Economics of Canada
Pre-Test Questions
Course Introduction
Economics of Canada explores the fundamental principles, structures, and performance of the Canadian economy, emphasizing both historical foundations and contemporary issues. The course covers topics such as resource management, trade relations, monetary and fiscal policies, and regional disparities, examining how these factors shape Canadas economic landscape. Special attention is given to Canadas role in the global market, its economic ties with the United States and other trading partners, the impact of government policy on growth and stability, and current challenges such as sustainability, innovation, and income distribution. Through analysis of case studies and current data, students gain a comprehensive understanding of the factors influencing Canadian economic development and policy formulation.
Recommended Textbook
Macroeconomics Canada in the Global Environment 9th Edition by Michael Parkin
Available Study Resources on Quizplus
15 Chapters
2051 Verified Questions
2051 Flashcards
Source URL: https://quizplus.com/study-set/1508
Page 2
Chapter 1: What Is Economics
Available Study Resources on Quizplus for this Chatper
212 Verified Questions
212 Flashcards
Source URL: https://quizplus.com/quiz/29855
Sample Questions
Q1) Marginal benefit is
A)the cost of an increase in an activity.
B)the sum of benefit and cost that arises from an increase in an activity.
C)the cost of a decrease in an activity.
D)the benefit that arises from an increase in an activity.
E)the benefit that arises from a decrease in an activity.
Answer: D
Q2) If the line in Figure 1A.5.2 were to continue down to the x-axis, what would the value of x be when y is zero?
A)0
B)2
C)2/3
D)-2/3
E)-3/2.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: The Economic Problem
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/29856
Sample Questions
Q1) If Harold must decrease production of some other good to increase production of good X, then Harold
A)is producing on his production possibilities frontier.
B)is producing outside his production possibilities frontier.
C)is producing inside his production possibilities frontier.
D)must prefer good X to any other good.
E)has too few capital goods.
Answer: A
Q2) Refer to the production possibilities frontier in Figure 2.1.2. If 6 units of X are currently being produced, then
A)40 units of Y cannot be produced unless production of X is decreased.
B)40 units of Y cannot be produced unless production of X is increased.
C)60 units of Y can be produced with some resources not fully used.
D)50 units of Y must be produced, regardless of resource utilization.
E)50 units of Y can be produced if all resources are used and assigned to the task for which they are the best match.
Answer: E
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Demand and Supply
Available Study Resources on Quizplus for this Chatper
198 Verified Questions
198 Flashcards
Source URL: https://quizplus.com/quiz/29857
Sample Questions
Q1) Refer to Table 3.1.1. Between 2012 and 2013, the price of coffee relative to the price of tea ________ while the price of coffee relative to the price of cola ________.
A)rose; rose
B)rose; fell
C)fell; rose
D)fell; fell
E)fell; stayed constant
Answer: B
Q2) If A and B are complements in production and the price of A falls, the supply of B
A)increases, and the price of B rises.
B)increases, and the price of B falls.
C)decreases, and the price of B falls.
D)decreases, and the price of B rises.
E)does not change.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 20: Measuring Gdp and Economic Growth
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/29858
Sample Questions
Q1) Refer to Fact 20.1.2. Item 1 is ________ and item 2 is ________.
A)an intermediate good; a final good that is consumption expenditure
B)a final good that is consumption expenditure; a final good that is investment
C)a final good that is consumption expenditure; a final good that is consumption expenditure
D)an intermediate good; a final good that is investment
E)an intermediate good; an intermediate good
Q2) Table 20.2.7 shows items of income and expenditure in an economy. GDP equals
A)$1,242 billion.
B)$435 billion.
C)$802 billion.
D)$875 billion.
E)$2,267 billion.
Q3) For the aggregate economy, income equals
A)expenditure, but these are not generally equal to GDP.
B)GDP, but expenditure is generally less than these.
C)expenditure equals GDP.
D)expenditure equals GDP only if there is no government or foreign sectors.
E)expenditure equals GDP only if there is no depreciation.
To view all questions and flashcards with answers, click on the resource link above.
Page 6
Chapter 21: Monitoring Jobs and Inflation
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/29859
Sample Questions
Q1) Refer to Table 21.3.1. The reference base period is 2002. Which one of the following statements is true?
A)From 2002 to 2014, the cost of the market basket rose by 58 percent.
B)It costs 158 times more in 2014 than it does in 2002 to buy the same market basket.
C)All prices have risen by the same amount.
D)The inflation rate in 2014 is greater than the inflation rate in 2002.
