Exam 1: B: Limits, Alternatives, and Choices

Production possibilities (alternatives) Refer to the above table.A total output of 3 units of capital goods and 4 units of consumer goods:

If an economy is operating inside its production possibilities curve for consumer goods and capital goods, this means that it:

The fact that the slope of the production possibilities curve becomes steeper as we move down along the curve indicates that:

In line (1) on the above graph, the variables x and y are:

If the equation y = 15 - 4x was plotted, the:

The above data indicates that:

Production possibilities tables for two countries, North Cantina and South Cantina: North Cantina Production possibilities (alternatives) South Cantina Production possibilities (alternatives) Refer to the above tables.The opportunity cost of the fifth unit of capital goods:

A point on the frontier of the production possibilities curve is:

Specialization and trade are beneficial to society because:

Assume a household would consume $100 worth of goods and services per week if its weekly income were zero and would spend an additional $80 per week for each $100 of additional income.Letting C represent consumption and Y represent income, the equation which summarizes this relationship is:

Refer to the above diagram.Which line(s) show(s) a positive relationship between x and y?

The vertical intercept of line (2) on the above graph is:

Macroeconomics explains the behaviour of individual households and business firms; microeconomics is concerned with the behaviour of aggregates or the economy as a whole.

Which of the following will not shift a nation's production possibilities curve?

Which of the following is a normative statement?

A positive statement is concerned with:

Economics involves "marginal analysis" because:

The global financial crisis that spread to Canada in late 2008 has been dubbed:

In line (3) on the above graph, variables x and y are:

Production possibilities (alternatives) Refer to the above table.For this economy to produce a total output of 3 units of capital goods and 13 units of consumer goods it must: