Exam 1: Economic Issues and Concepts

Consider the following list: a worker with training in video gaming technology,10 hectares of arable land in southern Ontario,a fishing trawler in Nova Scotia,an ice-cream truck at a park in Quebec.Each of these is an example of

The table below illustrates that,in one day,Tristan can produce either 12 fishing lures or mow 3 lawns,while Thomas can produce either 6 fishing lures or mow 6 lawns. TABLE 1-1 Refer to Table 1-1.If Tristan and Thomas want to maximize their joint output from one day of work,how should they specialize their production?

Chantal has a full-time job as a geological engineer and earns an annual after-tax salary of $85 000.She decides to leave her job for 6 months to scuba dive on the Great Barrier Reef in Australia,and incurs costs of $7500 for course equipment and certification,$2500 for airfare,and $12 000 for regular living expenses in Australia (equal to her living expenses at home).What is Chantal's opportunity cost for this 6-month,unpaid leave of absence?

An insight first fully developed by Adam Smith is that

The opportunity cost of going to college or university for four years is

Consider a production possibilities boundary that is drawn concave to the origin and shows the possible combinations of military goods and civilian goods that a country can produce.Suppose the country is currently at a point on the boundary.If the production of military goods is increased,the production of civilian goods will necessarily

Which of the following statements provides the best definition of economics?

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods-cotton and bananas. FIGURE 1-7 Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods-cotton and bananas,both measured in tonnes produced per year.If the economy moves from point C to point D,what is the opportunity cost of each extra tonne of bananas produced?

Suppose a bakeshop with 5 employees can produce both pies and cakes.In one day,if all resources are devoted to baking pies,the shop can produce 125 pies; if all resources are devoted to baking cakes,the shop can produce 50.What is the shop's opportunity cost of producing any one pie?

With regard to various economic systems,most economists agree that

The table below illustrates that,in one day,Tristan can produce either 12 fishing lures or mow 3 lawns,while Thomas can produce either 6 fishing lures or mow 6 lawns. TABLE 1-1 Refer to Table 1-1.What is Thomas's opportunity cost of producing one fishing lure?

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.For the government,the opportunity cost of one kilometre of highway repair is

Money facilitates trade and specialization by

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 latte is

FIGURE 1-5 Refer to Figure 1-5.Which production possibilities boundaries exhibit decreasing opportunity costs?

Consider the following factors of production: - a pharmaceutical research centre - a hairstylist's scissors - Google headquarters - a cloud computing system - a stapler at a checkout counter. Each of these is an example of

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.Which of the following statements best describes the shape of your budget line?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2 Refer to Figure 1-2.Which of the following combinations of textbooks and laptops is unaffordable,given the school board's budget of $500 000?

A point lying inside the production possibilities boundary is one at which

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2 Refer to Figure 1-2.For the school board,what is the opportunity cost of one additional textbook?