E)The inflation rate in 2002 is greater than the inflation rate in 2014.
Q2) Consider Fact 21.2.2. According to the news clip, the main source of increased unemployment might be ________, and the main type of increased unemployment is
A)losses in manufacturing and construction jobs; cyclical
B)people entering the labour force to look for work; structural
C)people entering the labour force to look for work; frictional
D)losses in manufacturing and construction jobs; structural
E)losses in manufacturing and construction jobs; frictional
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22: Economic Growth
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/29860
Sample Questions
Q1) Suppose a country's population grows by 2 percent a year and, at the same time, its real GDP grows by 5 percent a year. Real GDP per person is increasing by ________ a year.
A)2 percent
B)5 percent
C)10 percent
D)16 percent
E)3 percent
Q2) Which one of the following quotations could be attributed to a supporter of the classical growth theory?
A)"Growth will last as long as technology keeps advancing."
B)"Prosperity will last as long as technology keeps advancing."
C)"Growth will last only until the increase in population brings productivity down to the subsistence level."
D)"Prosperity will last as long as there is knowledge accumulation."
E)"Growth will last as long as knowledge accumulation continues."
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 23: Finance, Saving, and Investment
Available Study Resources on Quizplus for this Chatper
141 Verified Questions
141 Flashcards
Source URL: https://quizplus.com/quiz/29861
Sample Questions
Q1) When the inflation rate is zero, the
A)real interest rate equals the nominal interest rate.
B)demand for loanable funds increases.
C)supply of loanable funds decreases.
D)nominal interest rate is zero.
E)real interest rate is negative.
Q2) If the quantity of loanable funds supplied exceeds the quantity of loanable funds demanded, then
A)the real interest rate will rise.
B)the supply of loanable funds increases.
C)people will save more.
D)the real interest rate will fall.
E)the demand for loanable funds increases.
Q3) When government saving is negative,
A)the real interest rate rises.
B)the real interest rate falls.
C)investment increases.
D)the real interest rate falls if crowding-out occurs.
E)the supply of loanable funds increases.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 24: Money, the Price Level, and Inflation
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29862
Sample Questions
Q1) The monetary base consists of the sum of
A)Bank of Canada notes held within the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks.
B)Bank of Canada notes held outside the Bank of Canada, the desired reserves of chartered banks, and coins held by banks.
C)Bank of Canada notes held outside the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks and the public.
D)Bank of Canada notes held within the Bank of Canada, bank deposits at the Bank of Canada, and coins held by banks and the public.
E)Bank of Canada notes held outside the Bank of Canada, bank deposits at the Bank of Canada, and notes and coins held by banks.
Q2) The Canadian money multiplier is calculated as the
A)change in monetary base divided by the change in deposits.
B)change in quantity of bank notes divided by the change in monetary base.
C)change in monetary base divided by the change in monetary holdings of households.
D)change in the quantity of money divided by the change in the monetary base.
E)change in monetary base divided by the change in quantity of money.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 25: The Exchange Rate and the Balance of Payments
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29863
Sample Questions
Q1) The exchange rate is the
A)volume of currency exchanged between importers and exporters.
B)price at which one currency exchanges for another currency.
C)rate of currency appreciation or depreciation.
D)percentage change in the volume of currency exchanges.
E)average rate at which foreign currencies are exchanged.
Q2) Choose the statement that is incorrect.
A)A large current account deficit emerged in Canada during the 1980s.
B)Canada's current account moved into a surplus in the 2000s.
C)Canada's current account moved into a deficit after 2008.
D)Canada's capital and financial account balance is almost a mirror image of the current account balance.
E)Canada's official settlements balance is very large in comparison with the current account and the capital and financial account.
Q3) For a given real exchange rate, a change in the quantity of money
A)brings a change in the price level and a change in the exchange rate.
B)brings a change in the price level with no change in the exchange rate.
C)brings a change in the exchange rate with no change in the price level.
D)has no effect on the exchange rate or the price level.
Page 11
E)has an unknown effect on the price level and the exchange rate.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 26: Aggregate Supply and Aggregate Demand
Available Study Resources on Quizplus for this Chatper
136 Verified Questions
136 Flashcards
Source URL: https://quizplus.com/quiz/29864
Sample Questions
Q1) Which one of the following factors will not shift the aggregate demand curve?
A)an increase in the interest rate
B)an increase in the expected inflation rate
C)an increase in the price level
D)an increase in expected future profits
E)an increase in the quantity of money
Q2) An increase in the money wage rate shifts
A)both the SAS curve and the LAS curve rightward.
