Podcast
Questions and Answers
Which of the following best represents an item classified as capital?
Which of the following best represents an item classified as capital?
- a carpentry lesson
- an oil rig in the Atlantic Ocean
- a computer (correct)
- natural gas
What would an economist classify as an example of labor?
What would an economist classify as an example of labor?
- a carpenter's hammer
- a singer's voice (correct)
- a factory building
- a car assembly line
Which of the following options is considered land in economic terms?
Which of the following options is considered land in economic terms?
- rich agricultural soil in Saskatchewan (correct)
- a high school classroom
- a collection of old automobiles
- a donut production facility
Which of the following is not classified as capital?
Which of the following is not classified as capital?
Which of the following would economists recognize as a factor of production?
Which of the following would economists recognize as a factor of production?
What type of question does the museum address?
What type of question does the museum address?
How do different factors of production earn their income?
How do different factors of production earn their income?
The disparity between wealthy homeowners and the homeless illustrates which economic question?
The disparity between wealthy homeowners and the homeless illustrates which economic question?
What does the income difference between a hockey star and a teacher exemplify?
What does the income difference between a hockey star and a teacher exemplify?
What encapsulates the essence of entrepreneurship?
What encapsulates the essence of entrepreneurship?
What economic question does Sue's income compared to Chris's illustrate?
What economic question does Sue's income compared to Chris's illustrate?
What economic question is raised by the ownership of luxury cars by a star athlete versus public transportation use?
What economic question is raised by the ownership of luxury cars by a star athlete versus public transportation use?
How is financial capital best defined?
How is financial capital best defined?
Which statements describe a positive assertion?
Which statements describe a positive assertion?
Which option correctly identifies the true statement regarding the graphs in Figure 1A.1.1?
Which option correctly identifies the true statement regarding the graphs in Figure 1A.1.1?
Which graphs in Figure 1A.1.1 illustrate a scatter diagram?
Which graphs in Figure 1A.1.1 illustrate a scatter diagram?
Which of the following statements is true about the time-series graphs in Figure 1A.1.1?
Which of the following statements is true about the time-series graphs in Figure 1A.1.1?
How did variable Y behave between 2004 and 2005 as per Figure 1A.1.2?
How did variable Y behave between 2004 and 2005 as per Figure 1A.1.2?
Which characteristic best describes the behavior of variable X over time as illustrated in Figure 1A.1.3?
Which characteristic best describes the behavior of variable X over time as illustrated in Figure 1A.1.3?
What describes the primary reason for increased air travel since September 11?
What describes the primary reason for increased air travel since September 11?
What is the implication of the statement regarding drunk drivers?
What is the implication of the statement regarding drunk drivers?
The most effective way to depict data on average grades for economics students across different classes at a specific time is through a
The most effective way to depict data on average grades for economics students across different classes at a specific time is through a
In a time-series graph, the x-axis typically measures ________ and the y-axis measures ________.
In a time-series graph, the x-axis typically measures ________ and the y-axis measures ________.
The general tendency for a variable to consistently move in one direction is referred to as a
The general tendency for a variable to consistently move in one direction is referred to as a
What type of graph best illustrates the behavior of a single economic variable over time?
What type of graph best illustrates the behavior of a single economic variable over time?
Which of the following types of graphs can potentially mislead the audience?
Which of the following types of graphs can potentially mislead the audience?
A cross-section graph displays values of a variable for
A cross-section graph displays values of a variable for
Which of the following is NOT typically measured in a time-series graph?
Which of the following is NOT typically measured in a time-series graph?
Figure 1A.1.5 illustrates examples of which type of graph?
Figure 1A.1.5 illustrates examples of which type of graph?
Which graph would represent the relationship where higher levels of interest rates lead to lower levels of house sales?
Which graph would represent the relationship where higher levels of interest rates lead to lower levels of house sales?
If the theory predicted that an increase in wages results in a higher supply of labor, which graph should be selected to illustrate this relationship?
If the theory predicted that an increase in wages results in a higher supply of labor, which graph should be selected to illustrate this relationship?
Which of the following graphs displays a positive correlation between two variables?
Which of the following graphs displays a positive correlation between two variables?
What is depicted by a negative correlation between two variables in one of the graphs?
What is depicted by a negative correlation between two variables in one of the graphs?
Which graph would adequately illustrate the relationship where profits are low at low and high production levels but high at medium production levels?
Which graph would adequately illustrate the relationship where profits are low at low and high production levels but high at medium production levels?
Which curve in the graph displays no correlation between unemployment and inflation?
Which curve in the graph displays no correlation between unemployment and inflation?
If you needed to represent a theory where inflation decreases as unemployment decreases, which graph would be suitable?
If you needed to represent a theory where inflation decreases as unemployment decreases, which graph would be suitable?
Which statement best describes the outcome of increasing profits with a specified range of production?
Which statement best describes the outcome of increasing profits with a specified range of production?
Study Notes
The Two Big Economic Questions
- The "how" question is about the factors and methods of production.
- In an economy, land, labor, capital, and entrepreneurship are factors of production.
- Land earns rent; labor earns wages, capital earns interest, and entrepreneurship earns profit.
- The "for whom" question addresses the distribution of goods and services.
- The “for whom” question highlights the issue of inequality in the distribution of income and wealth.
- Financial capital refers to money, stocks, and bonds, which are used to fund businesses and generate income.
Economics as Social Science and Policy Tool
- Positive statements are objective and can be tested, while normative statements involve value judgments.
- The study of economics involves both positive and normative statements.
- Economics can be used to help make policy decisions, but it is not a perfect tool for predicting the future.
Graphing Data
- Graphs are a powerful tool for visualizing economic data.
- Time-series graphs show the value of a variable over time.
- Cross-section graphs show the values of a variable for different groups at a point in time.
- Scatter diagrams show the relationship between two variables.
- A trend is the general tendency for a variable to move in one direction.
- Graphs can be misleading if they are not presented accurately or interpreted correctly.
Graphs Used in Economic Models
- A positive relationship between two variables means that they move in the same direction.
- A negative relationship between variables means that they move in opposite directions.
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Description
This quiz covers fundamental economic concepts including the two big economic questions of production methods and distribution. It also discusses the role of economics as a social science and policy tool, along with the importance of graphing data for analysis. Test your understanding of these essential topics in economics.
