Canadian Studies Exam Review
Course Introduction
Canadian Studies is an interdisciplinary course that explores the history, culture, society, and political landscape of Canada. Through an examination of significant events, key institutions, and diverse communities, students develop an understanding of the factors that have shaped Canadian identity. Topics include Indigenous histories and perspectives, immigration, language and regional diversity, environmental issues, and Canadas role on the global stage. The course encourages critical analysis of contemporary issues and challenges facing Canadians today, promoting informed engagement with the countrys evolving national narrative.
Recommended Textbook
Economics Canada in the Global Environment 9th Edition by Robin Bade
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31 Chapters
4049 Verified Questions
4049 Flashcards
Source URL: https://quizplus.com/study-set/1466
Page 2
Chapter 1: What Is Economics
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212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/29188
Sample Questions
Q1) In Figure 1A.4.3, a decrease in the value of z results in, ceteris paribus,
A)a decrease in the value of x.
B)an increase in the value of x.
C)an increase in the value of y.
D)no change in the value of y.
E)no change in the value of x.
Answer: A
Q2) In Figure 1A.3.3, the slope across arc AB is
A)1/2.
B)1.
C)3/2.
D)5/2.
E)5/3.
Answer: D
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Chapter 2: The Economic Problem
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159 Verified Questions
159 Flashcards
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Sample Questions
Q1) Given Fact 2.4.1, the opportunity cost of producing 1 loaf of bread is
A)20 minutes (1/3 hour)for Andy and 1 hour for Rolfe.
B)1/3 kilogram of butter for Andy and 1 kilogram of butter for Rolfe.
C)3 kilograms of butter for Andy and 1 kilogram of butter for Rolfe.
D)8 kilograms of butter for both Andy and Rolfe.
E)not calculable from the given information.
Answer: B
Q2) A point inside a production possibilities frontier
A)indicates some unused or misallocated resources.
B)is unattainable.
C)is preferred to a point on the production possibilities frontier.
D)indicates a point of production efficiency.
E)illustrates the idea of opportunity cost.
Answer: A
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4
Chapter 3: Demand and Supply
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197 Flashcards
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Sample Questions
Q1) All shredded wheat producers have decided to add a new ingredient, the "crunch enhancer" to shredded wheat. Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that it costs more to produce and consumers like it better?
A)The supply and demand curves both shift rightward.
B)The supply curve shifts rightward and the demand curve remains unchanged.
C)The supply curve shifts leftward and the demand curve shifts rightward.
D)The supply curve shifts leftward and the demand curve remains unchanged.
E)Neither curve changes but a movement occurs up along the demand curve and a movement occurs up along the supply curve.
Answer: C
Q2) In Table 3.4.1, the equilibrium price is
A)$7 a unit.
B)$5 a unit.
C)$4 a unit.
D)$3 a unit.
E)$1 a unit.
Answer: C
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Page 5
Chapter 4: Elasticity
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186 Verified Questions
186 Flashcards
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Sample Questions
Q1) The demand for a good is perfectly elastic when the price elasticity of demand is A)equal to infinity.
B)between infinity and 1.
C)equal to 1.
D)between 1 and zero.
E)equal to zero.
Q2) With higher fuel costs, airlines raise their average fare from $0.50 to $1.50 per passenger kilometre and the number of passenger kilometres decreases from 2.5 million a day to 1.5 million a day. Over this price range, the price elasticity of demand is A)2.
B)0.18.
C)5.6.
D)50.
E)0.5.
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Chapter 5: Efficiency and Equity
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119 Flashcards
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Sample Questions
Q1) Consider Figure 5.2.1. When the price is $4, what is the consumer surplus from the second unit of the good?
A)$7
B)$3
C)$4
D)$1
E)$10
Q2) Refer to Figure 5.3.2. If the level of output is 150 units, the producer surplus is area A)BCF.
B)ACG.
C)DCE.
D)ACH.
E)HCG.
Q3) A contest allocates resources to A)a winner or a group of winners.
B)an athlete.
C)a gambler.
D)the government.
E)private firms.
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Page 7
Chapter 6: Governments Actions in Markets
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) Consider a market for an illegal good. If the government imposes the cost of breaking the law on the buyer of the good, then price will be
A)higher and quantity lower compared to imposing the same cost on the seller.
B)higher and quantity higher compared to imposing the same cost on the seller.
C)lower and quantity lower compared to imposing the same cost on the seller.
D)lower and quantity the same compared to imposing the same cost on the seller.
E)higher and quantity the same compared to imposing the same cost on the seller.
Q2) Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City. There is a minimum wage set at $6 per hour. Suppose a new fast food restaurant opens and increases the quantity demanded of teenage labour by 400 hours per week at each wage rate. The result is
A)elimination of teenage unemployment and a wage rate of $7 per hour.
B)elimination of teenage unemployment, but the wage rate remains at $6 per hour.
C)some teenage unemployment with the wage rate remaining at $6 per hour.
D)no change in teenage unemployment because the wage rate rises to $7 per hour.
E)none of the above
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Chapter 7: Global Markets in Action
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) In industrial countries, there is more reliance on ________ as opposed to ________ for government revenue.
A)tariffs; tax collection
B)import quotas; tariffs
C)tariffs; import quotas
D)import quotas; tax collection
E)tax collection; tariffs
Q2) Tariffs
A)generate revenue for consumers.
B)generate revenue for the government.
C)encourage domestic consumers to buy more imports.
D)encourage domestic producers to produce less.
E)lower prices for consumers.
Q3) The fundamental force that drives international trade is
A)absolute advantage.
B)importation duties.
C)the advantage of execution.
D)export advantage.
E)comparative advantage.
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Page 9
Chapter 8: Utility and Demand
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Ben spends $50 a year on 2 bunches of flowers and $50 a year on 10,000 litres of tap water. Ben is maximizing utility and his marginal utility from water is 0.5 units per litre. Ben's expenditure on flowers and water illustrates the paradox of value because Ben's marginal utility from flowers is ________ his marginal utility from water, and his total utility from flowers is ________ than his total utility from water. A)greater than; greater B)less than; less C)greater than; less D)less than; greater E)the same as; less
Q2) Billy likes chocolate bars and popcorn. Chocolate bars sell for $1.50 each and popcorn sells for $3 a bag. Currently he is in consumer equilibrium with marginal utility per dollar on popcorn equal to 100. What is the marginal utility per dollar on chocolate bars? A)50
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Page 10
Chapter 9: Possibilities, Preferences, and Choices
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124 Flashcards
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Sample Questions
Q1) Which one of the following statements about the budget line is false? The budget line
A)separates affordable consumption points from unaffordable consumption points.
B)is based on fixed prices.
C)is based on fixed income.
D)is based on fixed quantities.
E)constrains consumer choices.
Q2) Refer to Fact 9.3.2. If the price of used clothing falls and income remains the same, the substitution effect ________ the quantity of used clothing bought and the income effect ________ the quantity of used clothing bought.
A)increases; decreases B)increases; increases C)decreases; increases
D)decreases; decreases E)does not change; increases
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11
Chapter 10: Organizing Production
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111 Flashcards
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Sample Questions
Q1) Typical examples of a partnership would include which one of the following?
A)a law firm
B)a corner drugstore
C)an automobile manufacturer
D)a bank
E)a freelance writer
Q2) In a partnership, each partner is legally liable for
A)all the debts of the partnership.
B)the fraction of the debts corresponding to the fraction of ownership.
C)50 percent of the debt.
D)all debts of the partnership limited by the personal wealth of the partner.
E)an amount of debt limited to the amount of the partner's investment in the partnership.
Q3) A firm's total opportunity cost of production is the sum of the cost of using resources
A)bought in the market.
B)owned by the firm.
C)supplied by the firm's owner.
D)bought in the market and supplied by the firm's owner.
E)bought in the market, owned by the firm, and supplied by the firm's owner.
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Page 12
Chapter 11: Output and Costs
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) If the total product of three workers is 214 units and the total product of four workers is 221 units, then the marginal product of the fourth worker is
A)71.3 units.
B)55.25 units.
C)7 units.
