lOMoARcPSD|9882954 Chapter 1 - TEST BANK Introductory Macroeconomics SFW (University of Guelph) StuDocu is not sponsored or endorsed by any college or university Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Macroeconomics, Second Canadian Edition (Hubbard) Chapter 1 Economics: Foundations and Models 1.1 Explain these three key economic ideas: People are rational, people respond to incentives, and optimal decisions are made at the margin 1)Change si ngl obalwe a t he rpa t t e r nsc anl e adt o A)mor eCanadi ansdr i nki ngc offe e . B)Canadi ansha vi ngt opa ymor ef orc offe e . C)wa gei nc r e as e sf orc offe es hope mpl oye e s . D)t hede s t r uc t i onoft heCanadi anc offe ehar ve s t . Ans we r :B Di ff: 1 Pa geRe f : 3 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Chapt e rOpe ne r :Youve r s usCaffe i ne ? 2)I ne c onomi c s ,c hoi c e smus tbemadebe c aus ewel i vei nawor l dof A)une mpl oyme nt . B)s c ar c i t y . C)gr e e d. D)unl i mi t e dr e s our c e s . Ans we r :B Di ff: 1 Pa geRe f : 4 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 3)Whi c hoft hef ol l owi ngs t a t e me nt si st r ueabouts c ar c i t y? A)Sc ar c i t yr e f e r st ot hes i t ua t i oni nwhi c hunl i mi t e dwant se x c e e dl i mi t e dr e s our c e s . B)Sc ar c i t yi snotapr obl e mf ort hewe al t hy . C)Sc a r c i t yi sonl yapr obl e m whe nac ount r yhast ool ar geapopul a t i on. D)Sc ar c i t yar i s e swhe nt he r ei sawi dedi s par i t yi ni nc omedi s t r i but i on. Ans we r :A Di ff: 1 Pa geRe f : 4 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 1 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 4)Thebas i ce c onomi cpr obl e m of________hasa l wa yse xi s t e dandwi l lc ont i nuet oe xi s t . A)s c ar c i t y B)e ffic i e nc y C)i nfla t i on D)r e c e s s i on Ans we r :A Di ff: 1 Pa geRe f : 4 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 5)Byde fini t i on,e c onomi c si st hes t udyof A)how t omakemone yi nt hes t oc kmar ke t . B)how t omakemone yi namar ke te c onomy . C)t hec hoi c e spe opl emaket oa t t ai nt he i rgoal s ,gi ve nt he i rs c ar c er e s our c e s . D)s uppl yandde mand. Ans we r :C Di ff: 1 Pa geRe f : 4 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng,Communi c a t i on 6)Ane c onomi c________i sas i mpl i fie dve r s i onofs omeas pe c tofe c onomi cl i f eus e dt oana l yzean e c onomi ci s s ue . A)mar ke t B)t r ade off C)var i abl e D)mode l Ans we r :D Di ff: 1 Pa geRe f : 4 Topi c :Ec onomi cMode l s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 7)Whe r edoe c onomi ca ge nt ss uc hasi ndi vi dual s ,fir msandna t i ons ,i nt e r ac twi t he ac hot he r ? A)i npubl i cl oc a t i onsmoni t or e dbyt hegove r nme nt B)i nanyar e nat ha tbr i ngst oge t he rbuye r sands e l l e r s C)i nanyphys i c all oc a t i onpe opl ewhe r epe opl ec anphys i c al l yge tt oge t he rf ors e l l i nggoods ,s uc has s hoppi ngmal l s D)i nanyl oc a t i onwhe r et r ans ac t i onsc anbemoni t or e dbyc ons ume rgr oupsandt ax e dbyt he gove r nme nt Ans we r :B Di ff: 1 Pa geRe f : 4 Topi c :Mar ke t s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 8)Thet e r m ________i ne c onomi c sr e f e r st oagr oupofbuye r sands e l l e r sofapr oduc tandt he ar r ange me ntbywhi c ht he yc omet oge t he rt ot r ade . A)c ol l e c t i ve B)c oope r a t i ve C)mar ke t D)t r ade off 2 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :C Di ff: 1 Pa geRe f : 4 Topi c :Mar ke t s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 9)Ec onomi s t sas s umet ha ti ndi vi dual s A)be ha vei nunpr e di c t abl ewa ys . B)wi l lne ve rt akea c t i onst ohe l pot he r s . C)pr e f e rt ol i vei nas oc i e t yt ha tval ue sf ai r ne s saboveal le l s e . D)ar er a t i onalandr e s pondt oi nc e nt i ve s . Ans we r :D Di ff: 1 Pa geRe f : 4 Topi c :Pe opl eAr eRa t i onal Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 10)Ec onomi s t sas s umet ha tr a t i onalbe ha vi ori sus e f uli ne xpl ai ni ngc hoi c e spe opl emake A)be c aus ei r r a t i onalpe opl edonotmakee c onomi cc hoi c e s . B)e ve nt houghpe opl ema ynotbe ha ver a t i onal l yal lt het i me . C)be c aus ei ndi vi dual sac tr a t i onal l yal lt het i mei nal lc i r c ums t anc e s . D)e ve nt houghpe opl er ar e l y ,i fe ve r ,be ha vei nar a t i onalmanne r . Ans we r :B Di ff: 2 Pa geRe f : 45 Topi c :Pe opl eAr eRa t i onal Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 11)Ec onomi s t sas s umet ha tr a t i onalpe opl edoal loft hef ol l owi nge x c e p t A)us eal la vai l abl ei nf or ma t i onast he ya c tt oac hi e vet he i rgoal s . B)unde r t akeac t i vi t i e st ha tbe ne fitot he r sandhur tt he ms e l ve s . C)we i ght hebe ne fit sandc os t sofal lpos s i bl eal t e r na t i vea c t i ons . D)r e s pondt oe c onomi ci nc e nt i ve s . Ans we r :B Di ff: 2 Pa geRe f : 45 Topi c :Pe opl eAr eRa t i onal Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 3 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 12)Ec onomi c sdoe snots t udyc or r e c tori nc or r e c tbe ha vi or sbutr a t he ri tas s ume st ha te c onomi ca ge nt s be ha ve________,me ani ngt he ymaket hebe s tde c i s i onsgi ve nt he i rknowl e dgeoft hec os t sandbe ne fit s . A)e qui t abl y B)r a t i onal l y C)e mot i onal l y D)s e l fis hl y Ans we r :B Di ff: 2 Pa geRe f : 45 Topi c :Pe opl eAr eRa t i onal Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 13)Cons i de rt hef ol l owi ngs t a t e me nt s : a . Carowne r spur c has emor egas ol i nef r om agass t a t i ont ha ts e l l sgas ol i nea tal owe rpr i c et hanot he r r i valgass t a t i onsi nt hear e a . b. Banksdonott akes t e pst oi nc r e as es e c ur i t ys i nc et he ybe l i e vei ti sl e s sc os t l yt oal l ow s omebank r obbe r i e st hant oi ns t al le xpe ns i ves e c ur i t ymoni t or i nge qui pme nt . c . Fi r mspr oduc emor eofapar t i c ul arDVDwhe ni t ss e l l i ngpr i c er i s e s . Whi c hoft heaboves t a t e me nt sde mons t r a t e st ha te c onomi ca ge nt sr e s pondt oi nc e nt i ve s ? A)aonl y . B)bonl y . C)conl y . D)aandb. E)a ,b ,andc . Ans we r :E Di ff: 3 Pa geRe f : 5 Topi c :Pe opl eRe s pondt oEc onomi cI nc e nt i ve s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 14)Aspr of e s s or sandt e ac he r sge tc l os e rt or e t i r e me nta get he yt ypi c al l ys pe ndmor et i mer e adi ngand t hi nki ngaboutt hefinanc i alpl anni ngaswe l last hes t oc kmar ke t .Byga t he r i ngandus i ngal la vai l abl e i nf or ma t i onast he yac tt oac hi e vet he i rgoal s ,t he s et e ac he r sar ee x e mpl i f yi ngt hee c onomi ci de at ha t A)pe opl ear er a t i onal . B)pe opl er e s pondt oe c onomi ci nc e nt i ve s . C)opt i malde c i s i onsar emadea tt hemar gi n. D)e qui t yi smor ei mpor t antt hane ffic i e nc y . Ans we r :A Di ff: 2 Pa geRe f : 45 Topi c :Pe opl eAr eRa t i onal 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 4 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 15)Suppos eyourpr ovi nc i algove r nme nte nc our a ge dne w me di c als c hoolgr adua t e st ot akeove rr ur al ands mal lt ownpr ac t i c e sf r om doc t or swi s hi ngt or e t i r ebypa yi ngbot ht hene w andr e t i r i ngdoc t or s $100, 000.The s edoc t or swoul dbee x e mpl i f yi ngt hee c onomi ci de at ha t A)pe opl ear er a t i onal . B)pe opl er e s pondt oe c onomi ci nc e nt i ve s . C)opt i malde c i s i onsar emadea tt hemar gi n. D)e qui t yi smor ei mpor t antt hane ffic i e nc y . Ans we r :B Di ff: 2 Pa geRe f : 5 Topi c :Pe opl eRe s pondt oEc onomi cI nc e nt i ve s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 16)Obe s i t yi soneoft hebi gge s the al t hc hal l e nge sf ac i ngCanadi ans ,wi t hf e w Canadi ansge t t i ngt he r e c omme nde damountofdai l yphys i c ala c t i vi t y .Ec onomi s t swoul de xpe c t A)pe opl ewhoval uephys i c alappe ar anc et oe x e r c i s el e s st hanot he r s . B)pe opl ewi l le x e r c i s emor ewhe nt hec os tofs ki ppi nge x e r c i s ei nc r e as e s . C)pe opl ewhoa gr e et opa yafinef ors ki ppi nge x e r c i s es e s s i onswi l lbel e s she al t hyt hant hos ewhodo not . D)t he r ei snoc or r e l a t i onbe t we e nfine sf ors ki ppi nge x e r c i s eandhow of t e npe opl ewi l lgot ot hegym. Ans we r :B Di ff: 2 Pa geRe f : 5 Topi c :Pe opl eRe s pondt oEc onomi cI nc e nt i ve s 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Ge tFi torGe tFi ne d 17)Byc har gi ngus e r st ha ts ki pwor kout s ,t hede s i gne r sofGymPac tar e A)i nc r e as i ngt hemar gi nalc os tofe x e r c i s e B)i nc r e as i ngt hemar gi nalbe ne fitofe x e r c i s e C)i nc r e as i ngt hemar gi nalc os tandt hemar gi nalbe ne fitofe x e r c i s ebyt hes ameamount . D)de c r e as i ngt hemar gi nalc os tandt hemar gi nalbe ne fitofe x e r c i s e . Ans we r :B Di ff: 1 Pa geRe f : 5 Topi c :Pe opl eRe s pondt oEc onomi cI nc e nt i ve s 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Ge tFi torGe tFi ne d 5 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)I ne c onomi c s ,t het e r m ________me ans" addi t i onal "or" e xt r a . " A)al l oc a t i ve B)mar gi nal C)e qui t y D)opt i mal Ans we r :B Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 19)Agr oc e r ys t or es e l l saba gofpot a t oe sa tafix e dpr i c eof$5. 50.Whi c hoft hef ol l owi ngi sat e r m us e d bye c onomi s t st ode s c r i bet hemone yr e c e i ve df r om t hes al eofanaddi t i onalba gofpot a t oe s ? A)mar gi nalr e ve nue B)gr os se ar ni ngs C)pur epr ofit D)mar gi nalc os t s E)ne tbe ne fit Ans we r :A Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 20)Ec onomi s t sr e as ont ha tt heopt i malde c i s i oni st oc ont i nueanya c t i vi t yupt ot hepoi ntwhe r et he A)mar gi nalbe ne fiti sz e r o. B)mar gi nalbe ne fiti sgr e a t e rt hant hemar gi nalc os t . C)mar gi nalc os ti sz e r o. D)mar gi nalbe ne fite qual st hemar gi nalc os t . Ans we r :D Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 21)Mar gi nalanal ys i si nvol ve sunde r t aki ngana c t i vi t y A)unt i li t smar gi nalc os t ss t ar tde c l i ni ng. B)onl ywhe ni t smar gi nalbe ne fit sar epos i t i ve . C)unt i li t smar gi nalbe ne fit se qualmar gi nalc os t s . D)onl yi fi t smar gi nalc os t sar egr e a t e rt hani t smar gi nalbe ne fit s . Ans we r :C Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 6 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 22)Ther e ve nuer e c e i ve df r om t hes al eof________ofapr oduc ti samar gi nalbe ne fitt ot hefir m. A)anaddi t i onaluni t B)t het ot alnumbe rofuni t s C)nouni t s D)onl ypr ofit abl euni t s Ans we r :A Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 23)Maki ngopt i malde c i s i ons" a tt hemar gi n"r e qui r e s A)maki ngde c i s i onsac c or di ngt oone ' swhi msandf a nc i e s . B)maki ngc ons i s t e nt l yi r r a t i onalde c i s i ons . C)we i ghi ngt hec os t sandbe ne fit sofade c i s i onbe f or ede c i di ngi fi ts houl dbepur s ue d. D)maki ngbor de r l i nede c i s i ons . Ans we r :C Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 24)Maki ng" how muc h"de c i s i onsi nvol ve A)c al c ul a t i ngt het ot albe ne fit soft hea c t i vi t yandde t e r mi ni ngi fyouar es a t i s fie dwi t ht ha tamount . B)c al c ul a t i ngt het ot alc os t soft hea c t i vi t yandde t e r mi ni ngi fyouc ana ffor dt oi nc urt ha te xpe ndi t ur e . C)c al c ul a t i ngt hea ve r a gebe ne fitandt hea ve r a gec os tofana c t i vi t yt ode t e r mi nei fi ti swor t hwhi l e unde r t aki ngt ha ta c t i vi t y . D)de t e r mi ni ngt headdi t i onalbe ne fit sandt headdi t i onalc os t soft ha ta c t i vi t y . Ans we r :D Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 25)Thee xt r ac os tas s oc i a t e dwi t hunde r t aki nganac t i vi t yi sc al l e d A)ne tl os s . B)mar gi nalc os t . C)oppor t uni t yc os t . D)f or e gonec os t . Ans we r :B Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 7 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 26)De Sha wn' sDe t ai l i ngi sas e r vi c et ha tde t ai l sc ar sa tt hec us t ome r s ' home sorpl a c e sofwor k. De Sha wn' sc os tf orabas i cde t ai l i ngpac ka gei s$40 ,andhec har ge s$75f ort hi ss e r vi c e .Forat ot alpr i c e of$90,De Sha wnwi l lal s ode t ai lt hec ar ' se ngi ne ,as e r vi c et ha taddsanaddi t i onal$20t ot het ot alc os tof t hepac ka ge .Wha ti sDe Sha wn' smar gi nalbe ne fiti fhes e l l sabas i cde t ai l i ngpac ka ge ? A)$35 B)$75 C)Hemake samar gi nall os sof$15,notamar gi nalbe ne fit . D)Themar gi nalbe ne fitc annotbede t e r mi ne d. Ans we r :B Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 27)De Sha wn' sDe t ai l i ngi sas e r vi c et ha tde t ai l sc ar sa tt hec us t ome r s ' home sorpl a c e sofwor k. De Sha wn' sc os tf orabas i cde t ai l i ngpac ka gei s$40 ,andhec har ge s$75f ort hi ss e r vi c e .Forat ot alpr i c e of$90,De Sha wnwi l lal s ode t ai lt hec ar ' se ngi ne ,as e r vi c et ha taddsanaddi t i onal$20t ot het ot alc os tof t hepac ka ge .Wha ti st hemar gi nalc os tofaddi ngt hee ngi nede t ai l i ngt ot hebas i cde t ai l i ngpac ka ge ? A)$20 B)$30 C)$60 D)$60pl ust heval ueofhi st i me Ans we r :A Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 28)De Sha wn' sDe t ai l i ngi sas e r vi c et ha tde t ai l sc ar sa tt hec us t ome r s ' home sorpl a c e sofwor k. De Sha wn' sc os tf orabas i cde t ai l i ngpac ka gei s$40 ,andhec har ge s$75f ort hi ss e r vi c e .Forat ot alpr i c e of$90,De Sha wnwi l lal s ode t ai lt hec ar ' se ngi ne ,as e r vi c et ha taddsanaddi t i onal$20t ot het ot alc os tof t hepac ka ge .Shoul dDe Sha wnc ont i nuet ooffe rt hee ngi nede t ai l i ngs e r vi c e ? A)Ye s ,hes t i l lmake sapr ofitbys e l l i ngt hee ngi nede t ai l i ngs e r vi c ewi t ht hebas i cde t ai l i ngpac ka ge . B)Ye s ,butonl yi fher ai s e st hepr i c eoft hebas i cde t ai l i ngpac ka ge . C)No,hi smar gi nalbe ne fiti sl e s st hanhi smar gi nalc os t . D)Mor ei nf or ma t i oni sne e de df orDe Sha wnt omaket hi sde c i s i on. Ans we r :C Di ff: 3 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 8 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Sc e nar i o1. 1 Suppos eac e l lphonemanuf ac t ur e rc ur r e nt l ys e l l s2 0, 000c e l lphone spe rwe e kandmake sapr ofitof $5, 000pe rwe e k.Amana ge ra tt hepl antobs e r ve s ," Al t hought hel as t3, 000c e l lphone swepr oduc e dand s ol di nc r e as e dourr e ve nueby$6, 000andourc os t sby$6, 700,wear es t i l lmaki nganove r al lpr ofitof $5, 000pe rwe e ks oIt hi nkwe ' r eont her i ghtt r ac k.Wear epr oduc i ngt heopt i malnumbe rofc e l l phone s . " 29)Re f e rt oSc e nar i o1. 1.Us i ngmar gi nalana l ys i st e r mi nol ogy ,wha ti sanot he re c onomi ct e r mf ort he i nc r e me nt alr e ve nuer e c e i ve df r om t hes al eoft hel as t3, 000c e l lphone s ? A)gr os se ar ni ngs B)mar gi nalr e ve nue C)s al e sr e ve nue D)gr os spr ofit Ans we r :B Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 30)Re f e rt oSc e nar i o1. 1.Us i ngmar gi nalana l ys i st e r mi nol ogy ,wha ti sanot he re c onomi ct e r mf ort he i nc r e me nt alc os tofpr oduc i ngt hel as t3, 000c e l lphone s ? A)mar gi nalc os t B)ope r a t i ngc os t C)e xpl i c i tc os t D)Anyoft heabovet e r msar ec or r e c t . Ans we r :A Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 31)Re f e rt oSc e nar i o1. 1.Hadt hefir m notpr oduc e dands ol dt hel as t3, 000c e l lphone s ,woul di t spr ofit behi ghe rorl owe r ,andi fs obyhow muc h? A)I t spr ofitwi l lbe$6, 700hi ghe r . B)I t spr ofitwi l lbe$700hi ghe r . C)I t spr ofitwi l lbe$700l owe r . D)I t spr ofitwi l lbe$6, 000l owe r . Ans we r :B Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 9 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e1. 1 Hour s Open 1 2 3 4 5 6 Tot alRevenue ( dol l ar s ) $50 75 95 110 120 125 Lydi ar unsas mal lnai ls al oni nt het ownofNe w Hope .Shei sde ba t i ngwhe t he rs hes houl de xt e ndhe r hour sofope r a t i on.Lydi afigur e st ha the rs al e sr e ve nuewi l lde pe ndont henumbe rofhour st henai l s al oni sope nass howni nt het abl eabove .Shewoul dha vet ohi r eawor ke rf ort hos ehour sa tawa ger a t e of$10pe rhour . 32)Re f e rt oTabl e1. 1.Us i ngmar gi nalanal ys i s ,de t e r mi nehow manyhour ss houl dLydi ae xt e ndhe rnai l s al on' shour sofope r a t i ons ? A)2hour s B)3hour s C)4hour s D)5hour s E)6hour s Ans we r :D Di ff: 3 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 33)Re f e rt oTabl e1. 1.Wha ti sLydi a' smar gi nalbe ne fiti fs hede c i de st os t a yope nf ort wohour si ns t e ad ofonehour ? A)$25 B)$50 C)$75 D)$125 Ans we r :A Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 10 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 34)Re f e rt oTabl e1. 1.Wha ti sLydi a' smar gi nalc os ti fs hede c i de st os t a yope nf ort wohour si ns t e adof onehour ? A)$10 B)$20 C)$25 D)$40 Ans we r :A Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 35)SooJ i ns har e saone be dr oom apar t me ntwi t hhe rc l as s ma t e .He rs har eoft her e nti s$700pe rmont h. Shei sc ons i de r i ngmovi ngt oas t udi oapar t me ntwhi c hs hewi l lnotha vet os har ewi t hanyone .The s t udi oapar t me ntr e nt sf or$950pe rmont h.Re c e nt l y ,your ani nt oSooJ i nonc ampusands het e l l syou t ha ts hehasmove di nt ot hes t udi oapar t me nt .SooJ i ni sasr a t i onalasanyot he rpe r s on.Asan e c onomi c sma j or ,your i ght l yc onc l udet ha t A)SooJ i ndi dnotha veac hoi c e ;he rr oomma t ewasas l ob. B)SooJ i nfigur e st ha tt headdi t i onalbe ne fitofha vi nghe rownpl ac e( asoppos e dt os har i ng)i sa tl e as t $250. C)SooJ i nfigur e st ha tt hebe ne fitofha vi nghe rownpl ac e( asoppos e dt os har i ng)i sa tl e as t$950. D)Thec os tofha vi ngone ' sowns pa c eout we i ghst hebe ne fit s . Ans we r :B Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s 36)Mc Cai nFoodsLt d.i soneoft hel ar ge s tpr oduc e rsoff r oze nf r e nc hf r i e si nt hewor l d.I ft hema r gi nal c os tofpr oduc i ngane xt r ami l l i onki l ogr amsoff r e nc hf r i e si s$1mi l l i on,t he nMc Cai nFoodsLt d.s houl d pr oduc et hee xt r af r e nc hf r i e s A)onl yi ft hemar gi nalbe ne fiti sgr e a t e rt han$1mi l l i onpl usanac c e pt abl epr ofitmar gi n. B)asl ongast hemar gi nalbe ne fitt hefir mr e c e i ve si sj us te qualt oorgr e a t e rt han$1mi l l i on. C)asl ongast hemar gi nalc os tdoe snotr i s e . D)unt i lt hemar gi nalbe ne fitt hefir mr e c e i ve sr e ac he sze r o. Ans we r :B Di ff: 2 Pa geRe f : 67 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:Bi ngeWa t c hi ngandDe c i s i onsa tt heMar gi n. 11 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 37)Theappr oxi ma t e l y12s e c ondsbe t we e ne pi s ode sonNe t fli xme anst ha tbi ngewa t c hi ngi s A)t her e s ul tofas e r i e sofmar gi nalde c i s i ons . B)s ome t hi nge ve r yonepl anst owhe nt he yfir s tl ogi nt oNe t fli x. C)s ome t hi ngNe t fli xf or c e svi e we r st odo. D)ani ndi c a t i onofhow qui c kl yNe t fli xus e r sc anma kede c i s i ons . Ans we r :A Di ff: 2 Pa geRe f : 67 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:Bi ngeWa t c hi ngandDe c i s i onsa tt heMar gi n. 38)Sc a r c i t yr e f e r st oas i t ua t i oni nwhi c hunl i mi t e dwant se x c e e dt hel i mi t e dr e s our c e sa vai l abl et of ul fil l t hos ewant s . Ans we r :TRUE Di ff: 1 Pa geRe f : 4 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 39)Sc a r c i t yi sapr obl e mt ha twi l le ve nt ual l ydi s a ppe arast e c hnol ogyadvanc e s . Ans we r :F ALSE Di ff: 1 Pa geRe f : 4 Topi c :Sc ar c i t y Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 40)Ane c onomi cmode li sas i mpl i fie dve r s i onofr e al i t yus e dt oana l yzer e al wor l de c onomi cs i t ua t i ons . Ans we r :TRUE Di ff: 1 Pa geRe f : 4 Topi c :Ec onomi cMode l s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 41)Thes al e sr e ve nueas e l l e rr e c e i ve sf r om t hes al eofanaddi t i onaluni tofgoodsi sc al l e dt hemar gi nal be ne fit . Ans we r :TRUE Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 12 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 42)Opt i malde c i s i onsar emadea tt hepoi ntwhe r emar gi nalc os te qual sze r o. Ans we r :F ALSE Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 43)I fi tc os t sSi nc l ai r$300t opr oduc e3s ue dej a c ke t sand$420t opr oduc e4s ue dej ac ke t s ,t he nt he di ffe r e nc eof$120i st hemar gi nalc os tofpr oduc i ngt he4 t hs ue dej ac ke t . Ans we r :TRUE Di ff: 1 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 44)Suppos et hee xt r ac os tofpr oduc i ngane xt r ami l l i onki l ogr amsoff r e nc hf r i e si s$1mi l l i on.The n, Mc Cai nFoodsLt d.s houl dmaket hee xt r af r e nc hf r i e si ft he yge ne r a t eaddi t i onalr e ve nueof$1mi l l i on. Ans we r :TRUE Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Bi ngeWa t c hi ngandDe c i s i onsa tt heMar gi n. 45)Expl ai nt hee c onomi cas s umpt i ont ha t" pe opl ear er a t i onal . " Ans we r :" Pe opl ear er a t i onal "me anst ha te c onomi s t sas s umec ons ume r sandfir mswi l lus eal la vai l abl e i nf or ma t i onast he yac tt oac hi e vet he i rgoal s .Ra t i onali ndi vi dual swe i ght hebe ne fit sandc os t sofe ac h ac t i on,andt he yc hoos eanac t i ononl yi ft hebe ne fit se x c e e dt hec os t s . Di ff: 2 Pa geRe f : 45 Topi c :Pe opl eAr eRa t i onal Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 46)Expl ai nt hee c onomi ci de at ha t" pe opl er e s pondt oi nc e nt i ve s . " Ans we r :Humanbe i ngsac tf r om avar i e t yofmot i ve s ,i nc l udi ngr e l i gi ousbe l i e f ,e nvy ,andc ompas s i on. " Pe opl er e s pondt oi nc e nt i ve s "me anst ha tpe opl ewi l lac ti ft he yf e e li ti si nt he i rbe s te c onomi ci nt e r e s t t odos o. Di ff: 2 Pa geRe f : 5 Topi c :Pe opl eRe s pondt oEc onomi cI nc e nt i ve s Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 13 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 47)Wha ti sme antbyt hes t a t e me ntt ha t" opt i malde c i s i onsar emadea tt hemar gi n" ? Ans we r :I ne c onomi c s ,t hewor d" mar gi nal "me ans" e xt r a"or" addi t i onal . "Ec onomi s t sr e as ont ha tt he opt i malde c i s i oni st oc ont i nueanyac t i vi t yupt ot hepoi ntwhe r et hemar gi nalbe ne fite qual st he mar gi nalc os t ,s oopt i malde c i s i onsar emadea tt hepoi ntwhe r et hee xt r abe ne fitr e c e i ve df r om an ac t i vi t yi se qualt ot hee xt r ac os tas s oc i a t e dwi t ht ha ta c t i vi t y . Di ff: 2 Pa geRe f : 6 Topi c :Opt i malDe c i s i onsAr eMadea tt heMar gi n Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Re fle c t i veThi nki ng 48)Suppos et ha twa t c hi ngonemor ee pi s odeofyourf a vour i t eNe t Fl i xs how i swor t h$200t oyou. Suppos et ha ts t udyi ngf ort ha ts ameamountoft i mewi l lboos tyourmar ke nought oge tyouabur s ar y . Wha ti st hes mal l e s ts i zeoft hebur s ar yt ha twoul dc aus eyout os t udyi ns t e adofwa t c hi nganot he r e pi s ode( as s umi ngyouar er a t i onal ) ? Ans we r :Thebur s ar ywoul dha vet obea tl e as t$200f orar a t i onalpe r s ont oc hoos et os t udyi ns t e adof wa t c hi ngt hene xte pi s ode-as s umi ngt he r ear enoot he rbe ne fit st os t udyi ng. Di ff: 2 Pa geRe f : 7 Topi c :Pe opl eAr eRa t i onal 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 1Expl ai nt he s et hr e eke ye c onomi ci de as :Pe opl ear er a t i onal , pe opl er e s pondt oi nc e nt i ve s , andopt i malde c i s i onsar emadea tt hemar gi n AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Bi ngeWa t c hi ngandDe c i s i onsa tt heMar gi n. 14 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 1.2 Discuss how a society answers these three key economic questions: What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services produced? 1)Thet hr e ef undame nt alque s t i onst ha tanye c onomymus taddr e s sar e A)Wha twi l lbet hepr i c e sofgoodsands e r vi c e s ;how wi l lt he s egoodsands e r vi c e sbepr oduc e d;and whowi l lr e c e i vet he m? B)Wha tgoodsands e r vi c e st opr oduc e ;how wi l lt he s egoodsands e r vi c e sbepr oduc e d;andwho r e c e i ve st he m? C)Whoge t sj obs ;wha twa ge sdowor ke r se ar n;andwhoownswha tpr ope r t y? D)How muc hwi l lbes a ve d;wha twi l lbepr oduc e d;a ndhow c ant he s egoodsands e r vi c e sbef ai r l y di s t r i but e d? Ans we r :B Di ff: 1 Pa geRe f : 7 Topi c :Tr ade offs Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 2)Thei de at ha tbe c aus eofs c ar c i t y ,pr oduc i ngmor eofonegoodors e r vi c eme anspr oduc i ngl e s sof anot he rgoodors e r vi c er e f e r st ot hee c onomi cc onc e ptof A)opt i mi za t i on. B)e ffic i e nc y . C)t r ade off. D)e qui t y . Ans we r :C Di ff: 1 Pa geRe f : 7 Topi c :Tr ade offs Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 3)Soc i e t yf ac e sat r ade offi nal loft hef ol l owi ngs i t ua t i onse x c e p t A)whe nde c i di ngwhowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d. B)whe nde c i di ngwha tgoodsands e r vi c e swi l lbepr oduc e d. C)whe nde c i di nghow goodsands e r vi c e swi l lbepr oduc e d. D)whe ns omepr e vi ous l yune mpl oye dwor ke r sfindj obs . Ans we r :D Di ff: 2 Pa geRe f : 7 Topi c :Tr ade offs Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 15 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 4)Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)Anyt i meyouha vet ode c i dewhi c hac t i ont ot a keyouar ee xpe r i e nc i nge c onomi ce qui t y . B)Tr ade offsdonotappl ywhe nt hec ons ume r spur c ha s eapr oduc tf orwhi c ht he r ei se x c e s ss uppl y , s uc hasas t oc kc l e ar anc es al e . C)Eve r yi ndi vi dual ,noma t t e rhow r i c horpoor ,i sf a c e dwi t hmaki ngt r ade offs . D)Ec onomi c si sas oc i als c i e nc et ha ts t udi e st het r ade offswear ef or c e dt omakebe c aus er e s our c e sar e unl i mi t e d. Ans we r :C Di ff: 2 Pa geRe f : 7 Topi c :Tr ade offs Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 5)Whi c hoft hef ol l owi ngi sno tane xampl eofane c onomi ct r ade offt ha tafir m hast omake ? A)whe t he ri ti sc he ape rt opr oduc ewi t hmor emac hi ne sorwi t hmor ewor ke r s B)whe t he ri ti st oout s our c et hepr oduc t i onofagoodors e r vi c e C)whe t he rornotc ons ume r swi l lbuyi t spr oduc t s D)whe t he ri ts houl dpr oduc emor eofi t spr oduc t Ans we r :C Di ff: 1 Pa geRe f : 7 Topi c :Tr ade offs Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 6)Thehi ghe s tval ue dal t e r na t i vet ha tmus tbegi ve nupt oe nga gei nanac t i vi t yi st hede fini t i onof A)e c onomi ce qui t y . B)mar gi nalbe ne fit . C)oppor t uni t yc os t . D)mar gi nalc os t . Ans we r :C Di ff: 1 Pa geRe f : 7 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 7)TheCoffe eNook,as mal lc af ene arc ampus ,s e l l sc appuc c i nosf or$2. 50andRus s i ant e ac a ke sf or$1. 00 e ac h.Wha ti st heoppor t uni t yc os tofbuyi ngac appuc c i no? A)21/2Rus s i ant e ac ake s B)2 /5ofaRus s i ant e ac ake C)$2. 50 D)$1. 