Microeconomics 2nd Edition (Canadian Edition) by Dean Karlan – Exam Questions, Solutions Manual & Verified Answers (Updated 2026/2027)

Test Bank & Solution Manual for Microeconomics 2nd Edition
(Canadian Edition) by Dean Karlan

,Chapter 01 - Economics and Life Chapter


Chapter 01
Economics and Life Chapter




Multiple Choice Questions


1. The study of economics can help us:
A. be smarter voters.
B. better understand the impacts of public policies.
C. make the best choices around how to spend our time and money.
D. All of these are true.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life



2. Economics is primarily the study of:
A. the government's decision making process.
B. why provincial and federal governments disagree.
C. how society manages scarce resources.
D. All of these are true.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life




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,Chapter 01 - Economics and Life Chapter




3. The principles of economics can explain:
A. why people choose to work or go to college.
B. why a country might prosper.
C. why the value of money changes over time.
D. economics can explain all of these things.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life



4. Decisions about how to allocate resources are made by:
A. individuals.
B. businesses.
C. governments.
D. resource allocation decisions are made by all of these groups.


Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life



5. Which of the following statements best describes the study of economics?
A. Economics studies the resource allocation decisions made by individuals, families, firms,
governments, and other organization.
B. Economics studies the resource allocation decisions made solely by government
organization.
C. Economics studies how people maximize returns in the stock market.
D. Economics studies how governments determine appropriate tax rates.


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life




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, Chapter 01 - Economics and Life Chapter




6. Alan could apply the principles of economic decision making to:
A. deciding how to spend his paycheque.
B. deciding which girl to marry.
C. deciding what to have for dinner.
D. All of these are true.


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life



7. Which of the following is not considered an economic resource?
A. Real estate.
B. A personal relationship.
C. Cash.
D. These are all examples of a resource.


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life



8. The two broad fields that make up the subject of economics are:
A. microeconomics and macroeconomics.
B. personal investments and business investments.
C. fiscal policy and monetary policy.
D. imports and exports.


Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Easy
Learning Objective: 01-01 Explain the economic concept of scarcity.
Topic: 01-01 Macroeconomics and Life




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