D)62.14 units.
E)1.75 units.
Q2) The long run refers to a time period
A)of one year or less.
B)in which all factors of production are variable.
C)in which labour is variable, but plant is fixed.
D)when there is at least one variable factor of production.
E)of at least 5 years.
Q3) The average product of energy equals
A)the increase in total product divided by the increase in energy used.
B)total product divided by the quantity of energy used.
C)the slope of the total product curve.
D)the slope of the marginal product curve.
E)the difference between the total product and the marginal product of energy.
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Page 13
Chapter 12: Perfect Competition
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Refer to Figure 12.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run,
A)firms that remain in the market will expand production.
B)market demand will increase.
C)firms will adopt labour-saving technology.
D)industry output will remain constant.
E)firms will enter the market.
Q2) The market for maple syrup is perfectly competitive. Suppose that the market is in long-run equilibrium when the market demand for maple syrup increases. All of the following occur except
A)in the long run, firms make an economic profit.
B)the price rises in the short run.
C)the equilibrium quantity increases.
D)in the short run, existing firms make an economic profit.
E)the number of firms in the long run is greater than the number of firms in the short run.
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Chapter 13: Monopoly
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118 Verified Questions
118 Flashcards
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Sample Questions
Q1) The pursuit of wealth by capturing economic rent
A)is rent seeking.
B)is illegal in Canada.
C)is price discrimination.
D)creates a legal monopoly.
E)creates a natural monopoly.
Q2) Refer to Figure 13.5.1. Suppose the government regulates the firm with average cost pricing. What is the price?
A)$0 a bottle
B)$0.50 a bottle
C)$0.30 a bottle
D)$0.10 a bottle
E)$0.20 a bottle
Q3) Social interest theory predicts that the political process will seek to minimize A)producer surplus.
B)consumer surplus.
C)total surplus.
D)deadweight loss.
E)average total cost.
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Page 15
Chapter 14: Monopolistic Competition
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122 Verified Questions
122 Flashcards
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Sample Questions
Q1) Firms in monopolistic competition make zero economic profit in the long run because
A)their costs rise over time.
B)the demand they face decreases as rival firms offer slightly differentiated products for sale in the same market.
C)their marginal cost curves slope upward.
D)the market eventually becomes perfectly competitive.
E)both A and B are correct.
Q2) In the short-run, the similarity between a monopolist and a monopolistically competitive firm is that
A)they both make the same decisions about the level of output and output price.
B)they both face an upward-sloping supply curve for their products.
C)they both try to maximize their total revenues.
D)they both try to minimize their average fixed costs.
E)they set the price such that marginal revenue equals average total cost.
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Chapter 15: Oligopoly
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106 Flashcards
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Sample Questions
Q1) Refer to Figure 15.1.1. In the scenario above, the market is
A)a natural duopoly.
B)a natural oligopoly with three firms.
C)a natural monopoly.
D)monopolistically competitive.
E)perfectly competitive.
Q2) An oligopoly is a market structure in which there
A)are a few buyers but many sellers.
B)are no barriers to entry.
C)are many independent sellers.
D)are a few goods sold by many sellers.
E)is a temptation to collude.
Q3) In the prisoners' dilemma with players Art and Bob, each prisoner would be best off if
A)both prisoners confess.
B)both prisoners deny.
C)Art denies and Bob confesses.
D)Bob denies and Art confesses.
E)none of the above is done.
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17
Chapter 16: Externalities
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116 Flashcards
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Sample Questions
Q1) Smoking tobacco creates a ________ externality.
A)negative consumption
B)negative production
C)positive consumption
D)positive production
E)marginal
Q2) In Figure 16.3.2. The figure shows the market for good B. Which of the following government policies creates an efficient outcome?
A)Tax the production of B by $3 per unit.
B)Tax the production of B by $4 per unit.
C)Provide vouchers for consumption of B of $1 per unit.
D)Provide vouchers for consumption of B of $3 per unit.
E)Provide vouchers for consumption of B of $4 per unit.
Q3) Which one of the following is a means of coping with a negative externality?