00 Ans we r :A Di ff: 1 Pa geRe f : 7 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s 8)Ar l e nequi t she r$125, 000aye a rj obt ot akec ar eofhe rai l i ngpar e nt s .Wha ti st heoppor t uni t yc os tof he rde c i s i on? A)ze r o,s i nc es hewi l lnol onge rbee ar ni ngas al a r y B)I tde pe ndsont he" goi ngr a t e "f orhome c ar epr ovi de r s . C)a tl e as t$125, 000 D)t heval ues hea t t r i but e st ot hes a t i s f ac t i ons her e c e i ve sf r om t aki ngc ar eofhe rpar e nt s 16 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :C Di ff: 1 Pa geRe f : 7 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s 9)Thedi s t r i but i onofi nc omepr i mar i l yde t e r mi ne swhi c hoft hef undame nt ale c onomi cque s t i ons ? A)Wha tgoodsands e r vi c e sar et obepr oduc e d? B)How t hegoodsands e r vi c e sar et obepr oduc e d? C)Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? D)How t opl ant hee c onomy? Ans we r :C Di ff: 2 Pa geRe f : 8 Topi c :WhoWi l lRe c e i vet heGoodsandSe r vi c e sPr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 10)Aut omobi l emanuf ac t ur e r spr oduc ear angeofaut omobi l e ss uc hass por t sut i l i t yve hi c l e s ,l uxur y s e dans ,pi c kupt r uc ksandc ompa c tc ar s .Wha tf undame nt ale c onomi cque s t i onar et he yaddr e s s i ngby maki ngt hi sr angeofpr oduc t s ? A)How t opr oduc egoodst ha tc ons ume r swant ? B)Whypr oduc eavar i e t yofaut omobi l e s ? C)Wha tt opr oduc e ? D)Whot opr oduc eaut omobi l e sf or ? Ans we r :C Di ff: 1 Pa geRe f : 78 Topi c :Wha tGoodsandSe r vi c e sWi l lBePr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 17 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 11)Cons i de rt hef ol l owi nge c onomi ca ge nt s : a .t hegove r nme nt b. c ons ume r s c . pr oduc e r s Who,i nac e nt r al l ypl anne de c onomy ,de c i de swha tgoodsands e r vi c e swi l lbepr oduc e dwi t ht hes c ar c e r e s our c e sa vai l abl ei nt ha te c onomy? A)t hegove r nme nt B)pr oduc e r s C)c ons ume r s D)c ons ume r sandpr oduc e r s E)t hegove r nme nt ,c ons ume r sandpr oduc e r s Ans we r :A Di ff: 1 Pa geRe f : 78 Topi c :Wha tGoodsandSe r vi c e sWi l lBePr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 12)Thede c i s i onaboutwha tgoodsands e r vi c e swi l lbepr oduc e dmadei namar ke te c onomyi smadeby A)l a wmake r si nt hegove r nme ntvot i ngonwha twi l lbepr oduc e d. B)wor ke r sde c i di ngt opr oduc eonl ywha tt hebos ss a ysmus tbepr oduc e d. C)pr oduc e r sde c i di ngwha ts oc i e t ywant smos t . D)c ons ume r sandfir msc hoos i ngwhi c hgoodsands e r vi c e st obuyorpr oduc e . E)c ons ume r sdi c t a t i ngt ofir mswha tt he yne e dmos t . Ans we r :D Di ff: 1 Pa geRe f : 8 Topi c :Wha tGoodsandSe r vi c e sWi l lBePr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 13)Ce nt r alpl anni ngr e l i e son________t ode t e r mi newha tt ype sofpr oduc t st omake A)gove r nme nte mpl oye e s B)c ons ume r s ' c hoi c e s C)i ndi vi dualbus i ne s s e s D)c ons ume r s ' want s Ans we r :A Di ff: 1 Pa geRe f : 8 Topi c :Ce nt r al l yPl anne dEc onomi e s 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Ce nt r alPl anni ngLe adst oSomeOddPr oduc t s 18 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 14)Whi c hoft hef ol l owi ngs t a t e me nt saboutt hee c onomi cde c i s i onsc ons ume r s ,fir ms ,andt he gove r nme ntha vet omakei sf a l s e ? A)Gove r nme nt sf ac et hepr obl e m ofs c ar c i t yi nmaki nge c onomi cde c i s i ons . B)Onl yi ndi vi dual sf ac es c ar c i t y;fir msandt hegove r nme ntdonot . C)Bot hfir msandi ndi vi dual sf ac es c ar c i t y . D)Eac hf ac e st hepr obl e m ofs c ar c i t ywhi c hne c e s s i t a t e st r ade offsi nmaki nge c onomi cde c i s i ons . Ans we r :B Di ff: 1 Pa geRe f : 8 Topi c :Wha tGoodsandSe r vi c e sWi l lBePr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 15)Whyi si tne c e s s ar yf oral le c onomi cs ys t e mst onotonl ypr ovi depe opl ewi t hgoodsands e r vi c e s ,but al s or e s t r i c tt he mf r om ge t t i ngasmuc hoft he s egoodsands e r vi c e sast he ywi s h? A)Fai l ur et odot hi sc oul dr e duc et hee ffic i e nc yoft hes ys t e m bypr oduc i ngs omegoodsands e r vi c e s t ha tar enotashi ghl yval ue dasot he r s . B)Fai l ur et odot hi sc oul dl e adt oani ne qui t abl eal l oc a t i onofgoodsands e r vi c e spr oduc e d. C)Fai l ur et odot hi sc oul dl e adt odr as t i cs hor t a ge sofgoodands e r vi c e s . D)Fai l ur et odot hi sc oul dr e duc e se ffic i e nc yandl e adst oani ne qui t abl eal l oc a t i onofout put . Ans we r :A Di ff: 3 Pa geRe f : 8 Topi c :WhoWi l lRe c e i vet heGoodsandSe r vi c e sPr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s 16)Whor e c e i ve st hemos tofwha ti spr oduc e di namar ke te c onomy? A)l a wmake r sandot he rpol i t i c al l yf a vor e dgr oups B)t hos ewhoar ewi l l i ngandabl et obuyt he m C)Eve r yoner e c e i ve sane qualamount . D)pe opl ewhoe ar nt hehi ghe s ti nc ome s Ans we r :B Di ff: 1 Pa geRe f : 8 Topi c :WhoWi l lRe c e i vet heGoodsandSe r vi c e sPr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 17)How ar et hef undame nt ale c onomi cde c i s i onsde t e r mi ne di nNor t hKor e a? A)I ndi vi dual s ,fir ms ,andt hegove r nme nti nt e r a c ti namar ke tt omaket he s ee c onomi cde c i s i ons . B)The s ede c i s i onsar emadebyt hec ount r y' se l de r swhoha vehadmuc he xpe r i e nc ei nans we r i ngt he s e que s t i ons . C)Thegove r nme ntde c i de sbe c aus eNor t hKor e ai sac e nt r al l ypl anne de c onomy . D)TheUni t e dNa t i onsde c i de sbe c aus eNor t hKor e ai sade ve l opi nge c onomy . Ans we r :C Di ff: 1 Pa geRe f : 8 Topi c :Ce nt r al l yPl anne dEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 18)How ar et hef undame nt ale c onomi cque s t i onsans we r e di namar ke te c onomy? A)Thegove r nme ntal onede c i de st heans we r s . B)I ndi vi dual s ,fir ms ,andt hegove r nme nti nt e r ac ti nmar ke t st ode c i det heans we r st ot he s eque s t i ons . C)Hous e hol dsandfir msi nt e r a c ti nmar ke t st ode c i det heans we r st ot he s eque s t i ons . D)Lar gec or por a t i onsal onede c i det heans we r s . 19 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :C Di ff: 2 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 19)Whi c hoft hef ol l owi ngi sapr obl e mi nhe r e nti nc e nt r al l ypl anne de c onomi e s ? A)Hous e hol dsandfir msmakepoorde c i s i onsi nc hoos i nghow r e s our c e sar eal l oc a t e d. B)The r ei st ool i t t l epr oduc t i onofl owc os t ,hi ghqual i t ygoodsands e r vi c e s . C)Pr oduc t i onmana ge r sar emor ec onc e r ne dwi t hs a t i s f yi ngc ons ume rwant st hanwi t hs a t i s f yi ng gove r nme nt ' sor de r s . D)Expor t st e ndt oe x c e e di mpor t s . Ans we r :B Di ff: 2 Pa geRe f : 8 Topi c :Ce nt r al l yPl anne dEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 20)Al loft hef ol l owi ngc ont r i but e dt ot hedownf al loft heSovi e tUni oni n1991e x c e p t A)publ i cdi s s a t i s f ac t i onwi t hl ow l i vi ngs t andar dsandpol i t i c alr e pr e s s i on. B)ani nabi l i t yt opr oduc el owc os tc ons ume rgoodst ha thous e hol dswant e d. C)l ac kofhi ghqual i t ygoodsands e r vi c e s . D)l ac kofas t r ongdi c t a t orwhoc anc oor di na t ee c onomi ca c t i vi t i e s . Ans we r :D Di ff: 2 Pa geRe f : 89 Topi c :Ce nt r al l yPl anne dEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 21)________i sas i t ua t i oni nwhi c hagoodors e r vi c ei spr oduc e da tt hel owe s tpos s i bl ec os t . A)Al l oc a t i vee ffic i e nc y B)Pr oduc t i vee ffic i e nc y C)Equi t y D)Opt i malmar gi nal i s m Ans we r :B Di ff: 1 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 20 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 22)Pr oduc t i vee ffic i e nc yi sac hi e ve dwhe n A)fir msaddal ow pr ofitmar gi nt ot hegoodsands e r vi c e st he ypr oduc e . B)fir mspr oduc et hegoodsands e r vi c e st ha tc ons ume r sval uemos t . C)fir mspr oduc egoodsands e r vi c e sa tt hel owe s tc os t . D)t he r ear enos hor t a ge sors ur pl us e si nt hemar ke t . Ans we r :C Di ff: 1 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 23)Whe npr oduc t i onr e fle c t sc ons ume rpr e f e r e nc e s ,_ _______oc c ur s . A)al l oc a t i vee ffic i e nc y B)pr oduc t i vee ffic i e nc y C)e qui t y D)e ffic i e ntc e nt r alpl anni ng Ans we r :A Di ff: 1 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 24)Al l oc a t i vee ffic i e nc yi sac hi e ve dwhe nfir mspr oduc egoodsands e r vi c e s A)a tt hel owe s tpos s i bl ec os t . B)t ha tc ons ume r sval uemos t . C)a tt hel owe s toppor t uni t yc os t . D)a tamar gi nalc os tofz e r o. Ans we r :B Di ff: 1 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 25)Mar ke t spr omot e A)e qui t yandc ompe t i t i on. B)vol unt ar ye x c hangeande qual i t y . C)e qui t yande qual i t y . D)c ompe t i t i onandvol unt ar ye x c hange . Ans we r :D Di ff: 2 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 21 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 26)Whi c hoft hef ol l owi ngs t a t e me nt si st r ueaboutc ompe t i t i oni namar ke t ? A)Compe t i t i onf or c e sfir mst oouts our c et hepr oduc t i onoft he i rl abour i nt e ns i vepr oduc t s . B)Compe t i t i onf or c e sfir mst ounde r c utt he i rs e l l i ngpr i c e ,t husbe ne fit i ngc ons ume r swhowi l lbeabl e t opur c has epr oduc t sa tt hel owe s tpr i c epos s i bl e . C)Compe t i t i onf or c e sfir mst opr oduc eands e l lpr oduc t sasl ongast hemar gi nalbe ne fitt oc ons ume r s e x c e e dst hemar gi nalc os tofpr oduc t i on. D)Compe t i t i onf or c e sfir mst oaddonl yl ow pr ofitma r gi nst ot he i rc os t sofpr oduc t i on. Ans we r :C Di ff: 2 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 27)________i nc r e as e se c onomi ce ffic i e nc ybe c aus ei tf or c e sfir mst opr oduc eands e l lgoodsands e r vi c e s asl ongast headdi t i onalbe ne fitt oc ons ume r si sgr e a t e rt hant headdi t i onalc os tofpr oduc t i on. A)Compe t i t i on B)Vol unt ar ye x c hange C)Equi t y D)Ac e nt r al l ypl anne de c onomy Ans we r :A Di ff: 1 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 28)Whi c hoft hef ol l owi ngge ne r a t e spr oduc t i vee ffic i e nc y? A)c ompe t i t i onamongs e l l e r s B)c ompe t i t i onamongbuye r s C)gove r nme nti ns pe c t or s D)gove r nme ntpr oduc t i onr ul e sandr e gul a t i ons Ans we r :A Di ff: 1 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 29)Vol unt ar ye x c hangebe t we e nbuye r sands e l l e r sge ne r a t e s________i namar ke te c onomy . A)s c ar c i t y B)al l oc a t i vee ffic i e nc y C)pr oduc t i vee ffic i e nc y D)e qui t y Ans we r :B Di ff: 1 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 30)Whi c hoft hef ol l owi ngi sar e s ul tofamar ke te c onomy? A)e nvi r onme nt alpr ot e c t i on B)ane quali nc omedi s t r i but i on C)a gr e e me ntone qui t y D)vol unt ar ye x c hange Ans we r :D 22 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 1 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 31)Pol i t i c alc andi da t e sof t e nhol df undr ai s e r sbyc har gi ng" pe rpl a t e "f ordi nne r .We ndypur c has e df our t i c ke t st oa$1, 000pe rpl a t edi nne rf oral oc alc i t yc ounc i lc andi da t e .I st hi st r ans ac t i one c onomi c al l y e ffic i e nt ? A)No,pol i t i c alc andi da t e ss houl dne ve rbeal l owe dt oove r c har gef oraf undr ai s i ngdi nne r . B)Ye s ,i twasavol unt ar ye x c hanget ha tbe ne fit e dbot hpar t i e s . C)No,We ndypai dt oomuc hf orf ourdi nne r s . D)Ye s ,i ti se ffic i e ntonl yf r om t hepe r s pe c t i veoft hec andi da t ebutnotf r om t hepe r s pe c t i veofWe ndy . Ans we r :B Di ff: 2 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s 32)I ne c onomi c s ,t het e r m" e qui t y"me ans A)e ve r yonehasane quals t andar dofl i vi ng. B)t hehar de s twor ki ngi ndi vi dual sc ons umeal lt he ywant . C)onl ye l e c t e doffic i al sha vehi ghs t andar dsofl i vi ng. D)e c onomi cbe ne fit sar edi s t r i but e df ai r l y . Ans we r :D Di ff: 1 Pa geRe f : 9 Topi c :Equi t y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 23 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 33)Whi c hoft hef ol l owi ngi smot i va t e dbyane qui t yc onc e r n? A)Somepr ovi nc e sandmuni c i pal i t i e sha vet r ans f e r r e df undst of oodbankpr ogr amsi nor de rt oi nc r e as e be ne fit st ol owe r i nc omef ami l i e s . B)Fol l owi ngt hei mpl e me nt a t i onofs ubs i di e sf ore ne r gyc ons e r va t i on,hous e hol dde mandf orr oof t op s ol arpane l si nc r e as e dqui t es i gni fic ant l yi nBC. C)Somepr ovi nc e sal l ow aut omot i vei ns ur anc ec ompani e st oc har geme nandwome ndi ffe r e ntr a t e sf or i ns ur anc e . D)Canadaoffe r spa t e ntpr ot e c t i ont opha r mac e ut i c almanuf ac t ur e r st opr e ve ntot he r sf r om dupl i c a t i ng t he i rpr oduc t s . Ans we r :A Di ff: 3 Pa geRe f : 9 Topi c :Equi t y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng,Et hi c alRe as oni ng 34)Whi c hoft hef ol l owi ngi smot i va t e dbyane ffic i e nc yc onc e r n? A)I n2013t heAl be r t agove r nme nthande doutpr e pa i dc r e di tandde bi tc ar dst ofloodvi c t i ms . B)Ther i ghtt opur c has et i c ke t st ot heGr e yCupi sde c i de dbyal ot t e r y . C)Or gant r ans pl antwai t i ngl i s t sr a t i oni ngs c ar c eki dne yst ha twoul df a voryoungpa t i e nt sove rol di nan e ffor tt owr i ngmor el i f eoutofdona t e dor gans . D)Thef e de r algove r nme ntEqui l i za t i onpr ogr am whi c hmake sl ar ge rt r ans f e r st opoorpr ovi nc e st hant o we al t hyone s . Ans we r :C Di ff: 3 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng,Et hi c alRe as oni ng 35)Whi c hoft hef ol l owi ngi sane xampl eofane ffic i e nc ye qui t yt r ade offf a c e dbye c onomi ca ge nt s ? A)Pr ovi nc i alhe al t hpr ogr amsar enotc os te ffe c t i ve .I ns t e adoff oc us i ngonuni ve r s alac c e s st ot hehe al t h c ar es ys t e m,mone ys houl dbes pe ntonpr ogr amst ha tpr e ve ntdi s e as efir s tandt r e a t i ngdi s e as es e c ond. B)Conc e r ne daboutt hef al l i ngbi r t hr a t e ,t heFr e nc hgove r nme nthaspl e dge dmor emone yf orf ami l i e s wi t ht hr e ec hi l dr e n,i nane ffor tt oe nc our a gewor ki ngwome nt oha vemor ebabi e s . C)SomeCanadi anuni ve r s i t i e sar ea c t i ve l yr e c r ui t i ngf or e i gns t ude nt sf ort he i rt e c hnol ogybas e d pr ogr ams . D)Muni c i pals por t spr ogr amsmus tc har geal lpar t i c i pant st hes amepr i c e ,e ve nwhe npar t i c i pant sdon' t l i vei nt hemuni c i pal i t y . Ans we r :A Di ff: 3 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s , Et hi c alRe as oni ng 24 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 36)Whi c hoft hef ol l owi ngc or r e c t l yde s c r i be st her e l a t i ons hi pbe t we e ne c onomi ce ffic i e nc yand e c onomi ce qui t y? A)The yar ebot haut oma t i c al l yac hi e ve di naf r e emar ke te c onomy . B)The yal wa ysc al lf oroppos i t eout c ome s . C)The r ei snoc onfli c tbe t we e nt het wogoal s . D)The r ei sof t e nat r ade offbe t we e nt het wo. Ans we r :D Di ff: 2 Pa geRe f : 910 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 37)Al l oc a t i vee ffic i e nc ybe s te xpl ai ns________,andpr oduc t i vee ffic i e nc ybe s te xpl ai ns________. A)how s ome t hi ngwi l lbepr oduc e d;whe ns ome t hi ngwi l lbepr oduc e d B)whe ns ome t hi ngwi l lbepr oduc e d;whys ome t hi ngwi l lbepr oduc e d C)whys ome t hi ngwi l lbepr oduc e d;wha twi l lbepr oduc e d D)wha twi l lbepr oduc e d;how s ome t hi ngwi l lbepr oduc e d Ans we r :D Di ff: 2 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 38)As s umeane c onomi c si ns t r uc t orwantt opr omot ee qui t yi nt he i rc l as s r oom.Todot hi s ,announc e t ha tal ls t ude nt swi l lr e c e i veafinalgr adee qualt ot hec l as sa ve r a ge .Bas e dont hee qui t ye ffic i e nc y t r ade off,wha ti sal i ke l yout c ome ? A)Mos ts t ude nt swi l ls pe ndt he i rt i meonot he rc our s e s ,r e s ul t i ngi nl i t t l el e ar ni ngandal ow c l as s a ve r a ge . B)Fr e e df r om c ompe t i t i on,s t ude nt swi l lf ul l yappl yt he ms e l ve st oane c onomi c sc our s ec aus i ngt he c l as sa ve r a get or i s e . C)St ude ntbe ha vi ourwi l lnotc hange ,bute ve r yonei nt hec l as swi l lha vet hes amemar k. D)St ude nt swi l lpute xt r ae ffor ti nt ot hi se c onomi c sc our s es ol e l yt ohe l pot he rs t ude nt sdowe l l . Ans we r :A Di ff: 2 Pa geRe f : 10 Topi c :Tr ade offs 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s , Et hi c alRe as oni ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheEqui t yEffic i e nc yTr ade offi nt hec l as s r oom. 39)Thegove r nme ntmake sal le c onomi cde c i s i onsi nami x e de c onomy . Ans we r :F ALSE Di ff: 1 Pa geRe f : 9 Topi c :Mi x e dEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 40)Whe nvol unt ar ye x c hanget ake spl ac e ,bot hpar t i e sgai nf r om t hee x c hange . Ans we r :TRUE Di ff: 1 Pa geRe f : 89 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? 25 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 AACSB:Re fle c t i veThi nki ng 41)Auni ve r s i t ymus tde c i dei fi twant st ooffe rmor eI nt e r ne t bas e dc l as s e s .Thi sde c i s i oni nvol ve s ans we r i ngt hee c onomi cque s t i onof" wha tt opr oduc e . " Ans we r :TRUE Di ff: 1 Pa geRe f : 78 Topi c :Wha tGoodsandSe r vi c e sWi l lBePr oduc e d? Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 42)Onede s i r abl eout c omeofamar ke te c onomyi st ha ti tl e adst oamor ee qui t abl edi s t r i but i onof i nc ome . Ans we r :F ALSE Di ff: 1 Pa geRe f : 9 Topi c :Mar ke tEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 43)Wha ti se qui t y ,andhow doe si tdi ffe rf r om e ffic i e nc y? Ans we r :Equi t yr e f e r st ot hef ai rdi s t r i but i onofe c onomi cbe ne fit s .I ne c onomi c s ,e ffic i e nc yr e f e r st o l e as tc os tpr oduc t i on( pr oduc t i vee ffic i e nc y)andpr oduc i ngac c or di ngt ohumanpr e f e r e nc e s( al l oc a t i ve e ffic i e nc y) . Di ff: 2 Pa geRe f : 9 Topi c :Equi t y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 44)Wha ti soppor t uni t yc os t ? Ans we r :Oppor t uni t yc os tr e f e r st ot hehi ghe s t val ue dal t e r na t i vet ha tmus tbegi ve nupt oe nga gei nan ac t i vi t y .Fore xampl e ,t heoppor t uni t yc os toft aki ngt hi se c onomi c sc l as si swha tyouar egi vi ngupt o t aket hec l as s ,whi c hma ybet aki nganot he rc l as ss uc hasac c ount i ngorps yc hol ogy ,wor ki nge xt r ahour s a tyourj ob ,ore xt r as l e e p( whi c he ve ri syourhi ghe s t val ue dal t e r na t i ve ) . Di ff: 2 Pa geRe f : 7 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 26 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 45)De finepr oduc t i vee ffic i e nc y .Doe spr oduc t i vee ffic i e nc yi mpl yal l oc a t i vee ffic i e nc y?Expl ai n. Ans we r :Pr oduc t i vee ffic i e nc yi sane ffic i e nc yc r i t e r i ont ha tde s c r i be sas i t ua t i oni nwhi c hgoodsand s e r vi c e sar epr oduc e da tt hel owe s tpos s i bl ec os t .I tdoe snoti mpl yal l oc a t i vee ffic i e nc ywhi c hi sa c r i t e r i onas s oc i a t e dwi t hpr oduc i nggoodsands e r vi c e st ha tc ons ume r sval uemos t .Fore xampl e ,a manuf ac t ur e rma ybeabl et opr oduc et ype wr i t e r sa tt hel owe s tpos s i bl ec os tofs a y ,$200butt hi sdoe s notne c e s s ar i l yme ant ha tc ons ume r sar ewi l l i ngt opa y$200f orat ype wr i t e r . Di ff: 3 Pa geRe f : 9 Topi c :Effic i e nc y Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Anal yt i cSki l l s 46)Wha ti sac e nt r al l ypl anne de c onomy? Ans we r :Ac e nt r al l ypl anne de c onomyi sane c onomyi nwhi c ht hegove r nme ntde c i de show e c onomi c r e s our c e swi l lbeal l oc a t e d. Di ff: 3 Pa geRe f : 89 Topi c :Ce nt r al l yPl anne dEc onomi e s Le ar ni ngOut c ome :1 . 2Di s c us show as oc i e t yans we r st he s et hr e eke ye c onomi cque s t i ons :Wha tgoodsands e r vi c e s wi l lbepr oduc e d?How wi l lt hegoodsands e r vi c e sbepr oduc e d?Whowi l lr e c e i vet hegoodsands e r vi c e spr oduc e d? AACSB:Re fle c t i veThi nki ng 1.3 Understand what economic models are and aren't, and why they're a good idea 1)Ec onomi cmode l sdoal loft hef ol l owi nge x c e p t A)ans we re c onomi cque s t i ons . B)por t r a yr e al i t yi nal li t smi nut ede t ai l s . C)makee c onomi ci de ase xpl i c i tandc onc r e t ef orus ebyde c i s i onmake r s . D)s i mpl i f ys omeas pe c tofe c onomi cl i f e . Ans we r :B Di ff: 1 Pa geRe f : 10 Topi c :Ec onomi cMode l s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 2)Al loft hef ol l owi ngar epar tofane c onomi cmode le x c e p t A)as s umpt i ons . B)hypot he s e s . C)da t a . D)opi ni ons . Ans we r :D Di ff: 1 Pa geRe f : 10 Topi c :Ec onomi cMode l s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 27 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 3)Whi c hoft hef ol l owi ngs t a t e me nt saboutpos i t i vee c onomi canal ys i si sf a l s e ? A)Pos i t i veanal ys i sus e sane c onomi cmode lt oe s t i ma t et hec os t sandbe ne fit sofdi ffe r e ntc our s eof ac t i ons . B)The r ei smuc hmor edi s a gr e e me ntamonge c onomi s t sove rnor ma t i vee c onomi canal ys i st hanove r pos i t i vee c onomi canal ys i s . C)The r ei smuc hmor edi s a gr e e me ntamonge c onomi s t sove rpos i t i vee c onomi canal ys i st hanove r nor ma t i vee c onomi canal ys i s . D)Unl i kenor ma t i vee c onomi cana l ys i s ,pos i t i vee c onomi cana l ys i sc anbet e s t e d. Ans we r :C Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 4)Whi c hoft hef ol l owi ngi sapos i t i vee c onomi cs t a t e me nt ? A)Thes t andar dofl i vi ngi nCanadas houl dbehi ghe r . B)I ft hepr i c eofi Phone sf al l s ,al ar ge rquant i t yofi Phone swi l lbepur c has e d. C)Thegove r nme nts houl dr e s t r uc t ur et hehe al t hc ar es ys t e m. D)TheOnt ar i ogove r nme nts houl dnotha vebai l e doutCanadi anaut omanuf ac t ur e r s . Ans we r :B Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 5)Whi c hoft hef ol l owi ngi sapos i t i vee c onomi cs t a t e me nt ? A)Pe opl es houl dnotbuySUVs . B)Thegove r nme nts houl dmanda t ee l e c t r i caut omobi l e s . C)Sc a r c i t yne c e s s i t a t e st ha tpe opl emaket r ade offs . D)For e i gnwor ke r ss houl dnotbeal l owe dt owor kf orl owe rwa ge st hant hec i t i ze nsofac ount r y . Ans we r :C Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 6)Whi c hoft hef ol l owi ngi sanor ma t i vee c onomi cs t a t e me nt ? A)Ri s i nggl obalde mandf orc oalhasl e dt oi nc r e as e si nt hepr i c eofc oal . B)Wi t hr i s i ngmor t ga ger a t e sandr i s i ngune mpl oyme ntr a t e s ,t henumbe rofuns ol dhome shas i nc r e as e d. C)Tor ont oi sc ons i de r i ngi nc r e as i ngf undsf orl i ght r ai lde ve l opme ntt opr omot et heus eofpubl i c t r ans por t a t i on. D)Phar ma c e ut i c almanuf ac t ur e r ss houl dnotbeal l owe dt opa t e ntt he i rpr oduc t ss opr e s c r i pt i ondr ugs woul dbemor ea ffor dabl e . Ans we r :D Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 7)Whi c hoft hef ol l owi ngi sanor ma t i vee c onomi cs t a t e me nt ? A)Thepr i c eofgas ol i nei st oohi gh. B)Thec ur r e nthi ghpr i c eofgas ol i nei st her e s ul tofs t r ongwor l dwi dede mand. C)Whe nt hepr i c eofgas ol i ner i s e s ,t hequant i t yofgas ol i nepur c has e df al l s . D)Whe nt hepr i c eofgas ol i ner i s e s ,t r ans por t a t i onc os t sr i s e . Ans we r :A 28 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 8)Whi c hoft hef ol l owi ngque s t i onsors t a t e me nt sr e gar di ngmi ni mum wa gei snor ma t i ve ? A)How doc hange si nmi ni mum wa ge saffe c tt hee mpl oyme ntoppor t uni t i e soft e e ns ? B)Pe opl ewor ki ngi nt her e t ai ls e c t orde s e r vehi ghe rpa y . C)Wa ge spl a yar ol ei nc aus i ngs ome onet oappl yf oraj ob. D)Hi ghe rmi ni mum wa ge swi l lc aus efir mst oe mpl oyf e we rpe opl e . Ans we r :B Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Shoul dt heGove r nme ntofOnt ar i oI nc r e as ei t sMi ni mum Wa ge ? 9)Thee c onomi cana l ys i sofmi ni mum wa gei nvol ve sbot hnor ma t i veandpos i t i veana l ys i s .Cons i de rt he f ol l owi ngc ons e que nc e sofami ni mum wa ge : a . Themi ni mum wa gel a wc aus e sune mpl oyme nt . b. Ami ni mum wa gel a w be ne fit ss omegr oupsandhur t sot he r s . c . I ns omec i t i e ss uc hasSanFr anc i s c oandNe w Yor k,mi ni mum wa gel a wsar ene c e s s ar yf orl ows ki l l e dwor ke r st os t a yi nt hec i t y . d. Thegai nst owi nne r sofami ni mum wa gel a ws houl dbeval ue dmor ehi ghl yt hant hel os s e st o l os e r sbe c aus et hel a t t e rpr i mar i l yc ompr i s e sbus i ne s s e s . Whi c hoft hec ons e que nc e sabovear epos i t i ves t a t e me nt sandwhi c har enor ma t i ves t a t e me nt s ? A)a ,b ,andcar epos i t i ves t a t e me nt sanddi sanor ma t i ves t a t e me nt . B)aandbar epos i t i ves t a t e me nt s ,canddar enor ma t i ves t a t e me nt . C)Onl yai sapos i t i ves t a t e me nt ,b ,canddar enor ma t i ves t a t e me nt s . D)aandcar epos i t i ves t a t e me nt s ,banddar enor ma t i ves t a t e me nt s . Ans we r :B Di ff: 2 Pa geRe f : 1213 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Maki ngt heConne c t i on:Shoul dt heGove r nme ntofOnt ar i oI nc r e as ei t sMi ni mum Wa ge ? 29 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 10)" Ani nc r e as ei nt hepr i c eofgas ol i newi l li nc r e as et hede mandf orhybr i dve hi c l e s . "Thi ss t a t e me nti s ane xampl eofapos i t i vee c onomi cs t a t e me nt . Ans we r :TRUE Di ff: 1 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 11)" Thedi s t r i but i onofi nc omes houl dbel e f tt ot hemar ke t "i sane xampl eofapos i t i vee c onomi c s t a t e me nt . Ans we r :F ALSE Di ff: 1 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 12)Pos i t i veanal ys i si sc onc e r ne dwi t h" wha toughtt obe , "whi l enor ma t i veana l ys i si sc onc e r ne dwi t h " wha ti s . " Ans we r :F ALSE Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 13)Wha ti st hedi ffe r e nc ebe t we e npos i t i vee c onomi canal ys i sandnor ma t i vee c onomi canal ys i s ?Gi ve onee xampl ee ac hofapos i t i veandnor ma t i vee c onomi ci s s ueorque s t i onors t a t e me nt . Ans we r :Pos i t i vee c onomi canal ys i si sc onc e r ne dwi t hwha ti s .Pos i t i vee c onomi cana l ys i sr e ac he s c onc l us i onsbas e donve r i fiabl es t a t e me nt s .Nor ma t i vee c onomi cana l ys i s ,ont heot he rhand,i s c onc e r ne dwi t hwha toughtt obe .Nor ma t i veanal ys i sr e ac he sc onc l us i onsbas e donopi ni ons .( St ude nt s wi l lgi vemanydi ffe r e nte xampl e s . ) Di ff: 2 Pa geRe f : 11 Topi c :Nor ma t i veandPos i t i veAnal ys i s Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 14)Expl ai nwhye c onomi c si sc ons i de r e das oc i als c i e nc e . Ans we r :Ec onomi c si sas oc i als c i e nc ebe c aus ei ts t udi e st hea c t i onsofi ndi vi dual s .Asas oc i als c i e nc e , e c onomi c sc ons i de r shumanbe ha vi or ,par t i c ul ar l yde c i s i onmaki ngbe ha vi or ,i ne ve r yc ont e xt . Di ff: 2 Pa geRe f : 11 Topi c :Ec onomi c sasaSoc i alSc i e nc e Le ar ni ngOut c ome :1 . 3Unde r s t andwha te c onomi cmode l sar eandar e n' t ,andwhyt he y' r eagoodi de a AACSB:Re fle c t i veThi nki ng 30 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 1.4 Distinguish between microeconomics and macroeconomics 1)Whi c hoft hef ol l owi ngi sami c r oe c onomi c sque s t i on? A)How muc hwi l lbes a ve dandhow muc hwi l lbepr oduc e di nt hee nt i r ee c onomy? B)Wha twi l lt hel e ve lofe c onomi cgr owt hbei nt hee nt i r ee c onomy? C)Wha tf ac t or sde t e r mi net hepr i c eofc ar r ot s ? D)Wha tde t e r mi ne st hea ve r a gepr i c el e ve landi nfla t i on? Ans we r :C Di ff: 2 Pa geRe f : 13 Topi c :Mi c r oe c onomi c s Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 2)Mi c r oe c onomi c si st hes t udyof A)how hous e hol dsandfir msmakec hoi c e s . B)t hee c onomyasawhol e . C)t hegl obale c onomy . D)t opi c ss uc hasune mpl oyme nt ,i nfla t i on,ande c onomi cgr owt h. Ans we r :A Di ff: 1 Pa geRe f : 13 Topi c :Mi c r oe c onomi c s Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 3)Whi c hoft hef ol l owi ngi samac r oe c onomi c sque s t i on? A)Wha tde t e r mi ne st hei nfla t i onr a t e ? B)Wha tde t e r mi ne st hes i zeoft hefil mi ndus t r yi nCanada? C)Wha tf ac t or sde t e r mi net hepr i c eofc ar r ot s ? D)Wha tde t e r mi ne st hewa geofaut owor ke r s ? Ans we r :A Di ff: 2 Pa geRe f : 13 Topi c :Mac r oe c onomi c s 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 4)Mac r oe c onomi c si st hes t udyof A)how hous e hol dsmakec hoi c e s . B)how fir msmakec hoi c e s . C)how hous e hol dsandfir msmakec hoi c e s . D)t hee c onomyasawhol e . Ans we r :D Di ff: 1 Pa geRe f : 13 Topi c :Mac r oe c onomi c s Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 31 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 5)Exami ni ngt hec ondi t i onst ha tc oul dl e adt oar e c e s s i oni nane c onomyi sane xampl eof mac r oe c onomi c st opi c . Ans we r :TRUE Di ff: 1 Pa geRe f : 13 Topi c :Mac r oe c onomi c s Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 6)Thede c i s i onsAppl emake si nde t e r mi ni ngpr oduc t i onl e ve l sf ori t si Phonei sane xampl eofa mi c r oe c onomi c st opi c . Ans we r :TRUE Di ff: 1 Pa geRe f : 13 Topi c :Mi c r oe c onomi c s Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 7)Whi c hoft hef ol l owi ngar epr i mar i l ymac r oe c onomi ct opi c sandwhi c har epr i mar i l ymi c r oe c onomi c t opi c s ? a . gas ol i nepr i c e s b.une mpl oyme nt c .i nfla t i on d.he al t hc ar ec os t s e . ai rpol l ut i on f .e c onomi cgr owt h Ans we r :b ,c ,andfar epr i mar i l ymac r oe c onomi ct opi c s . a ,d,andear epr i mar i l ymi c r oe c onomi ct opi c s . Di ff: 2 Pa geRe f : 13 Topi c :Mi c r oe c onomi c s Le ar ni ngOut c ome :1 . 