5/23/26, 12:20 PM Exam - results
Exam Taken by: Chamberlain_collage
0% Score
1. Which of the following is GDP calculated in constant prices?
Potential GDP.
Nominal GDP.
Actual GDP.
Real GDP.
2. Describe the significance of the cost of a consumer's basket in economic
terms.
The cost of a consumer's basket shows the demand for luxury
goods.
The cost of a consumer's basket reflects the overall price level
and inflation in the economy.
The cost of a consumer's basket measures the production output
of the economy.
The cost of a consumer's basket indicates the total income of
consumers.
3. Describe how the market quantity supplied changes with varying prices
based on the information from the table.
The market quantity supplied remains constant regardless of price
changes.
The market quantity supplied is unrelated to price changes.
The market quantity supplied decreases as the price rises,
indicating a decrease in supply.
The market quantity supplied increases as the price rises,
reflecting the law of supply.
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 1/56
,5/23/26, 12:20 PM Exam - results
4. What does the CPI measure?
the overall price of goods and services produced in the economy
the overall price of goods and services bought by a typical
consumer
the overall price of shares on the Toronto Stock Exchange
the overall price of inputs purchased by a typical producer
5. Tusker is refinishing a doghouse and has already spent $180 on the
restoration. He expects to be able to sell the doghouse for $360. Tusker
discovers that he needs to do an additional $400 worth of work to make
the doghouse worth $360 to potential buyers. He could also sell the
doghouse now, without completing the additional work, for $100. What
should Tusker do?
He should stop the project and consider $180 restoration a sunk
cost
It does not matter which action he takes since the outcome will
be the same either way
he should complete the additional work and sell the doghouse for
$360
6. In which year did Megan experience the highest real purchasing power
according to the provided information?
2014
2011
2012
2013
7. If nominal GDP increases to $18 trillion while real GDP remains at $14
trillion, what will be the new GDP deflator?
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 2/56
,5/23/26, 12:20 PM Exam - results
128.57
100
150
120
8. If the government implements a tax cut that increases disposable
income, how would this likely impact the market for cars, assuming cars
are a normal good?
Equilibrium price will fall and equilibrium quantity will rise.
Equilibrium price will fall and equilibrium quantity will fall.
Equilibrium price will rise and equilibrium quantity will rise.
Equilibrium price will rise and equilibrium quantity will fall.
9. Joe spends all of his money on concert tickets and compact discs. The
table shows his budget constraint when his income is $100. The price of a
ticket is $20, while the price of a compact disc is $10. If Joe currently buys
3 tickets and would like to purchase a fourth, his opportunity cost would
be:
4 compact discs
$20
2 compact discs
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 3/56
, 5/23/26, 12:20 PM Exam - results
$10
1 compact disc
10. Which of the following events would cause a movement upward and to
the left along the demand curve for olives?
The price of pickles decreases, and pickles are a substitute for
olives
Consumer income decreases, and pickles are a substitute for
olives
The prices of olives rises
The # of buyers of olives decreases
11. If Firm A decides to lower its prices while Firm B raises its prices, what
would you expect to happen to the quantity supplied by each firm
according to the law of supply?
Both firms will decrease their quantity supplied.
Firm A's quantity supplied will decrease, and Firm B's quantity
supplied will increase.
Both firms will increase their quantity supplied.
Firm A's quantity supplied will increase, and Firm B's quantity
supplied will remain unchanged.
12. What is GDP?
The difference between imports and exports
The Market value of all final goods and services produced in a
given time period
The Market Value of all final and intermediate goods produced in
a given time period
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 4/56
Exam Taken by: Chamberlain_collage
0% Score
1. Which of the following is GDP calculated in constant prices?
Potential GDP.
Nominal GDP.
Actual GDP.
Real GDP.
2. Describe the significance of the cost of a consumer's basket in economic
terms.
The cost of a consumer's basket shows the demand for luxury
goods.
The cost of a consumer's basket reflects the overall price level
and inflation in the economy.
The cost of a consumer's basket measures the production output
of the economy.
The cost of a consumer's basket indicates the total income of
consumers.
3. Describe how the market quantity supplied changes with varying prices
based on the information from the table.
The market quantity supplied remains constant regardless of price
changes.
The market quantity supplied is unrelated to price changes.
The market quantity supplied decreases as the price rises,
indicating a decrease in supply.
The market quantity supplied increases as the price rises,
reflecting the law of supply.
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 1/56
,5/23/26, 12:20 PM Exam - results
4. What does the CPI measure?
the overall price of goods and services produced in the economy
the overall price of goods and services bought by a typical
consumer
the overall price of shares on the Toronto Stock Exchange
the overall price of inputs purchased by a typical producer
5. Tusker is refinishing a doghouse and has already spent $180 on the
restoration. He expects to be able to sell the doghouse for $360. Tusker
discovers that he needs to do an additional $400 worth of work to make
the doghouse worth $360 to potential buyers. He could also sell the
doghouse now, without completing the additional work, for $100. What
should Tusker do?
He should stop the project and consider $180 restoration a sunk
cost
It does not matter which action he takes since the outcome will
be the same either way
he should complete the additional work and sell the doghouse for
$360
6. In which year did Megan experience the highest real purchasing power
according to the provided information?
2014
2011
2012
2013
7. If nominal GDP increases to $18 trillion while real GDP remains at $14
trillion, what will be the new GDP deflator?
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 2/56
,5/23/26, 12:20 PM Exam - results
128.57
100
150
120
8. If the government implements a tax cut that increases disposable
income, how would this likely impact the market for cars, assuming cars
are a normal good?
Equilibrium price will fall and equilibrium quantity will rise.
Equilibrium price will fall and equilibrium quantity will fall.
Equilibrium price will rise and equilibrium quantity will rise.
Equilibrium price will rise and equilibrium quantity will fall.
9. Joe spends all of his money on concert tickets and compact discs. The
table shows his budget constraint when his income is $100. The price of a
ticket is $20, while the price of a compact disc is $10. If Joe currently buys
3 tickets and would like to purchase a fourth, his opportunity cost would
be:
4 compact discs
$20
2 compact discs
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 3/56
, 5/23/26, 12:20 PM Exam - results
$10
1 compact disc
10. Which of the following events would cause a movement upward and to
the left along the demand curve for olives?
The price of pickles decreases, and pickles are a substitute for
olives
Consumer income decreases, and pickles are a substitute for
olives
The prices of olives rises
The # of buyers of olives decreases
11. If Firm A decides to lower its prices while Firm B raises its prices, what
would you expect to happen to the quantity supplied by each firm
according to the law of supply?
Both firms will decrease their quantity supplied.
Firm A's quantity supplied will decrease, and Firm B's quantity
supplied will increase.
Both firms will increase their quantity supplied.
Firm A's quantity supplied will increase, and Firm B's quantity
supplied will remain unchanged.
12. What is GDP?
The difference between imports and exports
The Market value of all final goods and services produced in a
given time period
The Market Value of all final and intermediate goods produced in
a given time period
https://quizlet.com/practice-test/e754f3e5-226b-4a37-ad04-0e5e612817e3/results 4/56
