Exam 1: Economic Issues and Concepts

Economists usually assume that households

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

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

Economists usually assume that households and firms, respectively, maximize

Suppose drought destroys many millions of acres of valuable Canadian farmland. The effect on the Canadian economy would be to move

During the nineteenth and early twentieth centuries, millions of people immigrated to western Canada. The effect on the Canadian economy was to

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

A modern economy like Canada's is largely organized by

Economics is the study of

An economic system that relies primarily upon custom and habit in economic decision making is a

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

A basic underlying point in economics is that

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

The key decision makers in a market economy are:

Income redistribution in a mixed economy

Suppose a scientific breakthrough leads to a lower- cost method of producing battery- operated cars in Canada. The likely effect would be to move Canada's current production

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

The Canadian economy is best described as

Consider the production possibilities boundary (PPB)of an economy. Economic growth is illustrated by

The Canadian economic system can best be described as