A)emission subsidies
B)patents
C)vouchers
D)Pigovian taxes
E)copyrights
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Page 18
Chapter 17: Public Goods and Common Resources
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98 Flashcards
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Sample Questions
Q1) The marginal social benefit curve for a public good is derived by
A)adding the marginal benefits of all individuals at each quantity.
B)adding the quantities demanded by all individuals at each price.
C)surveying consumers and asking how much they use a certain good or service.
D)adding the total benefits for all consumers for a given quantity of the good.
E)finding the maximum amount someone is willing to pay for one more unit of the good.
Q2) If the marginal social cost of producing a public good is greater than the marginal social benefit, then
A)more than the efficient quantity of the public good is being produced.
B)less than the efficient quantity of the public good is being produced.
C)the efficient quantity of the public good is being produced.
D)the public good is being produced by a private firm.
E)the public good must be a common resource.
Q3) Public choice theory predicts that government
A)acts to promote the redistribution of wealth and income.
B)acts to maximize the amount of campaign contributions.
C)acts to eliminate waste and promote an efficient allocation of resources.
D)makes choices that result in efficient provision of public goods.
E)makes choices that result in inefficient overprovision of public goods.
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Page 19
Chapter 18: Markets for Factors of Production
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) The present value of a future payment of money will be lower the
A)higher the interest rate or the further in the future the payment.
B)lower the interest rate or the further in the future the payment.
C)higher the interest rate or the nearer the date of the future payment.
D)lower the interest rate or the nearer the date of the future payment.
E)lower the interest rate, independent of the date of the future payment.
Q2) A union is formed to restrict labour supply in a previously perfectly competitive labour market. If the union succeeds in raising the wage, everything else remaining the same,
A)employment will fall.
B)employment will rise.
C)employment will not change.
D)the total wage bill will rise.
E)the total wage bill will fall.
Q3) A decrease in the price of a firm's output
A)decreases the supply of labour.
B)increases the supply of labour.
C)increases the value of marginal product of labour.
D)decreases the quantity of labour demanded.
E)decreases the value of marginal product of labour.
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Chapter 19: Economic Inequality
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124 Flashcards
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Sample Questions
Q1) The low-income cutoff level is
A)a level of housing and food provided by the government.
B)a fixed real income used to determine whether or not a household may qualify for welfare.
C)the income level below which a family normally spends 73.6 percent or more of its income on food, shelter, and clothing.
D)the income level below which a family normally spends 63.6 percent or more of its income on food, shelter, and clothing.
E)a level of income below which starvation occurs.
Q2) In 2011, the 20 percent of households with the highest incomes received what percentage of the total after-tax income?
A)14 percent
B)2 percent
C)71 percent
D)44.2 percent
E)55.8 percent
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Chapter 20: Measuring Gdp and Economic Growth
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133 Flashcards
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Sample Questions
Q1) Stock and bond sales are not included in GDP because they
A)do not occur in the year in which the production represented by them takes place.
B)represent corporate production.
C)represent indebtedness.
D)are not goods and services.
E)are not sold in the country in which they are produced.
Q2) Refer to Table 20.2.5. From the data in the table, compute Southton's real GDP in the base year.
A)$208
B)$197
C)$209
D)$226
E)It cannot be calculated given the data.
Q3) The circular flow diagram illustrates the expenditures made by A)households only.
B)households and firms only.
C)households and investors only.
D)firms, households, and governments only.
E)households, firms, governments, and the rest of the world.
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Page 22
Chapter 21: Monitoring Jobs and Inflation
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Sample Questions
Q1) Which one of the following people would be counted as unemployed in Canada?
A)Simone is currently working but expects to be laid off by the end of the month, before next month's survey can be completed.
B)Ruth is a 14-year-old student and has been looking for an after-school job every day for the past month.
C)Sarah has been looking for a job but is taking a month-long break from the job-seeking effort due to her lack of skills.
D)Rebekah is a recent graduate looking for work.
E)Ron has quit looking because he believes that there is no work available for him.
Q2) If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the
A)unemployment rate will increase.
B)employment-to-population ratio will decrease.
C)labour force participation rate will increase.
D)labour force participation rate will decrease.
