Test Bank for Microeconomics, 5th Canadian Edition by Glenn Hubbard

MICROECONOMICS, 5TH CANADIAN EDITION

Glenn Hubbard | Anthony Patrick O'Brien | Apostolos Serletis | Jason Childs

TEST BANK


Includes All Chapters (1 to 15)


Answers Included

, Microeconomics
5th Canadian Edition
Hubbard et al
Test Bank


Complete Chapter-by-Chapter Test Bank


Economics: Foundations and Models

Trade-offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: The Responsiveness of Demand and Supply

Comparative Advantage and the Gains from International Trade

Consumer Choice and Behavioural Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More

Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Competition Policy

The Markets for Labour and Other Factors of Production Public

Choice, Taxes, and the Distribution of Income

Public Choice, Taxes, and the Distribution of Income

,Microeconomics, 5Ce (Hubbard)
Chapter 1 Economics: Foundations and Models

1.1 Explain these three key economic ideas: People are rational, people respond to incentives,
and optimal decisions are made at the margin

1) Changes in global weather pa3erns can lead to
A) more Canadians drinking coffee.
B) Canadians having to pay more for coffee.
C) wage increases for coffee shop employees.
D) the destruction of the Canadian coffee harvest.
E) Canadians demanding more coffee.
Answer: B
Diff: 1 Type: MC
Topic: Scarcity
Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to
incentives, optimal decisions are made at the margin
AACSB: Reflective Thinking
Special Feature: Chapter Opener: You versus Caffeine?

2) The study of economics arises due to
A) money.
B) scarcity.
C) greed.
D) unlimited resources.
E) unemployment.
Answer: B
Diff: 1 Type: MC
Topic: Scarcity
Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to
incentives, optimal decisions are made at the margin
AACSB: Analytic Skills

3) Scarcity refers to the situation in which
A) unlimited wants exceed the limited resources available to satisfy them.
B) unlimited resources exceed limited wants.
C) a country's population is larger than its resource base.
D) a nation's poverty level increases faster than its population.
E) our needs and wants are finite.
Answer: A
Diff: 1 Type: MC
Topic: Scarcity
Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to
incentives, optimal decisions are made at the margin
AACSB: Analytic Skills




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, 4) The basic economic problem of ________ has always existed and will continue to exist.
A) scarcity
B) efficiency
C) inflation
D) recession
E) unemployment
Answer: A
Diff: 1 Type: MC
Topic: Scarcity
Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to
incentives, optimal decisions are made at the margin
AACSB: Reflective Thinking

5) Economics is the study of the ________ people make to a3ain their goals, given their ________
resources.
A) purchases; unlimited
B) choices; scarce
C) income; available
D) decisions; household
E) output; time
Answer: B
Diff: 1 Type: MC
Topic: Scarcity
Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to
incentives, optimal decisions are made at the margin
AACSB: Analytic Skills

6) An economic ________ is a simplified version of some aspect of economic life used to analyze an
economic issue.
A) market
B) trade-off
C) variable
D) model
E) opportunity cost
Answer: D
Diff: 1 Type: MC
Topic: Economic Models
Learning Outcome: 1.1 Explain these three key economic ideas: People are rational, people respond to
incentives, optimal decisions are made at the margin
AACSB: Reflective Thinking




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