Exam 1: Economic Issues and Concepts

Consider Canada's production possibilities boundary.Suppose fire destroys many millions of hectares of valuable Canadian forest.The effect on the Canadian economy would be best illustrated by ________ the production possibilities boundary.

Most modern economies in the world today

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

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

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs $30 000 to purchase,and Model B,which costs $50 000 to purchase.You have a budget of $300 000 for the purchase of new vehicles.What is the opportunity cost of one Model A vehicle?

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

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.If the government chooses to allocate all $200 million to highway repair,we can say that

Figure 1-7 shows the production possibilities boundary for an economy that produces two goods - cotton and bananas. FIGURE 1-7 -Refer to Figure 1-7.A production possibilities boundary is shown for an economy that produces two goods - cotton and bananas,both measured in tonnes produced per year.Suppose the economy is currently producing at point D.What is the opportunity cost of increasing production of bananas by 100 tonnes?

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2 -Refer to Figure 1-2.Which of the following combinations of textbooks and laptops is unaffordable,given the school board's budget of $500 000?

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

In recent years,several large Canadian-owned mining and resource companies have been sold to foreign owners.The immediate effect on Canada's production possibilities boundary is

With a budget of $500 000,a school board can choose to purchase 20 000 textbooks or 2000 laptop computers (or some intermediate combination)for use in classrooms. FIGURE 1-2 -Refer to Figure 1-2.Suppose the school board chooses to allocate all $500 000 to the purchase of laptop computers.What is the opportunity cost of this entire purchase?

An insight first fully developed by Adam Smith is that

In the Canadian economy,most decisions regarding resource allocation are made by

Suppose you own a courier service and you use two types of delivery vehicles - Model A,which costs $30 000 to purchase,and Model B,which costs $50 000 to purchase.You have a budget of $300 000 for the purchase of new vehicles.If you were to draw a budget line to illustrate the choice between Model A and Model B vehicles,with A on the vertical axis and B on the horizontal axis,the vertical intercept and the horizontal intercept,respectively,would be

A modern economy like Canada's is largely organized by

In traditional economies,economic behaviour is

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 mowed lawn?

The opportunity cost of producing good A is defined to be

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.Suppose that Country X is currently producing at point E.Country X could achieve production at point D if