Exam 1: Economic Issues and Concepts

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs $30 000 to purchase,and Model B,which costs $50 000 to purchase.You have a budget of $300 000 for the purchase of new vehicles.What is the opportunity cost of one Model B vehicle?

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

With regard to various economic systems,most economists agree that

Karl Marx argued that

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

A straight-line production possibilities boundary differs from a concave boundary in which of the following ways?

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?

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

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

On a diagram of a production possibilities boundary,the concept of opportunity cost is illustrated by the

In recent years,several large Canadian-owned mining and resource companies have been sold to foreign owners.The immediate effect on Canadaʹs production possibilities boundary is

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

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

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

In mixed economies,economic behaviour is

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

Which of the following statements provides the best definition of economics?

A move from inside the production possibilities boundary to the boundary itself could be caused by

Many economies in central and Eastern Europe,including the countries of the former Soviet Union,are still in the process of moving from a command economy to a market economy.In the first years of this transition,most of these countries experienced sharp drops in output and reductions in living standards.Economists generally see this as

Societyʹs resources are often divided into broad categories.They are