Question 1

What are the key economic concepts that pertain to interactions among individuals?

Accepted Answer

The three key economic concepts that pertain to interactions among individuals are: (1) individuals can make themselves better off through specialization and trade; (2) markets usually do a good job of coordinating decisions among individuals, groups, and nations; and (3) government can sometimes improve the coordinating function of markets.

Question 2

What were the approximate average incomes of Canadians and Pakistanis in 2015?

Accepted Answer

$47250 and $1440 ($US at market exchange rates).

Question 3

Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or peanuts with the existing level of resources and technology.

Accepted Answer

(a) Show a point U that would indicate unemployed resources in Sluggerville.
(b) Draw a new curve B that illustrates the results of improved technology in the production of bats, but no change in the production efficiency of peanuts.
(c) Show a point G that would indicate a point that is currently unattainable in the production of peanuts and bats in Sluggerville.

Question 4

What are the key economic concepts that pertain to the economy as a whole?

Accepted Answer

The three key economic concepts are: (1)

Question 5

Why do economists use graphs in their work?

Accepted Answer

Economists use graphs to illustrate the

Question 6

There are two sets of x, y points on a straight line in a two-variable graph with y on the vertical axis and x on the horizontal axis.What would be the linear equation for the line if one set of points was (0, 12) and the other set was (12, 36)?

Accepted Answer

The linear

Question 7

"Bad theories are abstract and therefore unrealistic; good theories are fully realistic and fit all the facts".Evaluate.

Accepted Answer

While some abstract theories are bad, th

Question 8

What is the economic rationale for the law of increasing costs?

Accepted Answer

Economic resources are not completely ad

Question 9

What variables are used to determine the individual's budget line?

Accepted Answer

Income and the prices of the t

Question 10

Define what is meant by a positive or direct relationship between two variables and describe the line graph depicting such a relationship.

Accepted Answer

A positive or direct relationship betwee

Question 11

The value of the vertical intercept is $100 and the slope is 0.8 in a linear equation for consumption (measured on the vertical axis) and disposable income (measured on the horizontal axis).If disposable income is $1000, what is consumption? State the linear equation and show how you found the answer.

Accepted Answer

The linear equation is consump

Question 12

Show graphically on the below graph the expected relationship between investment spending and interest rates.Put investment expenditures on the horizontal axis and the rate of interest on the vertical axis; connect the points and label the curve "Investment demand".Describe this relationship between the rate of interest and investment expenditures.Describe the slope of the investment curve.

Accepted Answer

The relationship between the i

Question 13

Distinguish between microeconomics and macroeconomics.

Accepted Answer

Microeconomics deals with individual eco

Question 14

Below are six statements.Identify whether each is a positive or normative statement.(a) The minimum wage should be increased so low-income workers can earn a living wage.(b) The unemployment rate is too high and should be reduced through government actions.(c) The rate of inflation was about 2 percent last year, an all time low for the past decade.(d) The government should take action to break up the monopoly power of Air Canada.(e) Interest rates should be lower in Canada so that people can afford to build a home.(f) The Federal government achieved a budget surplus for the first time in thirty years.

Accepted Answer

(a), (b), (d) and (e

Question 15

What do economists mean when they say that "there is no free lunch"? Give another example to which this statement applies.

Accepted Answer

Anything of any value that is offered fo

Question 16

Explain how increasing opportunity costs are reflected graphically in the production possibilities curve.How would the curve appear if opportunity costs were constant?

Accepted Answer

The production possibilities curve illus

Question 17

List the four resource categories and give a brief description of each.

Accepted Answer

(a) Land: natural resources including la

Question 18

What four basic functions does the entrepreneur perform for the economy?

Accepted Answer

First, the entrepreneur takes the initia

Question 19

The distinguished economist Kenneth Boulding stated: "Theories without facts may be barren, but facts without theories are meaningless".Explain what he meant.

Accepted Answer

Economic theories are generalizations ab

Question 20

Differentiate between the independent and dependent variables in an economic relationship.

Accepted Answer

The dependent variable changes as a cons

Exam 1: A: - Limits, Alternatives, and Choices

What are the key economic concepts that pertain to interactions among individuals?

What were the approximate average incomes of Canadians and Pakistanis in 2015?

Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or peanuts with the existing level of resources and technology.

What are the key economic concepts that pertain to the economy as a whole?

Why do economists use graphs in their work?

There are two sets of x, y points on a straight line in a two-variable graph with y on the vertical axis and x on the horizontal axis.What would be the linear equation for the line if one set of points was (0, 12) and the other set was (12, 36)?

"Bad theories are abstract and therefore unrealistic; good theories are fully realistic and fit all the facts".Evaluate.

What is the economic rationale for the law of increasing costs?

What variables are used to determine the individual's budget line?

Define what is meant by a positive or direct relationship between two variables and describe the line graph depicting such a relationship.

Distinguish between microeconomics and macroeconomics.

What do economists mean when they say that "there is no free lunch"? Give another example to which this statement applies.

Explain how increasing opportunity costs are reflected graphically in the production possibilities curve.How would the curve appear if opportunity costs were constant?

List the four resource categories and give a brief description of each.

What four basic functions does the entrepreneur perform for the economy?

The distinguished economist Kenneth Boulding stated: "Theories without facts may be barren, but facts without theories are meaningless".Explain what he meant.

Differentiate between the independent and dependent variables in an economic relationship.

B: Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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