Exam 1: The Economic Problem

The graph below is Mendork's production possibility curve for the only two goods that it produces-quirks and quarks. -Refer to the graph above to answer this question.If this society chooses to produce 10 quirks,what is the maximum quantity of quarks it can produce?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.What is indicated by the shape of both the PPI and the PPII curves?

Below is a list of resources.Indicate whether each is labour (L),capital (K),land (N),or enterprise (E). a)A shopping mall. b)A shoal of salmon on the high seas. c)Lumber in a lumber yard. d)The work of a brain surgeon. e)The work done by Todd Bertuzzi,hockey player.

Given the following production possibility curve. a)What is the total cost of producing 27 units of peanut butter? b)What is the total cost of producing 8 units of jelly? c)What is the opportunity cost from point B to point D? d)What is the per unit cost of going from point B to point A?

All of the following statements,except one,are normative statements.Which is the exception?

What are the names of the factor payments?

Which of the following would best describe a policy of laissez-faire?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.What is indicated by the shift from PPI to PPII?

The following table shows the production possibilities for the country of Erewhon: -Refer to the table above to answer this question.What is the total cost of producing the first 10 units of cheese?

Identify the following statements as either positive (P)or normative (N)and also whether they are microeconomic (MI)or macroeconomic (MA)in nature: a)The government should impose a maximum on the price of oil. b)The price of oil in Canada is determined by the market. c)Economic growth is too low in Canada. d)The lowest earning 20 percent of the Canadian population earn only 5 percent of the total income. e)Unemployment is a far more serious problem than inflation.

How does microeconomics differ from macroeconomics?

Below is a production possibilities curve involving tea and videos. -Refer to the graph above to answer this question.Which of the following illustrates the law of increasing costs?

Which of the following is a capital good?

The cost of getting a degree (tuition and textbooks)from a private school is $20,000 a year.Evaluate this statement.

Which form of efficiency stresses the production of the 'right type' of products?

The maximum production possible in Rome and in Cathay are as follows: -If each country specializes in the production of what it does best,what are the gains from trade?

In reference to voluntary trade,what was Adam Smith the first to recognize?

Why is economics relevant?

The following graph shows the production possibilities for the economy of Esher:

Which of the following best describe the economies of a capitalist society?