TEST BANK Microeconomics_ Canada in the Global Environment (12TH) .pdf

TEST BANK
Microeconomics:
Canada in the Global
Environment (12TH)

📊 MICROECONOMICS TEST BANK
(PARKIN – CH 1–18)
Questions (Foundations + Demand & Supply)


📘 Chapter 1: What is Economics?
1. Economics studies:

A. Money only​
B. Scarcity and choice​
C. Government only​
D. Business only

✅ Answer: B

,2. Scarcity means:

A. Unlimited resources​
B. Limited resources vs unlimited wants​
C. No needs​
D. No production

✅ Answer: B

3. Opportunity cost is:

A. Money spent​
B. Next best alternative forgone​
C. Total cost​
D. Profit

✅ Answer: B

4. Rational choice means:

A. Emotional decision​
B. Maximizing benefit​
C. Random choice​
D. No decision

✅ Answer: B

5. Marginal benefit is:

A. Total benefit​
B. Extra benefit from one more unit​
C. Average benefit​
D. Fixed benefit

✅ Answer: B

, 📈 Chapter 2: Economic Problem & PPC
6. Production Possibilities Curve shows:

A. Demand​
B. Supply​
C. Maximum production combinations​
D. Price

✅ Answer: C

7. A point inside PPC indicates:

A. Efficiency​
B. Inefficiency​
C. Growth​
D. Maximum output

✅ Answer: B

8. A shift outward of PPC means:

A. Less production​
B. Economic growth​
C. Inflation​
D. Unemployment

✅ Answer: B

9. Increasing opportunity cost results in:

A. Straight PPC​
B. Bowed-out PPC​
C. Flat line​
D. Vertical line

✅ Answer: B