B)both the SAS curve and the LAS curve leftward.
C)the SAS curve leftward, but leaves the LAS curve unchanged.
D)the LAS curve rightward, but leaves the SAS curve unchanged.
E)the SAS curve rightward, but leaves the LAS curve unchanged.
Q3) When an economy is operating on its long-run aggregate supply curve,
A)the actual inflation rate is greater than the anticipated inflation rate.
B)the actual unemployment rate equals the natural unemployment rate.
C)unemployment will fall to an unusually low rate that is not likely to last into the future.
D)real GDP demanded exceeds real GDP supplied.
E)inflation must be positive.
To view all questions and flashcards with answers, click on the resource link above.
Page 12
Chapter 27: Expenditure Multipliers
Available Study Resources on Quizplus for this Chatper
171 Verified Questions
171 Flashcards
Source URL: https://quizplus.com/quiz/29865
Sample Questions
Q1) Refer to Table 27.1.1. Based on the information in the table, if YD were zero, then
A)consumption would be zero.
B)consumption would be $150.
C)saving would be zero.
D)consumption would be -$150.
E)consumption would be $100.
Q2) Which of the following events shifts the aggregate expenditure curve and also shifts the aggregate demand curve?
I. a decrease in investment
II. a change in the price level
III. an increase in exports
A)I and II
B)I and III
C)II and III
D)I, II, and III
E)all of the above
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 28: The Business Cycle, Inflation, and Deflation
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/29866
Sample Questions
Q1) Both new Keynesian and new classical cycle theories claim that A)animal spirits can trigger a business cycle.
B)shifts in the SAS curve are the main impulse for a business cycle.
C)unexpected changes in aggregate demand trigger a business cycle.
D)expected changes in the quantity of money can trigger a business cycle.
E)a change in the price of oil is the major cause of a business cycle.
Q2) 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.
Q3) Refer to Figure 28.2.2. If the short-run aggregate supply curve does not shift, and remains at SAS , then the expected inflation rate is A)zero.
B)10 percent.
C)15 percent.
D)5 percent.
E)-10 percent.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 29: Fiscal Policy
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/29867
Sample Questions
Q1) The use of fiscal policy is limited because
A)of recognition lag.
B)of law-making lag.
C)of impact lag.
D)all of the above
E)none of the above
Q2) The Federal Budget of 2013 shows
A)a government budget surplus.
B)a balanced budget.
C)a government budget deficit.
D)a decreasing government debt.
E)revenues greater than outlays.
Q3) The effect of a change in taxes is less than the same sized change in government expenditure because
A)the amount by which consumption initially changes is equal to MPC times the tax change.
B)some people do not pay their taxes.
C)changes in government expenditure do not directly affect consumption.
D)tax rates are the same regardless of income levels.
E)none of the above
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 30: Monetary Policy
Available Study Resources on Quizplus for this Chatper
97 Verified Questions
97 Flashcards
Source URL: https://quizplus.com/quiz/29868
Sample Questions
Q1) Refer to Figure 30.3.2. The figure shows the economy of Freezone. Potential GDP is $250 billion. To return the economy to full employment, the central bank can ________ the overnight rate and ________ securities.
A)lower; sell
B)raise; sell
C)raise; buy
D)lower; buy
E)lower; not change its holdings of
Q2) When the Bank of Canada lowers the overnight loans rate, the Canadian interest rate differential ________ and the Canadian dollar ________ on the foreign exchange market.
A)rises; appreciates
B)rises; depreciates C)falls; appreciates D)falls; depreciates
E)falls; changes to equal the value of the U.S. dollar
To view all questions and flashcards with answers, click on the resource link above.
Chapter 31: International Trade Policy
Available Study Resources on Quizplus for this Chatper
126 Verified Questions
126 Flashcards
Source URL: https://quizplus.com/quiz/29869
Sample Questions
Q1) A country
A)imports those goods in which it has a comparative advantage.
B)exports those goods in which it has a comparative advantage.
C)imports goods produced in countries with lower wage rates.
D)exports goods produced by domestic industries with low wages relative to its trading partners.
E)B and D are correct.
Q2) Economists usually agree with which of the following arguments that favour protectionism?
A)the competition with cheap foreign labour defence
B)the job protection defence
C)the dumping defence
D)the infant-industry defence
E)none of the above. Economists generally agree that arguments in favor of protection are flawed.
To view all questions and flashcards with answers, click on the resource link above. Page 17