Exam 1: Economic Issues and Concepts

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7 -Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?

Most modern economies in the world today

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

If an economy exhibits the specialization of labour,we know that

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7 -Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Which of the following statements best describes the difference in opportunity costs that this economy faces at point A compared to point E?

Scarcity is likely to be

Katie and Hugh are producing pies and jars of pickles.Katie can produce either 200 jars of pickles or 100 pies per month.Hugh can produce either 800 jars of pickles or 200 pies per month.Which of the following statements is correct?

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7 -Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point A.What is the opportunity cost to this economy of increasing production of bananas by 100 tonnes?

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

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

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

The key decision makers in a market economy are

Income redistribution in a mixed economy

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 A vehicle?

In traditional economies,economic behaviour is

The famous economist who first described the division of labour was

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

Consider the following list: a worker with training in video gaming technology,10 hectares of arable land in southern Ontario,a fishing trawler in Nova Scotia,an ice -cream truck at a park in Quebec.Each of these is an example of

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

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