 1.00

How can economic growth be illustrated?

a. by a movement from a point on the production possibilities curve to a point inside the production possibilities curve
b. by a movement along the production possibilities curve
c. by an outward shift of the production possibilities curve 
d. by an inward shift of the production possibilities curve

Question 5
Incorrect

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Suppose the equilibrium price of bread is $3.00 per loaf. If the government sets a price ceiling of $3.50 per loaf, which of the following will result?

a. There will be a shortage of bread. 

b. The price of wheat will rise and a shortage will be created.
c. The quantity supplied of wheat will increase.
d. There will be NO change in the quantity of bread demanded or supplied.

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Question 6

Correct

Mark 1.00 out of 1.00

What type of science do most people consider economics to be?

a. a social science 
b. a life science
c. a physical science
d. a formal science

Question 7
Correct

Mark 1.00 out of 1.00

FIGURE 4-5

Refer to Figure 4-5. What is occurring in the market for gasoline?

a. A price ceiling has been imposed resulting in a surplus of gasoline.

b. A price ceiling has been imposed resulting in a shortage of gasoline. 
c. A price floor has been imposed resulting in a surplus of gasoline.
d. A price floor has been imposed resulting in a shortage of gasoline.

Question 8
Incorrect

Mark 0.00 out of 1.00

When more resources in an economy are devoted to the production of capital goods, what happens to the production possibilities curve?

a. It is unchanged from period to period.

b. It shifts outward in the future.
c. It shifts inward.
d. In the current period, it shifts inward, but shifts outward in the future. 

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Question 9

Correct

Mark 1.00 out of 1.00

Which of the following statements about scarcity is the most accurate?

a. It exists only in poor nations.

b. It will likely be eliminated by technological progress.
c. It occurs when there are insufficient resources to provide for human wants. 
d. It occurs only in centrally planned economies.

Question 10
Correct

Mark 1.00 out of 1.00

FIGURE 3-2

Refer to Figure 3-2. As a result of the decrease in doughnut prices at Yum Yum Doughnuts, what do the managers at Krispy Kreme discover about the
demand for their doughnuts?

a. Demand has NOT changed.

b. Demand decreased from D1 to D0. 
c. Demand increased from D1 to D0.
d. Demand increased from D0 to D1.

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Question 11

Correct

Mark 1.00 out of 1.00

What is the central concern of economics?

a. restraining people's greed

b. finding more resources to satisfy everyone's wants
c. making the best use of scarce resources to satisfy our unlimited wants 
d. regulating the stock market

Question 12
Correct

Mark 1.00 out of 1.00

FIGURE 2-2

Refer to Figure 2-2. At which point is it currently NOT possible to produce?

a. Point F
b. Point D
c. Point E 
d. Point G

Question 13

Correct

Mark 1.00 out of 1.00

Which of the following is NOT a factor of production?

a. legal institutions 
b. entrepreneurship
c. labour
d. capital

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Question 14

Correct

Mark 1.00 out of 1.00

Skateboards International of Regina, Saskatchewan, was able to sell 10 000 skateboards at a price of $60 in 2013. In 2014, it was able to sell 12 000 of the
same skateboards at a price of $60. What has Skateboards International evidently experienced?

a. an increase in supply
b. a decrease in demand
c. an increase in quantity supplied
d. an increase in demand 

Question 15
Correct

Mark 1.00 out of 1.00

Which of the following statements best describes the problem of scarcity?

a. Scarcity means that shortages occur at the existing market price.

b. It is impossible to satisfy unlimited human wants with limited resources. 
c. As a result of scarcity, individuals do NOT have the ability to make choices.
d. When there is scarcity, individuals do NOT face trade-offs.

Question 16
Incorrect

Mark 0.00 out of 1.00

Who makes economic decisions?

a. They are made only where monetary exchanges take place. 

b. They are made only by government leaders.
c. They are made only at the management level of corporations.
d. They are made in both the private and public sectors.

Question 17
Correct

Mark 1.00 out of 1.00

Which of the following descriptions of normative statements is the most accurate?

a. They are prescriptive, making claims about how the world ought to be. 
b. They are optimistic, putting the best possible interpretation on things.
c. They are affirmative, justifying existing economic policy.
d. They are descriptive, making claims about how the world is.

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Question 18

Incorrect

Mark 0.00 out of 1.00

Why is a production possibilities curve negatively sloped?

a. It is NOT possible to adjust production decisions once an economy operates on the curve.
b. Once on the frontier, it is possible to increase production of one good only by reducing production of the other.
c. Resources are wasted as you move along the curve.
d. The price of a good falls as you move down along the curve. 