4Di s t i ngui s hbe t we e nmi c r oe c onomi c sandmac r oe c onomi c s AACSB:Re fle c t i veThi nki ng 32 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 1.5 Define important economic terms. (It's not all Greek.) 1)Whi c hoft hef ol l owi ngs t a t e me nt si st r ueaboutpr ofit ? A)Pr ofitr e f e r st ot her e ve nuer e c e i ve df r om t hes al eofaquant i t yofgoods . B)Pr ofiti sc al c ul a t e dbymul t i pl yi ngpr i c eandquant i t ys ol d. C)Thet e r ms" ac c ount i ngpr ofit "and" e c onomi cpr ofit "c anbeus e di nt e r c hange abl y . D)Pr ofiti st hedi ffe r e nc ebe t we e nr e ve nueandc os t . Ans we r :D Di ff: 2 Pa geRe f : 14 Topi c :Pr ofit Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 2)I ne c onomi c s ,t heac c umul a t e ds ki l l sandt r ai ni ngt ha twor ke r sha vei sknownas A)humanc api t al . B)e nt r e pr e ne ur s hi p. C)phys i c alc api t al . D)i nnova t i on. Ans we r :A Di ff: 1 Pa geRe f : 15 Topi c :HumanCapi t al Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 3)Whi c hoft hef ol l owi ngi sane xampl eofana c t i vi t yunde r t ake nbyane nt r e pr e ne ur ? A)de s i gni ngyourl ands c api ngf oryourne w home B)hol di ngapos i t i onast hepr e s i de ntofas mal luni ve r s i t y C)r unni ngf orPr i meMi ni s t e rofCanada D)s t ar t i ngyourownpe ts i t t i ngbus i ne s s Ans we r :D Di ff: 1 Pa geRe f : 14 Topi c :Ent r e pr e ne ur Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 4)Themac hi ne swor ke r sha vet owor kwi t har ec ons i de r e d A)humanc api t al . B)phys i c alc api t al . C)e nt r e pr e ne ur s hi p. D)financ i alc api t al . Ans we r :B Di ff: 2 Pa geRe f : 15 Topi c :Capi t al Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 33 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 5)Te c hnol ogyi sde fine das A)t hepr oc e s sofde ve l opi ngandr e vi s i ngmode l s . B)ne wi nnova t i onsandc r e a t i ons . C)t hepr oc e s s e sus e dt opr oduc egoodsands e r vi c e s . D)t hepr oc e s sofr e c yc l i ngpr oduc t s . Ans we r :C Di ff: 1 Pa geRe f : 14 Topi c :Te c hnol ogy Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 6)Whi c hoft hef ol l owi ngs t a t e me nt saboute c onomi cr e s our c e si st r ue ? A)Ec onomi cr e s our c e si nc l udefinanc i alc api t alandmone y . B)Ec onomi cr e s our c e sar eal s oc al l e df a c t or sofpr oduc t i on. C)Ec onomi cr e s our c e sar eus e donl ybybus i ne s s e s . D)Al le c onomi cr e s our c e sar emanmade . Ans we r :B Di ff: 1 Pa geRe f : 14 Topi c :Re s our c e s Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 7)Ast hemi ni mum wa ger i s e s A)t hepr i c eoft ake outc offe ewi l lr i s e . B)t hepr i c eoft ake outc offe ewi l lf al l . C)t he r ewi l lbeas hor t a geofc offe e . D)t he r ewi l lbeas ur pl usofc offe e . Ans we r :A Di ff: 1 Pa geRe f : 15 Topi c :HumanCapi t al Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Ec onomi c si nYourLi f e :How Muc hWi l lYouPa yf oraCupofCoffe e ? 8)I fc l i ma t ec hangec ont i nue st or e duc et heamountofgr e e nc offe ea vai l abl et or oas t e r s A)t hepr i c eoft akeoutc offe ewi l lr i s e . B)pe opl ewor ki ngi nc offe es hopswi l lr e c e i vehi ghe rwa ge s . C)mor epe opl ewi l lwantt odr i nkc offe et hanbe f or e . D)mor ee nt r e pr e ne ur swi l le nt e rt her oas t i ngbus i ne s s . Ans we r :A Di ff: 2 Pa geRe f : 16 Topi c :HumanCapi t al 2CE:Ne wt o2 CE Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 34 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 9)I nt hemar ke tf orf a c t or sofpr oduc t i on,fir mse ar ni nc omebys e l l i nggoodsands e r vi c e st o hous e hol ds . Ans we r :F ALSE Di ff: 1 Pa geRe f : 14 Topi c :Re s our c e s Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 10)Onee xampl eofhumanc api t ali st heamountofs ki l l st ha tyouha ve . Ans we r :TRUE Di ff: 1 Pa geRe f : 15 Topi c :HumanCapi t al Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 11)Li s tt hefivemai nf ac t or sofpr oduc t i on. Ans we r :Thefivemai nf ac t or sofpr oduc t i onar el abour ,c api t al ,humanc api t al ,na t ur alr e s our c e s ,and e nt r e pr e ne ur i alabi l i t y . Di ff: 1 Pa geRe f : 14 Topi c :Re s our c e s Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 12)Wha ti st hedi ffe r e nc ebe t we e nani nve nt i onandani nnova t i on? Ans we r :Ani nve nt i oni st hede ve l opme ntofane w goodorane w pr oc e s sf ormaki ngagood.An i nnova t i oni st hepr ac t i c alappl i c a t i onofani nve nt i on.I nnova t i onc oul dal s or e f e rt oanys i gni fic ant i mpr ove me nti nagoodori nt heme ansofpr oduc i ngagood. Di ff: 1 Pa geRe f : 14 Topi c :I nnova t i on Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 13)Expl ai nt hedi ffe r e nc ebe t we e nafir m' sr e ve nueandi t spr ofit . Ans we r :Afir m' sr e ve nuei st het ot alamountr e c e i ve df ors e l l i ngagoodors e r vi c e .I ti sc al c ul a t e dby mul t i pl yi ngt hepr i c epe runi tbyt henumbe rofuni t ss ol d.Afir m' spr ofiti st hedi ffe r e nc ebe t we e ni t s r e ve nueandi t sc os t s . Di ff: 1 Pa geRe f : 14 Topi c :Re ve nue Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng 14)Wha tar es omeoft her e as onsgi ve nf ort het hei nc r e as ei nc offe epr i c e s ? Ans we r :Ther e as onsi nc l udebadwe a t he ri nCol ombi a ,wa ge s ,andt heac t i onsofi ndi vi dualfir ms . Di ff: 2 Pa geRe f : 16 Topi c :Re s our c e s Le ar ni ngOut c ome :1 . 5De finei mpor t ante c onomi ct e r ms .( I t ' snotal lGr e e k. ) AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :AnI ns i deLOOK: Coffe ePr i c e sSe tt oSoar 35 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 1.6 Appendix A: Review the use of graphs and formulas 1)I fagr aphhasal i net ha ts howst heamountofout s our c i ngi nt hel as tt e nye ar s ,i ti sknownas A)api ec har t . B)at i me s e r i e sgr aph. C)ade mandc ur vef orout s our c i ng. D)as uppl yc ur veofout s our c i ng. Ans we r :B Di ff: 1 Pa geRe f : 24 Topi c :Gr aphs Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 2)________ha veahor i z ont alandave r t i c alaxi sa ndar eus e di ne c onomi c st oi l l us t r a t er e l a t i ons hi ps be t we e nt woe c onomi cvar i abl e s . A)Twodi me ns i onalgr aphs B)One di me ns i onalgr aphs C)Pi ec har t s D)Bargr aphs Ans we r :A Di ff: 1 Pa geRe f : 24 Topi c :Gr aphs Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 3)I fas t r a i ghtl i nepas s e st hr ought hepoi ntx=14andy=3andal s ot hr ought hepoi ntx=4andy=10, t hes l opeoft hi sl i nei s A)ne ga t i ve11di vi de dby6. B)s e ve nt e nt hs . C)ne ga t i ves e ve nt e nt hs . D)6di vi de dby11. Ans we r :C Di ff: 2 Pa geRe f : 25 Topi c :Sl ope Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 4)Onat wodi me ns i onalgr aph,________al l owsf ort hee ffe c t sofaddi t i onalvar i abl e s . A)movi ngal ongac ur ve B)s hi f t i ngc ur ve s C)e l i mi na t i ngac ur ve D)addi nganaddi t i onalc ur ve Ans we r :B Di ff: 3 Pa geRe f : 2527 Topi c :Gr aphs Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 36 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 5)Whi c hoft hef ol l owi ngs t a t e me nt si sf a l s e ? A)Ani nve r s er e l a t i ons hi phasane ga t i ves l opeval ue . B)Adi r e c tr e l a t i ons hi phasapos i t i ves l opeval ue . C)Ac ur ve dl i nehass l opeval ue st ha tc hangea te ve r ypoi nt . D)As t r ai ghtl i nehasas l opeofze r o. Ans we r :D Di ff: 2 Pa geRe f : 26 Topi c :Sl ope Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 6)Ther e l a t i ons hi pbe t we e nc ons ume rs pe ndi nganddi s pos abl epe r s onali nc omei s A)ani nve r s er e l a t i ons hi p. B)adi r e c tr e l a t i ons hi p. C)ane ga t i ver e l a t i ons hi p. D)i nde pe nde nt . Ans we r :B Di ff: 1 Pa geRe f : 26 Topi c :Pos i t i veandNe ga t i veRe l a t i ons hi ps Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 7)Suppos ewhe nt hepr i c eofl apt opsf al l ,uni ve r s i t ys t ude nt sbuymor el apt ops .Thi si mpl i e st ha t A)t he r ei sapos i t i ver e l a t i ons hi pbe t we e nl apt oppr i c e sandquant i t i e spur c has e dbyc ol l e ges t ude nt s . B)t he r ei sane ga t i ver e l a t i ons hi pbe t we e nl a pt oppr i c e sandquant i t i e spur c has e dbyc ol l e ges t ude nt s . C)t he r ei sadi r e c tr e l a t i ons hi pbe t we e nl apt oppr i c e sandquant i t i e spur c has e dbyc ol l e ges t ude nt s . D)t he r ei saone t ooner e l a t i ons hi pbe t we e nl a pt oppr i c e sandquant i t i e spur c has e dbyc ol l e ge s t ude nt s . Ans we r :B Di ff: 1 Pa geRe f : 26 Topi c :Pos i t i veandNe ga t i veRe l a t i ons hi ps Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 8)I ft hepr i c eofmi l kwas$2. 50al i t r eandi ti snow $3. 25al i t r e ,wha ti st hepe r c e nt a gec hangei npr i c e ? A)13pe r c e nt B)30pe r c e nt C)75pe r c e nt D)77pe r c e nt Ans we r :B Di ff: 2 Pa geRe f : 30 Topi c :For mul as Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 37 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 9)I n2010,Hoove r vi l l ec ons ume d205, 000t onne sofs ugar .I n2011,s ugarc ons umpt i onr os et o245, 000 t onne s .Cal c ul a t et hepe r c e nt a gec hangei ns ugarc ons umpt i on. A)8. 37% B)11. 95% C)19. 51% D)26. 33% Ans we r :C Di ff: 2 Pa geRe f : 30 Topi c :For mul as Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 10)Atar e c e ntf ac ul t yme e t i ng,Lor r ai neWa ve r l y , pr e s i de ntofSkywal ke rCol l e ge ,announc e dt ha t e nr ol l me nti supby12pe r c e ntove rt hepr e vi ouss e me s t e r .I fe nr ol l me ntt hepr e vi ouss e me s t e rwas3, 250 s t ude nt s ,wha ti st hes t ude nte nr ol l me ntt hi ss e me s t e r ? A)390 B)2, 860 C)3, 640 D)4, 030 Ans we r :C Di ff: 2 Pa geRe f : 30 Topi c :For mul as Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 38 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e1. 1 11)Re f e rt oFi g ur e1. 1.Us i ngt hei nf or ma t i oni nt hefigur eabove ,c al c ul a t et hepe r c e nt a gec hangei n s al e sofal c ohol i cbe ve r a ge sbe t we e n2008and2011. A)23. 1% B)23. 8% C)30% D)42. 9% Ans we r :D Di ff: 1 Pa geRe f : 30 Topi c :For mul as Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 39 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e1. 2 12)Re f e rt oFi g ur e1. 2.Cal c ul a t et hear e aoft het r i angl eA. A)$1. 3mi l l i on B)$2. 6mi l l i on C)$3. 4mi l l i on D)$5. 2mi l l i on Ans we r :B Di ff: 1 Pa geRe f : 30 Topi c :For mul as Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 40 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e1. 3 13)Re f e rt oFi g ur e1. 3.Cal c ul a t et hear e aoft het r ape z oi dX. A)$270 B)$720 C)$810 D)$2, 520 Ans we r :C Di ff: 2 Pa geRe f : 31 Topi c :For mul as Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s Fi gur e1. 4 14)Re f e rt oFi g ur e14.Whi c hoft hef ol l owi ngs t a t e me nt si sf a l s e ? A)Thes l opeoft het ange nta tEi spos i t i ve . B)Thes l opeoft het ange nta tFi sne ga t i ve . C)Thes l opeoft het ange nta tEandt hes l opeoft het ange nta tFar ee qual . D)Ne i t he rt hes l opeoft het ange nta tEnort hes l opeoft het ange nta tFar ee qualt oze r o. Ans we r :C Di ff: 1 Pa geRe f : 2930 Topi c :Sl ope Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 15)Wha ti st he" omi t t e dvar i abl e "pr obl e mi nde t e r mi ni ngc aus eande ffe c t ? A)I ti sapr obl e mt ha tar i s e swhe nani ns i gni fic antvar i abl ei sgi ve nt oomuc hwe i ghti nane c onomi c 41 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 anal ys i sl e adi ngt os ke we dc onc l us i onsaboutc aus eande ffe c t . B)I ti sapr obl e mt ha tar i s e swhe nas i gni fic antva r i abl ei snotgi ve ne noughwe i ghti nane c onomi c e xpe r i me ntl e adi ngt os ke we dc onc l us i onsaboutc aus eande ffe c t . C)I ti sapr obl e mt ha tar i s e swhe nani ns i gni fic ante c onomi cvar i abl et ha ts houl dha vebe e nomi t t e di s i nc l ude di nane c onomi ce xpe r i me ntl e adi ngt of al s ec onc l us i onsaboutc aus eande ffe c t . D)I ti sapr obl e mt ha tar i s e swhe nane c onomi cvar i abl et ha taffe c t sot he rvar i abl e si somi t t e df r om a n anal ys i sandi t somi s s i onl e adst of al s ec onc l us i onsaboutc aus eande ffe c t . Ans we r :D Di ff: 1 Pa geRe f : 2627 Topi c :Caus eandEffe c t Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 16)________i sapr obl e mt ha toc c ur swhe nonec onc l ude st ha tac hangei nvar i abl eXc aus e dac hangei n var i abl eYwhe ni na c t ualf ac t ,i ti sac hangei nvar i abl eYt ha tc aus e dac hangei nvar i abl eX. A)Theomi t t e dvar i abl e B)Thepos i t i ve t one ga t i ver e l a t i ons hi p C)Re ve r s ec aus al i t y D)Nonl i ne ars l ope Ans we r :C Di ff: 1 Pa geRe f : 2627 Topi c :Caus eandEffe c t Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng 17)Thepr e val e nc eofAl zhe i me r ' sde me nt i ai sve r yhi ghamongr e s i de nt sl i vi ngi nnur s i nghome s .A s t ude ntc onc l ude st ha ti ti sl i ke l yt ha tl i vi ngi nnur s i nghomec aus e sAl zhe i me r ' sde me nt i a .Wha ti st he fla wi nt hes t ude nt ' sr e as oni ng? A)Thes t ude nthasf ai l e dt ot akei nt oac c ountot he rc aus e sofAl zhe i me r ' sdi s e as e . B)Thes t ude nti sdr a wi ngaf al s ec onc l us i on;hei sc onf us i ngc aus eande ffe c t . C)Thes t ude nti sus i ngani nade qua t es ampl es i ze . D)Thes t ude nti sdr a wi ngaf al s ec onc l us i onbymaki ngt hemi s t akeofomi t t i ngc r i t i c alvar i abl e ss uc has t hea geandge nde roft her e s i de nt s . Ans we r :B Di ff: 2 Pa geRe f : 2627 Topi c :Caus eandEffe c t Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 42 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)Youe xpl ai nt oyourr oomma t eSur ya ,whomake sbe ade dhe adbands ,aboutane c onomi ct he or y whi c has s e r t st ha tc ons ume r swi l lpur c has emor eofapr oduc ta tl owe rpr i c e st hant he ywi l la thi ghe r pr i c e s .Shec ont e ndst ha tt het he or yi si nc or r e c tbe c aus eove rt hepas tt woye ar ss hehasl owe r e dt he pr i c eofhe rhe adbandsandye thass e e nade c r e as ei ns al e s .How woul dyour e s pondt oSur ya? A)Sur yai sr i ght ;s hehase vi de nc et obac khe rc l ai m.Thet he or ymus tbee r r one ous . B)Sur yai smaki ngt hemi s t akeofas s umi ngt ha tc or r e l a t i oni mpl i e sc aus a t i on. C)Iwi l le xpl ai nt ohe rt ha ts hei smaki ngt hee r r orofr e ve r s ec aus al i t y:i ti st hede c r e as ei nde ma ndt ha t hasc aus e dhe rt ol owe rhe rpr i c e s . D)Iwi l le xpl ai nt ohe rt ha tt he r ear es omeomi t t e dvar i abl e st ha tha vec ont r i but e dt oade c r e as ei nhe r s al e ss uc hasc hange si ni nc ome . Ans we r :D Di ff: 2 Pa geRe f : 2627 Topi c :Caus eandEffe c t Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Re fle c t i veThi nki ng Tabl e1. 2 Ye ar 2007 2008 2009 2010 2011 DVD Rec or der s ( mi l l i ons ) 12. 5 14. 0 17. 2 20. 0 21. 7 19)Re f e rt oTabl e1. 2.Thet abl eaboves howst hes al e sofDVDr e c or de r si nNor t hAme r i c a .Pr e s e ntt he i nf or ma t i onus i ngabargr aph. Ans we r : Di ff: 1 Pa geRe f : 27/27 Topi c :Gr aphs Le ar ni ngOut c ome :1 . 6Appe ndi xA:Re vi e wt heus eofgr aphsandf or mul as AACSB:Anal yt i cSki l l s 43 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Chapter 2 - TEST BANK Introductory Macroeconomics SFW (University of Guelph) StuDocu is not sponsored or endorsed by any college or university Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Macroeconomics, Second Canadian Edition (Hubbard) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Use a production possibilities frontier to analyze opportunity costs and trade-offs 1)Sc a r c i t y A)s t e msf r om t hei nc ompa t i bi l i t ybe t we e nl i mi t e dr e s our c e sandunl i mi t e dwant s . B)c anbeove r c omebydi s c ove r i ngne wr e s our c e s . C)c anbee l i mi na t e dbyr a t i oni ngpr oduc t s . D)i sabi gge rpr obl e mi nmar ke te c onomi e st hani ns oc i al i s te c onomi e s . Ans we r :A Di ff: 2 Pa geRe f : 36 Topi c :Sc ar c i t y Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 2)Toyot abui l tanas s e mbl ypl anti nWoods t oc k,Ont ar i o.Att hi spl ant ,Toyot ai sabl et ot akeadvant a ge ofpa yi ngl owe rt r ans por t a t i onc os t sonc ar st obes ol di nCanadat hani twoul df r om i t sJ apane s e as s e mbl ypl ant s ,buti tal s os ac r i fic e st hee as eofs upe r vi s i ngi t sJ apane s ewor ke r s ,whoge ne r al l yha ve hi ghs ki l l sl e ve l sandf e wl abourdi s put e s .I nde c i di ngt oope nt heWoods t oc kpl ant ,Toyot a A)f ac e dnot r ade offsbe c aus ee mpl oyi ngl owe r wa gewor ke r si nc r e as e de ffic i e nc y . B)f a c e dat r ade offbe t we e nc os tandc onve ni e nc e . C)adopt e dane ga t i vet e c hnol ogi c alc hangebe c aus ei tr e pl ac e dhi ghs ki l l e dwor ke r swi t hl ows ki l l e d wor ke r s . D)e r ode ds omeofi t sc ompe t i t i ve ne s si nt hel uxur yc armar ke tbe c aus eofi t sde c r e as e dc os tof pr oduc t i on. Ans we r :B Di ff: 2 Pa geRe f : 35 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Chapt e rOpe ne r :Mana ge r sMaki ngChoi c e sa tBMW 3)Thepr i nc i pl eofoppor t uni t yc os ti st ha t A)i namar ke te c onomy ,t aki ngadvant a geofpr ofit abl eoppor t uni t i e si nvol ve ss omemone yc os t . B)t hee c onomi cc os tofus i ngaf a c t orofpr oduc t i oni st heal t e r na t i veus eoft ha tf ac t ort ha ti sgi ve nup. C)t aki ngadvant a geofi nve s t me ntoppor t uni t i e si nvol ve sc os t s . D)t hec os tofpr oduc t i onvar i e sde pe ndi ngont heoppor t uni t yf ort e c hnol ogi c alappl i c a t i on. Ans we r :B Di ff: 3 Pa geRe f : 36 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 1 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 4)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rs howst he________c ombi na t i onsoft wopr oduc t st ha tma ybe pr oduc e di napar t i c ul art i mepe r i odwi t ha vai l abl er e s our c e s . A)mi ni mum a t t ai nabl e B)maxi mum a t t ai nabl e C)onl y D)e qui t abl e Ans we r :B Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 5)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rmode ls howst ha t A)i fc ons ume r sde c i det obuymor eofapr oduc ti t spr i c ewi l li nc r e as e . B)amar ke te c onomyi smor ee ffic i e nti npr oduc i nggoodsands e r vi c e st hani sac e nt r al l ypl anne d e c onomy . C)e c onomi cgr owt hc anonl ybeac hi e ve dbyf r e emar ke te c onomi e s . D)i fal lr e s our c e sar ef ul l yande ffic i e nt l yut i l i ze d,mor eofonegoodc anbepr oduc e donl ybypr oduc i ng l e s sofanot he rgood. Ans we r :D Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 6)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rmode las s ume swhi c hoft hef ol l owi ng? A)Labour ,c api t al ,l andandna t ur alr e s our c e sar eunl i mi t e di nquant i t y . B)Thee c onomypr oduc e sonl yt wopr oduc t s . C)Anyl e ve loft het wopr oduc t st ha tt hee c onomypr oduc e si sc ur r e nt l ypos s i bl e . D)Thel e ve loft e c hnol ogyi svar i abl e . Ans we r :B Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 7)Thea t t ai nabl epr oduc t i onpoi nt sonapr oduc t i onpos s i bi l i t yc ur vear e A)t hehor i z ont alandve r t i c ali nt e r c e pt s . B)t hepoi nt sal ongt hepr oduc t i onpos s i bi l i t i e sf r ont i e r . C)t hepoi nt sout s i det hear e ae nc l os e dbyt hepr oduc t i onpos s i bi l i t i e sf r ont i e r . D)t hepoi nt sal ongandi ns i det hepr oduc t i onpos s i bi l i t yf r ont i e r . Ans we r :D Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 2 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 8)Thepoi nt sout s i det hepr oduc t i onpos s i bi l i t i e sf r ont i e rar e A)e ffic i e nt . B)a t t ai nabl e . C)i ne ffic i e nt . D)una t t ai nabl e . Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng Fi gur e2. 1 9)Re f e rt oFi g ur e2. 1.Poi ntAi s A)t e c hni c al l ye ffic i e nt . B)una t t ai nabl ewi t hc ur r e ntr e s our c e s . C)i ne ffic i e nti nt ha tnotal lr e s our c e sar ebe i ngus e d. D)t hee qui l i br i um out putc ombi na t i on. Ans we r :C Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 10)Re f e rt oFi g ur e2. 1.Poi ntBi s A)t e c hni c al l ye ffic i e nt . B)una t t ai nabl ewi t hc ur r e ntr e s our c e s . C)i ne ffic i e nti nt ha tnotal lr e s our c e sar ebe i ngus e d. D)t hee qui l i br i um out putc ombi na t i on. Ans we r :A Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 3 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 11)Re f e rt oFi g ur e2. 1.Poi ntCi s A)t e c hni c al l ye ffic i e nt . B)una t t ai nabl ewi t hc ur r e ntr e s our c e s . C)i ne ffic i e nti nt ha tnotal lr e s our c e sar ebe i ngus e d. D)i st hee qui l i br i um out putc ombi na t i on. Ans we r :B Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 12)Re f e rt oFi g ur e2. 1.Atpoi ntAt heoppor t uni t yc os tofpr oduc i ngmor eSUVsi s A)0r oads t e r s . B)0SUVs . C)2. 5r oads t e r spe rSUV. D)i mpos s i bl et ode t e r mi ne . Ans we r :A Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 13)I napr oduc t i onpos s i bi l i t i e sf r ont i e rmode l ,apoi nt________t hef r ont i e ri spr oduc t i ve l yi ne ffic i e nt . A)al ong B)i ns i de C)out s i de D)a te i t he ri nt e r c e ptof Ans we r :B Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 14)Be l l ac anpr oduc ee i t he rac ombi na t i onof60s i l kr os e sand80s i l kl e a ve sorac ombi na t i onof70s i l k r os e sand55s i l kl e a ve s .I fs henow pr oduc e s60s i l kr os e sand80s i l kl e a ve s ,wha ti st heoppor t uni t yc os t ofpr oduc i nganaddi t i onal10s i l kr os e s ? A)2. 5s i l kl e a ve s B)10s i l kl e a ve s C)25s i l kl e a ve s D)55s i l kl e a ve s Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 4 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 15)I ft hepr oduc t i onpos s i bi l i t i e sf r ont i e ri s___ _____,t he noppor t uni t yc os t sar ec ons t antasmor eof onegoodi spr oduc e d. A)bowe dout B)bowe di n C)nonl i ne ar D)l i ne ar Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng Fi gur e2. 2 Fi gur e2. 2aboves howst hepr oduc t i onpos s i bi l i t i e sf r ont i e rf orAt i kame kw Cr e e( c a .1600)wi t ha hi s t or i c alt r adi t i onoffis hi ngandf a r mi ng.As s umet he ypr oduc et wogoods :fis handgr ai ns . 16)Re f e rt oFi g ur e2. 2.Wha ti st heoppor t uni t yc os tofoneki l ogr am ofgr ai n? l ogr amsoffis h A) ki B)1. 2ki l ogr amsoffis h C) ki l ogr amsoffis h D)12ki l ogr amsoffis h Ans we r :A Di ff: 2 Pa geRe f : 38 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 5 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 17)Re f e rt oFi g ur e2. 2.Wha ti st heoppor t uni t yc os tofoneki l ogr am ofFi s h? A) ki l ogr am ofgr ai n B) ki l ogr amsofgr ai n C)1. 6ki l ogr amsofgr ai n D)16ki l ogr amsofgr ai n Ans we r :B Di ff: 2 Pa geRe f : 38 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 18)Re f e rt oFi g ur e2. 2.Suppos eAt i kame kw Cr e ear ec ur r e nt l ypr oduc i ng60ki l ogr amsofgr ai npe r pe r i od.How muc hfis hi si tal s opr oduc i ng,as s umi ngt ha tr e s our c e sar ef ul l yut i l i ze d? A)45ki l ogr amsoffis h B)75ki l ogr amsoffis h C)80ki l ogr amsoffis h D)100ki l ogr amsoffis h Ans we r :B Di ff: 2 Pa geRe f : 38 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 19)Re f e rt oFi g ur e2. 2.Thel i ne arpr oduc t i onpos s i bi l i t i e sf r ont i e ri nt hefigur ei ndi c a t e st ha t A)At i kame kw Cr e eha veac ompar a t i veadvant a gei nt hepr oduc t i onofve ge t abl e s . B)At i kame kw Cr e eha veac ompar a t i vedi s advant a gei nt hepr oduc t i onofme a t . C)t het r ade offbe t we e npr oduc i ngfis handgr ai ni sc ons t ant . D)i ti spr ogr e s s i ve l ymor ee xpe ns i vet opr oduc efis h. Ans we r :C Di ff: 2 Pa geRe f : 38 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 20)Apr oduc t i onpos s i bi l i t i e sf r ont i e rwi t habowe dout war ds hapei ndi c a t e s A)t hepos s i bi l i t yofi ne ffic i e ntpr oduc t i on. B)c ons t antoppor t uni t yc os t sasmor eandmor eofonegoodi spr oduc e d. C)i nc r e as i ngoppor t uni t yc os t sasmor eandmor eofonegoodi spr oduc e d. D)de c r e as i ngoppor t uni t yc os t sasmor eandmor eofonegoodi spr oduc e d. Ans we r :C Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 21)I nc r e as i ngoppor t uni t yc os ti sr e pr e s e nt e dbya________pr oduc t i onpos s i bi l i t i e sf r ont i e r . A)l i ne ar B)c onve x C)c onc a ve D)ve r t i c al 6 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :C Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 22)Thes l opeofapr oduc t i onpos s i bi l i t i e sf r ont i e r A)hasnoe c onomi cr e l e vanc eorme ani ng. B)i sal wa ysc ons t ant . C)i sal wa ysvar yi ng. D)me as ur e st heoppor t uni t yc os tofpr oduc i ngonemor euni tofagood. Ans we r :D Di ff: 1 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 23)________oppor t uni t yc os ti mpl i e st ha tasmor er e s our c e sar eappl i e dt opr oduc i ngonegood,t ha t pr oduc t i oni nc r e as e sbys mal l e rands mal l e ramount s . A)I nc r e as i ng B)De c r e as i ng C)Cons t ant D)Ne ga t i ve Ans we r :A Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 24)I foppor t uni t yc os t sar ec ons t ant ,t hepr oduc t i onpos s i bi l i t i e sf r ont i e rwoul dbegr aphe das A)ar a yf r om t heor i gi n. B)apos i t i ve l ys l ope ds t r ai ghtl i ne . C)ane ga t i ve l ys l ope dc ur vebowe di nt owar dt heor i gi n. D)ane ga t i ve l ys l ope ds t r ai ghtl i ne . Ans we r :D Di ff: 1 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 7 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 3 25)Re f e rt oFi g ur e2. 3.Se r gi oVi gne t t or ai s e sc a t t l eandl l amasonhi sl a nd.Hi sl andi se qual l ys ui t abl e f orr ai s i nge i t he rani mal .Whi c hoft hegr aphsi nFi gur e2. 3r e pr e s e nthi spr oduc t i onpos s i bi l i t i e s f r ont i e r ? A)Gr aphA B)Gr aphB C)Gr aphC D)e i t he rGr aphAorGr aphC E)e i t he rGr aphBorGr aphC Ans we r :A Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 26)Re f e rt oFi g ur e2. 3.Se r gi oVi gne t t or ai s e sc a t t l eandl l amasonhi sl and.Hal ft hel andi smor e s ui t abl ef orr ai s i ngc a t t l eandhal ft hel andi sbe t t e rs ui t e df orr ai s i ngl l amas .Whi c hoft hegr aphsi n Fi gur e2. 3r e pr e s e nthi spr oduc t i onpos s i bi l i t i e sf r ont i e r ? A)Gr aphA B)Gr aphB C)Gr aphC D)e i t he rGr aphAorGr aphC E)e i t he rGr aphBorGr aphC Ans we r :C Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 8 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e2. 1 Pr oduc t i onc hoi c e sf orTomas o' sTr a t t or i a Quant i t yof Quant i t yof Pi zzas Ca l zones Choi c e Pr oduc ed Pr oduc ed A 48 0 B 36 15 C 24 30 D 12 45 E 0 60 27)Re f e rt oTabl e2. 1.As s umeTomas o' sTr a t t or i aonl ypr oduc e spi zzasandc al z one s .Ac ombi na t i onof 24pi zzasand30c al z one swoul dappe ar A)al ongTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . B)i ns i deTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . C)out s i deTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)a tt hehor i z ont ali nt e r c e ptofTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :A Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 28)Re f e rt oTabl e2. 1.As s umeTomas o' sTr a t t or i aonl ypr oduc e spi zzasandc al z one s .Ac ombi na t i onof 36pi zzasand30c al z one swoul dappe ar A)al ongTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . B)i ns i deTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . C)out s i deTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)a tt hehor i z ont ali nt e r c e ptofTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 29)Re f e rt oTabl e2. 1.As s umeTomas o' sTr a t t or i aonl ypr oduc e spi zzasandc al z one s .Ac ombi na t i onof 24pi zzasand15c al z one swoul dappe ar A)al ongTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . B)i ns i deTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . C)out s i deTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)a tt hehor i z ont ali nt e r c e ptofTomas o' spr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :B Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 9 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 30)Re f e rt oTabl e2. 