E)both A and C
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Chapter 22: Economic Growth
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Sample Questions
Q1) Refer to Figure 22.3.2. If the real wage is $20 an hour, a labour
A)shortage will occur and the real wage will rise.
B)shortage will occur and the real wage will fall.
C)surplus will occur and the real wage will rise.
D)surplus will occur and the real wage will fall.
E)surplus will occur and the demand for labour will increase.
Q2) If new capital increases labour productivity, the supply of labour ________ and the demand for labour ________.
A)stays the same; increases
B)increases; increases
C)increases; decreases
D)decreases; stays the same
E)increases; stays the same
Q3) During the last 10 years, which of the following had the lowest level of real GDP per person?
A)Eastern Europe
B)Central and South America
C)Africa
D)Japan
E)China
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Chapter 23: Finance, Saving, and Investment
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Sample Questions
Q1) Suppose Canada spends more on foreign goods and services than foreigners spend on our goods and services. Then
A)Canada must borrow an amount equal to national saving.
B)Canada must borrow an amount equal to imports minus exports.
C)the rest of the world may or may not finance Canada's trade deficit.
D)Canada must borrow an amount equal to consumption expenditure plus investment.
E)the Bank of Canada will raise the foreign exchange rate of the Canadian dollar.
Q2) Investment will be higher if
A)the government deficit is higher.
B)national saving is higher.
C)net exports are higher.
D)the real interest rate is higher.
E)government spending is higher.
Q3) Which of the following is correct?
A)As disposable income increases, the real interest rate rises.
B)As disposable income decreases, saving decreases.
C)The higher a household's wealth the greater is its saving.
D)Both B and C are correct.
E)Both A and C are correct.
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Page 25
Chapter 24: Money, the Price Level, and Inflation
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Sample Questions
Q1) When the Bank of Canada makes an open market sale, its assets ________ and its liabilities ________.
A)decrease; decrease B)decrease; increase C)increase; increase D)increase; decrease E)decrease; do not change
Q2) Whenever desired reserves exceed actual reserves, the bank
A)can make new loans.
B)will call in loans.
C)will go out of business.
D)is in a profit-making position.
E)has excess reserves.
Q3) If the desired reserve ratio is 3 percent and deposits totaled $5.75 billion, banks hold
A)$172.5 million in reserves.
B)$0.1725 million in reserves.
C)$172.5 million in excess reserves.
D)$0.1725 million in excess reserves.
E)$192 million in reserves.
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26
Chapter 25: The Exchange Rate and the Balance of Payments
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Sample Questions
Q1) A very small country is an international borrower. Its supply of loanable funds increases but it still remains a net foreign borrower. As a result, the equilibrium quantity of loanable funds used in the country ________ and the country's foreign borrowing
A)does not change; decreases
B)does not change; does not change
C)does not change; increases
D)increases; does not change
E)increases; decreases
Q2) Suppose that a country's government expenditures are $500 billion, net taxes are $400 billion, saving is $200 billion, and investment is $250 billion. The country has a government budget
A)surplus and a private sector surplus.
B)surplus and a private sector deficit.
C)deficit and a private sector surplus.
D)deficit and a private sector deficit.
E)surplus and a private sector balance.
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Chapter 26: Aggregate Supply and Aggregate Demand
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Sample Questions
Q1) Aggregate demand
A)measures the amount of a nation's goods and services that people are willing to buy.
B)measures the amount of a nation's labour, capital, and technology that people are willing to buy.
C)is the relationship between the quantity of real GDP demanded and the price level.
D)increases when the price level falls.
E)increases when factor prices fall.
Q2) The quantity of real GDP demanded is the sum of real consumption expenditure (C), investment (I),
A)government expenditure (G), exports (X), and imports (M).
B)government expenditure (G), and exports (X)minus imports (M).
C)exports (X), and imports (M).
D)and exports (X)minus imports (M).
E)and government expenditure (G).
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Chapter 27: Expenditure Multipliers
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Sample Questions
Q1) Refer to Figure 27.2.1. When real GDP is equal to Yb, then aggregate planned expenditure is
A)less than real GDP, and real GDP decreases.
