Exam 1: Economic Issues and Concepts

Consider a production possibilities boundary showing the quantity of military goods and the quantity of civilian goods on the two axes.A movement along the production possibilities boundary could be caused by

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

If an economy exhibits the specialization of labour,we know that

In mixed economies,economic behaviour is

If there is always a three-for-one trade-off between the production of goods X and Y,then the production possibilities boundary for X and Y is

The key decision makers in a market economy are

Which of the following statements best describes the economic concept of scarcity?

The world price of oil fell in 2014-2015 from over $100 per barrel to less than $50.As a producer of oil,what effect did this change have on Canada's production possibilities boundary?

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

Which of the following statements about specialization and trade are correct?

In a modern mixed economy the government ensures that key institutions are in place to facilitate voluntary transactions between economic agents.These key institutions are

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 this economy is currently producing 1280 tonnes of cotton and 200 tonnes of bananas.What is the opportunity cost of increasing production of bananas by 100 tonnes?

Because resources are scarce,individuals are required to

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.For the school board,what is the opportunity cost of one additional textbook?

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 B vehicle?

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.What is the price of a laptop computer in this example?

The famous economist who first described the division of labour was

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 currently producing at point A,it can produce more capital goods by moving to point

The diagram below shows two production possibilities boundaries for Country X. FIGURE 1-4 -Refer to Figure 1-4.If Country X is currently producing at point A,it could move to point B if

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.For Madeleine,the opportunity cost of one regular coffee is