Exam 1: Economic Issues and Concepts

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 4 -Refer to Figure 1- 4.If Country X is currently producing at point A,it could move to point B if

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

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. -In traditional economies,economic behaviour is

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.For the school board,what is the opportunity cost of one additional textbook?

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

FIGURE 1- 1 With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. -Karl Marx argued that

The opportunity cost of producing good A is defined to be

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 -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

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.If Tristan and Thomas want to maximize their joint output from one day of work,how should they specialize their production?

Figure 1- 2With 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.Suppose the school board chooses to allocate all $500 000 to the purchase of laptop computers.What is the opportunity cost of this entire purchase?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 4 -Refer to Figure 1- 4.If Country X,constrained by the production possibilities boundary PPB1,is producing the combination of goods indicated at point F,it can produce more consumer goods by moving to one of the points

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 the current Canadian economy,the majority of choices on how resources are allocated are made by

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

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. -Suppose Andrea has a job that pays her $25 000 per year (after taxes).She is considering quitting her job and going to university full time for four years.Tuition fees and books will cost $12 000 per year.Living expenses in either situation will cost $10 000 per year.What is the opportunity cost of Andrea's four- year university degree?

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

Which of the following best describes the study of economics?

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

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her. FIGURE 1- 3 -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?

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. -The key decision makers in a market economy are

If there is always a three- for- one trade- off between the production of goods X and Y,then the production possibilities boundary for X and Y is