CAEC Social Studies Preparation Course: Economics and economic systems

1. Pytanie 1 z 19

   Which of these is part of a service industry?

   • ABanking
   • BMaking automobiles
   • CFishing
   • DMining potash
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   Odpowiedź: A. Banking

   Service industries include banking, retail, health care, education, transportation and tourism. Fishing and mining are natural resources; making cars is manufacturing.

2. Pytanie 2 z 19

   Which group of industries employs the most working Canadians?

   • ANatural resource industries
   • BManufacturing industries
   • CService industries
   • DFishing and forestry
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   Odpowiedź: C. Service industries

   More than 75% of working Canadians have jobs in service industries.

3. Pytanie 3 z 19

   Which country is Canada's largest trading partner?

   • AThe United Kingdom
   • BMexico
   • CChina
   • DThe United States
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   Odpowiedź: D. The United States

   The United States is Canada's largest trading partner, and most Canadian exports go there.

4. Pytanie 4 z 19

   Canada began free trade with the United States in 1988. In what year did Mexico join through the North American Free Trade Agreement (NAFTA)?

   • A1988
   • B1984
   • C2001
   • D1994
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   Odpowiedź: D. 1994

   Free trade with the U.S. began in 1988, and Mexico joined in 1994 through NAFTA.

5. Pytanie 5 z 19

   Every country has more wants than resources, so it must make choices. What is this problem called?

   • AInflation
   • BScarcity
   • CInterdependence
   • DRecession
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   Odpowiedź: B. Scarcity

   Scarcity means resources such as land, money, time and workers are limited, so people and governments must choose.

6. Pytanie 6 z 19

   Maria has $60. She can buy a concert ticket or a winter coat, but not both. She buys the coat. What is her opportunity cost?

   • AThe concert ticket
   • B$60 in cash
   • CNothing, because she needed the coat
   • DThe coat
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   Odpowiedź: A. The concert ticket

   Opportunity cost is the next-best choice you give up when you make a decision.

7. Pytanie 7 z 19

   A cold winter makes many people want to buy space heaters, but stores have the same number in stock. What will most likely happen to the price?

   • AIt will fall
   • BIt will rise
   • CIt will stay exactly the same
   • DStores will stop selling heaters
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   Odpowiedź: B. It will rise

   When demand goes up and supply stays the same, prices tend to rise.

8. Pytanie 8 z 19

   Prairie farmers have a record wheat harvest, but demand for wheat does not change. What will most likely happen to the price of wheat?

   • AIt will rise
   • BIt will fall
   • CIt will double
   • DThe government will set it at zero
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   Odpowiedź: B. It will fall

   When supply goes up and demand stays the same, prices tend to fall.

9. Pytanie 9 z 19

   Which best describes Canada's economy?

   • AThe government owns every business, decides what is made and sets every single price
   • BMostly private businesses and markets, with governments providing services and rules
   • CBusinesses make all decisions and governments play no role
   • DPeople only trade goods with no money involved
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   Odpowiedź: B. Mostly private businesses and markets, with governments providing services and rules

   Canada has a market economy with a large role for government (often called a mixed economy). In a command economy the government decides what is made.

10. Pytanie 10 z 19

    An Inuit family hunts caribou and fishes to feed itself and shares extra food with relatives. What kind of economic activity is this?

    • ATraditional or subsistence activity
    • BStock market trading
    • CA service industry
    • DManufacturing for export
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    Odpowiedź: A. Traditional or subsistence activity

    Subsistence activity meets a family's or community's own needs. Hunting, fishing and trapping remain important in the North.

11. Pytanie 11 z 19

    What is the main job of a bank in the economy?

    • ASetting the prices of groceries
    • BCollecting income tax from workers and businesses for the government
    • CHolding people's deposits and lending money with interest
    • DPrinting the country's money
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    Odpowiedź: C. Holding people's deposits and lending money with interest

    Financial institutions connect savers and borrowers. The Bank of Canada, not ordinary banks, is the central bank.

