Economics Quiz

Which of the following is NOT a factor of production?

• land

• labour

• buildings and machines

• wages and salaries

Which statement is most relevant to the circular-flow diagram?

• Households are buyers in the resource market.

• Firms are buyers in the product market.

• Households are sellers in the resource market.

• Firms are sellers in the resource market.

Which of the following is an example of an economist acting as a policy adviser rather than a scientist?

• explaining just the facts

• making positive statements

• being unable to reach a conclusion

• making normative statements

Which of the following is a normative statement?

• Minimum-wage laws cause unemployment.

• In an economy, inequality between rich and poor should be reduced.

• Households sell resources in the market for factors of production.

• Firms earn revenue by selling goods and services.

According to most economists, what is the effect of rent control programs?

• improvement in the availability and quality of rental accommodation

• increase in the efficiency of the housing market

• reduction in the availability and quality of rental housing

• increase in inexpensive accommodation for the most needy members of society

What kind of information does a production possibilities frontier illustrate?

• the prices at which alternative goods will be produced

• the input combinations that allow a country to produce a given amount of output

• the tax revenue a government receives at various tax rates

• the various combinations of two goods a country can produce given the available factors of production and the available production technology

Which statement would be of concern to a microeconomist?

• The nation's unemployment rate is higher today than in the past.

• The unemployment rate is higher in Canada than in Mexico.

• The rate of economic growth will increase in the future.

• Import restrictions on sugar will raise the price of sugar.

What kind of statements does positive economics deal with exclusively?

• statements that favorably describe a situation

• statements that pertain to facts

• statements that describe the past

• statements that are always true

Which of the following is an example of a positive statement?

• Every Canadian should have equal access to health care.

• Canada should have lower tax rates for wealthier Canadians.

• Canada should cut back on its use of carbon-based fuels such as coal and oil.

• Increasing the minimum wage results in more unemployment.

Which of the following is part of the scientific method?

• recommending policies to improve economic outcomes

• using assumptions in model building

• developing theories, gathering data, and determining whether the theories are consistent with the data