Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank

 
10.Stocks and bonds are not considered to be an economic resource because they: 
 


A. sometimes fall in value
 
B. do not earn interest income
 
C. are available in unlimited quantities
 
D. are not free gifts of nature
 
E. do not add to the economy's stock of real capital
 
11.The money payments made to owners of human resources are: 
 


A. wages, salaries, or interest
 
B. wages, salaries, or rent
 
C. interest or profit
 
D. wages, salaries, or profit
 
E. rent or profit
 
12.Economic resources do NOT include: 
 


A. natural resources
 
B. real capital assets
 
C. human effort
 
D. stocks and bonds
 
E. human ingenuity
 
13.Which of the following is a capital resource? 
 


A. a pair of stockings
 
B. a dump truck
 
C. a savings account
 
D. a share of IBM stock
 
E. a Bell Canada bond
 
14.The role of the entrepreneur involves: 
 


A. waiting for leadership
 
B. manual labour
 
C. bearing risks
 
D. hiring chartered accountants to make business decisions for them
 
E. acting as a landowner
 
15.Economics can best be described as the study of how: 
 


A. to profitably to invest one's income in stocks and bonds
 
B. to manage household expenses
 
C. government policies affect businesses and labour
 
D. to manage business enterprises for profit
 
E. to distribute limited resources among alternative ends
 
16.Economics is primarily the study of: 
 


A. why resources are scarce
 
B. how advertising and sales promotion shape consumer wants
 
C. how to make profitable investments
 
D. how to use scarce resources among alternative ends
 
E. why consumer wants are unlimited
 
17.Microeconomics is concerned with the: 
 


A. total levels of income, employment, and output
 
B. behaviour of individual participants in various markets
 
C. causes of inflation and unemployment
 
D. overall view of the operation of the economic system
 
E. way governments can stabilize the economy
 
18.Which of the following is a microeconomic statement? 
 


A. Total economic output increased by 2.5 percent last year.
 
B. Unemployment was 9.8 percent of the labour force last year.
 
C. The price of wheat declined last year.
 
D. The general price level increased by 4 percent last year.
 
E. Business investment decreased by 2 percent last year.
 
19.Macroeconomics approaches the study of economics from the viewpoint of: 
 


A. individual producers
 
B. governmental units
 
C. specific product and resource markets
 
D. individual consumers
 
E. entire economic sectors
 
20.Which of the following is a macroeconomic statement? 
 


A. The gross profits of all Canadian businesses were $60 billion last year.
 
B. The price of computers declined by 3 percent last year.
 
C. Bombardier's profits decreased last year.
 
D. The productivity of Canadian steelworkers increased by 1 percent last year.
 
E. The prices of science and technology stock rose by 10 percent last year.
 
21.Economic models: 
 


A. are useless because they are not based upon laboratory experiments
 
B. deal with a multitude of details
 
C. are generalizations of economic reality
 
D. are abstractions of reality and are, therefore, of no use to economists
 
E. are more effective the more complex they are
 
22.Economic models: 
 


A. are of limited use because they cannot be tested empirically
 
B. are limited to variables that are directly related to one another