1.As s umeTomas o' sTr a t t or i aonl ypr oduc e spi zzasandc al z one s .Tomas of ac e s ________oppor t uni t yc os t si nt hepr oduc t i onofpi zzasandc al z one s . A)i nc r e as i ng B)de c r e as i ng C)c ons t ant D)ne ga t i ve Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 31)Ani nwar ds hi f tofana t i on' spr oduc t i onpos s i bi l i t i e sf r ont i e rc anoc c urduet o A)ar e duc t i oni nune mpl oyme nt . B)ana t ur aldi s as t e rl i keahur r i c aneorbade ar t hquake . C)ac hangei nt heamount sofonegoodde s i r e d. D)ani nc r e as ei nt hel abourf or c e . Ans we r :B Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 32)Anout war ds hi f tofana t i on' spr oduc t i onpos s i bi l i t i e sf r ont i e rr e pr e s e nt s A)e c onomi cgr owt h. B)r i s i ngpr i c e soft het wogoodsont hepr oduc t i onpos s i bi l i t i e sf r ont i e rmode l . C)ani mpos s i bl es i t ua t i on. D)as i t ua t i oni nwhi c hac ount r ypr oduc e smor eofonegoodandl e s sofanot he r . Ans we r :A Di ff: 1 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 33)Ec onomi cde c l i ne( ne ga t i vegr owt h)i sr e pr e s e nt e donapr oduc t i onpos s i bi l i t i e sf r ont i e rmode lby t hepr oduc t i onpos s i bi l i t yf r ont i e r A)s hi f t i ngout war d. B)s hi f t i ngi nwar d. C)be c omi ngs t e e pe r . D)be c omi ngfla t t e r . Ans we r :B Di ff: 1 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 10 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 34)Wi t houtani nc r e as ei nt hes uppl i e soff ac t or sofpr oduc t i on,how c anana t i onac hi e vee c onomi c gr owt h? A)bypr oduc i ngmor ehi ghval uegoodsandl e s sofl owval uegoods B)t hr ought e c hnol ogi c aladvanc e me ntwhi c he nabl e smor eout putwi t ht hes amequant i t yofr e s our c e s C)byl owe r i ngt hepr i c e soff a c t or sofpr oduc t i on D)byi nc r e as i ngt hepr i c e soff a c t or sofpr oduc t i on Ans we r :B Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 35)Whi c hoft hef ol l owi ngwoul ds hi f tana t i on' spr oduc t i onpos s i bi l i t i e sf r ont i e rout war d? A)de ve l opi ngs ol a rpowe rt ha ti smor ee ffic i e ntt hanal lot he rme t hodsofge ne r a t i nge l e c t r i c i t y . B)ani nc r e as ei nde mandf ort hena t i on' spr oduc t s C)ade c r e as ei nt heune mpl oyme ntr a t e D)al a wr e qui r i ngwor ke r st or e t i r ea ta ge50 Ans we r :A Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 11 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 4 Fi gur e2. 4s howsvar i ouspoi nt sont hr e edi ffe r e ntpr oduc t i onpos s i bi l i t i e sf r ont i e r sf orana t i on. 36)Re f e rt oFi g ur e2. 4.Amove me ntf r om Xt oY A)c oul dbeduet oac hangei nc ons ume r s ' t as t e sandpr e f e r e nc e s . B)c oul doc c urbe c aus eofani nfluxofi mmi gr antl abour . C)i st her e s ul tofadvanc e me nt si nf oodpr oduc t i ont e c hnol ogyonl y ,wi t hnoc hangei nt het e c hnol ogy f orpl as t i cpr oduc t i on. D)i st her e s ul tofadvanc e me nt si npl as t i cpr oduc t i ont e c hnol ogyonl y ,wi t hnoc hangei nf ood pr oduc t i ont e c hnol ogy . Ans we r :B Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 37)Re f e rt oFi g ur e2. 4.Amove me ntf r om Yt oZ A)r e pr e s e nt sani nc r e as ei nt hede mandf orpl as t i cpr oduc t s . B)c oul doc c urbe c aus eofge ne r alt e c hnol ogi c aladvanc e me nt s . C)i st her e s ul tofadvanc e me nt si nf oodpr oduc t i ont e c hnol ogy . D)i st her e s ul tofadvanc e me nt si npl as t i cpr oduc t i ont e c hnol ogy . Ans we r :D Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 12 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 38)Re f e rt oFi g ur e2. 4.Cons i de rt hef ol l owi nge ve nt s : a . ani nc r e as ei nt heune mpl oyme ntr a t e b. ade c r e as ei nana t i on' smone ys uppl y c . awart ha tki l l sas i gni fic antpor t i onofana t i on' spopul a t i on Whi c hoft hee ve nt sl i s t e dabovec oul dc aus eamove me ntf r om Yt oW ? A)a ,bandc B)aandbonl y C)aandconl y D)aonl y E)conl y Ans we r :E Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 39)Re f e rt oFi g ur e2. 4.Cons i de rt hef ol l owi ngmove me nt s : a .f r om poi ntVt opoi ntW b. f r om poi ntW t opoi ntY c .f r om poi ntYt opoi ntZ Whi c hoft hemove me nt sl i s t e dabover e pr e s e nt se c onomi cgr owt h? A)a ,b ,andc B)bandconl y C)aonl y D)bonl y Ans we r :B Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 40)Re f e rt oFi g ur e2. 4.Cons i de rt hef ol l owi nge ve nt s : a . ade c r e as ei nt heune mpl oyme ntr a t e b. ge ne r alt e c hnol ogi c aladvanc e me nt c . ani nc r e as ei nc ons ume rwe al t h Whi c hoft hee ve nt sl i s t e dabovec oul dc aus eamove me ntf r om Vt oW ? A)aonl y B)aandbonl y C)bandconl y D)a ,b ,andc Ans we r :A Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 13 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 41)Re f e rt oFi g ur e2. 4.Cons i de rt hef ol l owi nge ve nt s : a . ar e duc t i oni nt hepa t e ntpr ot e c t i onpe r i odt onomor et han2ye ar s b. awart ha tde s t r oysas ubs t ant i alpor t i onofana t i on' sc api t als t oc k c .t hel ac kofs e c ur eande nf or c e abl epr ope r t yr i ght ss ys t e m Whi c hoft hee ve nt sl i s t e dabovec oul dc aus eamove me ntf r om W t oV? A)aonl y B)aandbonl y C)aandconl y D)bandconl y E)a ,b ,andc Ans we r :C Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 42)TheGr e a tDe pr e s s i onoft he1930swi t hal ar genumbe rofwor ke r sandf ac t or i e sune mpl oye dwoul d ber e pr e s e nt e di napr oduc t i onpos s i bi l i t i e sf r ont i e rgr aphby A)apoi nti ns i det hef r ont i e r . B)apoi ntout s i det hef r ont i e r . C)apoi ntont hef r ont i e r . D)ani nt e r c e ptone i t he rt heve r t i c alort hehor i z ont alaxi s . Ans we r :A Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 43)Suppos et he r ei snoune mpl oyme nti nt hee c onomyands oc i e t yde c i de st ha ti twant smor eofone good.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)I tc anonl yac hi e vet hi swi t hanadvanc ei nt e c hnol ogy . B)I tc ani nc r e as eout putwi t houtgi vi ngupanot he rgood. C)I tc anonl yac hi e vet hi swi t hani nc r e as ei nr e s our c es uppl i e s . D)I twi l lha vet ogi veuppr oduc t i onandc ons umpt i onofs omeot he rgood. Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 14 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 44)I fs oc i e t yde c i de si twant smor eofonegoodandal lr e s our c e sar ef ul l yut i l i ze d,t he n A)i ti sunabl et odot hi sunl e s st e c hnol ogyadvanc e s . B)addi t i onalr e s our c es uppl i e swi l lha vet obef ound. C)i thast ogi veups omeofanot he rgoodandi nc urs omeoppor t uni t yc os t s . D)mor eune mpl oyme ntwi l loc c ur . Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 45)Ac c or di ngt ot hepr oduc t i onpos s i bi l i t ymode l ,i fmor er e s our c e sar eal l oc a t e dt ot hepr oduc t i onof phys i c alandhumanc api t al ,t he nwhi c hoft hef ol l owi ngi sl i ke l yt ohappe n? A)Fe we rgoodswi l lbepr oduc e df orc ons umpt i ont oda y . B)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rwi l lbes hi f ti nwar di nt hef ut ur e . C)Fut ur ee c onomi cgr owt hwi l lde c l i ne . D)Thec ount r y' st ot alpr oduc t i onwi l lf al l . Ans we r :A Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Fi gur e2. 5 46)Re f e rt oFi g ur e2. 5.I ft hee c onomyi sc ur r e nt l ypr oduc i nga tpoi ntY,wha ti st heoppor t uni t yc os tof movi ngt opoi ntW? A)2mi l l i ont onsofs t e e l B)z e r o C)9mi l l i ont onsofpape r D)16mi l l i ont onsofpape r Ans we r :B Di ff: 2 Pa geRe f : 4041 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 47)Re f e rt oFi g ur e2. 5.I ft hee c onomyi sc ur r e nt l ypr oduc i nga tpoi ntW,wha ti st heoppor t uni t yc os tof movi ngt opoi ntX? A)3mi l l i ont onsofs t e e l 15 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 B)19mi l l i ont onsofs t e e l C)5mi l l i ont onsofpape r D)9mi l l i ont onsofpape r Ans we r :C Di ff: 1 Pa geRe f : 4041 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 48)Re f e rt oFi g ur e2. 5.I ft hi se c onomyi sc ur r e nt l ypr oduc i nga tpoi ntX,wha ti st heoppor t uni t yc os tof movi ngt opoi ntW? A)3mi l l i ont onsofs t e e l B)5t onsofpape r C)7t onsofpape r D)19t onsofs t e e l Ans we r :A Di ff: 2 Pa geRe f : 4041 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 49)Re f e rt oFi g ur e2. 5.I ft hi se c onomyi sc ur r e nt l yc ons i de r i ngs wi t c hi ngf r om poi ntXt opoi ntW,wha t i st heoppor t uni t yc os tofe ac hne wl ypr oduc e dt onofpape r ? A)0. 6t onsofs t e e l B)3t onsofs t e e l C)1. 67t onsofpape r D)5t onsofpape r . Ans we r :A Di ff: 3 Pa geRe f : 4041 Topi c :Oppor t uni t yCos t 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 16 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 50)Aspr ovi nc i algove r nme nt sac r os sCanadaf ac egr owi ngbudge tde fic i t ss omeanal ys t sc aut i ont ha t r i s i nghe al t hc ar es pe ndi ngc oul dl e adt or e duc e df undi ngf oruni ve r s i t i e sandc ol l e ge s .Thi ss t a t e me nt s ugge s t st ha t A)Canadi angove r nme nt sne ve rr e al l ys uppor t e dpos ts e c ondar ye duc a t i on. B)t he r ei sat r ade offbe t we e nhe al t hc ar es pe ndi ngande duc a t i ons pe ndi ng. C)s oc i e t ys houl dval uee duc a t i ons pe ndi ngmor ehi ghl yt hanhe al t hc ar es pe ndi ng. D)s oc i e t ys houl dval uehe al t hc ar es pe ndi ngmor ehi ghl yt hanhe al t hc ar ebe c aus eoft hel ongt e r m e c onomi cbe ne fit sge ne r a t e dbyahe al t hi e rpopul a t i on. Ans we r :B Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 51)Suppos eyoure xpe ns e sf ort hi st e r m ar easf ol l ows :t ui t i on:$7, 000,r oom andboar d:$8, 500,books andot he re duc a t i onals uppl i e s :$2, 500.Fur t he r ,dur i ngt het e r m,youc anonl ywor kpar t t i meande ar n $5, 500i ns t e adofyourf ul l t i mes al ar yof$20, 000.Wha ti st heoppor t uni t yc os tofgoi ngt oc ol l e get hi s t e r m,as s umi ngt ha tyourr oom andboar de xpe ns e swoul dbet hes amee ve ni fyoudi dnotgot oc ol l e ge ? A)$7, 000 B)$9, 500 C)$24, 000 D)$38, 000 Ans we r :C Di ff: 3 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 52)Theoppor t uni t yc os toft aki ngas e me s t e r l onge c onomi c sc l as si s A)t hec os toft ui t i onandf e e sonl y . B)t heval ueoft het i mes pe nti nt hec l as s r oom. C)z e r obe c aus et he r ei snoadmi s s i onc har ge di fyouar ee nr ol l e di nt hec our s e . D)e qualt ot hehi ghe s tval ueofanal t e r na t i veus eoft het i meandmone ys pe ntont hec l as s . E)t heknowl e dgeande nj oyme ntyour e c e i vef r om a t t e ndi ngt hec l as s . Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 17 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 6 Toyot af oundt hee mi s s i ons t andar dst oodi ffic ul tt ome e tt obr i ngi t sdi e s e l e ngi neoffe r i ngst oNor t h Ame r i c a .The yha vei ns t e adf oc us e dt he i rr e s e ar c honhybr i de ngi net e c hnol ogy .As s umeToyot ac hoos e s t opr oduc ebot hhybr i de ngi neve hi c l e sanddi e s e l e ngi neve hi c l e s( f ormar ke t sout s i deNor t hAme r i c a) f ori t sPr i usbr and.Fi gur e2. 6s howsc hange st oi t spr oduc t i onpos s i bi l i t i e sf r ont i e ri nr e s pons et one w de ve l opme nt sanddi ffe r e nts t r a t e gi cpr oduc t i onde c i s i ons . 53)Re f e rt oFi g ur e2. 6.As s umeat e c hnol ogi c aladvanc e me ntgr e a t l yr e duc e st hec os tt opr oduc ehybr i de ngi neve hi c l e s .Thi si sbe s tr e pr e s e nt e dbyt he A)move me ntf r om Et oFi nGr aphA. B)move me ntf r om Gt oH i nGr aphB. C)move me ntf r om Kt oLi nGr aphC. D)move me ntf r om Ht oJi nGr aphB. Ans we r :D Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 54)Re f e rt oFi g ur e2. 6.I nr e s pons et oc hangi ngr e gul a t i onsande nf or c e me nt ,Toyot ahasc utbac kont he pr oduc t i onofdi e s e l powe r e dve hi c l e sandi nc r e as e di t shybr i dpr oduc t i on.Thi ss t r a t e gyi sbe s t r e pr e s e nt e dbyt he A)move me ntf r om Ft oEi nGr aphA. B)move me ntf r om Gt oJi nGr aphB. C)move me ntf r om Lt oKi nGr aphC. D)move me ntf r om Jt oHi nGr aphB. Ans we r :D Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 18 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 55)Re f e rt oFi g ur e2. 6.As s umet ha ti n2019,af t e re xt e ns i ver e s e ar c handde ve l opme ntToyot abui l dsa ne wf ac t or yt ha tc anpr oduc ebot ht ype sofve hi c l e st ha tme e te mi s s i ons t andar ds .Thi si sbe s t r e pr e s e nt e dbyt he A)move me ntf r om Et oFi nGr aphA. B)move me ntf r om Ht oJi nGr aphB. C)move me ntf r om Lt oKi nGr aphC. D)move me ntf r om Jt oGi nGr aphB. Ans we r :C Di ff: 2 Pa geRe f : 41 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 56)Thef e de r algove r nme nts uppor t she al t hc ar es pe ndi ngt hr ought heCanadaHe al t hTr ans f e r .Ast he popul a t i ona ge sandt henumbe rofpe opl ewhoar eove r65c ont i nue st or i s e ,gove r nme nts pe ndi ngon he al t hc ar ewi l l A)c aus et hef e de r algove r nme ntt ogobankr uptwi t hi nt hene xt5ye ar s . B)de s t abi l i zet hee c onomyandul t i ma t e l yl e adt ot hec r e a t i onofne wt ax e s . C)l e a vel e s sf undi ngf orot he rgove r nme ntpr ogr ams ,s uc hase duc a t i on,hous i ng,andi nf r as t r uc t ur e . D)s t ar tt ode c r e as e ,asmor enur s e swi l lbehi r e di ns t e adofdoc t or swhi c hwi l lr e duc ehe al t hc ar ec os t s . Ans we r :C Di ff: 1 Pa geRe f : 40 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Fac i ngTr a de Offsi nHe al t hCar eSpe ndi ng 57)Ade c r e as ei nt heune mpl oyme ntr a t ema yber e pr e s e nt e dasamove me ntf r om apoi ntont he pr oduc t i onpos s i bi l i t i e sf r ont i e rt oapoi ntout s i det hef r ont i e r . Ans we r :F ALSE Di ff: 2 Pa geRe f : 41 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 58)I fac ount r yi spr oduc i nge ffic i e nt l yandi sont hepr oduc t i onpos s i bi l i t i e sf r ont i e r ,t heonl ywa yt o pr oduc emor eofonegoodi st opr oduc el e s soft heot he r . Ans we r :TRUE Di ff: 1 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 19 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 59)Cons i de rac ount r yt ha tpr oduc e sonl yt wogoods :ka yaksandmi t t e ns .Suppos ei ti spos s i bl ef ort hi s c ount r yt oi nc r e as ei t spr oduc t i onofka yakswi t houtpr oduc i ngf e we rmi t t e ns .I nt hi sc as e ,i t sc ur r e nt out putc ombi na t i oni se ffic i e nt . Ans we r :F ALSE Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 60)Anyout putc ombi na t i onout s i deapr oduc t i onpos s i bi l i t yf r ont i e ri sas s oc i a t e dwi t hunus e dor unde r ut i l i ze dr e s our c e s . Ans we r :F ALSE Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 61)Ani nc r e as ei nt hel abourf or c es hi f t st hepr oduc t i onpos s i bi l i t yf r ont i e ri nwar dsove rt i me . Ans we r :F ALSE Di ff: 1 Pa geRe f : 41 Topi c :Ec onomi cGr owt h Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 62)I faddi t i onaluni t sofagoodc oul dbepr oduc e da tac ons t antoppor t uni t yc os t ,t hepr oduc t i on pos s i bi l i t yf r ont i e rwoul dbebowe dout war d( c onc a ve ) . Ans we r :F ALSE Di ff: 2 Pa geRe f : 40 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 63)Onadi a gr am ofapr oduc t i onpos s i bi l i t yf r ont i e r ,oppor t uni t yc os ti sr e pr e s e nt e dbyt hepr oduc t i on pos s i bi l i t yf r ont i e rs hi f t i ngout war d. Ans we r :F ALSE Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 64)Toi nc r e as ef ue le ffic i e nc y ,aut omobi l emanuf ac t ur e r smakec ar ss mal landl i ght .Lar gec ar sabs or b mor eoft hei mpac tofanac c i de ntt hans mal lc ar sbutyi e l dl owe rf ue le ffic i e nc y .The s ef ac t ss ugge s tt ha t ane ga t i ver e l a t i ons hi pe xi s t sbe t we e ns af e t yandf ue le ffic i e nc y . Ans we r :TRUE Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Ec onomi c si nYourLi f e :TheTr ade offsWhe nYouBuyaCa r 20 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 65)Gove r nme nt sdonotf a c et r ade offsi npr ovi di ngpr ogr ams ,onl yi ndi vi dual sdo. Ans we r :F ALSE Di ff: 1 Pa geRe f : 40 Topi c :Tr ade offs 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Fac i ngTr a de Offsi nHe al t hCar eSpe ndi ng 66)Wha ti sapr oduc t i onpos s i bi l i t i e sf r ont i e r ?Wha tdopoi nt sal ongt hef r ont i e rr e pr e s e nt ?Wha tdo poi nt si ns i deandout s i det hef r ont i e rr e pr e s e nt ? Ans we r :Apr oduc t i onpos s i bi l i t i e sf r ont i e ri sac ur ves howi ngt hemaxi mum a t t ai nabl ec ombi na t i onsof t wopr oduc t st ha tma ybepr oduc e dwi t ha vai l abl er e s our c e sandc ur r e ntt e c hnol ogy .Poi nt sal onga pr oduc t i onpos s i bi l i t i e sf r ont i e rar ea t t ai nabl ewi t ht her e s our c e sa vai l abl eandar ee ffic i e nt .Poi nt s i ns i det hef r ont i e rar ea t t ai nabl ebuti ne ffic i e nt .Poi nt sout s i det hef r ont i e rar euna t t ai nabl e . Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 67)Wha ts hapedoe sapr oduc t i onpos s i bi l i t i e sf r ont i e rt akei fi tdi s pl a ysi nc r e as i ngoppor t uni t yc os t s ? Wha ts hapedoe sapr oduc t i onpos s i bi l i t i e sf r ont i e rt akei fi tdi s pl a ysc ons t antoppor t uni t yc os t s ?Whi c h s hapei smos tc ommoni npr oduc t i ons i t ua t i ons ?Whyar ebot ht ype spr e s e nt e di nt het e xt ? Ans we r :Apr oduc t i onpos s i bi l i t i e sf r ont i e rwhi c hdi s pl a ysi nc r e as i ngoppor t uni t yc os t si sbowe dout . Apr oduc t i onpos s i bi l i t i e sf r ont i e rwhi c hdi s pl a ysc ons t antoppor t uni t yc os t si sl i ne ar .Abowe dout pr oduc t i onpos s i bi l i t i e sf r ont i e ri smos tc ommoni npr oduc t i ons i t ua t i ons .Li ne arpr oduc t i on pos s i bi l i t i e sf r ont i e r sar emuc hs i mpl e rt owor kwi t hma t he ma t i c al l y ,whi l es t i l lde mons t r a t i ngt heke y poi nt soft hemode l . Di ff: 2 Pa geRe f : 40 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 21 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 68)a . Dr a w apr oduc t i onpos s i bi l i t i e sf r ont i e rf orac ount r yt ha tpr oduc e st wogoods ,be e rand pr e t z e l s .As s umet ha tr e s our c e sar ee qual l ys ui t e dt obot ht as ks . b. De fineoppor t uni t yc os t s . c . Us eyourpr oduc t i onpos s i bi l i t i e sf r ont i e rgr apht ode mons t r a t et hepr i nc i pl eofoppor t uni t yc os t s . Ans we r : a . ThePPFi sl i ne art or e fle c tt hef a c tt ha tr e s our c e sar ee qual l ys ui t e dt obot ht as ks . b. Oppor t uni t yc os ti sde fine dast hehi ghe s tval ue dal t e r na t i vet ha tmus tbef or gonebyt aki ngan ac t i on. c .I nt hePPFgr aphi npar t( a) ,s uppos et hec ount r yi sc ur r e nt l ypr oduc i nga tpoi ntXandwi s he st o movet opoi ntYs ot ha ti tc anpr oduc emor ebe e r .Theonl ywa yi tc anobt ai nmor ebe e ri st ogi veup s omeamountofpr e t ze l s . Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 22 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e2. 2 Pos s i bl eOut put Combi na t i ons A B C D E F G H Appl es ( t hous andsof pounds ) 70 60 50 40 30 20 10 0 Pe ar s ( t hous andsof pounds ) 0 20 36 48 56 60 63 65 69)Re f e rt oTabl e2. 2.TheFr ui tFa r m pr oduc e sonl yappl e sandpe ar s .Thet abl eaboves howst he maxi mum pos s i bl eout putc ombi na t i onsoft het wof r ui t sus i ngal lr e s our c e sandc ur r e nt l ya vai l abl e t e c hnol ogy . a . Gr aphTheFr ui tFar m' spr oduc t i onpos s i bi l i t i e sf r ont i e r .Putappl e sont hehor i z ont alaxi sandpe ar s ont heve r t i c alaxi s .Bes ur et oi de nt i f yt heout putc ombi na t i onpoi nt sonyourdi a gr am. b. Suppos eTheFr ui tFar mi sc ur r e nt l ypr oduc i nga tpoi ntD.Wha ti st heoppor t uni t yc os tof pr oduc i nganaddi t i onal8, 000poundsofpe ar s ? c . Suppos eTheFr ui tFar mi sc ur r e nt l ypr oduc i nga tpoi ntD.Wha thappe nst ot heoppor t uni t yc os tof pr oduc i ngmor eandmor epe ar s ?Doe si ti nc r e as e ,de c r e as eorr e mai nc ons t ant ?Expl ai nyourans we r . d. Suppos eTheFr ui tFar mi sc ur r e nt l ypr oduc i nga tpoi ntG.Wha thappe nst ot heoppor t uni t yc os tof pr oduc i ngmor eandmor eappl e s ?Doe si ti nc r e as e ,de c r e as eorr e mai nc ons t ant ?Expl ai nyourans we r . e . Suppos eTheFr ui tFar mi spl a gue dbyt heappl ema ggoti nf e s t a t i onwhi c hde s t r oysappl et r e e sbut notpe ar s .Show i nagr aphwha thappe nst oi t sPPF. 23 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r : a . b. 10, 000poundsofappl e s c .I ti nc r e as e s .Fore xampl et omovet oE,TheFr ui tFar m hast ogi veup10, 000poundsofappl e st o pr oduc eanaddi t i onal8, 000poundsofpe ar s .Fore ac haddi t i onal10, 000poundsofappl e sf or e gone ,t he pa yoffi nt e r msofpe ar sge t spr ogr e s s i ve l ys mal l e r . d. I ti nc r e as e s .Eac ht i mei twant st opr oduc eanaddi t i onal10, 000poundsofappl e s ,mor eandmor e pe ar smus tbegi ve nup. e . Di ff: 3 Pa geRe f : 3839 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 24 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 70)________e xi s t sbe c aus eunl i mi t e dwant se x c e e dt hel i mi t e dr e s our c e sa vai l abl et of ul fil lt hos ewant s . A)Sc ar c i t y B)Pr oduc t i vee ffic i e nc y C)Thec ommande c onomy D)Ec onomi cgr owt h Ans we r :A Di ff: 2 Pa geRe f : 36 Topi c :Sc ar c i t y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o1: I de nt i f yt hebas i cpr i nc i pl e sofe c onomi c sande xpl ai nhow t ot hi nkl i keane c onomi s t AACSB:Re fle c t i veThi nki ng 71)Toc ompe t ei nt heaut omobi l emar ke t ,Toyot amus tmakemanys t r a t e gi cde c i s i ons ,s uc haswhe t he r t oi nt r oduc eane wc a rmode l ,whe t he rt opr oduc eal t e r na t i ve f ue lve hi c l e s ,andwhe r et oadve r t i s e .At Toyot a' sCambr i dge ,Ont ar i opl ant ,mana ge r smus tde c i deont hemont hl ypr oduc t i onquant i t i e soft he i r Cor ol l a ,Ma t r i x ,Ra v4,andLe xusRX450hmode l s .I nmaki ngt he s ede c i s i ons ,t hemana ge r s A)f ac enot r ade offsbe c aus et heCambr i dgepl antonl ypr oduc e st he s ef ourmode l soft hemanyToyot a mode l spr oduc e dwor l dwi de . B)f a c et r ade offs ,be c aus epr oduc i ngmor eofonemode lme anspr oduc i ngl e s soft heot he r s . C)wi l lc hoos et oonl ypr oduc et hequant i t yofCor ol l a ,Ma t r i x ,Ra v4,andRX350mode l swhe r e mar gi nalc os te qual sz e r o. D)wi l lal wa ysde c i deonpr oduc t i onquant i t i e sa twhi c hr e ve nue sar emaxi mi ze d. Ans we r :B Di ff: 2 Pa geRe f : 35 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Chapt e rOpe ne r :Mana ge r sMakeChoi c e sa tToyot a 72)Thepr i nc i pl eof________i st ha tt hee c onomi cc os tofus i ngaf ac t orofpr oduc t i oni st heal t e r na t i ve us eoft ha tf ac t ort ha ti sgi ve nup. A)mar gi nalc os t B)oppor t uni t yc os t C)nor ma t i vee c onomi c s D)e nt r e pr e ne ur s hi p Ans we r :B Di ff: 2 Pa geRe f : 36 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 25 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 73)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rs hows A)t hevar i ouspr oduc t st ha tc anbepr oduc e dnow andi nt hef ut ur e . B)t hemaxi mum a t t ai nabl ec ombi na t i onsoft wopr oduc t st ha tma ybepr oduc e di napar t i c ul art i me pe r i odwi t ha vai l abl er e s our c e s . C)wha tane qui t abl edi s t r i but i onofpr oduc t samongc i t i ze nswoul dbe . D)wha tpe opl ewantfir mst opr oduc ei napar t i c ul art i mepe r i od. Ans we r :B Di ff: 2 Pa geRe f : 36 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 74)________s howst ha ti fal lr e s our c e sar ef ul l yande ffic i e nt l yut i l i ze d,mor eofonegoodc anbe pr oduc e donl ybypr oduc i ngl e s sofanot he rgood. A)Compar a t i veadvant a ge B)Abs ol ut eadvant a ge C)Themi x e dmar ke ts ys t e m D)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rmode l Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 75)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rmode las s ume sal loft hef ol l owi ng,e x c e p t A)l abour ,c api t al ,l and,andna t ur alr e s our c e sar efix e di nquant i t y . B)t hee c onomypr oduc e sonl yt wopr oduc t s . C)anyl e ve loft het wopr oduc t st ha tt hee c onomypr oduc e si sc ur r e nt l ypos s i bl e . D)t hel e ve loft e c hnol ogyi sfix e dandunc hangi ng. Ans we r :C Di ff: 2 Pa geRe f : 3637 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 76)The________pr oduc t i onpoi nt sonapr oduc t i onpos s i bi l i t yc ur vear et hepoi nt sal ongandi ns i de t hepr oduc t i onpos s i bi l i t yf r ont i e r . A)a t t ai nabl e B)una t t ai nabl e C)pr oduc t i ve l ye ffic i e nt D)al l oc a t i ve l ye ffic i e nt Ans we r :A Di ff: 1 Pa geRe f : 3637 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 77)Theuna t t ai nabl epoi nt si napr oduc t i onpos s i bi l i t i e sdi a gr am ar e A)t hepoi nt swi t hi nt hepr oduc t i onpos s i bi l i t i e sf r ont i e r . B)t hepoi nt sal ongt hepr oduc t i onpos s i bi l i t i e sf r ont i e r . C)t hepoi nt soft hehor i z ont alandve r t i c ali nt e r c e pt s . D)t hepoi nt sout s i det hepr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :D 26 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Fi gur e2. 7 78)Re f e rt oFi g ur e2. 7.________i s( ar e )i ne ffic i e nti nt ha tnotal lr e s our c e sar ebe i ngus e d. A)Poi ntA B)Poi ntB C)Poi ntC D)Poi nt sAandC Ans we r :A Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 27 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 79)Re f e rt oFi g ur e2. 7.________i s( ar e )t e c hni c al l ye ffic i e nt . A)Poi ntA B)Poi ntB C)Poi ntC D)Poi nt sBandC Ans we r :B Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 80)Re f e rt oFi g ur e2. 7.________i s( ar e )una t t ai nabl ewi t hc ur r e ntr e s our c e s . A)Poi ntA B)Poi ntB C)Poi ntC D)Poi nt sAandC Ans we r :C Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 81)I napr oduc t i onpos s i bi l i t i e sf r ont i e rmode l ,apoi nti ns i det hef r ont i e ri s A)al l oc a t i ve l ye ffic i e nt . B)pr oduc t i ve l ye ffic i e nt C)al l oc a t i ve l yi ne ffic i e nt . D)pr oduc t i ve l yi ne ffic i e nt . Ans we r :D Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 82)Sus anc anpe r f or me i t he rac ombi na t i onof35ma ni c ur e sand70pe di c ur e sorac ombi na t i onof50 mani c ur e sand45pe di c ur e s .I fs henow pe r f or ms35mani c ur e sand70pe di c ur e s ,wha ti st he oppor t uni t yc os tofpe r f or mi nganaddi t i onal15mani c ur e s ? A)5pe di c ur e s B)20pe di c ur e s C)25pe di c ur e s D)45pe di c ur e s Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s 28 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 83)I ft hepr oduc t i onpos s i bi l i t i e sf r ont i e ri sl i ne ar ,t he n A)oppor t uni t yc os t sar ede c r e as i ngasmor eofonegoodi spr oduc e d. B)i ti se as yt oe ffic i e nt l ypr oduc eout put . C)oppor t uni t yc os t sar ei nc r e as i ngasmor eofonegoodi spr oduc e d. D)oppor t uni t yc os t sar ec ons t antasmor eofonegoodi spr oduc e d. Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Fi gur e2. 8 Fi gur e2. 8aboves howst hepr oduc t i onpos s i bi l i t i e sf r ont i e rf orVi dal i a ,ana t i ont ha tpr oduc e st wo goods ,r os e sandor c hi ds . 84)Re f e rt oFi g ur e2. 8.Wha ti st heoppor t uni t yc os tofonedoze nor c hi ds ? A)0. 4doze nr os e s B)2. 5doze nr os e s C)7. 25doze nr os e s D)16doze nr os e s Ans we r :B Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 29 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 85)Re f e rt oFi g ur e2. 8.Wha ti st heoppor t uni t yc os tofonedoze nr os e s ? A)0. 4doze nor c hi ds B)2. 5doze nor c hi ds C)7. 25doze nor c hi ds D)16doze nor c hi ds Ans we r :A Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 86)Re f e rt oFi g ur e2. 8.Suppos eVi dal i ai sc ur r e nt l ypr oduc i ng20doze nor c hi dspe rpe r i od.How many r os e si si tal s opr oduc i ng,as s umi ngt ha tr e s our c e sar ef ul l yut i l i ze d? A)30doze nr os e s B)50doze nr os e s C)100doze nr os e s D)150doze nr os e s Ans we r :D Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 87)Re f e rt oFi g ur e2. 8.Thel i ne arpr oduc t i onpos s i bi l i t i e sf r ont i e ri nt hefigur ei ndi c a t e st ha t A)Vi dal i ahasac ompar a t i veadvant a gei nt hepr oduc t i onofor c hi ds . B)Vi dal i ahasac ompar a t i vedi s advant a gei nt hepr oduc t i onofr os e s . C)t het r ade offbe t we e nr os e sandor c hi dsi sc ons t a nt . D)i ti spr ogr e s s i ve l ymor ee xpe ns i vet opr oduc eor c hi ds . Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 30 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 88)Re f e rt oFi g ur e2. 8.Suppos eVi dal i ar e c e i ve sor de r sf or60doze nor c hi dsand120doze nr os e s . Vi dal i awi l l A)notbeabl et opr oduc ee nought ofil lt heor de r . B)makeal otofe xt r amone y . C)beus i ngi t sr e s our c e si ne ffic i e nt l yi fi tfil l st heor de r . D)e xpe r i e nc ee c onomi cgr owt hi fi tfil l st heor de r . Ans we r :A Di ff: 3 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 89)Wha ti st heoppor t uni t yc os tofapr ovi nc i algove r nme ntr ai s i ngt ax e st opa yf ori nc r e as e ds pe ndi ng onhe al t hc ar e ? A)l e s spr i va t ec ons umpt i on B)mor epr i va t ec ons umpt i on C)l owe rt axr e ve nue D)c ut st oot he rgove r nme ntpr ogr ams Ans we r :A Di ff: 1 Pa geRe f : 40 Topi c :Tr ade offs 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Maki ngt heConne c t i on:Fac i ngTr a de Offsi nHe al t hCar eSpe ndi ng 90)Apr oduc t i onpos s i bi l i t i e sf r ont i e rwi t ha____ ____s hapei ndi c a t e si nc r e as i ngoppor t uni t yc os t sas mor eandmor eofonegoodi spr oduc e d. A)l i ne ar B)bowe di nwar d C)bowe dout war d D)pe r f e c t l yhor i z ont al Ans we r :C Di ff: 2 Pa geRe f : 41 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 31 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 91)I nc r e as i ngoppor t uni t yc os tal ongabowe doutpr oduc t i onpos s i bi l i t i e sf r ont i e roc c ur sbe c aus e A)ofi ne ffic i e ntpr oduc t i on. B)ofi ne ffe c t i vemana ge me ntbye nt r e pr e ne ur s . C)s omef a c t or sofpr oduc t i onar enote qual l ys ui t e dt opr oduc i ngbot hgoodsors e r vi c e s . D)oft hes c ar c i t yoff ac t or sofpr oduc t i on. Ans we r :C Di ff: 2 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 92)Thes l opeofapr oduc t i onpos s i bi l i t i e sf r ont i e rme as ur e st he________ofpr oduc i ngonemor euni tof agood. A)mar gi nalr e ve nue B)t ot alr e ve nue C)mar gi nalc os t D)oppor t uni t yc os t Ans we r :D Di ff: 1 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 93)I nc r e as i ngmar gi naloppor t uni t yc os ti mpl i e st ha t A)t hemor er e s our c e sal r e adyde vot e dt oanya c t i vi t y ,t hepa yofff r om al l oc a t i ngye tmor er e s our c e st o t ha ta c t i vi t yi nc r e as e sbypr ogr e s s i ve l ys mal l e ramount s . B)t hemor er e s our c e sal r e adyde vot e dt oanyac t i vi t y ,t hebe ne fit sf r om al l oc a t i ngye tmor er e s our c e st o t ha ta c t i vi t yde c r e as e sbypr ogr e s s i ve l yl ar ge ramount s . C)r i s i ngoppor t uni t yc os t smakei ti ne ffic i e ntt opr oduc ebe yondac e r t ai nquant i t y . D)t hel a w ofs c ar c i t yappl i e s . Ans we r :A Di ff: 2 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Re fle c t i veThi nki ng 32 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 94)I foppor t uni t yc os t sar e________,t hepr oduc t i onpos s i bi l i t i e sf r ont i e rwoul dbegr aphe dasa ne ga t i ve l ys l ope ds t r ai ghtl i ne . A)de c r e as i ng B)i nc r e as i ng C)ne ga t i ve D)c ons t ant Ans we r :D Di ff: 1 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Fi gur e2. 9 95)Re f e rt oFi g ur e2. 9.Car l osVanyagr owst oma t oe sands t r a wbe r r i e sonhi sl and.Hi sl andi se qual l y s ui t e df orgr owi nge i t he rf r ui t .Whi c hoft hegr aphsi nFi gur e2. 9r e pr e s e nt shi spr oduc t i onpos s i bi l i t i e s f r ont i e r ? A)Gr aphA B)Gr aphB C)Gr aphC D)e i t he rGr aphAorGr aphB E)e i t he rGr aphBorGr aphC Ans we r :A Di ff: 2 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 33 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 96)Re f e rt oFi g ur e2. 9.Car l osVanyagr owst oma t oe sands t r a wbe r r i e sonhi sl and.Apor t i onofhi sl and i smor es ui t abl ef orgr owi ngt oma t oe sandt heot he rpor t i oni sbe t t e rs ui t e df ors t r a wbe r r yc ul t i va t i on. Whi c hoft hegr aphsi nFi gur e2. 9r e pr e s e nthi spr oduc t i onpos s i bi l i t i e sf r ont i e r ? A)Gr aphA B)Gr aphB C)Gr aphC D)e i t he rGr aphAorGr aphB E)e i t he rGr aphBorGr aphC Ans we r :C Di ff: 2 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng Tabl e2. 3 Pr oduc t i onChoi c e sf orDi na' sDi ne r Quant i t yof Quant i t yof Sl i der s HotWi ngs Choi c e Pr oduc ed Pr oduc ed A 80 0 B 60 25 C 40 50 D 20 75 E 0 100 97)Re f e rt oTabl e2. 3.As s umeDi na' sDi ne ronl ypr oduc e ss l i de r sandhotwi ngs .Ac ombi na t i onof40 s l i de r sand50hotwi ngswoul dappe ar A)al ongDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . B)i ns i deDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . C)out s i deDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)a tt heve r t i c ali nt e r c e ptofDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :A Di ff: 2 Pa geRe f : 3741 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 34 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 98)Re f e rt oTabl e2. 3.As s umeDi na' sDi ne ronl ypr oduc e ss l i de r sandhotwi ngs .Ac ombi na t i onof40 s l i de r sand25hotwi ngswoul dappe ar A)al ongDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . B)i ns i deDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . C)out s i deDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)a tt heve r t i c ali nt e r c e ptofDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :B Di ff: 2 Pa geRe f : 3741 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 99)Re f e rt oTabl e2. 3.As s umeDi na' sDi ne ronl ypr oduc e ss l i de r sandhotwi ngs .Ac ombi na t i onof60 s l i de r sand50hotwi ngswoul dappe ar A)al ongDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . B)i ns i deDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . C)out s i deDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)a tt heve r t i c ali nt e r c e ptofDi na' spr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :C Di ff: 2 Pa geRe f : 3741 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 100)Re f e rt oTabl e2. 3.Di naf ac e s________oppor t uni t yc os t si nt hepr oduc t i onofs l i de r sandhot wi ngs . A)i nc r e as i ng B)de c r e as i ng C)c ons t ant D)ne ga t i ve Ans we r :C Di ff: 2 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 101)Anout war ds hi f tofana t i on' spr oduc t i onpos s i bi l i t i e sf r ont i e rc anoc c urduet o A)ar e duc t i oni nune mpl oyme nt . B)ana t ur aldi s as t e rl i keahur r i c aneorbade ar t hquake . C)ac hangei nt heamount sofonegoodde s i r e d. D)ani nc r e as ei nt hel abourf or c e . Ans we r :D Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 102)________ana t i on' spr oduc t i onpos s i bi l i t i e sf r ont i e rr e pr e s e nt se c onomi cgr owt h. A)Anout war ds hi f tof B)Ani nwar ds hi f tof C)Movi ngupal ong D)Movi ngdownal ong Ans we r :A 35 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 1 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 103)Ec onomi cgr owt hi sr e pr e s e nt e donapr oduc t i onpos s i bi l i t i e sf r ont i e rmode lbyt hepr oduc t i on pos s i bi l i t yf r ont i e r A)s hi f t i ngout war d. B)s hi f t i ngi nwar d. C)be c omi ngs t e e pe r . D)be c omi ngfla t t e r . Ans we r :A Di ff: 1 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 104)Wi t houtt e c hnol ogi c aladvanc e me nt ,how c anana t i onac hi e vee c onomi cgr owt h? A)bypr oduc i ngmor ehi ghval uegoodsandf e we rl owval uegoods B)byi nc r e as i ngt hequant i t i e sofa tl e as tonef ac t orofpr oduc t i on C)bypr oduc i ngmor el owval uegoodsandf e we rhi ghval uegoods D)byde c r e as i ngt hes i zeoft hel abourf or c e Ans we r :B Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o17: Expl ai nt hee ffe c t soft hef ac t or sofpr oduc t i on,f ac t orde mand,andf ac t ors uppl yand l abouri nf ac t ormar ke t s AACSB:Re fle c t i veThi nki ng 105)Whi c hoft hef ol l owi ngwoul ds hi f tana t i on' spr oduc t i onpos s i bi l i t i e sf r ont i e ri nwar d? A)di s c ove r i ngac he apwa yt oc onve r ts uns hi nei nt oe l e c t r i c i t y B)pr oduc i ngmor ec api t ale qui pme nt C)ani nc r e as ei nt heune mpl oyme ntr a t e D)al a wr e qui r i ngwor ke r st or e t i r ea ta ge50 Ans we r :D Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 36 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 106)J apanc ur r e nt l yhasf e we rwome nwor ki ng( out s i det hehome )t hanmos tot he rde ve l ope dc ount r i e s . I ft he s ewome nwe r et ot akeonj obs ,i twoul d A)c aus eJ apan' sPPFt os hi f tout war d B)c aus eJ apan' sPPFt os hi f ti nwar d C)c aus ear e duc t i oni nJ apan' sabi l i t yt opr oduc emanuf ac t ur e dgoods D)c aus eJ apant oal l ow muc hmor ei mmi gr a t i on Ans we r :A Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s Fi gur e2. 10 Fi gur e2. 10s howsvar i ouspoi nt sont hr e edi ffe r e ntpr oduc t i onpos s i bi l i t i e sf r ont i e r sf orana t i on. 107)Re f e rt oFi g ur e2. 10.Amove me ntf r om ________c oul doc c urbe c aus eofani nfluxofi mmi gr ant l abour . A)Xt oW B)Xt oY C)W t oV D)W t oX Ans we r :B Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 37 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 108)Re f e rt oFi g ur e2. 10.Amove me ntf r om ________i st her e s ul tofadvanc e me nt si npl as t i cpr oduc t i on t e c hnol ogy . A)Vt oX B)W t oX C)Zt oW D)Yt oZ Ans we r :D Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 109)Cons i de rt hef ol l owi nge ve nt s : a . ani nc r e as ei nt heune mpl oyme ntr a t e b. ade c r e as ei nana t i on' smone ys uppl y c . awart ha tki l l sas i gni fic antpor t i onofana t i on' spopul a t i on Re f e rt oFi gur e2. 10.Whi c hoft hee ve nt sl i s t e dabovec oul dc aus eamove me ntf r om Zt oX? A)a ,b ,andc B)aandbonl y C)aandconl y D)aonl y E)conl y Ans we r :E Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 110)Cons i de rt hef ol l owi ngmove me nt s : a . f r om poi ntVt opoi ntW b. f r om poi ntW t opoi ntY c . f r om poi ntYt opoi ntZ Re f e rt oFi gur e2. 10.Whi c hoft hemove me nt sl i s t e dabover e pr e s e nt sadvanc e me nt si nt e c hnol ogywi t h r e s pe c tt obot hpl as t i cpr oduc t i onandf oodpr oduc t i on? A)a ,b ,andc B)bandconl y C)bonl y D)conl y Ans we r :C Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 38 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 111)Cons i de rt hef ol l owi nge ve nt s : a . ade c r e as ei nt heune mpl oyme ntr a t e b. ge ne r alt e c hnol ogi c aladvanc e me nt c . ani nc r e as ei nc ons ume rwe al t h Re f e rt oFi gur e2. 10.Whi c hoft hee ve nt sl i s t e dabovec oul dc aus eamove me ntf r om Vt oX? A)aonl y B)aandbonl y C)bandconl y D)a ,b ,andc Ans we r :A Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 112)Cons i de rt hef ol l owi nge ve nt s : a . ar e duc t i oni nt hepa t e ntpr ot e c t i onpe r i odt onomor et han2ye ar s b. awart ha tde s t r oysas ubs t ant i alpor t i onofana t i on' sc api t als t oc k c . t hel ac kofas e c ur eande nf or c e abl epr ope r t yr i ght ss ys t e m Re f e rt oFi gur e2. 10.Whi c hoft hee ve nt sl i s t e dabovec oul dc aus eamove me ntf r om W t oV? A)aonl y B)aandbonl y C)aandconl y D)bandconl y E)a ,b ,andc Ans we r :C Di ff: 2 Pa geRe f : 4142 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 113)Ther e c e s s i onof20082009woul dmos tl i ke l yber e pr e s e nt e di napr oduc t i onpos s i bi l i t i e sf r ont i e r gr aphby A)move me ntt oapoi nti ns i det hef r ont i e r . B)move me ntt oapoi ntout s i det hef r ont i e r . C)move me ntt oapoi ntont hef r ont i e r . D)ani nc r e as ei nani nt e r c e ptone i t he rt heve r t i c alort hehor i z ont alaxi soft hePPF. Ans we r :A Di ff: 2 Pa geRe f : 37 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Anal yt i cSki l l s 39 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 114)Suppos et he r ei ss omeune mpl oyme nti nt hee c onomyands oc i e t yde c i de st ha ti twant smor eofone good.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)I ti snotpos s i bl et oac hi e vet hi sunl e s st e c hnol ogyadvanc e s . B)I tc ani nc r e as eout putwi t houtgi vi ngupanot he rgoodbye mpl oyi ngmor er e s our c e s . C)I twi l lha vet oi nc r e as er e s our c es uppl i e s . D)I twi l lha vet ogi veuppr oduc t i onandc ons umpt i onofs omeot he rgood. Ans we r :B Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 115)I fs oc i e t yde c i de si twant smor eofonegooda nd________,t he ni thast ogi veups omeofanot he r goodandi nc urs omeoppor t uni t yc os t s . A)t e c hnol ogyadvanc e s B)r e s our c e sar eunde r ut i l i ze d C)al lr e s our c e sar ef ul l yut i l i ze d D)ne wr e s our c e sar edi s c ove r e d Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Re fle c t i veThi nki ng 116)Ac c or di ngt ot hepr oduc t i onpos s i bi l i t ymode l ,i fmor er e s our c e sar eal l oc a t e dt ot hepr oduc t i onof phys i c alandhumanc api t al ,whi c hoft hef ol l owi ngi sno tl i ke l yt ooc c ur ? A)Fe we rgoodswi l lbepr oduc e df orc ons umpt i ont oda y . B)Thepr oduc t i onpos s i bi l i t i e sf r ont i e rwi l ls hi f tout war di nt hef ut ur e . C)Fut ur ee c onomi cgr owt hwi l lbee nhanc e d. D)Thec ount r y' st ot alpr oduc t i onwi l lf al l . Ans we r :D Di ff: 2 Pa geRe f : 42 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 40 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 11 117)Re f e rt oFi g ur e2. 11.I ft hee c onomyi sc ur r e nt l ypr oduc i nga tpoi ntY,wha ti st heoppor t uni t yc os t ofmovi ngt opoi ntX? A)5mi l l i ont onsofs t e e l B)9mi l l i ont onsofpape r C)5mi l l i ont onsofpape r D)19mi l l i ont onsofs t e e l Ans we r :C Di ff: 2 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 118)Re f e rt oFi g ur e2. 11.I ft hee c onomyi sc ur r e nt l ypr oduc i nga tpoi ntX,wha ti st heoppor t uni t yc os t ofmovi ngt opoi ntW? A)3mi l l i ont onsofs t e e l B)19mi l l i ont onsofs t e e l C)5mi l l i ont onsofpape r D)9mi l l i ont onsofpape r Ans we r :A Di ff: 1 Pa geRe f : 3741 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 41 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 119)As t ude ntc omme nt st ohi sr oomma t et ha tt heonl ywa yhewi l lbeabl et opas shi sfinale xamsi st o nots l e e pf ort hene xtt hr e eda ys .Thi ss t a t e me nts ugge s t st ha t A)s t ude nt sar emor ec onc e r ne daboutgoodgr ade st hangoodhe al t h. B)s oc i e t ys houl dval ues l e e pmor ehi ghl yt hangoodgr ade s . C)t he r ei sat r ade offbe t we e ns t udyi ngands l e e p. D)s oc i e t ys houl dval uegoodgr ade smor ehi ghl yt hans l e e pbe c aus es t ude nt sc anc a t c hupont he i r s l e e ponc efinale xamsar eove r . Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 120)Suppos eyoure xpe ns e sf ort hi st e r m ar easf ol l ows :t ui t i on:$5, 000,r oom andboar d:$3, 000,books andot he re duc a t i onals uppl i e s :$500.Fur t he r ,dur i ngt het e r m,youc anonl ywor kpar t t i meande ar n $12, 000i ns t e adofyourf ul l t i mes al ar yof$20, 000.Wha ti st heoppor t uni t yc os tofgoi ngt ouni ve r s i t y t hi st e r m,as s umi ngt ha tyourr oom andboar de xpe ns e swoul dbet hes amee ve ni fyoudi dnotgot o uni ve r s i t y? A)$5, 500 B)$8, 500 C)$13, 500 D)$20, 500 Ans we r :C Di ff: 3 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 121)Theoppor t uni t yc os toft aki nganonl i nehi s t or yc l as si s A)t heknowl e dgeande nj oyme ntyour e c e i vef r om t aki ngt hec l as s . B)t heval ueoft het i mes pe ntonl i ne . C)e qualt ot hehi ghe s tval ueofanal t e r na t i veus eoft het i meandmone ys pe ntont hec l as s . D)ze r obe c aus et he r ei snoc l as s r oom t i mei nvol ve di fyouar ee nr ol l e di nt hec our s e . E)t hec os toft ui t i onandf e e sonl y . Ans we r :C Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Re fle c t i veThi nki ng 42 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 12 Te s l amot or sc ur r e nt l yhast hr e edi ffe r e ntmode l sa vai l abl ei nCanada;t heMode lSandt heMode l3 ( bot hc oupe s )andt heMode lX( anSUV) .Fi gur e2. 12s howsc hange st oi t spr oduc t i onpos s i bi l i t i e s f r ont i e ri nr e s pons et one w de ve l opme nt sanddi ffe r e nts t r a t e gi cpr oduc t i onde c i s i ons . 122)Re f e rt oFi g ur e2. 12.Suppos ewor ke rpr oduc t i vi t yi nc r e as e ss ot ha tt het ot alnumbe rofve hi c l e s pr oduc e di nc r e as e sast hec ompanyaddsmor emac hi ne r yandwor ke r sandc hange st hel a youtoft he f ac t or y .Thi si sbe s tr e pr e s e nt e dbyt he A)move me ntf r om Et oFi nGr aphA. B)move me ntf r om Gt oH i nGr aphB. C)move me ntf r om Kt oLi nGr aphC. D)move me ntf r om Jt oH i nGr aphB. Ans we r :B Di ff: 2 Pa geRe f : 5455 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :AnI ns i deLOOK: Toyot aFac e saTr ade off 123)Re f e rt oFi g ur e2. 12.I nr e s pons et oc hangi ngc ons ume rde mands ,Te s l ac ut sbac kont hepr oduc t i on ofc oupe sandi nc r e as e si t spr oduc t i onofSUVs .Thi ss t r a t e gyi sbe s tr e pr e s e nt e dby A)move me ntf r om Et oFi nGr aphA. B)move me ntf r om Gt oH i nGr aphB. C)move me ntf r om Kt oLi nGr aphC. D)move me ntf r om Jt oH i nGr aphB. Ans we r :D Di ff: 2 Pa geRe f : 5454 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 43 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 124)Re f e rt oFi g ur e2. 12.Suppos eTe s l ahast os hutdownapor t i onofi t sf ac i l i t yasi twor kson r e mode l l i ngt hef ac i l i t yt ome r get woofi t ss e par a t eas s e mbl yl i ne si npr e par a t i onf ort hepr oduc t i onof ane w mode lc al l e da" mi ni bus " .Thepr oduc t i onde c i s i ont os hutdownt e mpor ar i l ywi l lr e s ul ti na A)move me ntf r om Et oFi nGr aphA. B)move me ntf r om Gt oH i nGr aphB. C)move me ntf r om Kt oLi nGr aphC. D)move me ntf r om Jt oH i nGr aphB. Ans we r :C Di ff: 2 Pa geRe f : 5455 Topi c :Ec onomi cGr owt h 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :AnI ns i deLOOK: Toyot aFac e saTr ade off 125)I ft hepr i c eofagoodors e r vi c er i s e s ,hous e hol dsha vet oc hoos ewhe t he rt obuyl e s soft ha tgoodor s e r vi c eors pe ndl e s sonot he rgoodsands e r vi c e s .Whe ndoc t or sand/ornur s e sde mandpa yi nc r e as e s , pr ovi nc i algove r nme nt s A)c utbac kont he i rt ot als pe ndi ngonhe al t hc ar e . B)i nc r e as es pe ndi ngonot he rpr ogr ams . C)aut oma t i c al l yi nc r e as es al e st ax e st opa yf ort hei nc r e as e ds pe ndi ngonhe al t hc ar epr of e s s i onal s . D)mus te i t he rc utbac konot he rpr ogr ams ,hi r ef e we rdoc t or sand/ornur s e s ,ori nc r e as et axa t i on. Ans we r :D Di ff: 2 Pa geRe f : 40 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:Fac i ngTr a de Offsi nHe al t hCar eSpe ndi ng 126)Ani nc r e as ei nt heune mpl oyme ntr a t ema yber e pr e s e nt e dasamove me ntf r om apoi ntont he pr oduc t i onpos s i bi l i t i e sf r ont i e rt oapoi nti ns i det hef r ont i e r . Ans we r :TRUE Di ff: 2 Pa geRe f : 37 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 127)I fac ount r yi spr oduc i nge ffic i e nt l yandi sont hepr oduc t i onpos s i bi l i t i e sf r ont i e r ,t heonl ywa yt o pr oduc emor eofonegoodi swi t hanadvanc ei nt e c hnol ogy . Ans we r :F ALSE Di ff: 1 Pa geRe f : 37 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 44 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 128)Cons i de rac ount r yt ha tpr oduc e sonl yt wogoods :pi ne appl e sandt r ac t or s .Suppos ei ti spos s i bl e f ort hi sc ount r yt oi nc r e as ei t spr oduc t i onofpi ne appl e swi t houtpr oduc i ngf e we rt r ac t or s .I nt hi sc as e , i t sc ur r e ntout putc ombi na t i oni si ne ffic i e nt . Ans we r :TRUE Di ff: 2 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 129)Anyout putc ombi na t i oni ns i deapr oduc t i onpos s i bi l i t yf r ont i e ri sas s oc i a t e dwi t hunus e dor unde r ut i l i ze dr e s our c e s . Ans we r :TRUE Di ff: 1 Pa geRe f : 37 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 130)Ani nc r e as ei npopul a t i ons hi f t st hepr oduc t i onpos s i bi l i t yf r ont i e ri nwar dsove rt i me . Ans we r :F ALSE Di ff: 1 Pa geRe f : 42 Topi c :Ec onomi cGr owt h 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 131)I faddi t i onaluni t sofagoodc oul dbepr oduc e da tac ons t antoppor t uni t yc os t ,t hepr oduc t i on pos s i bi l i t yf r ont i e rwoul dbel i ne ar . Ans we r :TRUE Di ff: 2 Pa geRe f : 37 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 132)Onadi a gr am ofapr oduc t i onpos s i bi l i t i e sf r ont i e r ,oppor t uni t yc os ti sr e pr e s e nt e dbyt hes l opeof t hepr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :TRUE Di ff: 2 Pa geRe f : 9092 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 45 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 133)Toi nc r e as ef ue le ffic i e nc y ,aut omobi l emanuf ac t ur e r smakec ar ss mal landl i ght .Lar gec ar sabs or b mor eoft hei mpac tofanac c i de ntt hans mal lc ar sbutyi e l dl owe rf ue le ffic i e nc y .The s ef ac t ss ugge s tt ha t apos i t i ver e l a t i ons hi pe xi s t sbe t we e ns af e t yandf ue le ffic i e nc y . Ans we r :F ALSE Di ff: 2 Pa geRe f : 35 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Ec onomi c si nYourLi f e :TheTr ade offsWhe nYouBuyaCa r 134)How ar ee ffic i e nc yandi ne ffic i e nc yr e pr e s e nt e donapr oduc t i onpos s i bi l i t i e sf r ont i e r ? Ans we r :Effic i e nc yi sr e pr e s e nt e dbypoi nt sal ongt hepr oduc t i onpos s i bi l i t i e sf r ont i e r .I ne ffic i e nc yi s r e pr e s e nt e dbypoi nt si ns i det hepr oduc t i onpos s i bi l i t i e sf r ont i e r . Di ff: 2 Pa geRe f : 3637 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 135)Wha tdoe st het e r m" i nc r e as i ngmar gi naloppor t uni t yc os t "me an?How ar ei nc r e as i ngmar gi nal oppor t uni t yc os t sr e pr e s e nt e donabowe doutpr oduc t i onpos s i bi l i t i e sf r ont i e r ? Ans we r :I nc r e as i ngmar gi naloppor t uni t yc os t sme anst ha tasmor eandmor eofapr oduc ti smade ,t he oppor t uni t yc os tofmaki nge ac haddi t i onaluni tr i s e s .The yar er e pr e s e nt e dbymovi ngdownabowe d outpr oduc t i onpos s i bi l i t i e sf r ont i e r . Di ff: 2 Pa geRe f : 4041 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 46 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 136)a . Dr a w apr oduc t i onpos s i bi l i t i e sf r ont i e rf orac ount r yt ha tpr oduc e st wogoods ,wi neand c he e s e .As s umet ha tr e s our c e sar enote qual l ys ui t e dt obot ht as ks . b. De fineoppor t uni t yc os t s . c . Us eyourpr oduc t i onpos s i bi l i t i e sf r ont i e rgr apht ode mons t r a t et hepr i nc i pl eofoppor t uni t yc os t s . Ans we r : a . ThePPFi sc onc a ve( bowe da wa yf r om t heor i gi n)t or e fle c tt hef ac tt ha tr e s our c e sar enote qual l y s ui t e dt obot ht as ks . b. Oppor t uni t yc os ti sde fine dast hehi ghe s tval ue dal t e r na t i vet ha tmus tbef or gonebyt aki ngan ac t i on. c .I nt hePPFgr aphi npar t( a) ,s uppos et hec ount r yi sc ur r e nt l ypr oduc i nga tpoi ntAandwi s he st o movet opoi ntBs ot ha ti tc anpr oduc emor ewi ne .Theonl ywa yi tc anobt ai nmor ewi nei st ogi veup s omeamountofc he e s e . Di ff: 2 Pa geRe f : 4041 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Anal yt i cSki l l s 47 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e2. 4 Pos s i bl eOut put Combi na t i ons A B C D E F G H Cas hews ( t hous andsof ki l ogr ams ) 35 30 25 20 15 10 5 0 Al monds ( t hous andsof ki l ogr ams ) 0 20 35 47 57 64 68 70 137)Re f e rt oTabl e2. 4.TheNutHous epr oduc e sonl yc as he wsandal monds .Thet abl eaboves howst he maxi mum pos s i bl eout putc ombi na t i onsoft het wonut sus i ngal lr e s our c e sandc ur r e nt l ya vai l abl e t e c hnol ogy . a . Gr aphTheNutHous e ' spr oduc t i onpos s i bi l i t i e sf r ont i e r .Putal mondsont hehor i z ont alaxi sand c as he wsont heve r t i c alaxi s .Bes ur et oi de nt i f yt heout putc ombi na t i onpoi nt sonyourdi a gr am. b. Suppos eTheNutHous ei sc ur r e nt l ypr oduc i nga tpoi ntC.Wha ti st heoppor t uni t yc os tof pr oduc i nganaddi t i onal12, 000ki l ogr amsofal monds ? c . Suppos eTheNutHous ei sc ur r e nt l ypr oduc i nga tpoi ntC.Wha thappe nst ot heoppor t uni t yc os tof pr oduc i ngmor eandmor eal monds ?Doe si ti nc r e as e ,de c r e as e ,orr e mai nc ons t ant ?Expl ai nyour ans we r . d. Suppos eTheNutHous ei sc ur r e nt l ypr oduc i nga tpoi ntF.Wha thappe nst ot heoppor t uni t yc os tof pr oduc i ngmor eandmor ec as he ws ?Doe si ti nc r e as e ,de c r e as e ,orr e mai nc ons t ant ?Expl ai nyourans we r . e . Suppos eTheNutHous ei spl a gue dbyavar i e t yofwhi t er oot r otdi s e as e ,whi c hde s t r oysc as he w t r e e sbutnotal mondt r e e s .Show i nagr aphwha thappe nst oi t sPPF. 48 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r : a . b. 5, 000ki l ogr amsofc as he ws c . I ti nc r e as e s .Fore xampl et omovet oD,TheNutHous ehast ogi veup5, 000ki l ogr amsofc as he wst o pr oduc eanaddi t i onal10, 000ki l ogr amsofal monds .Fore ac haddi t i onal5, 000ki l ogr amsofc as he ws f or e gone ,t hepa yoffi nt e r msofal mondsge t spr ogr e s s i ve l ys mal l e r . d. I ti nc r e as e s .Eac ht i mei twant st opr oduc eanaddi t i onal5, 000ki l ogr amsofc as he ws ,mor eandmor e al mondsmus tbegi ve nup. e . Di ff: 3 Pa geRe f : 3839 Topi c :Pr oduc t i onPos s i bi l i t i e sFr ont i e r s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Dr a wi ngaPr oduc t i onPos s i bi l i t i e sFr ont i e rf orPa t ' sPi zzaPi t 2.2 Understand comparative advantage and explain how it is the basis for trade 49 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 1)Youha veanabs ol ut eadvant a gewhe ne ve ryou A)ar ebe t t e re duc a t e dt hans ome onee l s e . B)c anpr oduc emor eofs ome t hi ngt hanot he r swi t ht hes amer e s our c e s . C)pr e f e rt odoonepar t i c ul ara c t i vi t y . D)c anpr oduc es ome t hi nga tal owe roppor t uni t yc os tt hanot he r s . Ans we r :B Di ff: 1 Pa geRe f : 4445 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng Tabl e2. 5 Br ac e l e t s Ne c kl ac e s Ser ena 8 16 Hal e y 9 12 Tabl e2. 5s howst heout putpe rwe e koft woj e we l e r s ,Se r e naandHal e y .The yc ane i t he rde vot et he i r t i met omaki ngbr a c e l e t sormaki ngne c kl ac e s . 2)Re f e rt oTabl e2. 5.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)Hal e yhasanabs ol ut eadvant a gei nmaki ngbot hpr oduc t s . B)Se r e nahasanabs ol ut eadvant a gei nmaki ngbot hpr oduc t s . C)Hal e yhasanabs ol ut eadvant a gei nmaki ngbr ac e l e t sandSe r e nai nmaki ngne c kl ac e s . D)Hal e yhasanabs ol ut eadvant a gei nmaki ngne c kl a c e sandSe r e nai nmaki ngbr a c e l e t s . Ans we r :C Di ff: 1 Pa geRe f : 4445 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 3)Re f e rt oTabl e2. 5.Wha ti sHal e y' soppor t uni t yc os tofmaki ngabr ac e l e t ? A)3/4ofabr a c e l e t B)3br a c e l e t s C)11 /3ne c kl ac e s D)2ne c kl ac e s Ans we r :C Di ff: 2 Pa geRe f : 45 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 50 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 4)Re f e rt oTabl e2. 5.Wha ti sHal e y' soppor t uni t yc os tofmaki ngane c kl a c e ? A)3/4ofabr a c e l e t B)3br a c e l e t s C)11 /3ne c kl ac e s D)2ne c kl ac e s Ans we r :A Di ff: 2 Pa geRe f : 45 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 5)Re f e rt oTabl e2. 5.Wha ti sSe r e na' soppor t uni t yc os tofmaki ngabr a c e l e t ? A)2ne c kl ac e s B)1 /2ofabr ac e l e t C)1 /2ofane c kl ac e D)3/4ofabr a c e l e t Ans we r :A Di ff: 2 Pa geRe f : 45 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 6)Re f e rt oTabl e2. 5.Wha ti sSe r e na' soppor t uni t yc os tofmaki ngane c kl ac e ? A)2ne c kl ac e s B)1 /2ofabr ac e l e t C)1 /2ofane c kl ac e D)3/4ofabr a c e l e t Ans we r :B Di ff: 2 Pa geRe f : 45 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 7)Re f e rt oTabl e2. 5.