Exam Review Questions revised micro only
Exam Review Questions
Economics – CIA4U
Chapter 1 – Basic Principles:
1. Economics is the science of
a. needs and wants
b. scarcity and choice
c. facts and opinions
d. resource allocations
2. Opportunity cost is
a. the sum of all that is lost from making a choice
b. the sum of all that is lost from taking one course of action over another
c. the next best alternative choice
d. the cost of making a choice
3. If a firm achieves its desired output consuming a certain amount of resources, it can be considered
a. efficient
b. effective
c. productive
d. profitable
4. If a business uses the bare minimum of resources to produce its goods, it can be considered
a. efficient
b. effective
c. productive
d. profitable
5. The branch of economics that is based on factual observations that can be confirmed is referred to as
a. Analytical economics
b. Positive economics
c. Factual economics
d. all of the above
e. both a) and b)
6. The opportunity cost of taking a trip to Europe rather than working this summer is
a. The money and work experience that would have been gained from having a summer job
b. The time spent in Europe that could have been spent doing other things
c. The lost quality family time
d. Both a) and b)
e. All of the above
7. The statement: “The United States should aim at having a health care system similar to Canada’s is an example of
a. Policy economics
b. Analytical economics
c. Normative economics
d. A conditional statement
e. Both a) and c)
8. Assuming that what will benefit one person, will also benefit an entire society is an example of
a. Fallacy of composition
b. Fallacy of single causation
c. Cause and effect fallacy
d. Post hoc fallacy
9. The assumption that media violence is the sole cause of school shootings is an example of
a. Fallacy of composition
b. Fallacy of single causation
c. Cause and effect fallacy
d. None of the above
10. The production possibilities frontier represents a firm’s or an economy’s
a. Maximum potential output
Economics – CIA4U
Chapter 1 – Basic Principles:
1. Economics is the science of
a. needs and wants
b. scarcity and choice
c. facts and opinions
d. resource allocations
2. Opportunity cost is
a. the sum of all that is lost from making a choice
b. the sum of all that is lost from taking one course of action over another
c. the next best alternative choice
d. the cost of making a choice
3. If a firm achieves its desired output consuming a certain amount of resources, it can be considered
a. efficient
b. effective
c. productive
d. profitable
4. If a business uses the bare minimum of resources to produce its goods, it can be considered
a. efficient
b. effective
c. productive
d. profitable
5. The branch of economics that is based on factual observations that can be confirmed is referred to as
a. Analytical economics
b. Positive economics
c. Factual economics
d. all of the above
e. both a) and b)
6. The opportunity cost of taking a trip to Europe rather than working this summer is
a. The money and work experience that would have been gained from having a summer job
b. The time spent in Europe that could have been spent doing other things
c. The lost quality family time
d. Both a) and b)
e. All of the above
7. The statement: “The United States should aim at having a health care system similar to Canada’s is an example of
a. Policy economics
b. Analytical economics
c. Normative economics
d. A conditional statement
e. Both a) and c)
8. Assuming that what will benefit one person, will also benefit an entire society is an example of
a. Fallacy of composition
b. Fallacy of single causation
c. Cause and effect fallacy
d. Post hoc fallacy
9. The assumption that media violence is the sole cause of school shootings is an example of
a. Fallacy of composition
b. Fallacy of single causation
c. Cause and effect fallacy
d. None of the above
10. The production possibilities frontier represents a firm’s or an economy’s
a. Maximum potential output