Microeconomics 17th Canadian Edition Test Bank by Christopher Ragan - Complete Practice Questions & Answers

Microeconomics, 17th Canadian Edition, 17e By
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Christopher Ragan Test Bank
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,Microeconomicso-
oCanadianoEdition,o17eo(Ragan)o
Chaptero1o Econo
micoIssuesoandoConcepts

1.1 WhatoIsoEconomics?

1) Whichoofotheofollowingostatementsoprovidesotheobestodefinitionoofoeconomics?
A) Theostudyoofotheomostoequitableodistributionoofoscarceoresources.
B) Theostudyoofotheouseoofoscarceoresourcesotoosatisfyounlimitedohumanowants.
C) Theostudyoofotheoproductionoofogoodsoandoservices.
D) Theostudyoofotheoproductiveocapacityoofoaonation'sofactorsoofoproduction.
E) Theostudyoofoproductionoandoincreasingoitsoefficiency.o
Answer:oB
Diff:o1 Type:oMC
Topic:o 1.1a.oeconomics/resourceso
Skill:o Recall
LearningoObj.:o 1-
1oExplainotheoimportanceoofoscarcity,ochoice,oandoopportunityocost,oandohowoeachoisoillustratedob
yotheoproductionopossibilitiesoboundary.
Category:o Qualitative

2) Society'soresourcesoareooftenodividedointoobroadocategories.oTheyoare
A) goodsoandoservices.
B) factorsoofoconsumption.
C) land,olabour,oandocapital.
D) populationoandonaturaloresources.
E) tangibleocommoditiesoandointangibleocommodities.o
Answer:o C
Diff:o1 Type:oMC
Topic:o 1.1a.oeconomics/resourceso
Skill:o Recall
LearningoObj.:o 1-
1oExplainotheoimportanceoofoscarcity,ochoice,oandoopportunityocost,oandohowoeachoisoillustratedob
yotheoproductionopossibilitiesoboundary.
Category:o Qualitative




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,3) Considerotheofollowingolist:oaoworkerowithotrainingoinovideoogamingotechnology,o10ohectaresoofoa
rableolandoinosouthernoOntario,oaofishingotrawleroinoNovaoScotia,oanoice-
creamotruckoatoaoparkoinoQuebec.oEachoofotheseoisoanoexampleoof
A) aofactoroofoproduction.
B) aocapitaloresource.
C) aocommodity.
D) goodsoandoservices.
E) anoeconomicoservice.o
Answer:o A
Diff:o1 Type:oMC
Topic:o 1.1a.oeconomics/resourceso
Skill:oApplied
LearningoObj.:o 1-
1oExplainotheoimportanceoofoscarcity,ochoice,oandoopportunityocost,oandohowoeachoisoillustratedob
yotheoproductionopossibilitiesoboundary.
Category:o Qualitative

4) WhichoofotheofollowingoisoNOToconsideredoao"factoroofoproduction"oinoeconomics?
A) theoespressoomachineoatoyourolocalocafe
B) theobaristaowhoomakesotheocoffee
C) theoespressoodrinkoyouopurchase
D) theowoodostirosticks
E) theolandoonowhichotheocafeositso
Answer:o C
Diff:o2 Type:oMC
Topic:o 1.1a.oeconomics/resourceso
Skill:o Applied
LearningoObj.:o 1-
1oExplainotheoimportanceoofoscarcity,ochoice,oandoopportunityocost,oandohowoeachoisoillustratedob
yotheoproductionopossibilitiesoboundary.
Category:o Qualitative




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Copyrighto©o2020oPearsonoCanadaoInc.

, 5) Considerotheofollowingofactorsoofoproduction:
- aopharmaceuticaloresearchocentre
- aohairstylist'soscissors
- Googleoheadquarters
- aocloudocomputingosystem
- aostapleroatoaocheckoutocounter.o
Eachoofotheseoisoanoexampleoof
A) land.
B) goods.
C) services.
D) capital.
E) labour.o
Answer:o D
Diff:o2 Type:oMC
Topic:o 1.1a.oeconomics/resourceso
Skill:oApplied
LearningoObj.:o 1-
1oExplainotheoimportanceoofoscarcity,ochoice,oandoopportunityocost,oandohowoeachoisoillustratedob
yotheoproductionopossibilitiesoboundary.
Category:o Qualitative

6) Inoeconomics,owhatowordoisousedotoodescribeotheoactoofousingogoodsooroservicesotoosatisfyo
wants?
A) consumption
B) production
C) purchasingopower
D) investment
E) shoppingo
Answer:o A
Diff:o2 Type:oMC
Topic:o 1.1a.oeconomics/resourceso
Skill:o Recall
LearningoObj.:o 1-
1oExplainotheoimportanceoofoscarcity,ochoice,oandoopportunityocost,oandohowoeachoisoillustratedob
yotheoproductionopossibilitiesoboundary.
Category:o Qualitative




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Copyrighto©o2020oPearsonoCanadaoInc.