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
1
Copyright © 2027
, 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
2
Copyright © 2027
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
1
Copyright © 2027
, 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
2
Copyright © 2027
