Exam 1: Economic Issues and Concepts

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 table below illustrates that, in one day, Tristan can produce either 12 fishing lures or mow 3 lawns, while Thomas can produce either 6 fishing lures or mow 6 lawns. Fishing lures Mowed lawns Tristan 12 3 Thomas 6 6 TABLE 1- 1 -Refer to Table 1- 1. What is Thomas's opportunity cost of producing one mowed lawn?

Money facilitates trade and specialization by

The Canadian economy is best described as

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

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. A shift of the production possibilities boundary from PPB1 to PPB2 implies

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

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

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. 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

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. If Country X were producing at point C,

A barter system of exchange

One of the "real" flows in the circular flow of income is

Karl Marx argued that

Economists usually assume that households and firms, respectively, maximize

Income redistribution in a mixed economy

A modern economy like Canada's is largely organized by

Because resources are scarce, individuals are required to

In a pure market economy, the role of government is limited to provision of : i. a basic legal and institutional structure. ii. intervention in the allocation of resources in some areas of the economy. iii. redistribution of income. iv. stabilization of economic conditions generally. Which of the above points is true?

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. Currently, each divide their time equally between production of the two goods per month -- Katie produces 100 jars of pickles and 50 pies while Hugh produces 400 jars of pickles and 100 pies. In order for Katie and Hugh to jointly gain from specialization, which of the following changes should take place?

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