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)Hal e yhasac ompar a t i veadvant a gei nmaki ngbot hpr oduc t s . B)Se r e nahasac ompar a t i veadvant a gei nmaki ngbot hpr oduc t s . C)Hal e yhasac ompar a t i veadvant a gei nmaki ngbr a c e l e t sandSe r e nai nmaki ngne c kl ac e s . D)Hal e yhasac ompar a t i veadvant a gei nmaki ngne c kl ac e sandSe r e nai nmaki ngbr ac e l e t s . Ans we r :C Di ff: 3 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 51 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 8)Compar a t i veadvant a geme anst heabi l i t yt opr oduc eagoodors e r vi c e A)a tal owe rs e l l i ngpr i c et hananyot he rpr oduc e r . B)a tal owe roppor t uni t yc os tt hananyot he rpr oduc e r . C)ofahi ghe rqual i t yt hananyot he rpr oduc e r . D)a tahi ghe rpr ofitl e ve lt hananyot he rpr oduc e r . Ans we r :B Di ff: 1 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 9)Spe c i al i zi ngi nt hepr oduc t i onofagoodors e r vi c ei nwhi c honehasac ompar a t i veadvant a gee nabl e s ac ount r yt odoal loft hef ol l owi nge x c e p t A)e nga gei nmut ual l ybe ne fic i alt r adewi t hot he rna t i ons . B)i nc r e as et hevar i e t yofpr oduc t st ha ti tc anc ons umewi t hnoi nc r e as ei nr e s our c e s . C)c ons umeac ombi na t i onofgoodst ha tl i e sout s i dei t sownpr oduc t i onpos s i bi l i t i e sf r ont i e r . D)pr oduc eac ombi na t i onofgoodst ha tl i e sout s i dei t sownpr oduc t i onpos s i bi l i t i e sf r ont i e r . Ans we r :D Di ff: 3 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 10)Fore ac hbot t l eofwi net ha tI t a l ypr oduc e s ,i tgi ve supt heoppor t uni t yt omake10poundsofc he e s e . Fr anc ec anpr oduc e1bot t l eofwi nef ore ve r y25poundsofc he e s ei tpr oduc e s .Whi c hoft hef ol l owi ngi s t r ueaboutt hec ompar a t i veadvant a gebe t we e nt het woc ount r i e s ? A)I t a l yhast hec ompar a t i veadvant a gei nc he e s e . B)I t al yhast hec ompar a t i veadvant a gei nwi ne . C)Fr anc ehast hec ompar a t i veadvant a gei nwi neandc he e s e . D)Fr anc ehast hec ompar a t i veadvant a gei nwi ne . Ans we r :B Di ff: 2 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 52 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 13 Fi gur e2. 13s howst hepr oduc t i onpos s i bi l i t i e sf r ont i e r sf orPaki s t anandI ndone s i a .Eac hc ount r y pr oduc e st wogoods ,c ot t onandc as he ws . 11)Re f e rt oFi g ur e2. 13.Wha ti st heoppor t uni t yc os tofpr oduc i ng1bol tofc ot t oni nPaki s t an? A)3/8ofapoundofc as he ws B)5 /8ofapoundofc as he ws C)13 /5poundsofc as he ws D)150poundsofc as he ws Ans we r :B Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 12)Re f e rt oFi g ur e2. 13.Wha ti st heoppor t uni t yc os tofpr oduc i ng1bol tofc ot t oni nI ndone s i a? A)3/8ofapoundofc as he ws B)5 /8ofapoundofc as he ws C)22 /3poundsofc as he ws D)120poundsofc as he ws Ans we r :A Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 13)Re f e rt oFi g ur e2. 13.Wha ti st heoppor t uni t yc os tofpr oduc i ng1poundofc as he wsi nPaki s t an? A)3/8ofabol tofc ot t on B)5 /8ofabol tofc ot t on C)13 /5bol t sofc ot t on D)240bol t sofc ot t on Ans we r :C Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 14)Re f e rt oFi g ur e2. 13.Wha ti st heoppor t uni t yc os tofpr oduc i ng1poundofc as he wsi nI ndone s i a? A)3/8ofabol tofc ot t on B)5 /8ofabol tofc ot t on C)22 /3bol t sofc ot t on D)320bol t sofc ot t on 53 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :C Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 15)Re f e rt oFi g ur e2. 13.Whi c hc ount r yhasac ompar a t i veadvant a gei nt hepr oduc t i onofc ot t on? A)I ndone s i a B)The yha vee qualpr oduc t i veabi l i t i e s . C)Paki s t an D)ne i t he rc ount r y Ans we r :A Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 16)Re f e rt oFi g ur e2. 13.Whi c hc ount r yhasac ompar a t i veadvant a gei nt hepr oduc t i onofc as he ws ? A)I ndone s i a B)The yha vee qualpr oduc t i veabi l i t i e s . C)Paki s t an D)ne i t he rc ount r y Ans we r :C Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 17)Re f e rt oFi g ur e2. 13.I ft het woc ount r i e sha vet hes ameamountofr e s our c e sandt hes ame t e c hnol ogi c alknowl e dge ,whi c hc ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onofc ot t on? A)I ndone s i a B)The yha vet hes ameadvant a ge . C)Paki s t an D)c annotbede t e r mi ne d Ans we r :A Di ff: 2 Pa geRe f : 4445 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 54 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)I ndi vi dual swhoha vene ve rbe e nt hebe s ta tdoi nganyt hi ngc annotha veac ompar a t i veadvant a gei n pr oduc i nganypr oduc t . B)I ndi vi dual swhoha vene ve rbe e nt hebe s ta tdoi nganyt hi ngc ans t i l lha veac ompar a t i veadvant a gei n pr oduc i ngs omepr oduc t . C)I ndi vi dual swhoha vene ve rbe e nt hebe s ta tdoi nganyt hi ngpe r f or m al lt as ksa tahi ghe roppor t uni t y c os tt hanot he r s . D)I ndi vi dual swhoha vene ve rbe e nt hebe s ta tdoi nganyt hi ngmus tha veanabs ol ut eadvant a gei na t l e as tone st as k. Ans we r :B Di ff: 2 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng Tabl e2. 6 Chi na Sout hKor e a OneDi gi t al Camer a 100hour s 60hour s Whe a t( perpound) 4hour s 3hour s Tabl e2. 6s howst henumbe rofl abourhour sr e qui r e dt opr oduc eadi gi t alc ame r aandapoundofwhe a t i nChi naandSout hKor e a . 19)Re f e rt oTabl e2. 6.Doe se i t he rChi naorSout hKor e aha veanabs ol ut eadvant a geandi fs o,i nwha t pr oduc t ? A)Sout hKor e ahasanabs ol ut eadvant a gei nwhe a t . B)Chi nahasanabs ol ut eadvant a gei nwhe a t . C)Sout hKor e ahasanabs ol ut eadvant a gei nbot hpr oduc t s . D)Chi nahasanabs ol ut eadvant a gei ndi gi t alc ame r as . Ans we r :C Di ff: 1 Pa geRe f : 4647 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 20)Re f e rt oTabl e2. 6.Wha ti sChi na' soppor t uni t yc os tofpr oduc i ngonedi gi t alc ame r a? A)0. 04poundsofwhe a t B)4poundsofwhe a t C)25poundsofwhe a t D)40poundsofwhe a t Ans we r :C Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 55 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 21)Re f e rt oTabl e2. 6.Wha ti sSout hKor e a' soppor t uni t yc os tofpr oduc i ngonedi gi t alc ame r a? A)0. 05poundsofwhe a t B)20poundsofwhe a t C)25poundsofwhe a t D)60poundsofwhe a t Ans we r :B Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 22)Re f e rt oTabl e2. 6.Wha ti sChi na' soppor t uni t yc os tofpr oduc i ngonepoundofwhe a t ? A)0. 04uni t sofadi gi t alc ame r a B)4di gi t alc ame r as C)25di gi t alc ame r as D)40di gi t alc ame r as Ans we r :A Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 23)Re f e rt oTabl e2. 6.Wha ti sSout hKor e a' soppor t uni t yc os tofpr oduc i ngonepoundofwhe a t ? A)60di gi t alc ame r as B)20di gi t alc ame r as C)5di gi t alc ame r as D)0. 05uni t sofadi gi t alc ame r a Ans we r :D Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 24)Re f e rt oTabl e2. 6.Chi nahasac ompar a t i veadvant a gei nt hepr oduc t i onof A)whe a t . B)di gi t alc ame r as . C)bot hpr oduc t s . D)ne i t he rpr oduc t . Ans we r :B Di ff: 2 Pa geRe f : 4647 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 56 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 25)Re f e rt oTabl e2. 6.Sout hKor e ahasac ompar a t i veadvant a gei nt hepr oduc t i onof A)whe a t . B)di gi t alc ame r as . C)bot hpr oduc t s . D)ne i t he rpr oduc t . Ans we r :B Di ff: 2 Pa geRe f : 4647 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 26)Re f e rt oTabl e2. 6.I ft het woc ount r i e ss pe c i al i zeandt r ade ,whos houl de xpor twhe a t ? A)The r ei snobas i sf ort r adebe t we e nt het woc ount r i e s . B)Chi na C)Sout hKor e a D)The ys houl dbot hbee xpor t i ngwhe a t . Ans we r :B Di ff: 1 Pa geRe f : 4647 Topi c :Spe c i al i za t i on Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 27)Re f e rt oTabl e2. 6.I ft het woc ount r i e ss pe c i al i zeandt r ade ,whos houl de xpor tdi gi t alc ame r as ? A)The r ei snobas i sf ort r adebe t we e nt het woc ount r i e s . B)Chi na C)Sout hKor e a D)The ys houl dbot hbei mpor t i ngdi gi t alc ame r as . Ans we r :C Di ff: 1 Pa geRe f : 4647 Topi c :Spe c i al i za t i on Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 28)I ft hebe s ts ur ge oni nt owni sal s ot hebe s ta tc l e ani ngs wi mmi ngpool s ,t he nac c or di ngt oe c onomi c r e as oni ng,t hi spe r s ons houl d A)pur s uet hea c t i vi t yhee nj oysmor e . B)s pe c i al i zei nc l e ani ngs wi mmi ngpool sbe c aus ei ti smor el abour i nt e ns i ve . C)s pl i thi st i mee ve nl ybe t we e nbe i ngas ur ge onandc l e ani ngs wi mmi ngpool s . D)s pe c i al i zei nbe i ngas ur ge onbe c aus ei t soppor t uni t yc os ti sl owe r . Ans we r :D Di ff: 1 Pa geRe f : 43 Topi c :Spe c i al i za t i on Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 57 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 29)Cr ys t alSc hi c ki sahi ghl yt al e nt e dphot ogr aphe r .Shehasc hos e nt os pe c i al i zei nphot ogr aphy be c aus eofal loft hef ol l owi nge x c e p t A)s heobvi ous l yhasac ompar a t i veadvant a gei nphot ogr aphy . B)he roppor t uni t yc os tofpur s ui nganot he rc ar e e ri sve r yl ow. C)f orhe r ,t hi si st hemos tl uc r a t i vewa yt opur c has et hepr oduc t st ha ts hewant st oc ons ume . D)he rphot ogr aphsar ehi ghl ye s t e e me dbyar tl ove r swhoar ewi l l i ngt opa yve r yhi ghpr i c e s . Ans we r :B Di ff: 3 Pa geRe f : 43 Topi c :Spe c i al i za t i on 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 30)I fSanj a yac ans huc kmor eoys t e r si nonehourt hanTa t i ana ,t he nSanj a yahasac ompar a t i ve advant a gei ns huc ki ngoys t e r s . Ans we r :F ALSE Di ff: 2 Pa geRe f : 45 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 31)Thebas i sf ort r adei sc ompar a t i veadvant a ge ,notabs ol ut eadvant a ge . Ans we r :TRUE Di ff: 1 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 32)I fac ount r ypr oduc e sonl yt wogoods ,i ti spos s i bl et oha veac ompar a t i veadvant a gei nt he pr oduc t i onofbot ht hos egoods . Ans we r :F ALSE Di ff: 1 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 33)I nat wogood,t woc ount r ywor l d,i fonec ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onof bot hgoods ,i tc annotbe ne fitbyt r adi ngwi t ht heot he rc ount r y . Ans we r :F ALSE Di ff: 2 Pa geRe f : 45 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 34)Forape r s ont oha veac ompar a t i veadvant a gei npr oduc i ngapr oduc t ,s hemus tbeabl et opr oduc e t ha tpr oduc ta tal owe roppor t uni t yc os tt hanhe rc ompe t i t or s . Ans we r :TRUE Di ff: 1 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 35)I ti spos s i bl et oha veac ompar a t i veadvant a gei npr oduc i ngagoodors e r vi c ewi t houtha vi ngan abs ol ut eadvant a ge . Ans we r :TRUE Di ff: 1 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade 58 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Don' tLe tThi sHappe nt oYou:Don' tConf us eAbs ol ut eAdvant a geandCompar a t i veAdvant a ge 36)Wha ti sc ompar a t i veadvant a ge ?Wha ti sabs ol ut eadvant a ge ? Ans we r :Compar a t i veadvant a gei st heabi l i t yofani ndi vi dual ,fir m,orc ount r yt opr oduc eagoodor s e r vi c ea tal owe roppor t uni t yc os tt hanc ompe t i t or s .Abs ol ut eadvant a gei st heabi l i t yofani ndi vi dual , fir m,orc ount r yt opr oduc emor eofagoodors e r vi c et hanc ompe t i t or s ,us i ngt hes ameamountof r e s our c e s . Di ff: 1 Pa geRe f : 45 Topi c :Compar a t i veAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 37)I si tpos s i bl ef orafir mt oha veanabs ol ut eadvant a gei npr oduc i ngs ome t hi ngwi t houtha vi nga c ompar a t i veadvant a ge ?Whyorwhynot ? Ans we r :Ye s ,afir mc anha veanabs ol ut eadvant a gewi t houtha vi ngac ompar a t i veadvant a ge .Afir m ma ybeabl et opr oduc emor eofagoodors e r vi c et hani t sc ompe t i t or s ,butt ha tdoe snotne c e s s ar i l y me ani tc anpr oduc et hegoodors e r vi c ea tal owe roppor t uni t yc os tt hani t sc ompe t i t or s . Di ff: 2 Pa geRe f : 45 Topi c :Abs ol ut eAdvant a ge Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng 59 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e2. 7 Chi na Sout hKor e a Di gi t alCamer a 100hour s 90hour s Whe a t( bus he l s ) 5hour s 3hour s 38)Re f e rt oTabl e2. 7.Thi st abl es howst henumbe rofl abourhour sr e qui r e dt opr oduc eadi gi t al c ame r asandabus he lofwhe a ti nChi naandSout hKor e a . a . Whi c hc ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onofdi gi t alc ame r as ? b. Whi c hc ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onofwhe a t ? c . Wha ti sChi na' soppor t uni t yc os tofpr oduc i ngonedi gi t alc ame r a? d. Wha ti sSout hKor e a' soppor t uni t yc os tofpr oduc i ngonedi gi t alc ame r a? e . Wha ti sChi na' soppor t uni t yc os tofpr oduc i ngonebus he lofwhe a t ? f . Wha ti sSout hKor e a' soppor t uni t yc os tofpr oduc i ngonebus he lofwhe a t ? g. I fe ac hc ount r ys pe c i al i ze si nt hepr oduc t i onoft hepr oduc ti nwhi c hi thasac ompar a t i veadvant a ge , whos houl dpr oduc edi gi t alc ame r as ? h. I fe ac hc ount r ys pe c i al i ze si nt hepr oduc t i onoft hepr oduc ti nwhi c hi thasac ompar a t i veadvant a ge , whos houl dpr oduc ewhe a t ? Ans we r : a . Sout hKor e ahasanabs ol ut eadvant a gei nt hepr oduc t i onofdi gi t alc ame r as . b. Sout hKor e ahasanabs ol ut eadvant a gei nwhe a tpr oduc t i on. c . Chi na' st heoppor t uni t yc os tofpr oduc i ngonedi gi t alc ame r ai s20bus he l sofwhe a t . d. Sout hKor e a' soppor t uni t yc os tofpr oduc i ngonedi gi t alc ame r ai s30bus he l sofwhe a t . e . Chi na' soppor t uni t yc os tofonebus he lofwhe a ti s0. 05uni t sofadi gi t alc ame r a . f . Sout hKor e a' soppor t uni t yc os tofonebus he lofwhe a ti s0. 03uni t sofadi gi t alc ame r a . g. Chi nas houl ds pe c i al i zei npr oduc i ngdi gi t alc ame r as . h. Sout hKor e as houl ds pe c i al i zei npr oduc i ngwhe a t . Di ff: 3 Pa geRe f : 4345 Topi c :Spe c i al i za t i on Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Anal yt i cSki l l s 60 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 39)Re f e rt oTabl e2. 7.Thi st abl es howst henumbe rofl abourhour sr e qui r e dt opr oduc eadi gi t alc ame r a andabus he lofwhe a ti nChi naandSout hKor e a . a .I fe ac hc ount r yhasat ot alof9000l abourhour st ode vot et ot hepr oduc t i onoft het wogoods ,dr a w t hepr oduc t i onpos s i bi l i t i e sf r ont i e rf ore ac hc ount r y .Put" Di gi t alCame r a"ont hehor i z ont alaxi sand " Whe a t "ont heve r t i c alaxi s .Bes ur et oi de nt i f yt hei nt e r c e ptval ue sonyourgr aphs . b. Suppos ee ac hc ount r yal l oc a t e s60% i t sl abourhour st owhe a tpr oduc t i onand40% t ot hepr oduc t i on ofdi gi t alc ame r as .Compl e t eTabl e2. 8be l ow t os how e ac hc ount r y' sout putoft het wopr oduc t s . Tabl e2. 8:Pr oduc t i onandCons umpt i onwi t hnoTr ade Di gi t alCamer a Whe a tOut put Out put ( bus he l s ) Chi na Sout hKor e a Tot al c .I ft het woc ount r i e sdonott r adeandc ons umewha t e ve rt he ypr oduc e ,i de nt i f yt hec ur r e nt pr oduc t i onandc ons umpt i onpoi ntf ore ac hc ount r yont he i rr e s pe c t i vepr oduc t i onpos s i bi l i t i e s f r ont i e r s .Labe lChi na' sc ons umpt i onpoi nt" C"andSout hKor e a' sc ons umpt i onpoi nt" K. " d. Suppos et het woc ount r i e ss pe c i al i zeandt r ade .Whos houl dpr oduc edi gi t alc ame r asandwho s houl dpr oduc ewhe a t ?Expl ai nyourans we r . e . Compl e t eTabl e2. 9be l ow t os how e ac hc ount r y' sout putwi t hs pe c i al i za t i on. Tabl e2. 9:Out putwi t hSpe c i al i za t i on Di gi t alCamer a Whe a tOut put Out put ( bus he l s ) Chi na Sout hKor e a Tot al f . Di ds pe c i al i za t i oni nc r e as et hec ombi ne dout putf ort het woc ount r i e swi t houtanyi nc r e as ei n r e s our c e s ?I fs o,byhow muc h? g. Suppos eChi naandSout hKor e aa gr e et ot r ades ot ha ti ne x c hangef or1, 200bus he l sofwhe a t ,t he e xpor t e rofwhe a tr e c e i ve s48di gi t alc ame r as .Compl e t eTabl e2. 10be l ow t os how e ac hc ount r y' s c ons umpt i onbundl eaf t e rt r ade . Tabl e2. 10:Cons umpt i onwi t hTr ade Di gi t alCamer a Whe a t( bus he l s ) Chi na Sout hKor e a h. Show t hec ons umpt i onpoi nt sa f t e rt r adeone ac hc ount r y' spr oduc t i onpos s i bi l i t i e sf r ont i e r .Labe l t he s epoi nt s" B"f orChi naand" J "f orSout hKor e a . i . Hast r ademadet het woc ount r i e sbe t t e roff?Expl ai nyourans we r . 61 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r : a . b. Tabl e2. 8:Pr oduc t i onandCons umpt i onwi t hnoTr ade Di gi t alCamer a Whe a tOut put Out put ( bus he l s ) Chi na 36 1, 080 Sout hKor e a 40 1, 800 Tot al 76 2, 880 c . Se egr aphi npar t( a) d. Chi nas houl ds pe c i al i zei npr oduc i ngdi gi t alc ame r asbe c aus ei thasal owe roppor t uni t yc os t :20 bus he l sofwhe a tasoppos e dt oSout hKor e a' s30bus he l sofwhe a t .Sout hKor e as houl ds pe c i al i zei n pr oduc i ngwhe a tbe c aus ei thasal owe roppor t uni t yc os t :0. 03uni t sofadi gi t alc ame r aasoppos e dt o Chi na' s0. 05uni t sofadi gi t alc ame r a . e . Tabl e2. 9:Out putwi t hSpe c i al i zat i on Di gi t alCamer a Whe a tOut put Out put ( bus he l s ) Chi na 90 0 Sout hKor e a 0 3, 000 Tot al 90 3, 000 f . Ye s ,di gi t alc ame r aout puti nc r e as e dby14uni t s( f r om 76uni t st o90uni t s )andwhe a tout put i nc r e as e dby120bus he l s( f r om 2, 880bus he l st o3, 0 00bus he l s ) . g. Tabl e2. 10:Cons umpt i onwi t hTr ade Di gi t alCamer a Whe a t( bus he l s ) Chi na 42 1, 200 Sout hKor e a 48 1, 800 h. Se egr aphi npar t( a) i . Ye s ,t r adehase nabl e dt het woc ount r i e st oc ons umeout s i det he i rPPFs . Di ff: 3 Pa geRe f : 4647 Topi c :Spe c i al i za t i on Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade 62 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 40)I fyouc anpr oduc emor eofs ome t hi ngt hanot he r swhoha vet hes amer e s our c e s ,youha ve A)ac ompar a t i veadvant a ge . B)anabs ol ut eadvant a ge . C)ane ffic i e ntpr oduc t i ons ys t e m. D)af r e e mar ke te c onomy . Ans we r :B Di ff: 1 Pa geRe f : 4445 Topi c :Abs ol ut eAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Tabl e2. 11 La wns Mowe d Gar de ns Cul t i va t e d Ge or ge J ac k 10 6 5 4 Tabl e2. 11s howst heout putpe rda yoft wogar de ne r s ,Ge or geandJ ac k.The yc ane i t he rde vot et he i r t i met omowi ngl a wnsorc ul t i va t i nggar de ns . 41)Re f e rt oTabl e2. 11.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)J ac khasanabs ol ut eadvant a gei nbot ht as ks . B)Ge or gehasanabs ol ut eadvant a gei nbot ht as ks . C)J ac khasanabs ol ut eadvant a gei nl a wnmowi ngandGe or gei ngar de nc ul t i va t i ng. D)J ac khasanabs ol ut eadvant a gei ngar de nc ul t i va t i ngandGe or gei nl a wnmowi ng. Ans we r :B Di ff: 1 Pa geRe f : 4445 Topi c :Abs ol ut eAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s 63 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 42)Re f e rt oTabl e2. 11.Wha ti sJ ac k' soppor t uni t yc os tofmowi ngal a wn? A)hal fagar de nc ul t i va t e d B)t wol a wnsmowe d C)t wot hi r dsofagar de nc ul t i va t e d D)oneandahal fl a wnsmowe d Ans we r :C Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 43)Re f e rt oTabl e2. 11.Wha ti sJ ac k' soppor t uni t yc os tofc ul t i va t i ngaga r de n? A)hal fagar de nc ul t i va t e d B)t wol a wnsmowe d C)t wot hi r dsofagar de nc ul t i va t e d D)oneandahal fl a wnsmowe d Ans we r :D Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 44)Re f e rt oTabl e2. 11.Wha ti sGe or ge ' soppor t uni t yc os tofmowi ngal a wn? A)hal fagar de nc ul t i va t e d B)t wol a wnsmowe d C)t wot hi r dsofagar de nc ul t i va t e d D)oneandahal fl a wnsmowe d Ans we r :A Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 45)Re f e rt oTabl e2. 11.Wha ti sGe or ge ' soppor t uni t yc os tofc ul t i va t i ngagar de n? A)hal fagar de nc ul t i va t e d B)t wol a wnsmowe d C)t wot hi r dsofagar de nc ul t i va t e d D)oneandahal fl a wnsmowe d Ans we r :B Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 46)Re f e rt oTabl e2. 11.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)J ac khasac ompar a t i veadvant a gei nbot ht as ks . B)Ge or gehasac ompar a t i veadvant a gei nbot ht as ks . C)J ac khasac ompar a t i veadvant a gei nl a wnmowi ngandGe or gei ngar de nc ul t i va t i ng. D)J ac khasac ompar a t i veadvant a gei ngar de nc ul t i va t i ngandGe or gei nl a wnmowi ng. 64 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :D Di ff: 3 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s 47)Compar a t i veadvant a geme ans A)t heabi l i t yt opr oduc emor eofapr oduc twi t ht hes ameamountofr e s our c e st hananyot he rpr oduc e r . B)t heabi l i t yt opr oduc eagoodors e r vi c ea tal owe roppor t uni t yc os tt hananyot he rpr oduc e r . C)t heabi l i t yt opr oduc eagoodors e r vi c ea tahi ghe roppor t uni t yc os tt hananyot he rpr oduc e r . D)c ompar e dt oot he r s ,youar ebe t t e ra tpr oduc i ngapr oduc t . Ans we r :B Di ff: 1 Pa geRe f : 4446 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 48)Spe c i al i zi ngi nt hepr oduc t i onofagoodors e r vi c ei nwhi c honehasac ompar a t i veadvant a ge e nabl e sac ount r yt odowhi c hoft hef ol l owi ng? A)ne ve rha vet oe nga gei nt r adewi t hot he rna t i ons B)i nc r e as et hevar i e t yofpr oduc t st ha ti tc anpr oduc ewi t hade c r e as ei nr e s our c e s C)c ons umeac ombi na t i onofgoodst ha tl i e sout s i dei t sownpr oduc t i onpos s i bi l i t i e sf r ont i e r D)pr oduc eac ombi na t i onofgoodst ha tl i e sout s i dei t sownpr oduc t i onpos s i bi l i t i e sf r ont i e r Ans we r :C Di ff: 3 Pa geRe f : 4446 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 49)Fore ac hwa t c ht ha tS wi t ze r l andpr oduc e s ,i tgi ve supt heoppor t uni t yt omake50poundsof c hoc ol a t e .Ge r manyc anpr oduc e1wa t c hf ore ve r y100poundsofc hoc ol a t ei tpr oduc e s .Whi c hoft he f ol l owi ngi st r ueaboutt hec ompar a t i veadvant a gebe t we e nt het woc ount r i e s ? A)S wi t ze r l andhast hec ompar a t i veadvant a gei nc hoc ol a t e . B)S wi t z e r l andhast hec ompar a t i veadvant a gei nwa t c he s . C)Ge r manyhast hec ompar a t i veadvant a gei nwa t c he sandc hoc ol a t e . D)Ge r manyhast hec ompar a t i veadvant a gei nwa t c he s . Ans we r :B Di ff: 2 Pa geRe f : 4446 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Fi gur e2. 14 65 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 14s howst hepr oduc t i onpos s i bi l i t i e sf r ont i e r sf orCos t aRi c aandGua t e mal a .Eac hc ount r y pr oduc e st wogoods ,pi ne appl e sandc oc onut s . 50)Re f e rt oFi g ur e2. 14.Wha ti st heoppor t uni t yc os tofpr oduc i ng1t onneofc oc onut si nCos t aRi c a? A)3/8ofat onneofpi ne appl e s B)2 /3ofat onneofpi ne appl e s C)11 /2t onne sofpi ne appl e s D)100t onne sofpi ne appl e s Ans we r :B Di ff: 2 Pa geRe f : 4446 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 51)Re f e rt oFi g ur e2. 14.Wha ti st heoppor t uni t yc os tofpr oduc i ng1t onneofc oc onut si nGua t e mal a? A)1/2ofat onneofpi ne appl e s B)11 /3t onne sofpi ne appl e s C)2t onne sofpi ne appl e s D)90t onne sofpi ne appl e s Ans we r :A Di ff: 2 Pa geRe f : 4446 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 66 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 52)Re f e rt oFi g ur e2. 14.Wha ti st heoppor t uni t yc os tofpr oduc i ng1t onneofpi ne appl e si nCos t aRi c a? A)3/8ofat onneofc oc onut s B)2 /3ofat onneofc oc onut s C)11 /2t onne sofc oc onut s D)100t onne sofc oc onut s Ans we r :C Di ff: 2 Pa geRe f : 4446 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 53)Re f e rt oFi g ur e2. 14.Wha ti st heoppor t uni t yc os tofpr oduc i ng1t onneofpi ne appl e si nGua t e mal a? A)1/2ofat onneofc oc onut s B)11 /3t onne sofc oc onut s C)2t onne sofc oc onut s D)180t onne sofc oc onut s Ans we r :C Di ff: 2 Pa geRe f : 4446 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 54)Re f e rt oFi g ur e2. 14.Whi c hc ount r yhasac ompar a t i veadvant a gei nt hepr oduc t i onofc oc onut s ? A)Gua t e mal a B)The yha vee qualpr oduc t i veabi l i t i e s . C)Cos t aRi c a D)ne i t he rc ount r y Ans we r :A Di ff: 2 Pa geRe f : 4446 Topi c :Compar a t i veAdvant a ge 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s 55)Re f e rt oFi g ur e2. 14.Whi c hc ount r yhasac ompar a t i veadvant a gei nt hepr oduc t i onofpi ne appl e s ? A)Gua t e mal a B)The yha vee qualpr oduc t i veabi l i t i e s . C)Cos t aRi c a D)ne i t he rc ount r y Ans we r :C Di ff: 2 Pa geRe f : 4446 Topi c :Compar a t i veAdvant a ge 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s 67 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 56)Re f e rt oFi g ur e2. 14.I ft het woc ount r i e sha vet hes ameamountofr e s our c e sandt hes ame t e c hnol ogi c alknowl e dge ,whi c hc ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onofbot h pi ne appl e sandc oc onut s ? A)Gua t e mal a B)Ne i t he rc ount r y C)Cos t aRi c a D)Anabs ol ut eadvant a gec annotbede t e r mi ne d Ans we r :B Di ff: 2 Pa geRe f : 4446 Topi c :Abs ol ut eAdvant a ge 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s 57)I ndi vi dual swhoha vene ve rbe e nt hebe s ta tdoi nganyt hi ng A)c annotha veac ompar a t i veadvant a gei npr oduc i nganypr oduc t . B)c ans t i l lha veac ompar a t i veadvant a gei npr oduc i ngs omepr oduc t . C)pe r f or m al lt as ksa tahi ghe roppor t uni t yc os tt hanot he r s . D)mus tha veanabs ol ut eadvant a gei na tl e as tone st as k. Ans we r :B Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Tabl e2. 12 OneCe l lPhone Es t oni a Fi nl and 40hour s 16hour s Lumber( perc ubi c met r e) 8hour s 4hour s Tabl e2. 12s howst henumbe rofl abourhour sr e qui r e dt opr oduc eac e l lphoneandac ubi cme t r eof l umbe ri nEs t oni aandFi nl and. 58)Re f e rt oTabl e2. 12.Doe se i t he rEs t oni aorFi nl andha veanabs ol ut eadvant a geandi fs o,i nwha t pr oduc t ? A)Fi nl andhasanabs ol ut eadvant a gei nl umbe r . B)Es t oni ahasanabs ol ut eadvant a gei nl umbe r . C)Fi nl andhasanabs ol ut eadvant a gei nbot hpr oduc t s . D)Es t oni ahasanabs ol ut eadvant a gei nc e l lphone s . Ans we r :C Di ff: 1 Pa geRe f : 4647 Topi c :Abs ol ut eAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 68 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 59)Re f e rt oTabl e2. 12.Wha ti sEs t oni a' soppor t uni t yc os tofpr oduc i ngonec e l lphone ? A)0. 2c ubi cme t r e sofl umbe r B)5c ubi cme t r e sofl umbe r C)8c ubi cme t r e sofl umbe r D)32c ubi cme t r e sofl umbe r Ans we r :B Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 60)Re f e rt oTabl e2. 12.Wha ti sFi nl and' soppor t uni t yc os tofpr oduc i ngonec e l lphone ? A)0. 25c ubi cme t r e sofl umbe r B)4c ubi cme t r e sofl umbe r C)12c ubi cme t r e sofl umbe r D)16c ubi cme t r e sofl umbe r Ans we r :B Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 61)Re f e rt oTabl e2. 12.Wha ti sEs t oni a' soppor t uni t yc os tofpr oduc i ngonec ubi cme t r eofl umbe r ? A)0. 2c e l lphone s B)5c e l lphone s C)8c e l lphone s D)32c e l lphone s Ans we r :A Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 69 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 62)Re f e rt oTabl e2. 12.Wha ti sFi nl and' soppor t uni t yc os tofpr oduc i ngonec ubi cme t r eofl umbe r ? A)0. 25c e l lphone s B)4c e l lphone s C)12c e l lphone s D)16c e l lphone s Ans we r :A Di ff: 2 Pa geRe f : 4647 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 63)Re f e rt oTabl e2. 12.Es t oni ahasac ompar a t i veadvant a gei nt hepr oduc t i onof A)bot hpr oduc t s . B)l umbe r . C)c e l lphone s . D)ne i t he rpr oduc t . Ans we r :B Di ff: 2 Pa geRe f : 4647 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 64)Re f e rt oTabl e2. 12.Fi nl andhasac ompar a t i veadvant a gei nt hepr oduc t i onof A)bot hpr oduc t s . B)l umbe r . C)c e l lphone s . D)ne i t he rpr oduc t . Ans we r :C Di ff: 2 Pa geRe f : 4647 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 70 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 65)Re f e rt oTabl e2. 12.I ft het woc ount r i e ss pe c i al i zeandt r ade ,whos houl de xpor tl umbe r ? A)The r ei snobas i sf ort r adebe t we e nt het woc ount r i e s . B)Es t oni a C)Fi nl and D)The ys houl dbot hbee xpor t i ngl umbe r . Ans we r :B Di ff: 1 Pa geRe f : 4647 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 66)Re f e rt oTabl e2. 