12. Pytanie 12 z 19

    What does the Consumer Price Index (CPI) measure?

    • AHow much money banks have in their vaults
    • BPrice changes for a fixed basket of goods and services
    • CThe total value of everything that a country exports in one year
    • DThe number of people who have jobs
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    Odpowiedź: B. Price changes for a fixed basket of goods and services

    Statistics Canada uses the CPI to track price changes experienced by Canadian consumers.

13. Pytanie 13 z 19

    What inflation rate does the Bank of Canada aim for?

    • A10%, to make wages grow quickly
    • B5%, the midpoint of a 4% to 6% range
    • C2%, the midpoint of a 1% to 3% range
    • D0%, with no price increases at all
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    Odpowiedź: C. 2%, the midpoint of a 1% to 3% range

    The Bank of Canada aims to keep inflation at the 2% midpoint of a 1–3% target range.

14. Pytanie 14 z 19

    Inflation is rising too fast, so the Bank of Canada raises its policy interest rate. What is the most likely result?

    • ALoans cost more, so people and businesses spend less and inflation slows
    • BBanks stop paying any interest on savings
    • CLoans cost less, so people borrow and spend more, and prices rise even faster
    • DAll prices are frozen by law
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    Odpowiedź: A. Loans cost more, so people and businesses spend less and inflation slows

    A higher policy rate makes borrowing more expensive, which cools spending and helps bring inflation down.

15. Pytanie 15 z 19

    In a made-up example, a price index rises from 150 to 156 in one year. By what percent did prices rise?

    • A4%
    • B15.6%
    • C3.8%
    • D6%
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    Odpowiedź: A. 4%

    (156 − 150) ÷ 150 = 0.04, which is 4%. Using 156 as the base gives about 3.8%, which is a common mistake.

16. Pytanie 16 z 19

    Sam's wage rose by 2% this year, but prices rose by 4%. What happened to Sam's buying power?

    • AIt doubled
    • BIt went up
    • CIt stayed the same
    • DIt went down
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    Odpowiedź: D. It went down

    When prices rise faster than wages, each dollar earned buys less, so buying power falls.

17. Pytanie 17 z 19

    The table shows unemployment rates in four made-up regions. How many percentage points higher is the highest rate than the lowest?

    Region	Unemployment rate
    Region A	5.1%
    Region B	8.7%
    Region C	6.4%
    Region D	11.2%

    • A3.6
    • B6.1
    • C16.3
    • D4.8
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    Odpowiedź: B. 6.1

    The highest rate is 11.2% (Region D) and the lowest is 5.1% (Region A): 11.2 − 5.1 = 6.1 percentage points.

18. Pytanie 18 z 19

    The table compares two made-up regions. Which statement is supported by the data?

    Measure	Region X	Region Y
    Median household income	$92,000	$61,000
    Life expectancy	82 years	76 years
    Adults with high school diploma	91%	78%

    • ARegion X has higher incomes and better health results than Region Y
    • BRegion Y has a better quality of life than Region X on every measure
    • CBoth regions have the same life expectancy
    • DRegion X has more people than Region Y
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    Odpowiedź: A. Region X has higher incomes and better health results than Region Y

    Region X has a higher median income, a longer life expectancy and more high school graduates. The table gives no population numbers.

19. Pytanie 19 z 19

    A large drop in U.S. home building cuts demand for Canadian lumber. Which group in Canada is most likely to be hurt first?

    • AFishers in Nova Scotia
    • BForestry workers in British Columbia
    • CBank tellers in Toronto
    • DDiamond miners in the Northwest Territories
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    Odpowiedź: B. Forestry workers in British Columbia

    This shows economic interdependence: most Canadian exports go to the U.S., and B.C. has the most valuable forestry industry in Canada.

Klawiatura: 1–4, aby odpowiedzieć, Enter – następne pytanie.

Prawdziwy egzamin: 55% on each CAEC test