Question 19
Incorrect

Mark 0.00 out of 1.00

What is the opportunity cost of an action equal to?

a. the monetary payment the action required 

b. the total time spent by all parties in carrying out the action
c. the highest valued opportunity that must be sacrificed in order to take the action
d. the value of all of the alternative actions that could have been taken

Question 20
Correct

Mark 1.00 out of 1.00

How is a technological advance that increases the productivity of all inputs best illustrated on the production possibilities curve?

a. as a flattening of the production possibilities curve

b. as a movement along the production possibilities curve
c. as an outward shift of the production possibilities curve 
d. as an inward shift of the production possibilities curve

Question 21
Correct

Mark 1.00 out of 1.00

In a competitive market, how are prices determined?

a. by the interaction of many buyers with the largest seller

b. by the largest buyer, who sets the price that all firms sell at
c. by the government, who sets the prices that sellers can charge
d. by the interaction of many buyers and many sellers 

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Question 22

Correct

Mark 1.00 out of 1.00

What do economists use the term "ceteris paribus" to indicate?

a. The analysis is true for the individual but NOT for the economy as a whole.
b. Causation exists between two variables.
c. Their conclusions have been tested with empirical evidence.
d. Other things are assumed to remain constant. 

Question 23
Correct

Mark 1.00 out of 1.00

What type of shift will result from a technological improvement that lowers a good's production costs?

a. a shift of the supply curve to the left

b. a shift of the demand curve to the left
c. a shift of the supply curve to the right 
d. a shift of the demand curve to the right

Question 24
Correct

Mark 1.00 out of 1.00

When will an economy's production possibility curve be a straight line?

a. when resources are NOT equally substitutable among productive tasks

b. when the opportunity cost of production of a good is constant as more of it is produced 
c. when the economy experiences significant unemployment
d. when the opportunity cost of production of a good decreases as more of it is produced

Question 25
Correct

Mark 1.00 out of 1.00

Which of the following would most likely cause a reduction in the supply of Xbox video games?

a. a decrease in the price of Xbox video games

b. a decrease in the price of computer chips used to make Xbox games
c. an increase in the price of computer chips used to make Xbox games 
d. an increase in the demand for Xbox video games

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Question 26

Incorrect

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FIGURE 2-3

Refer to Figure 2-3. For this economy, what is the most preferred point to produce at?

a. Point A
b. Point D
c. Point G 
d. Point B

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Question 27

Correct

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FIGURE 3-5

Refer to Figure 3-5. What is represented by a change from Point A to Point C?

a. an increase in quantity supplied

b. a decrease in quantity supplied 
c. a decrease in supply
d. an increase in supply

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Question 28

Correct

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TABLE 4-5

QUANTITY DEMANDED
QUANTITY SUPPLIED

PRICE (per DVD) of DVDs of DVDs

$21 1 000 000 units 5 500 000 units

20 2 000 000 units 5 000 000 units
19 3 000 000 units 4 500 000 units
18 4 000 000 units 4 000 000 units
17 5 000 000 units 3 500 000 units
16 6 000 000 units 3 000 000 units
15 7 000 000 units 2 500 000 units
14 8 000 000 units 2 000 000 units
13 9 000 000 units 1 500 000 units
12 10 000 000 units 1 000 000 units

Refer to Table 4-5. At $13, what is occurring in the market for DVDs?

a. There is a shortage of 7 500 000 DVDs. 

b. There is a surplus of 7 500 000 DVDs.
c. There is a shortage of 10 500 000 DVDs.
d. There is a surplus of 10 500 000 DVDs.

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Question 29

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FIGURE 2-2

Refer to Figure 2-2. An economy is operating at full employment when workers in the wine industry are laid off. Which of the following movements would
portray this change on the production possibilities curve?

a. a movement from C to F
b. a movement from B to G
c. a movement from G to F 
d. a movement from B to A

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Question 30

Correct

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FIGURE 4-1

The diagram below represents the market for butter.

Refer to Figure 4-1. What is the shortage or surplus of butter at a market price of $5 per kilogram?

a. a shortage equal to 4000 kilograms of butter

b. a surplus equal to 7000 kilograms of butter 
c. a surplus equal to 4000 kilograms of butter
d. a shortage equal to 7000 kilograms of butter

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