Exam 1: Economic Issues and Concepts

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.The production possibilities boundaries are drawn concave to the origin.What does this shape of the PPB demonstrate?

Economics can best be described as

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. TABLE 1-1 -Refer to Table 1-1.What is Thomas's opportunity cost of producing one fishing lure?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.An outward shift of the production possibilities boundary from to indicates which of the following?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.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

Chantal has a full-time job as a geological engineer and earns an annual after-tax salary of $85 000.She decides to leave her job for 6 months to scuba dive on the Great Barrier Reef in Australia,and incurs costs of $7500 for course equipment and certification,$2500 for airfare,and $12 000 for regular living expenses in Australia (equal to her living expenses at home).What is Chantal's opportunity cost for this 6-month,unpaid leave of absence?

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.Which of the following statements is correct?

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. TABLE 1-1 -Refer to Table 1-1.What is Tristan's opportunity cost of producing one mowed lawn?

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.A shift of the production possibilities boundary from PPB₁ to PPB₂ implies

Scarcity is likely to be

Suppose there are only three alternatives to attending a "free" social event: read a novel (you value this at $10),go to work (you could earn $20),or watch videos with some friends (you value this at $25).The opportunity cost of attending the social event is

Madeleine allows herself $100 per month for purchasing coffee.The diagram below illustrates the choices available to her in each month. FIGURE 1-3 -Refer to Figure 1-3.If Madeleine chooses to allocate all $100 to buying lattes,we can say that her opportunity cost in one month 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 1-6 -Refer to Figure 1-6.Suppose the government's current spending is shown by point D.In this case,

Which of the following represents a typical "real" flow (as opposed to a financial flow)in the circular flow of income?

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?

Consider Canada's production possibilities boundary.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

With reference to the circular flow of income,how is the allocation of resources largely decided?

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. TABLE 1-1 -Refer to Table 1-1.What is Tristan's opportunity cost of producing one fishing lure?

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

Which of the point(s)below is (are)true of money? 1)Money eliminated the need for barter. 2)Money allowed for specialization of labour and expansion of trade. 3)Money facilitated the development of a market economy. 4)Trade did not take place before the introduction of money.