Exam 1: Economic Issues and Concepts

The table below shows that, in one day, Claire can complete either 3 chemistry or 2 biology lab reports, while Sam can complete either 4 chemistry or 3 biology lab reports. Chemistry L ab Reports Biology Lab Reports Claire 3 2 Sam 4 3 TABLE 1- 2 -Refer to Table 1- 2. What is Sam's opportunity cost of completing 3 biology lab reports?

The circular flow of income illustrates

The use of money for transactions

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.

It has been observed that university enrollment in Canada is higher during periods of high unemployment. A possible explanation for this is that

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. Growth in the country's productive capacity is illustrated by

The opportunity cost of going to college or university for four years is

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

The famous economist who developed the idea of the division of labour was

Suppose Andrea has a job that pays her $25 000 per year (after taxes). She is considering quitting her job and going to university full time for four years. Tuition fees and books will cost $12 000 per year. Living expenses will cost $10 000 per year. What is the opportunity cost of Andrea's four- year university degree?

Specialization and trade

The Canadian economic system can best be described as

With a budget of $200 million, the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1- 1 -Refer to Figure 1- 1. Which of the following combinations of kilometres of highway repair and helicopters is unaffordable, given the government's budget of $200 million.

Which of the following has most contributed to the globalization of the economy?

The key decision makers in a market economy are:

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. Which of the following statements about Tristan's and Thomas's opportunity costs is correct?

Comparison of economic systems indicates that

Economics is generally NOT concerned with

With regard to various economic systems, most economists agree that

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 producing the combination of goods indicated at point F, it can produce more consumer goods by moving to one of the points