B)less than real GDP, and real GDP increases.
C)greater than real GDP, and real GDP increases.
D)greater than real GDP, and real GDP decreases.
E)equal to real GDP, and real GDP neither increases nor decreases.
Q2) Suppose the multiplier is 2 and the short-run aggregate supply curve is positively sloped. Investment increases by $10 billion. In the short run, equilibrium real GDP
A)increases by $20 billion.
B)increases by more than $20 billion.
C)decreases by less than $20 billion.
D)does not change.
E)increases by less than $20 billion.
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Chapter 28: The Business Cycle, Inflation, and Deflation
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Sample Questions
Q1) A cost-price inflation spiral results if the policy response to stagflation is to keep
A)decreasing aggregate demand.
B)decreasing short-run aggregate supply.
C)increasing aggregate demand.
D)increasing short-run aggregate supply.
E)doing nothing.
Q2) New Keynesian economists believe that ________ is influenced by ________.
A)yesterday's money wage rate; today's rational expectations of the money wage
B)today's money wage rate; yesterday's rational expectations of the price level
C)yesterday's rational expectations of the price level; today's money wage rate
D)today's money wage rate; today's rational expectations of the price level
E)today's money wage rate; animal spirits
Q3) In the Keynesian business cycle theory, business cycles begin with a change in
A)inflation expectations.
B)government expenditure.
C)business confidence.
D)monetary policy.
E)the money wage rate.
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Chapter 29: Fiscal Policy
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Q1) The government increases the tax rate on labour income. At the equilibrium level of employment, the before-tax wage rate ________ and the after-tax wage rate
A)rises; falls
B)falls; rises
C)rises; rises
D)falls; falls
E)rises; does not change
Q2) Consider all the effects of fiscal policy. A cut in the income tax
A)shifts the AD curve rightward but does not shift either the LAS or SAS curve.
B)shifts the AD, SAS, and LAS curves rightward.
C)shifts the SAS curve rightward but does not shift either the AD or LAS curve.
D)shifts both the SAS and LAS curves rightward but does not shift the AD curve.
E)shifts the LAS curve rightward but does not shift either the AD or SAS curve.
Q3) Everything else remaining the same, as the economy enters a recession,
A)tax revenues rise and interest payments on the debt rise.
B)tax revenues and transfer payments rise.
C)government outlays rise and tax revenues fall.
D)government outlays tend to fall and tax revenues fall.
E)interest payments on the debt rise and tax revenues fall.
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Chapter 30: Monetary Policy
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Q1) If the Bank of Canada is concerned with recession it will ________ the overnight loans rate to ________.
A)raise; increase aggregate demand
B)lower; increase aggregate demand
C)raise; decrease aggregate demand
D)lower; decrease aggregate demand
E)lower; increase potential GDP
Q2) Two monetary policy instruments that the Bank of Canada can use are
A)the federal government budget balance and the real interest rate.
B)the quantity of Canadian dollars held in Canadian banks and the quantity fo Canadian dollars held by foreign central banks.
C)the monetary base and the short-term interest rate.
D)the foreign exchange rate and the government budget balance.
E)the current account balance and the capital and financial account balance.
Q3) If the Bank of Canada lowers the overnight loans rate,
A)other short-term interest rates fall.
B)other short-term interest rates rise.
C)the exchange rate falls.
D)the long-term interest rate falls.
E)A, C, and D are correct.
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Chapter 31: Macro Only: International Trade Policy
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Q1) Dumping occurs when a foreign firm
A)pollutes international waters.
B)disposes of waste material internationally.
C)sells inferior output to foreigners.
D)sells its exports at a lower price than its cost of production.
E)sells its output at a lower price in a foreign country than in the country where it produces the good.
Q2) Table 31.1.1 shows Glazeland's doughnut market before international trade. Glazeland opens up to international trade. If the world price is $0.40, then Glazeland will produce ________ doughnuts and will ________ doughnuts.
A)3 million; import 3 million
B)3 million; export 3 million
C)4 million; import 1 million
D)4 million; export 1 million
E)6 million; export 3 million
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