Exam 1: Economic Issues and Concepts

Suppose there are only two goods produced in our economy-snowplows and helicopters.If there is always a two-for-one tradeoff between the production of these two goods (in terms of opportunity cost),then the production possibilities boundary between snowplows and helicopters is

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.What is the price of a laptop computer in this example?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.At point B,

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.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?

Most modern economies in the world today

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.If the government chooses to allocate all $200 million to highway repair,we can say that

Which of the following results from the introduction of money for use in transactions?

Society's resources are often divided into broad categories.They are

Consider the production possibilities boundary (PPB)of an economy.Economic growth is illustrated by

In a modern mixed economy the government ensures that key institutions are in place to facilitate voluntary transactions between economic agents.These key institutions are

When discussing types of economic systems,the Canadian economy is best described as

Which countries have mostly public ownership of resources?

A basic underlying point in economics is that

Which of the following statements best describes the economic concept of scarcity?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 Refer to Figure 1-4.A shift of the production possibilities boundary from PPB₁ to PPB₂ implies

The famous economist who first described the division of labour was