Exam 1: Economic Issues and Concepts

Suppose fire destroy many millions of hectares of valuable Canadian forest. The effect on theCanadian economy would be best illustrated by _ the production possibilities boundary.

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

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

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,

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. Inorder for Katie and Hugh to jointly gain from specialization, which of the following changes should take place?

Income redistribution in a mixed economy

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

Money facilitates trade and specialization by

The circular flow of income illustrates

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. Suppose the government's current spending is shown by point D. In this case,

The concept of scarcity in economics usually refers to a condition

Complex economic plans for many economic sectors are most associated with a

A basic underlying point in economics is that

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

A country's production possibilities boundary shows that

Behaviour in free-market economies is

Economics is generally NOT concerned with

The Canadian economy is best described as

Because resources are scarce, individuals are required to

An economic system that relies primarily upon custom and habit in economic decision making is a