Exam 1: Economic Issues and Concepts

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 -Refer to Figure 1- 6.If the government's spending on health and education is given by point B,a move to point A must involve

A farmer selling tomatoes and corn at a roadside,and a currency trader in Hong Kong,are each participating in

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 -Money facilitates trade and specialization by

With reference to the circular flow of income,how is the allocation of resources largely decided?

Which of the following has most contributed to the globalization of the economy?

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

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

Consider a production possibilities boundary showing the possible combinations of military goods and civilian goods that a country can produce.Suppose that 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?

An insight first fully developed by Adam Smith is that

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 4 -Comparison of economic systems indicates 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 -In practice,the term "centrally planned economy" refers to an economy in which

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

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 4 -Refer to Figure 1- 4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes.A movement along the production possibilities boundary could be caused by

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 -Refer to Figure 1- 6.Suppose the government's current spending is shown by point D.In this case,

FIGURE 1- 1 With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. -Refer to Figure 1- 1.If the government chooses to allocate all $200 million to highway repair,we can say that

Figure 1- 2 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. -Refer to Figure 1- 2.What is the price of a textbook in this example?

The famous economist who first described the division of labour was

Which of the following statements best describes a barter system of exchange?