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 2 biology lab reports?

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 1 chemistry lab report?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1- 3 -Refer to Figure 1- 3. That the production possibilities boundaries are drawn concave to the origin reflects the

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

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 Tristan's opportunity cost of producing one fishing lure?

Economics can best be described as

Behaviour in free- market economies is

The downward- sloping line in the diagram below shows the combinations of health care and education expenditures that the government can afford with a given amount of tax revenue. FIGURE 1- 5 -Refer to Figure 1- 5. The levels of health and education expenditures at point C

Which of the following statements best describes the underlying feature in most economic problems?

In command economies, economic behaviour is

In mixed economies, economic behaviour is

In the current Canadian economy, the majority of choices on how resources are allocated are made by

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

In practice, the term "centrally planned economy" refers to an economy in which

Economists usually assume that households

An insight first fully developed by Adam Smith is that

Suppose there are only two goods produced in our economy-snowplows and helicopters. If there is always a two- for- one tradeoff between the production of these two goods (in terms of opportunity cost), then the production possibilities boundary between snowplows and helicopters is

In the circular flow of income, the allocation of resources is largely decided by

Specialization of labour led to greater efficiency in the allocation of resources because of

If some income earned by households is not spent on output, or if some income earned by firms is not spent on factor services, the circular flow of income will