Exam 1: Economic Issues and Concepts

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her in each month. FIGURE 1-3 Refer to Figure 1-3.For Madeleine,the opportunity cost of one regular coffee is

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her in each month. FIGURE 1-3 Refer to Figure 1-3.If Madeleine chooses to allocate all $100 to buying lattes,we can say that her opportunity cost in one month is

Behaviour in free-market economies is

On a diagram of a production possibilities boundary,the concept of choice is illustrated by the

Trade did not take place before the introduction of money.

It has been observed that university enrollment in Canada is higher during periods of high unemployment.A possible explanation for this is that

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs to purchase,and Model B,which costs $50 000 to purchase.You have a budget of for the purchase of new vehicles.If you were to draw a budget line to illustrate the choice between Model A and Model B vehicles,with A on the vertical axis and B on the horizontal axis,the vertical intercept and the horizontal intercept,respectively,would be

FIGURE 1-5 Refer to Figure 1-5.Which production possibilities boundaries are consistent with increasing opportunity costs?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.Growth in the country's productive capacity is illustrated by

In the Canadian economy,most decisions regarding resource allocation are made by

Which of the following statements about specialization and trade are correct?

The opportunity cost of producing good A is defined to be

Scarcity implies that choices must be made.Making choices implies

Suppose one unit of labour can produce either 5 wool sweaters or 2 pineapples.What is the opportunity cost of producing one wool sweater?

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her in each month. FIGURE 1-3 Refer to Figure 1-3.What is the price of a coffee latte in this example?

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1 Refer to Figure 1-1.Which of the following combinations of kilometres of highway repair and helicopters is unaffordable,given the government's budget of $200 million?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.If Country X were producing at point C,

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her in each month. FIGURE 1-3 Refer to Figure 1-3.Which of the following combinations of regular coffees and lattes is affordable over the one-month period,given Madeleine's budget?

Economists usually assume that individuals and firms,respectively,maximize

Specialization of labour led to greater efficiency in the allocation of resources because of