Exam 1: Economic Issues and Concepts

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.Which of the following statements about Claire's and Sam's opportunity costs is correct?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 4 -If an economy exhibits the specialization of labour,we know 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 laptop computer in this example?

Which countries have mostly public ownership of resources?

Which of the following represents a typical "real" flow (as opposed to a financial flow)in the circular flow of income?

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 currently producing at point A,it can produce more capital goods by moving to point

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her. FIGURE 1- 3 -Income redistribution in a mixed economy

A basic underlying point in economics is 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. Fishing Lures Mowed Lawns Tristan 12 3 Thomas 6 6 TABLE 1- 1 -A straight- line production possibilities boundary differs from a concave boundary in which of the following ways?

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 2 biology lab reports?

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. -Economists usually assume that households and firms,respectively,maximize

If a country's production possibilities boundary is drawn as a straight (downward- sloping)line it indicates

A small landscaping firm purchases a tractor that,in one day,is capable of drilling 60 fence- post holes or removing 12 tree stumps (or some intermediate combination).For this landscaper,what is the opportunity cost of removing one extra tree stump?

Which of the following is illustrated by the circular flow of income?

Because resources are scarce,individuals are required to

FIGURE 1- 5 -Refer to Figure 1- 5.Suppose that the relevant production possibilities boundary is the one labelled B.This boundary implies that

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her. FIGURE 1- 3 -Refer to Figure 1- 3.For Madeleine,the opportunity cost of one latte is

Scarcity arises from limited resources.For this reason,all economic choices involve

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.For the government,the opportunity cost of one search and rescue helicopter is

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.The levels of health and education expenditures at point C