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ECON 208 Chapter 1 || 100% CORRECT SOLUTIONS!!
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  • ECON 208

Society's resources are often divided into broad categories. They are correct answers land, labour, and capital A basic underlying point in economics is that correct answers people have unlimited wants in the face of limited resources Economics can best be described as correct answers the stu...

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  • August 19, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • societys resources are often divided into broad c

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  • ECON 208
  • ECON 208

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ECON 208 Chapter 1 || 100% CORRECT SOLUTIONS!!
Society's resources are often divided into broad categories. They are correct answers land,
labour, and capital

A basic underlying point in economics is that correct answers people have unlimited wants in
the face of limited resources

Economics can best be described as correct answers the study of the use of scarce resources
to satisfy unlimited human wants

Scarcity is likely to be correct answers a problem that will always exist

The concept of scarcity in economics usually refers to a condition correct answers where
people's wants can never be satisfied by the available resources

Because resources are scarce, individuals are required to correct answers make choices
among alternatives

Scarcity arises from limited resources. For this reason, all economic choices involve correct
answers an opportunity cost

The opportunity cost of going to college or university for four years is correct answers the
cost of tuition and books and four years of lost wages from employment

Suppose there are only three alternatives to attending a 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 correct answers $25

The opportunity cost of producing good A is defined to be correct answers what must be
sacrificed of other goods to get an additional unit of good A

Suppose that one unit of labour can produce either 5 units of wool or 2 pineapples. What is
the opportunity cost of producing 1 pineapple? correct answers 5/2 units of wool

A small landscaping firm purchases a tractor that, in one day, is capable of drilling 60 fence-
post holes or removing 12 tree stumps (or some intermediate combination). For this
landscaper,
what is the opportunity cost of removing one extra tree stump? correct answers drilling 5
fence-post holes

Suppose that a bakeshop with 5 employees can produce both pies and cakes. In one day, if all
resources are devoted to baking pies, the shop can produce 125 pies; if all resources are
devoted
to baking cakes, the shop can produce 50. What is the shop's opportunity cost of producing
any
one cake? correct answers 2.5 pies

Suppose Andrea has a job that pays her $25 000 per year (after taxes). She is considering

, quitting her job and going to university full time for four years. Tuition fees and books will
cost
$12 000 per year. Living expenses in either situation will cost $10 000 per year. What is the
opportunity cost of Andrea's four-year university degree? correct answers $148,000

It has been observed that university enrollment in Canada is higher during periods of high
unemployment. A possible explanation for this is that correct answers when prospects for
getting a job are poor, the opportunity cost of going to university is lower

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? correct answers
$52,500

During economic recessions, the opportunity cost of going to university ________ because
the wages a student can expect to earn working in the best alternative ________. correct
answers decreases; decrease

A country's production possibilities boundary shows that correct answers when a society
combines its resources efficiently, it cannot produce more of one good without
producing less of the other good

Consider a production possibilities boundary showing the possible combinations of military
goods and civilian goods that a country can produce. Suppose that the country is currently at
a point on the boundary. If the production of military goods is increased, the production of
civilian
goods will necessarily correct answers decrease

A point lying inside the production possibilities boundary is one at which correct answers
more output could be produced with existing resources

If a country's production possibilities boundary is drawn as a straight (downward-sloping)
line it indicates correct answers constant opportunity cost of producing more of either good

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 correct answers a downward-sloping
straight line

On a diagram of a production possibilities boundary, the concept of scarcity is illustrated by
the correct answers unattainable points outside the boundary

On a diagram of a production possibilities boundary, the concept of opportunity cost is
illustrated by the correct answers negative slope of the boundary

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 correct answers possibilities boundary
outward

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