Exam 1: Economic Issues and Concepts

Suppose drought destroys many millions of acres of valuable Canadian farmland.The effect on the Canadian economy would be to move

The downward- sloping line in the diagram below shows the combinations of health care and education expenditures that the government can afford with a given amount of tax revenue. FIGURE 1- 6 -Behaviour in free- market economies is

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

FIGURE 1- 5 ) -Suppose that 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 cake?

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

Suppose that one unit of labour can produce either 5 units of wool or 2 pineapples.What is the opportunity cost of producing 1 pineapple?

A greater specialization of labour leads to which of the following major results?

In command economies,economic behaviour is

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

The table below shows that,in one day,Claire can complete either 3 chemistry or 2 biology lab reports,while Sam can complete either 4 chemistry or 3 biology lab reports. Chemistry Lab Reports Biology Lab Rep orts Claire 3 2 Sam 4 3 TABLE 1- 2 -Refer to Table 1- 2.What is Sam's opportunity cost of completing 1 chemistry lab report?

The table below shows that,in one day,Claire can complete either 3 chemistry or 2 biology lab reports,while Sam can complete either 4 chemistry or 3 biology lab reports. Chemistry Lab Reports Biology Lab Rep orts Claire 3 2 Sam 4 3 TABLE 1- 2 -Which of the following results from the introduction of money for use in transactions?

FIGURE 1- 1 With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. -A modern economy like Canada's is largely organized by

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

Which of the following statements best describes the underlying feature in most economic problems?

A country's production possibilities boundary shows that

The table below shows that,in one day,Claire can complete either 3 chemistry or 2 biology lab reports,while Sam can complete either 4 chemistry or 3 biology lab reports. Chemistry Lab Reports Biology Lab Rep orts Claire 3 2 Sam 4 3 TABLE 1- 2 -Refer to Table 1- 2.What is Claire's opportunity cost of completing 1 chemistry lab report?

In general,which of the following statements is an accurate description of economists' assumptions about households? Households

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. Fishing Lures M owed Larns Tristan 12 3 Thomas 6 6 TABLE 1- 1 -Refer to Table 1- 1.What is Tristan's opportunity cost of producing one fishing lure?

During economic recessions,the opportunity cost of going to university because the wages a student can expect to earn working in the best alternative .

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. Fishing Lures Mowed Lawns Tristan 12 3 Thomas 6 6 TABLE 1- 1 -Refer to Table 1- 1.Which of the following statements about Tristan's and Thomas's opportunity costs is correct?