12.I ft het woc ount r i e ss pe c i al i zeandt r ade ,whos houl de xpor tc e l lphone s ? A)The r ei snobas i sf ort r adebe t we e nt het woc ount r i e s . B)Es t oni a C)Fi nl and D)The ys houl dbot hbei mpor t i ngc e l lphone s . Ans we r :C Di ff: 1 Pa geRe f : 4647 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 67)As s umef e w pe opl ec anbee x c e l l e nts ur ge onsbutmanype opl ec anbee x c e l l e ntmana ge r s .I ft hebe s t s ur ge oni nt owni sal s ot hebe s tmana ge r ,e c onomi cr e as ons ugge s t st he ys houl d A)s pl i tt he i rt i mee ve nl ybe t we e nbe i ngas ur ge onandamana ge r . B)s pe c i al i zei nbe i ngas ur ge onbe c aus ei t soppor t uni t yc os ti sl owe r . C)pur s uet hea c t i vi t ys hee nj oysmor e . D)s pe c i al i zei nbe i ngamana ge rbe c aus ei ti smor ec api t al i nt e ns i ve . Ans we r :B Di ff: 1 Pa geRe f : 4445 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Re fle c t i veThi nki ng 71 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 68)I zzyAmadori sahi ghl yt al e nt e dt a t t ooar t i s t .Ane c onomi s twoul dar gues hehasc hos e nt o s pe c i al i zei nt a t t ooar tf oral loft hef ol l owi ngr e as ons ,e x c e p t A)he rt a t t oosar ehi ghl ye s t e e me dbyt a t t ool ove r swhoar ewi l l i ngt opa yve r yhi ghpr i c e s . B)f orhe r ,t hi si st hemos tl uc r a t i vewa yt opur c has et hepr oduc t st ha ts hewant st oc ons ume . C)he roppor t uni t yc os tofpur s ui nganot he rc ar e e ri sve r yl ow. D)s heobvi ous l yhasac ompar a t i veadvant a gei nt a t t ooar t . Ans we r :C Di ff: 3 Pa geRe f : 4445 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Re fle c t i veThi nki ng 69)I fBl akec anpi c kmor ec he r r i e si nonehourt hanCody ,t he nBl akehasac ompar a t i veadvant a gei n c he r r ypi c ki ng. Ans we r :F ALSE Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 70)Thebas i sf ort r adei sabs ol ut eadvant a ge ,notc ompar a t i veadvant a ge . Ans we r :F ALSE Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 71)I fac ount r ypr oduc e sonl yt wogoods ,t he ni ti snotpos s i bl et oha veac ompar a t i veadvant a gei nt he pr oduc t i onofbot ht hos egoods . Ans we r :TRUE Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 72)I nat wogood,t woc ount r ywor l d,i fonec ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onof bot hgoods ,i tc ans t i l lbe ne fitbyt r adi ngwi t ht heot he rc ount r y . Ans we r :TRUE Di ff: 2 Pa geRe f : 4445 Topi c :Abs ol ut eAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 72 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 73)I ft heoppor t uni t yc os tofpr oduc i ngmor eofonegoodi nc r e as e sasmor eoft ha tgoodi spr oduc e d, t he nt hepr oduc t i onme t hodi si ne ffic i e nt . Ans we r :F ALSE Di ff: 2 Pa geRe f : 4445 Topi c :Oppor t uni t yCos t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 74)I ti snotpos s i bl et oha veac ompar a t i veadvant a gei npr oduc i ngagoodors e r vi c ewi t houtha vi nga n abs ol ut eadvant a ge . Ans we r :F ALSE Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Don' tLe tThi sHappe nt oYou:Don' tConf us eAbs ol ut eAdvant a geandCompar a t i veAdvant a ge 75)I si tpos s i bl ef orafir mt oha veac ompar a t i veadvant a gei npr oduc i ngs ome t hi ngwi t houtha vi ngan abs ol ut eadvant a ge ?Whyorwhynot ? Ans we r :Ye s ,afir mc anha veac ompar a t i veadvant a gewi t houtha vi nganabs ol ut eadvant a gei fi tc an pr oduc eagoodors e r vi c ea tal owe roppor t uni t yc os tt hanc ompe t i t or s ,e ve ni fi ti snotabl et opr oduc e mor eoft hegoodors e r vi c et hani t sc ompe t i t or s . Di ff: 2 Pa geRe f : 4445 Topi c :Compar a t i veAdvant a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 76)Shoul dc ount r i e ss pe c i al i zei npr oduc i nggoodsands e r vi c e sbas e donha vi ngac ompar a t i ve advant a georanabs ol ut eadvant a ge ?Why? Ans we r :Count r i e ss houl ds pe c i al i zei npr oduc i ngpr oduc t sbas e donc ompar a t i veadvant a gebe c aus e t hi sal l owsc ount r i e st opr oduc et hos epr oduc t sands e r vi c e sa tal owe roppor t uni t yc os tt hanpot e nt i a l t r adi ngpar t ne r s . Di ff: 2 Pa geRe f : 4546 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 73 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e2. 13 Es t oni a Fi nl and Ce l lPhone 20hour s 18hour s Lumber( c ubi c met r es ) 5hour s 4hour s 77)Re f e rt oTabl e2. 13.Thi st abl es howst henumbe rofl abourhour sr e qui r e dt opr oduc eac e l lphone andac ubi cme t r eofl umbe ri nEs t oni aandFi nl and. a . Whi c hc ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onofc e l lphone s ? b. Whi c hc ount r yhasanabs ol ut eadvant a gei nt hepr oduc t i onofl umbe r ? c . Wha ti sEs t oni a' soppor t uni t yc os tofpr oduc i ngonec e l lphone ? d. Wha ti sFi nl and' soppor t uni t yc os tofpr oduc i ngonec e l lphone ? e . Wha ti sEs t oni a' soppor t uni t yc os tofpr oduc i ngonec ubi cme t r eofl umbe r ? f . Wha ti sFi nl and' soppor t uni t yc os tofpr oduc i ngonec ubi cme t r eofl umbe r ? g. I fe ac hc ount r ys pe c i al i ze si nt hepr oduc t i onoft hepr oduc ti nwhi c hi thasac ompar a t i veadvant a ge , whos houl dpr oduc ec e l lphone s ? h. I fe ac hc ount r ys pe c i al i ze si nt hepr oduc t i onoft hepr oduc ti nwhi c hi thasac ompar a t i veadvant a ge , whos houl dpr oduc el umbe r ? Ans we r : a . Fi nl andhasanabs ol ut eadvant a gei nt hepr oduc t i onofc e l lphone s . b. Fi nl andhasanabs ol ut eadvant a gei nl umbe rpr oduc t i on. c . Es t oni a' soppor t uni t yc os tofpr oduc i ngonec e l lphonei s4c ubi cme t r e sofl umbe r . d. Fi nl and' soppor t uni t yc os tofpr oduc i ngonec e l lphonei s4. 5c ubi cme t r e sofl umbe r . e . Es t oni a' soppor t uni t yc os tofonec ubi cme t r eofl umbe ri s0. 25uni t sofac e l lphone . f . Fi nl and' soppor t uni t yc os tofonec ubi cme t r eofl umbe ri s0. 22uni t sofac e l lphone . g. Es t oni as houl ds pe c i al i zei npr oduc i ngc e l lphone s . h. Fi nl ands houl ds pe c i al i zei npr oduc i ngl umbe r . Di ff: 3 Pa geRe f : 4246 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 74 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e2. 14 Es t oni a Fi nl and Ce l lPhone 20hour s 18hour s Lumber( c ubi cmet r es) 5hour s 4hour s 78)Re f e rt oTabl e2. 14.Thi st abl es howst henumbe rofl abourhour sr e qui r e dt opr oduc eac e l lphone andac ubi cme t r eofl umbe ri nEs t oni aandFi nl and. a .I fe ac hc ount r yhasat ot alof3, 600l abourhour st ode vot et ot hepr oduc t i onoft het wogoods ,dr a w t hepr oduc t i onpos s i bi l i t i e sf r ont i e rf ore ac hc ount r y .Put" Ce l lPhone "ont hehor i z ont alaxi sand " Lumbe r "ont heve r t i c alaxi s .Bes ur et oi de nt i f yt hei nt e r c e ptval ue sonyourgr aphs . b. Suppos ee ac hc ount r yal l oc a t e s55% ofi t sl abourhour st ol umbe rpr oduc t i onand45% t ot he pr oduc t i onofc e l lphone s .Compl e t eTabl e2. 15be l ow t os how e ac hc ount r y' sout putoft het wo pr oduc t s . Tabl e2. 15:Pr oduc t i onandCons umpt i onWi t hNoTr ade LumberOut put Ce l lPhone Out put ( c ubi cmet r es ) Es t oni a Fi nl and Tot al c .I ft het woc ount r i e sdonott r adeandc ons umewha t e ve rt he ypr oduc e ,i de nt i f yt hec ur r e nt pr oduc t i onandc ons umpt i onpoi ntf ore ac hc ount r yont he i rr e s pe c t i vepr oduc t i onpos s i bi l i t i e s f r ont i e r s .Labe lEs t oni a' sc ons umpt i onpoi nt" E"andFi nl and' sc ons umpt i onpoi nt" F. " d.Suppos et het woc ount r i e ss pe c i al i zeandt r ade .Whos houl dpr oduc ec e l lphone sandwhos houl d pr oduc el umbe r ?Expl ai nyourans we r . e . Compl e t eTabl e2. 16be l ow t os how e ac hc ount r y' sout putwi t hs pe c i al i za t i on. Tabl e2. 16:Out putWi t hSpe c i al i za t i on Ce l lPhone Out put Es t oni a Fi nl and Tot al LumberOut put ( c ubi cmet r es ) f . Di ds pe c i al i za t i oni nc r e as et hec ombi ne dout putf ort het woc ount r i e swi t houtanyi nc r e as ei n r e s our c e s ?I fs o,byhow muc h? g. Suppos eEs t oni aandFi nl anda gr e et ot r ades ot ha ti ne x c hangef or400c ubi cme t r e sofl umbe r ,t he e xpor t e rofl umbe rr e c e i ve s90c e l lphone s .Compl e t eTabl e2. 17be l ow t os how e ac hc ount r y' s c ons umpt i onbundl eaf t e rt r ade . Tabl e2. 17:Cons umpt i onWi t hTr ade Ce l lPhone Lumber ( c ubi cmet er s ) Es t oni a Fi nl and h. Show t hec ons umpt i onpoi nt sa f t e rt r adeone ac hc ount r y' spr oduc t i onpos s i bi l i t i e sf r ont i e r .Labe l t he s epoi nt s" X"f orEs t oni aand" Y"f orFi nl and. i . Hast r ademadet het woc ount r i e sbe t t e roff?Expl ai nyourans we r . Ans we r : 75 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 a . b. Tabl e2. 15:Pr oduc t i onandCons umpt i onWi t hNoTr ade Ce l lPhone LumberOut put Out put ( c ubi cmet er s ) Es t oni a 81 396 Fi nl and 90 495 Tot al 171 891 c . Se egr aphi npar t( a) d. Es t oni as houl ds pe c i al i zei npr oduc i ngc e l lphone sbe c aus ei thasal owe roppor t uni t yc os t :4c ubi c me t r e sofl umbe rasoppos e dt oFi nl and' s4. 5c ubi cme t r e sofl umbe r .Fi nl ands houl ds pe c i al i zei n pr oduc i ngl umbe rbe c aus ei thasal owe roppor t uni t yc os t :0. 22uni t sofac e l lphoneasoppos e dt o Es t oni a' s0. 25uni t sofac e l lphone . e . Tabl e2. 16:Out putWi t hSpe c i al i za t i on Ce l lPhone Lumberout put Out put ( c ubi cmet r es ) Es t oni a 180 0 Fi nl and 0 900 Tot al 180 900 f . Ye s ,c e l lphoneout puti nc r e as e dby9uni t s( f r om 171uni t st o180uni t s )andl umbe rout put i nc r e as e dby9c ubi cme t r e s( f r om 891c ubi cme t r e st o900c ubi cme t r e s ) . 76 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 g. Tabl e2. 17:Cons umpt i onWi t hTr ade Es t oni a Fi nl and Ce l lPhone 90 90 Lumber ( c ubi cmet er s ) 400 500 h.Se egr aphi npar t( a) i . Ye s ,t r adehase nabl e dt het woc ount r i e st oc ons umeout s i det he i rPPFs . Di ff: 3 Pa geRe f : 4246 Topi c :Spe c i al i za t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Compar a t i veAdvant a geandt heGai nsf r om Tr ade 79)Suppos ei nt heUni t e dSt a t e s ,t heoppor t uni t yc os tofpr oduc i ngane ngi nei s4aut obodi e s .I n Canada ,t heoppor t uni t yc os tofpr oduc i ngane ngi nei s2aut obodi e s . a . Wha ti st heoppor t uni t yc os tofpr oduc i nganaut obodyf ort heUni t e dSt a t e s ? b. Wha ti st heoppor t uni t yc os tofpr oduc i nganaut obodyf orCanada? c . Whi c hc ount r yhasac ompar a t i veadvant a gei nt hepr oduc t i onofaut obodi e s ? d. Whi c hc ount r yhasac ompar a t i veadvant a gei nt hepr oduc t i onofe ngi ne s ? Ans we r : a . Fort heUni t e dSt a t e s ,t heoppor t uni t yc os tofpr oduc i nganaut obodyi s1 /4ofane ngi ne . b. ForCanada ,t heoppor t uni t yc os tofpr oduc i nganaut obodyi s1/2ofane ngi ne . c . TheUni t e dSt a t e shasac ompar a t i veadvant a gei nt hepr oduc t i onofaut obodi e s . d. Canadahasac ompar a t i veadvant a gei nt hepr oduc t i onofe ngi ne s . Di ff: 3 Pa geRe f : 4246 Topi c :Oppor t uni t yCos t 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Anal yt i cSki l l s 77 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 2.3 Explain the basic idea of how a market system works 1)Whi c hoft hef ol l owi ngi sno taf a c t orofpr oduc t i on? A)anac r eoff a r ml and B)adr i l lpr e s si namac hi nes hop C)t hemana ge roft hel oc alt i r es hop D)$1, 000i nc as h Ans we r :D Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 2)Ane xampl eofaf ac t orofpr oduc t i oni s A)s t oc ki s s ue dbyBombar di e r . B)t het r ai nc ar se xpor t e dbyBombar di e r . C)as now mac hi nepr oduc e dbyBombar di e r . D)awor ke rhi r e dbyBombar di e r . Ans we r :D Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 3)I fac omme r c i aldai r yf a r m want st or ai s ef undst opur c has ef e e di ngt r oughs ,i tdoe ss oi nt he A)out putmar ke t . B)pr oduc tmar ke t . C)f a c t ormar ke t . D)dai r ypr oduc t smar ke t . Ans we r :C Di ff: 1 Pa geRe f : 48 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 4)Thena t ur alr e s our c e sus e di npr oduc t i onar emadea vai l abl ei nt he A)goodsands e r vi c e smar ke t . B)pr oduc tmar ke t . C)gove r nme ntmar ke t . D)f ac t ormar ke t . Ans we r :D Di ff: 1 Pa geRe f : 48 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 78 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 5)Whe nyoupur c has eane w pai rofj e ansyoudos oi nt he A)f ac t ormar ke t . B)i nputmar ke t . C)pr oduc tmar ke t . D)r e s our c emar ke t . Ans we r :C Di ff: 1 Pa geRe f : 48 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 6)Ther e s our c ei nc omee ar ne dbyt hos ewhos uppl y________i sc al l e dwa ge s . A)l abour B)c api t al C)na t ur alr e s our c e s D)e nt r e pr e ne ur s hi p Ans we r :A Di ff: 1 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 7)Whi c hoft hef ol l owi ngs t a t e me nt saboutane nt r e pr e ne uri sf a l s e ? A)or gani ze st heot he rf ac t or sofpr oduc t i oni nt oawor ki nguni t B)de ve l opst hevi s i onf ort hefir m andf undst hepr oduc i nguni t C)s e l l shi sorhe re nt r e pr e ne ur i als e r vi c e si nt heout putmar ke t D)r i s kst hepe r s onalf undspr ovi de d Ans we r :C Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 8)The________de mons t r a t e st her ol e spl a ye dbyhous e hol dsandfir msi nt hemar ke ts ys t e m. A)pr oduc t i onpos s i bi l i t i e sf r ont i e r B)c i r c ul arflow mode l C)t he or yofc ompar a t i veadvant a ge D)bus i ne s sc yc l e Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 79 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 9)Hous e hol ds A)ha venoi nflue nc eont hec i r c ul arflow i namar ke te c onomy . B)pur c has er e s our c e si nt hef a c t ormar ke t . C)s e l lgoodsi nt hepr oduc tmar ke t . D)s e l lr e s our c e si nt hef ac t ormar ke t . Ans we r :D Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 10)Hous e hol ds________finalgoodsands e r vi c e si nt he________mar ke t . A)pur c has e ;f ac t or B)pur c has e ;pr oduc t C)s e l l ;f a c t or D)s e l l ;pr oduc t Ans we r :B Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 11)I nt hec i r c ul arflow mode l ,pr oduc e r s A)s e l lgoodsands e r vi c e si nt hei nputmar ke t . B)andhous e hol dss pe nde ar ni ngsf r om r e s our c es al e songoodsands e r vi c e si nt hef ac t ormar ke t . C)hi r er e s our c e ss ol dbyhous e hol dsi nt hef a c t ormar ke t . D)s pe nde ar ni ngsf r om r e s our c es al e songoodsands e r vi c e si nt hepr oduc tmar ke t . Ans we r :C Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 12)Whi c hoft hef ol l owi ngi saflow i nt hec i r c ul arflow mode l ? A)t heflow ofgoodsands e r vi c e sf r om hous e hol dst ofir ms B)t heflow ofpr ofitandt heflow ofr e ve nue C)t heflow ofi nc omee ar ne dbyfir msandt heflow ofe xpe ndi t ur e se ar ne dbyhous e hol ds D)t heflow ofr e ve nuer e c e i ve dbyfir msandt heflow ofpa yme nt st or e s our c eowne r s Ans we r :D Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 80 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 15 13)Re f e rt oFi g ur e2. 15.Ones e gme ntoft hec i r c ul arflow di a gr am i nt hefigur es howst heflow ofl abour s e r vi c e sf r om mar ke tKt oe c onomi ca ge nt sJ .Wha ti smar ke tKandwhoar ee c onomi ca ge nt sJ ? A)K=f ac t ormar ke t s ;J=hous e hol ds B)K=pr oduc tmar ke t s ;J=hous e hol ds C)K=f a c t ormar ke t s ;J=fir ms D)K=pr oduc tmar ke t s ;J=fir ms Ans we r :C Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 14)Re f e rt oFi g ur e2. 15.Ones e gme ntoft hec i r c ul arflow di a gr am i nt hefigur es howst heflow ofwa ge s ands al ar i e sf r om mar ke tKt oe c onomi ca ge nt sM.Wha ti smar ke tKandwhoar ee c onomi ca ge nt sM? A)K=f ac t ormar ke t s ;M =hous e hol ds B)K=pr oduc tmar ke t s ;M =hous e hol ds C)K=f a c t ormar ke t s ;M =fir ms D)K=pr oduc tmar ke t s ;M =fir ms Ans we r :A Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 81 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 15)Whi c hoft hef ol l owi ngar es e par a t eflows( s howni ndi ffe r e ntpar t soft hemode l )i nt hec i r c ul arflow mode l ? A)t heflow ofgoodsandt heflow ofs e r vi c e s B)t heflow ofc os t sandt heflow ofr e ve nue C)t heflow ofi nc omee ar ne df r om t hes al eofr e s our c e sandt heflow ofe xpe ndi t ur e songoodsand s e r vi c e s D)t heflow ofi nc omer e c e i ve dbyhous e hol dsandt heflow oft axr e ve nue spai dbyhous e hol ds Ans we r :C Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 16)Whi c hoft hef ol l owi ngs t a t e me nt saboutas i mpl ec i r c ul arflow mode li sf a l s e ? A)Pr oduc e r sar ebuye r si nt hef ac t ormar ke tands e l l e r si nt hepr oduc tmar ke t . B)Hous e hol dsar ene i t he rbuye r snors e l l e r si nt hei nputmar ke t . C)Pr oduc e r sar ebuye r si nt hef a c t ormar ke t . D)Hous e hol dsar es e l l e r si nt hepr oduc tmar ke t . Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng Fi gur e2. 16 17)Re f e rt oFi g ur e2. 16.Ones e gme ntoft hec i r c ul arflow di a gr am i nt hefigur es howst heflow ofgoods ands e r vi c e sf r om mar ke tCt oe c onomi ca ge nt sA.Wha ti smar ke tCandwhoar ee c onomi ca ge nt sA? A)C=f ac t ormar ke t s ;A=hous e hol ds B)C=pr oduc tmar ke t s ;A=hous e hol ds C)C=f a c t ormar ke t s ;A=fir ms D)C=pr oduc tmar ke t s ;A=fir ms Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng Fi gur e2. 17 82 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)Re f e rt oFi g ur e2. 17.Ones e gme ntoft hec i r c ul arflow di a gr am i nt hefigur es howst heflow off unds f r om e c onomi ca ge nt sEt omar ke tF.Whoar ee c onomi ca ge nt sEandwha ti smar ke tF? A)E=hous e hol ds ;F=pr oduc tmar ke t s B)E=fir ms ;F=pr oduc tmar ke t s C)E=hous e hol ds ;F=f ac t ormar ke t s D)E=fir ms ;F=f a c t ormar ke t s Ans we r :A Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 19)Al loft hef ol l owi ngar ee xampl e sofs pe ndi ngonf a c t or sofpr oduc t i oni nt hec i r c ul arflow mode l e x c e p t A)Bi mahi r e st wos t ude nt st owor ka thi si c e c r e am s t or e . B)" Ge tFi tToge t he r "pur c has e s3ne wt r e admi l l sf ori t sgym. C)I r i sbuysadoze nr os e sf orhe rmot he r ' sbi r t hda y . D)TheBanyanTr e er e nt samuc hl ar ge rpr ope r t ys ot ha ti tc anaddar e s t aur antt oi t sf ac i l i t i e s . Ans we r :C Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 20)Whi c hoft hef ol l owi ngi sane xampl eofs pe ndi ngongoodsands e r vi c e si nt hec i r c ul arflow mode l ? A)Be l i ndapur c has e sane wc omput e rf orhe rt ax pr e par a t i onbus i ne s s . B)J a vi e rbuys800s quar ef e e tofwoodfloor i ngf orhi svac a t i onhome . C)Ce l e s t ebuysf r e s hhe r bsa tt hef ar me r s ' mar ke tt ous ei nhe rr e s t aur ant . D)Ti mmypur c has e sane we xami na t i ont abl ef orus ei nhi sve t e r i nar yc l i ni c . Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 21)" AnI nqui r yi nt ot heNa t ur eandCaus e soft heWe al t hofNa t i ons "publ i s he di n1776waswr i t t e nby A)J ohnMa ynar dKe yne s . B)Kar lMar x. C)Al f r e dMar s hal l . D)Adam Smi t h. Ans we r :D 83 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng Fi gur e2. 18 22)Re f e rt oFi g ur e2. 18.Whi c ht woar r owsi nt hedi a gr am de pi c tt hef ol l owi ngt r ans a c t i on:LaDonna s e l l s20pai r sofs ungl as s e sa tt heOakl e ys t or e . A)JandM B)JandG C)KandM D)KandG Ans we r :D Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 23)Re f e rt oFi g ur e2. 18.Whi c ht woar r owsi nt hedi a gr am de pi c tt hef ol l owi ngt r ans a c t i on:Dor i anGr a y hi r e s" Wi l dOs c ar , "apr of e s s i onalpor t r ai tar t i s t , t opai nthi spi c t ur e . A)JandM B)KandG C)KandM D)JandG Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 24)Re f e rt oFi g ur e2. 18.Whi c ht woar r owsi nt hedi a gr am de pi c tt hef ol l owi ngt r ans a c t i on:Bar ne y e ar ns$250f ors e l l i ngs c i s s or sandr az or st oFl oyd' sBar be rShop. A)JandM B)KandG C)KandM D)JandG Ans we r :A Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 84 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 25)Adam Smi t h' sbe ha vi our alas s umpt i onabouthumanswast ha tpe opl e A)t ypi c al l yac ti r r a t i onal l y . B)us ual l ya c ti nar a t i onal ,s e l f i nt e r e s t e dwa y . C)ar ec ons i s t e nt l ygr e e dy . D)t ypi c al l yac tr andoml y . Ans we r :B Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 26)Al loft hef ol l owi ngc ount r i e sc omec l os et ot hef r e emar ke tbe nc hmar ke x c e p t A)Canada . B)Nor t hKor e a . C)Ge r many . D)Si ngapor e . Ans we r :B Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 27)Adam Smi t h' si nvi s i bl ehandr e f e r st o A)t hegove r nme nt ' sunobt r us i ver ol ei ne ns ur i ngt ha tt hee c onomyf unc t i onse ffic i e nt l y . B)pr ope r t yowne r s hi pl a wsandt her ul eoft hec our ts ys t e m. C)t hepr oc e s sbywhi c hi ndi vi dual sa c t i ngi nt he i rowns e l f i nt e r e s tbr i ngaboutamar ke tout c omet ha t be ne fit ss oc i e t yasawhol e . D)t hel a wsofna t ur et ha ti nflue nc ee c onomi c sde c i s i ons . Ans we r :C Di ff: 2 Pa geRe f : 50 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 85 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 28)Al loft hef ol l owi ngar ec r i t i c alf unc t i onsoft hegove r nme nti nf ac i l i t a t i ngt heope r a t i onofamar ke t e c onomye x c e p t A)pr ot e c t i ngpr i va t epr ope r t y . B)e nf or c i ngpr ope r t yr i ght s . C)e ns ur i ngane qualdi s t r i but i onofi nc omet oal lc i t i ze ns . D)e nf or c i ngc ont r ac t s . Ans we r :C Di ff: 2 Pa geRe f : 5152 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 29)Thet e r m" pr ope r t yr i ght s "r e f e r st o A)t hephys i c alpos s e s s i onofahous eoranyot he rpr ope r t ywhi c ht heowne rl e gal l ypur c has e d. B)t heabi l i t yt oe x e r c i s ec ont r olove rone ' sownr e s our c e swi t hi nt hec onfine soft hel a w. C)t hegove r nme nt ' sr i ghtt oappr opr i a t el andf r om we al t hyl andowne r st or e di s t r i but et ope as ant s . D)t her i ghtofabus i ne s snott oha vei t sas s e t sc onfis c a t e dbyt hegove r nme nti nt hee ve ntt ha tt he bus i ne s si sac c us e dofc ommi t t i ngf r aud. Ans we r :B Di ff: 1 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 30)Thepr i mar ypur pos eof________i st oe nc our a get hee xpe ndi t ur eoff undsonr e s e ar c hand de ve l opme ntt oc r e a t ene w pr oduc t s . A)c e nt r al l ypl anne de c onomi e s B)gove r nme nt r unhe al t hc ar e C)na t i onal i zi ngoi lc ompani e s D)pa t e nt sandc opyr i ght s Ans we r :D Di ff: 1 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 31)Ama j orf ac t orc ont r i but i ngt ot hes l ow gr owt hr a t eofl e s sde ve l ope de c onomi e si s A)t hel ac kofwe l l de fine dande nf or c e abl epr ope r t yr i ght s . B)t hel ac kofna t ur alr e s our c e s . C)t hel ac kofwor ke r s . D)t hehi ghr a t eofi l l i t e r ac y . Ans we r :A Di ff: 2 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 86 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 32)As uc c e s s f ulmar ke te c onomyr e qui r e s A)agove r nme nt c ont r ol l e dbanki ngs ys t e m andgove r nme ntpr i c ec ont r ol s . B)we l l de fine dpr ope r t yr i ght sandani nde pe nde ntc our ts ys t e mt oa dj udi c a t edi s put e sbas e dont he l a w. C)ge ne r ousune mpl oyme ntbe ne fit sandpai dme di c all e a vef ore ve r yonei nt hel abourf or c e . D)ane qui t abl edi s t r i but i onofi nc omeandl i mi t soni mmi gr a t i on. Ans we r :B Di ff: 2 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 33)Cons i de rt hef ol l owi ngi t e ms : a .t henove l" TheDaVi nc iCode "byDanBr own b. " TheSpi r i t e dShi ppe r , "ani nnova t i vewi nes hi ppi ngbox c . aS wi s sc he f ' sa war dwi nni ngr e c i pe d. anor i gi nalf abr i cde s i gn,f ore xampl e ,t hef abr i cus e df or" Coac h"ba gsandl ugga ge Whi c hoft hei t e msl i s t e di sane xampl eofi nt e l l e c t ualpr ope r t y? A)aandbonl y B)a ,b ,andc C)aanddonl y D)al loft hei t e msl i s t e d Ans we r :D Di ff: 2 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 34)Anor gani za t i onofpr oduc e r st ha tl i mi t st heamountofagoodpr oduc e di sknownasa A)f r e emar ke tor gani za t i on. B)gui l d. C)c ol l e c t i ve . D)c oop. Ans we r :B Di ff: 1 Pa geRe f : 51 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 87 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 35)I n18t hc e nt ur yEur ope ,gove r nme nt sga vegui l dsl e galaut hor i t yt ol i mi tpr oduc t i onofgoods .Di d t hi saut hor i t yobs t r uc tori mpr ovet hemar ke tme c ha ni s m andhow? A)I ti mpr ove dt hemar ke tme c hani s m bymaki ngi tmor ee ffic i e ntbe c aus et hegui l dswe r eabl et o qui c kl yi de nt i f yandr e c t i f yanymar ke ts hor t a ge sands ur pl us e s . B)I ti mpr ove dt hemar ke tme c hani s m be c aus et hegove r nme nt ' sac t i onspr ovi de dt hec or r e c ts e tof s i gnal st ot hemar ke ts ot ha tpr oduc e r sc anadj us tt he i rout putt obe t t e rme e tt hene e dsofc ons ume r s . C)I tobs t r uc t e dt hemar ke tme c hani s m be c aus et hegui l d' sac t i onspr e ve nt e dt hef or c e sofde mandand s uppl yf r om c oor di na t i ngt hes e l f i nt e r e s t e dde c i s i onsofpr oduc e r sandc ons ume r s . D)I tobs t r uc t e dt hemar ke tme c hani s m be c aus ewi t honemor epar t yha vi ngt oc oor di na t eac t i vi t i e s( t he gui l ds )t he r ewe r ede l a ysi nge t t i ngt hepr oduc t st oc ons ume r s . Ans we r :C Di ff: 2 Pa geRe f : 51 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 36)St r i c t e rl a wsandr e gul a t i onst opr ot e c ti nt e l l e c t ualpr ope r t yr i ght s A)wi l lhe l pt oc r e a t eamor es uc c e s s f ulmar ke ts ys t e m. B)wi l lonl ybe ne fitt hos ec ompani e swhos ei nt e l l e c t ualpr ope r t yr i ght sha vei nt hepas tbe e ni gnor e d. C)wi l lt e ndt oha vel i t t l ei mpac tonane c onomys i nc ei nt e l l e c t ualpr ope r t yi snott angi bl e . D)wi l lc r e a t eas t r onge randmor es uc c e s s f ulbl ac kmar ke tf ori nt e l l e c t ualpr ope r t y . Ans we r :A Di ff: 1 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 37)I fana t i onc hange si t sl a wst omor ea c t i ve l ye nf or c ei nt e l l e c t ualpr ope r t yr i ght s ,al loft hef ol l owi ng wi l lmos tl i ke l yt akepl a c ee x c e p t A)mor es of t war ec ompani e swi l lc hoos et oe xpor tt he i rpr oduc t st ot ha tc ount r y . B)mor efil m make r swi l lc hoos et odobus i ne s si nt ha tc ount r y . C)t hebl ac kmar ke tf ori nt e l l e c t ualpr ope r t ywi l lbe c omemor epr os pe r ousi nt ha tc ount r y . D)f or e i gni nve s t me nti nt ha tc ount r ywi l li nc r e as e . Ans we r :C Di ff: 2 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 38)I ne c onomi e swi t hnoe ffe c t i vegove r nme nt A)s t andar dsofl i vi ngar et ypi c al l yve r yl ow. B)s t andar dsofl i vi ngar et ypi c al l yve r yhi gh. C)s t andar dsofl i vi ngt ypi c al l yr i s er api dl y . D)pe opl ec e as et obes oma t e r i al i s t i c . Ans we r :A Di ff: 2 Pa geRe f : 52 Topi c :Pr ope r t yRi ght s 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TooLi t t l eofaGoodThi ng 39)Thepa yme ntr e c e i ve dbys uppl i e r sofe nt r e pr e ne ur i als ki l l si sc al l e di nt e r e s t . Ans we r :F ALSE Di ff: 1 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks 88 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 AACSB:Re fle c t i veThi nki ng 40)I nt hec i r c ul arflow mode l ,hous e hol dss uppl yr e s our c e ss uc hasl abours e r vi c e si nt hepr oduc t mar ke t . Ans we r :TRUE Di ff: 1 Pa geRe f : 48 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 41)Ent r e pr e ne ur sbr i ngt oge t he rt hef ac t or sofpr oduc t i ont opr oduc egoodsands e r vi c e s . Ans we r :TRUE Di ff: 1 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 42)I naf r e emar ke tt he r ear evi r t ual l ynor e s t r i c t i ons ,ora tbe s tf e wr e s t r i c t i onsonhow f a c t or sof pr oduc t i onc anbee mpl oye d. Ans we r :TRUE Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 43)Cr udeoi li snotane xampl eofaf a c t orofpr oduc t i on,butwhe nc r udeoi li spr oc e s s e di nt ogas ol i ne , i ti snotaf a c t orofpr oduc t i on. Ans we r :F ALSE Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 44)Eac hpe r s ongoe sabouthe rdai l ybus i ne s ss e e ki ngt omaxi mi zehe rowns e l fi nt e r e s t s .I ndoi ngs o, s hec ont r i but e st ot hewe l f ar eofs oc i e t ya tl ar ge .Thi si st hei de aunde r l yi ngAdam Smi t h' s" i nvi s i bl e hand. " Ans we r :TRUE Di ff: 2 Pa geRe f : 5051 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 89 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 45)Wha ti st hedi ffe r e nc ebe t we e npr oduc tmar ke t sa ndf ac t ormar ke t s ? Ans we r :Pr oduc tmar ke t sar emar ke t sf orgoodsands e r vi c e s .Fa c t ormar ke t sar emar ke t sf ort hef ac t or s ofpr oduc t i on,whi c har et hei nput sus e dt omakegoodsands e r vi c e s . Di ff: 1 Pa geRe f : 4849 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 46)How dofir msandhous e hol dsi nt e r a c ti nmar ke t s ? Ans we r :Fi r mss uppl ygoodsands e r vi c e st ohous e hol ds ,andbuyf a c t or sofpr oduc t i onf r om hous e hol ds .Hous e hol dss uppl yf ac t or sofpr oduc t i ont ofir ms ,andbuygoodsands e r vi c e sf r om fir ms . Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 47)Wha ti sme antbyt het e r m" f r e emar ke t " ? Ans we r :Af r e emar ke ti samar ke twi t hf e w gove r nme ntr e s t r i c t i onsonhow agoodors e r vi c ec anbe pr oduc e dors ol doronhow f ac t or sofpr oduc t i onc a nbee mpl oye d. Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 48)How doe sAdam Smi t h' si de aoft he" i nvi s i bl ehand"appl yt ot hevar i ouspar t s ,madebymany di ffe r e ntmanuf ac t ur e r si nmanydi ffe r e ntc ount r i e s , t ha tar eus e dbyAppl et opr oduc eani Pad? Ans we r :Smi t hus e dt he" i nvi s i bl ehand"r e f e r e nc et oe xpl ai nwhymar ke t spr ovi dec ons ume r swi t h de s i r e dpr oduc t sands e r vi c e s .I nt hec as eoft hei Pad,t hei nvi s i bl ehandoft hemar ke thasl e dt he s e par t smanuf ac t ur e r st oc ont r i but et he i rknowl e dgeandr e s our c e st ot hepr oc e s st ha tul t i ma t e l yr e s ul t si n apr oduc ta vai l abl ef ors al ei nt heUni t e dSt a t e sa ndar oundt hewor l d. Di ff: 3 Pa geRe f : 5051 Topi c :Mar ke t s Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Maki ngt heConne c t i on:ASt or yoft heMar ke tS ys t e mi nAc t i on: How DoYouMakeani Pad? 49)Whi c hoft hef ol l owi ngi saf a c t orofpr oduc t i on? A)as of apr oduc e dbyaf ur ni t ur emanuf ac t ur e r B)20s har e sofMi c r os of ts t oc k C)t hej ani t ora tt hel oc ale l e me nt ar ys c hool D)$500i nc as h Ans we r :C Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 90 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 50)Ane xampl eofaf ac t orofpr oduc t i oni s A)ac arpr oduc e dbyanaut omanuf ac t ur e r . B)awor ke rhi r e dbyanaut omanuf ac t ur e r . C)al oangr ant e dt oanaut omanuf ac t ur e r . D)t heaut omobi l e se xpor t e dbyanaut omanuf ac t ur e r . Ans we r :B Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 51)I fami c r obr e we r ywant st opur c has eane w bot t l i ngmac hi ne ,i tdoe ss oi nt he A)f ac t ormar ke t . B)out putmar ke t . C)pr oduc tmar ke t . D)al c ohol i cbe ve r a ge smar ke t . Ans we r :A Di ff: 1 Pa geRe f : 4849 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 52)Awor ke ri shi r e di na A)goodsands e r vi c e smar ke t . B)pr oduc tmar ke t . C)gove r nme ntmar ke t . D)f ac t ormar ke t . Ans we r :D Di ff: 1 Pa geRe f : 4849 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 53)Whe nyoupur c has eabi c yc l eyoudos oi nt he A)r e s our c emar ke t . B)pr oduc tmar ke t . C)i nputmar ke t . D)f ac t ormar ke t . Ans we r :B Di ff: 1 Pa geRe f : 4849 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 91 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 54)Thei nc omee ar ne dbyt hos ewhos uppl yl abours e r vi c e si sc al l e d A)wa ge sands al ar i e s . B)s t oc kopt i ons . C)pr ofit . D)bonus . Ans we r :A Di ff: 1 Pa geRe f : 4849 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 55)Whi c hoft hef ol l owi ngs t a t e me nt saboutane nt r e pr e ne uri st r ue ? A)Ane nt r e pr e ne urpur c has e sot he rf ac t or sofpr oduc t i oni nt heout putmar ke t . B)Ane nt r e pr e ne urde ve l opst hevi s i onf ort hefir m andf undst hepr oduc i nguni t . C)Ane nt r e pr e ne urs e l l se nt r e pr e ne ur i als e r vi c e si nt heout putmar ke t . D)Ane nt r e pr e ne urdoe snotf ac epe r s onalr i s k. Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 56)Thec i r c ul arflow mode lde mons t r a t e s A)t her ol eoft hegove r nme nti nove r s e e i ngt hemar ke ts ys t e m. B)t her ol e spl a ye dbyhous e hol dsandfir msi nt hemar ke ts ys t e m. C)how s hor t a ge sands ur pl us e sar ee l i mi na t e di namar ke t . D)how de mandands uppl yf orgoodsands e r vi c e sar ebr oughti nt oe qui l i br i um. Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 57)Thec i r c ul arflow s howsust ha t A)fir msandhous e hol dsde pe ndone ac hot he r . B)fir msmakeal lt hei mpor t antde c i s i onsi nt hee c onomy . C)hous e hol dsha venor ol ei nt hee c onomybe yondc ons umi ngpr oduc t s . D)fir msar et heul t i ma t ec ons ume r si nt hee c onomy . Ans we r :A Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:Ne wt o2 CE Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 92 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 58)Fi r ms A)ha venoi nflue nc eont hec i r c ul arflow i namar ke te c onomy . B)pur c has er e s our c e si nt hepr oduc tmar ke t . C)s e l lgoodsi nt hepr oduc tmar ke t . D)s e l lr e s our c e si nt hef ac t ormar ke t . Ans we r :C Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 59)Hous e hol ds A)pur c has efinalgoodsands e r vi c e si nt hef a c t ormar ke t . B)pur c has efinalgoodsands e r vi c e si nt hepr oduc tmar ke t . C)pur c has er e s our c e si nt hepr oduc tmar ke t . D)pur c has er e s our c e si nt hef ac t ormar ke t . Ans we r :B Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 60)I nt hec i r c ul arflow mode l ,hous e hol ds A)s e l lgoodsands e r vi c e si nt hei nputmar ke t . B)andfir mss pe nde ar ni ngsf r om r e s our c es al e songoodsands e r vi c e si nt hef ac t ormar ke t . C)hi r er e s our c e ss ol dbyfir msi nt hef a c t ormar ke t . D)s pe nde ar ni ngsf r om r e s our c es al e songoodsands e r vi c e si nt hepr oduc tmar ke t . Ans we r :D Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o20: Appl yt hec onc e pt sofoppor t uni t yc os t ,mar gi nalanal ys i s , andpr e s e ntva l uet omake de c i s i ons AACSB:Re fle c t i veThi nki ng 61)Whi c hoft hef ol l owi ngi sno taflow i nt hec i r c ul arflow mode l ? A)t heflow ofgoodsands e r vi c e sandt heflow ofr e s our c e st opr oduc egoodsands e r vi c e s B)t heflow ofpr ofitandt heflow ofr e ve nue C)t heflow ofi nc omee ar ne dbyhous e hol dsandt heflow ofe xpe ndi t ur e si nc ur r e dbyhous e hol ds D)t heflow ofr e ve nuer e c e i ve dbypr oduc e r sandt heflow ofpa yme nt st or e s our c eowne r s Ans we r :B Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 93 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 19 62)Re f e rt oFi g ur e2. 19.I nt hec i r c ul arflow di a gr am,Mar ke tKr e pr e s e nt s A)hous e hol ds . B)pr oduc tmar ke t s . C)fir ms . D)f ac t ormar ke t s . Ans we r :D Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 63)Re f e rt oFi g ur e2. 19.I nt hec i r c ul arflow di a gr am,Ec onomi cAge nt sM r e pr e s e nt s A)hous e hol ds . B)pr oduc tmar ke t s . C)fir ms . D)f ac t ormar ke t s . Ans we r :A Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 94 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 64)Whi c hoft hef ol l owi ngar er e pr e s e nt e dbyt hes ameflow i nt hec i r c ul arflow mode l ? A)t heflow ofgoodsandt heflow off ac t or sofpr oduc t i on B)t heflow ofc os t sandt heflow ofr e ve nue C)t heflow ofi nc omee ar ne df r om t hes al eofr e s our c e sandt heflow ofe xpe ndi t ur e songoodsand s e r vi c e s D)t heflow ofi nc omer e c e i ve dbyhous e hol dsandt heflow oft axr e ve nue spai dbyfir ms Ans we r :B Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 65)Whi c hoft hef ol l owi ngs t a t e me nt si st r ueaboutas i mpl ec i r c ul arflow mode l ? A)Pr oduc e r sar ene i t he rbuye r snors e l l e r si nt hepr oduc tmar ke t . B)Hous e hol dsar ene i t he rbuye r snors e l l e r si nt hei nputmar ke t . C)Pr oduc e r sar ebuye r si nt hef a c t ormar ke t . D)Hous e hol dsar es e l l e r si nt hepr oduc tmar ke t . Ans we r :C Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 95 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 20 66)Re f e rt oFi g ur e2. 20.I nt hec i r c ul arflow di a gr am,whoar eEc onomi cAge nt sAandwhoar e Ec onomi cAge nt sB? A)A=fir ms ;B=hous e hol ds B)A=hous e hol ds ;B=fir ms C)A=hous e hol ds ;B=f a c t ormar ke t s D)A=fir ms ;B=pr oduc tmar ke t s Ans we r :B Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 96 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 21 67)Re f e rt oFi g ur e2. 21.Ones e gme ntoft hec i r c ul arflow di a gr am i nFi gur e2. 21s howst heflow off unds f r om Mar ke tFt oEc onomi cAge nt sG.Thef undsr e pr e s e nts pe ndi ngongoodsands e r vi c e s .Wha ti s Mar ke tFandwhoar eEc onomi cAge nt sG? A)F=f ac t ormar ke t s ;G=hous e hol ds B)F=pr oduc tmar ke t s ;G=hous e hol ds C)F=f a c t ormar ke t s ;G=fir ms D)F=pr oduc tmar ke t s ;G=fir ms Ans we r :D Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 68)Whi c hoft hef ol l owi ngi sane xampl eofs pe ndi ngonf ac t or sofpr oduc t i oni nt hec i r c ul arflow mode l ? A)Tuonpur c has e sac appuc c i noa tt hes t ude ntuni on. B)Laur e nc er e nt sac art odr i vet oawe ddi ngi nMont r e al . C)Yve t t epa ys$50t oj oi nas of t bal ll e a gue . D)The" Luc kyDuc ky"c as i nobuysane wc r apst abl ef ort hec as i nofloor . Ans we r :D Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 97 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 69)Whi c hoft hef ol l owi ngi sno tane xampl eofs pe ndi ngongoodsands e r vi c e si nt hec i r c ul arflow mode l ? A)Amandapur c has e sane we l e c t r i cgui t art opur s uehe rhobbys e r i ous l y . B)Chai t anyabuysane ws pape di c ur ec hai rf orhe re xpandi ngnai ls al onbus i ne s s . C)He r nanbuysapi zzaa tPapaC' s . D)Le nnybuysane w di gi t alc ame r at ot a kepi c t ur e sa thi ss on' sgr adua t i on. Ans we r :B Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 70)Publ i s he di n1776,________waswr i t t e nbyAdam Smi t h. A)TheGe ne r a lTh e o r yo fEmpl o y me nt ,I nt e r e s t ,a ndMo ne y B)TheCo mmuni s tMa ni f e s t o C)TheDe c l a r a t i o no fEc o no mi c s D)AnI nq ui r yi nt ot heNa t ur ea ndCa us e so ft heWe a l t ho fNa t i o ns Ans we r :D Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o1: I de nt i f yt hebas i cpr i nc i pl e sofe c onomi c sande xpl ai nhow t ot hi nkl i keane c onomi s t AACSB:Re fle c t i veThi nki ng 98 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e2. 22 71)Re f e rt oFi g ur e2. 22.Whi c ht woar r owsi nt hedi a gr am de pi c tt hef ol l owi ngt r ans a c t i on?St anl e y pur c has e st henove lNi g hto fSo r r o wsf orhi ss umme rr e adi ngpl e as ur e . A)JandM B)JandG C)KandM D)KandG Ans we r :D Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 72)Re f e rt oFi g ur e2. 22.Whi c ht woar r owsi nt hedi a gr am de pi c tt hef ol l owi ngt r ans a c t i on?Li zzi e Hax e m hi r e sCol l e gePr oPai nt e r s ,apai nt i ngc ompany ,t opai nthe rhome . A)JandM B)KandG C)KandM D)JandG Ans we r :B Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 99 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 73)Re f e rt oFi g ur e2. 22.Whi c ht woar r owsi nt hedi a gr am de pi c tt hef ol l owi ngt r ans a c t i on?Car t e re ar ns a$400c ommi s s i onf ors e l l i ngme n' sde s i gne rs hoe sa tMoor e s . A)JandM B)KandG C)KandM D)JandG Ans we r :A Di ff: 2 Pa geRe f : 49 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o2: I nt e r pr e tandanal yzei nf or ma t i onpr e s e nt e di ndi ffe r e ntt ype sofgr aphs AACSB:Re fle c t i veThi nki ng 74)________be ha vi our alas s umpt i onabouthumanswast ha tpe opl eus ual l yac ti nar a t i onal ,s e l f i nt e r e s t e dwa y . A)ThomasMal t hus ' s B)Adam Smi t h' s C)Kar lMa r x' s D)J ane tYe l l e n' s Ans we r :B Di ff: 1 Pa geRe f : 50 Topi c :Mar ke t s 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o1: I de nt i f yt hebas i cpr i nc i pl e sofe c onomi c sande xpl ai nhow t ot hi nkl i keane c onomi s t AACSB:Re fle c t i veThi nki ng 75)Whi c hoft hef ol l owi ngc ount r i e si sc ur r e nt l yf ur t he s tf r om t hef r e emar ke tbe nc hmar k? A)t heUni t e dSt a t e s B)J apan C)Cuba D)Fr anc e Ans we r :C Di ff: 1 Pa geRe f : 51 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 76)Adam Smi t h' s________r e f e r st ot hepr oc e s sbywhi c hi ndi vi dual sac t i ngi nt he i rowns e l f i nt e r e s t br i ngaboutamar ke tout c omet ha tbe ne fit ss oc i e t ya sawhol e . A)Ut opi ans oc i e t y B)c ompar a t i veadvant a gemode l C)i nvi s i bl ehand D)s ur vi valoft hefit t e s tt he or y Ans we r :C Di ff: 2 Pa geRe f : 50 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o1: I de nt i f yt hebas i cpr i nc i pl e sofe c onomi c sande xpl ai nhow t ot hi nkl i keane c onomi s t AACSB:Re fle c t i veThi nki ng 77)Whe nBl ac kBe r r ymadei t sLe aps mar tphone ,i tr e l i e don A)t hemar ke tt oc oor di na t emos toft hepr oduc t i on. B)i t se mpl oye e st oc oor di na t emos toft hepr oduc t i on. C)t hef e de r algove r nme ntt oc oor di na t emos toft hepr oduc t i on. D)t hegui l dofe l e c t r oni c se ngi ne e r st oc oor di na t emos toft hepr oduc t i on. Ans we r :A 100 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 1 Pa geRe f : 50 Topi c :Mar ke tEc onomi e s 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :2 . 2Unde r s t andc ompar a t i veadvant a geande xpl ai nhow i ti st hebas i sf ort r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:ASt or yoft heMar ke tS ys t e mi nAc t i on: How DoYouMakeaSmar tPhone ? 78)Ac r i t i c alf unc t i onoft hegove r nme nti nf ac i l i t a t i ngt heope r a t i onofamar ke te c onomyi s A)pr oduc i nggoodsands e r vi c e sf orl owi nc omehous e hol ds . B)s e t t i ngupande nf or c i ngpr i va t epr ope r t yr i ght s . C)e ns ur i ngane qualdi s t r i but i onofi nc omet oal lc i t i ze ns . D)c ont r ol l i ngt hemar ke tpr i c e sofe s s e nt i als e r vi c e s . Ans we r :B Di ff: 2 Pa geRe f : 51 Topi c :Mar ke t s 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TooLi t t l eofaGoodThi ng 79)Theabi l i t yt oe x e r c i s ec ont r olove rone ' sownr e s our c e swi t hi nt hec onfine soft hel a wr e f e r st o A)t hef r e emar ke t . B)pr ope r t yr i ght s . C)e nt r e pr e ne ur s hi p. D)ha vi nganabs ol ut eadvant a ge . Ans we r :B Di ff: 1 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 80)Thepr i mar ypur pos eofpa t e nt sandc opyr i ght si st o A)pr ovi deowne r swi t hl ar gepr ofitf or e ve r . B)pr ot e c tfir msf r om be i ngt ake nadvant a geofbyc ompe t i ngfir ms . C)pr ot e c tdome s t i cfir msf r om f or e i gnc ompe t i t i on. D)e nc our a get hee xpe ndi t ur eoff undsonr e s e ar c handde ve l opme ntt oc r e a t ene w pr oduc t s . Ans we r :D Di ff: 1 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 101 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 81)I fpr ope r t yr i ght sar enotwe l le nf or c e d,whi c hoft hef ol l owi ngi sno tl i ke l yt ooc c ur ? A)Fe we rgoodsands e r vi c e swi l lbepr oduc e d. B)Ec onomi ce ffic i e nc ywi l lber e duc e d. C)Ane c onomywi l lpr oduc ei ns i dei t spr oduc t i onpos s i bi l i t i e sf r ont i e r . D)As i gni fic antnumbe rofpe opl ewi l lbewi l l i ngt or i s kt he i rf undsbyi nve s t i ngt he mi nl oc al bus i ne s s e s . Ans we r :D Di ff: 2 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 82)As uc c e s s f ulmar ke te c onomyr e qui r e swe l l de fine dpr ope r t yr i ght sand A)bal anc e ds uppl i e sofal lf ac t or sofpr oduc t i on. B)ani nde pe nde ntc our ts ys t e mt oadj udi c a t edi s put e sbas e dont hel a w. C)de t ai l e dgove r nme ntr e gul a t i ons . D)as af e t yne tt oe ns ur et ha tt hos ewhoc annotpar t i c i pa t ei nt hemar ke te c onomyc ane ar nani nc ome . Ans we r :B Di ff: 2 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TooLi t t l eofaGoodThi ng 83)Al loft hef ol l owi ngar ec ons i de r e di nt e l l e c t ua lpr ope r t ye x c e p t A)books . B)fil ms . C)s of t war e . D)s har e sofs t oc k. Ans we r :D Di ff: 2 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 84)I nCanada ,pr ope r t yr i ght sar eunde rt hej ur i s di c t i onof A)bot hf e de r alandpr ovi nc i algove r nme nt s . B)pr ovi nc i algove r nme nt sonl y . C)t hef e de r algove r nme ntonl y . D)muni c i palgove r nme nt . Ans we r :A Di ff: 1 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :2 . 3Expl ai nt hebas i ci de aofhow amar ke ts ys t e m wor ks AACSB:Re fle c t i veThi nki ng 102 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 85)I nmos tpr ovi nc e s ,pr ovi nc i alpr ope r t yr i ght sl a wi sknownas A)t heSa l eo fGo o dsAc t . B)t hePr o pe r t yRi g ht sAc t . C)s ome t hi ngdi ffe r e nti ne ac hpr ovi nc e . D)t hePur c ha s ea ndSa l eAc t . Ans we r :A Di ff: 1 Pa geRe f : 5152 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :2 . 1Us eapr oduc t i onpos s i bi l i t i e sf r ont i e rt oanal yzeoppor t uni t yc os t sandt r ade offs AACSB:Re fle c t i veThi nki ng 86)Agui l di s A)agr oupofi nde pe nde ntpr oduc e r sc ompe t i ngwi t he ac hot he r . B)anor gani za t i onofpr oduc e r st ha tl i mi t st heamountofagoodpr oduc e d. C)agr oupofna t i onswhoa gr e enott oc ompe t ewi t he ac hot he r . D)ana t i ont ha ti saf r e emar ke tbe nc hmar k. Ans we r :B Di ff: 1 Pa geRe f : 5051 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 87)I n18t hc e nt ur yEur ope ,gove r nme nt sga vegui l dsl e galaut hor i t yt ol i mi tpr oduc t i onofgoods .Thi s aut hor i t yobs t r uc t e dt hemar ke tme c hani s m be c aus et hegui l d' sac t i onspr e ve nt e dt hef or c e sof________ f r om c oor di na t i ngt hes e l f i nt e r e s t e dde c i s i onsofpr oduc e r sandc ons ume r s . A)abs ol ut eadvant a ge B)de mandands uppl y C)oppor t uni t yc os t D)na t ur e Ans we r :B Di ff: 2 Pa geRe f : 5051 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 88)Whe nac e l e br i t yhast hede s i r et oha vehi si ma gepr ot e c t e df ol l owi nghi sde a t h,t hi si sbe s tde s c r i be d asane xampl eoft hepr ot e c t i onof A)ani nve nt i on. B)apa t e nt . C)at r ade mar k. D)i nt e l l e c t ualpr ope r t y . Ans we r :D Di ff: 2 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o5: Li s twa ysi nwhi c hgove r nme nt si nt e r ve nei nmar ke t sande xpl ai nt hec ons e que nc e sof s uc hi nt e r ve nt i on AACSB:Re fle c t i veThi nki ng 89)I nt hede s i r et oha veac e l e br i t y' si ma gepr ot e c t e dt opr e ve nti tf r om be i ngus e di nwa yshewoul dnot appr ove ,ac e l e br i t y' se s t a t e A)wi l lpr obabl ynotbes uc c e s s f ul ,s i nc et he r ear enol a wsr e gul a t i ngt hi ski ndofus ei nCanada . B)wi l lha vet obegr ant e dapa t e ntde c l ar i ngt hec e l e br i t y' si ma geane w pr oduc t ,andt hi swi l lgi vet he e s t a t epr ot e c t i onf or7ye ar s . 103 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 C)c anr e l yonCanadi anl a wst ha tpr ot e c ti nt e l l e c t ualpr ope r t yr i ght st opr e ve ntt heunaut hor i ze dus eof hi si ma ge . D)wi l lmos tl i ke l ybemor es uc c e s s f uli nde ve l opi ngc ount r i e st hani nhi ghi nc omec ount r i e s ,s i nc e pr ope r t yr e gul a t i onsar ebe t t e re nf or c e di nde ve l opi ngc ount r i e s . Ans we r :C Di ff: 2 Pa geRe f : 519092 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o5: Li s twa ysi nwhi c hgove r nme nt si nt e r ve nei nmar ke t sande xpl ai nt hec ons e que nc e sof s uc hi nt e r ve nt i on AACSB:Re fle c t i veThi nki ng 90)Thepa yme ntr e c e i ve dbys uppl i e r sofe nt r e pr e ne ur i als ki l l si sc al l e dpr ofit . Ans we r :TRUE Di ff: 1 Pa geRe f : 4849 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 91)I nt hec i r c ul arflow mode l ,hous e hol dsde mandr e s our c e ss uc hasl abours e r vi c e si nt hepr oduc t mar ke t . Ans we r :F ALSE Di ff: 1 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 92)I ne c onomi c s ,t het e r m" f r e emar ke t "r e f e r st oamar ke twhe r enos al e st axi si mpos e donpr oduc t s s ol d. Ans we r :F ALSE Di ff: 1 Pa geRe f : 5051 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 104 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 93)I naf r e emar ke tt he r ear evi r t ual l ynor e s t r i c t i ons ,ora tbe s tf e wr e s t r i c t i ons ,onhow agoodor s e r vi c ec anbepr oduc e dors ol d. Ans we r :TRUE Di ff: 1 Pa geRe f : 5051 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 94)As t andofr e dwoodt r e e si snotane xampl eofaf a c t orofpr oduc t i onbutt hehar ve s t e dand pr oc e s s e dr e dwoodi saf a c t orofpr oduc t i on. Ans we r :F ALSE Di ff: 2 Pa geRe f : 4849 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 95)Thei de aunde r l yi ngAdam Smi t h' s" i nvi s i bl ehand"i st ha tpe opl et e ndt obe ha vei nwa yst ha tgo unnot i c e di ns oc i e t y . Ans we r :F ALSE Di ff: 2 Pa geRe f : 50 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 96)I nas i mpl ec i r c ul arflow di a gr am,whos uppl i e sf ac t or sofpr oduc t i oni nmar ke t sandwhobuys t he s ef ac t or sofpr oduc t i on?Whos uppl i e sgoodsands e r vi c e si nmar ke t sandwhobuyst he s egoodsand s e r vi c e s ? Ans we r :Hous e hol dss uppl yf ac t or sofpr oduc t i onandbuygoodsands e r vi c e si nmar ke t s .Fi r msbuy f ac t or sofpr oduc t i onands uppl ygoodsands e r vi c e si nmar ke t s . Di ff: 2 Pa geRe f : 4849 Topi c :TheCi r c ul arFl ow ofI nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 97)Li s tt hef ourbr oadc a t e gor i e soff a c t or sofpr oduc t i on. Ans we r :l abour ,c api t al ,na t ur alr e s our c e s ,ande nt r e pr e ne ur s hi p Di ff: 2 Pa geRe f : 48 Topi c :Fac t or sofPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 105 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 98)De finet het e r m" pr ope r t yr i ght s . "Expl ai nwhyt hel ac kofwe l l de fine dande nf or c e abl epr ope r t y r i ght si sde t r i me nt alt ot hes moot hf unc t i oni ngofamar ke ts ys t e m. Ans we r :Thet e r m" pr ope r t yr i ght s "r e f e r st ot her i ght st ha ti ndi vi dual sorfir msha vet ot hee x c l us i ve us eoft he i rr e s our c e s ,wi t hi nt hec onfine soft hel a w.We l l de fine dande nf or c e abl epr ope r t yr i ght s pr ovi det hei nc e nt i vef orpe opl eandfir mst oi nve s tr e s our c e sandunde r t aker i s ks .Thi se nc our a ge st he pr oduc t i onofawi der angeofgoodsands e r vi c e s .Wi t houtpr ope r t yr i ght sandt heme anst oe nf or c e t he s er i ght s ,nope r s onwoul dwantt ounde r t akes uc har i s k. Di ff: 2 Pa geRe f : 5051 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 99)Whyar emus i c ,t e l e vi s i on,andmovi ec ompani e sc onc e r ne daboutt he i rpr oduc t sbe i ngpos t e dt o I nt e r ne twe bs i t e ss uc hasYouTube ? Ans we r :The s ec ompani e sbe l i e vet ha tt he i ri nt e l l e c t ualpr ope r t yr i ght sar ebe i ngvi ol a t e dwhe nt he unaut hor i ze dus eoft he i rma t e r i alappe ar sont he s ewe bs i t e s ,andt hi sr e duc e st he i rabi l i t yt os e l lt hi s ma t e r i al . Di ff: 3 Pa geRe f : 51 Topi c :Pr ope r t yRi ght s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o3: Di s c us sdi ffe r e ntt ype sofmar ke ts ys t e msandt hegai nst ha tc anbemadef r om t r ade AACSB:Re fle c t i veThi nki ng 100)Adam Smi t h,t hef a t he rofmode r ne c onomi c s ,wr ot ei nhi sbook,AnI nq ui r yi nt ot heNa t ur ea nd Ca us e so ft heWe a l t ho fNa t i o ns ," I ti snotf r om t hebe ne vol e nc eoft hebut c he r ,t hebr e we r ,ort hebake r ,t ha t wee xpe c tourdi nne rbutf r om t he i rr e gar dt ot he i rowni nt e r e s t . "Expl ai nwha theme antbyt ha t s t a t e me ntandhow s uc hbe ha vi ourpr omot e st hewe al t hofana t i on. Ans we r :Thes t a t e me nt sr e f e rt ot hef ac tt ha tpe opl eac ti nt he i rowns e l f i nt e r e s t .Fore xampl e ,t he but c he rwhos e l l sme a tandt hebake rwhobake sbr e a dc ar r youtt he s eac t i vi t i e sbe c aus et he s et as ks c ont r i but et ot he i rl i ve l i hood,notbe c aus et he yar ec onc e r ne daboutot he rpe opl e .Ne ve r t he l e s s ,t he i r ac t i onsbe ne fit e dot he r s .Thi si spr e c i s e l yoneoft hevi r t ue sofamar ke t :pe opl edonotha vet oac t vi r t uous l yt opr oduc ewor t hwhi l eout c ome s .Pr oduc i nggoodsands e r vi c e st ha tc ons ume r sval ue i nc r e as e st hewe al t hofana t i on. Di ff: 3 Pa geRe f : 50 Topi c :Mar ke t s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o1: I de nt i f yt hebas i cpr i nc i pl e sofe c onomi c sande xpl ai nhow t ot hi nkl i keane c onomi s t AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:ASt or yoft heMar ke tS ys t e mi nAc t i on: How DoYouMakeaSmar tPhone ? 106 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Chapter 3 - TEST BANK Introductory Macroeconomics SFW (University of Guelph) StuDocu is not sponsored or endorsed by any college or university Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Macroeconomics, Second Canadian Edition (Hubbard) Chapter 3 Where Prices Come From: The Interaction of Supply and Demand 3.1 Discuss the variables that influence demand 1)Fol l owi ngt hes uc c e s s f ull aunc hofRe dBul li nt heCanadi anmar ke ti n2004,c ompani e ss uc hasCoc a Col a ,Pe ps i ,andmanyot he r sha vei nt r oduc e dpr oduc t st oc ompe t ewi t hRe dBul l .Thee ne r gydr i nks i nt r oduc e dt oc ompe t ewi t hRe dBul lwoul dbec ons i de r e d A)c ompl e me nt st oRe dBul l . B)s ubs t i t ut e sf orRe dBul l . C)i nf e r i orgoodsc ompar e dt oRe dBul l . D)nor malgoodsc ompar e dt oRe dBul l . Ans we r :B Di ff: 2 Pa geRe f : 61 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Chapt e rOpe ne r :TheMar ke tf orEne r gyDr i nks 2)I fRe dBul landBe a ve rBuzzEne r gyar ec ons i de r e ds ubs t i t ut e s ,t he n,ot he rt hi ngse qual ,ani nc r e as ei n t hepr i c eoft heRe dBul lwi l l A)de c r e as et hede mandf ort heRe dBul l . B)i nc r e as et hede mandf ort heBe a ve rBuzzEne r gy . C)i nc r e as et hequant i t yde mande df orBe a ve rBuzzEne r gy . D)i nc r e as et hequant i t yde mande df ort heRe dBul l . Ans we r :B Di ff: 1 Pa geRe f : 61 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Ec onomi c si nYourLi f e :Re dBul lorBe a ve rBuzzEne r gy: Wha t ' sYourBe ve r a ge ? 3)Wha ti st hedi ffe r e nc ebe t we e nan" i nc r e as ei nde mand"andan" i nc r e as ei nquant i t yde mande d" ? A)The r ei snodi ffe r e nc ebe t we e nt het wot e r ms ;t he ybot hr e f e rt oas hi f toft hede mandc ur ve . B)An" i nc r e as ei nde mand"i sr e pr e s e nt e dbyar i ght war ds hi f toft hede mandc ur vewhi l ean" i nc r e as e i nquant i t yde mande d"i sr e pr e s e nt e dbyamove me ntal ongagi ve nde mandc ur ve . C)The r ei snodi ffe r e nc ebe t we e nt het wot e r ms ;t he ybot hr e f e rt oamove me ntdownwar dal ongagi ve n de mandc ur ve . D)An" i nc r e as ei nde mand"i sr e pr e s e nt e dbyamove me ntal ongagi ve nde mandc ur ve ,whi l ean " i nc r e as ei nquant i t yde mande d"i sr e pr e s e nt e dbyar i ght war ds hi f toft hede mandc ur ve . Ans we r :B Di ff: 1 Pa geRe f : 62 Topi c :De mandvs .Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 1 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 4)Thede mandbyal lt hec ons ume r sofagi ve ngoodors e r vi c ei st he________f ort hegoodors e r vi c e . A)mar ke tde mand B)quant i t yde mande d C)l a w ofde mand D)s c he dul e dde mand Ans we r :A Di ff: 1 Pa geRe f : 62 Topi c :Mar ke tDe mand Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 5)I f ,i nr e s pons et oani nc r e as ei nt hepr i c eofc hoc ol a t e ,t hequant i t yde mande dofc hoc ol a t ede c r e as e s e c onomi s t swoul dde s c r i bet hi sas A)ade c r e as ei nde mand. B)ade c r e as ei nquant i t yde mande d. C)ac hangei nc ons ume ri nc ome . D)ade c r e as ei nc ons ume r s ' t as t ef orc hoc ol a t e . Ans we r :B Di ff: 1 Pa geRe f : 62 Topi c :Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 6)Bydr a wi ngade mandc ur vewi t h________ont heve r t i c alaxi sand________ont hehor i z ont alaxi s , e c onomi s t sas s umet ha tt hemos ti mpor t antde t e r mi na ntoft hede mandf oragoodi st he________oft he good. A)quant i t y;pr i c e ;quant i t y B)pr i c e ;quant i t y;quant i t y C)pr i c e ;quant i t y;pr i c e D)quant i t y;pr i c e ;pr i c e Ans we r :C Di ff: 1 Pa geRe f : 63 Topi c :De mandCur ve s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 7)Thel a w ofde mandi mpl i e s ,hol di nge ve r yt hi nge l s ec ons t ant ,t ha t A)ast hepr i c eofba ge l si nc r e as e s ,t hequant i t yofba ge l sde mande dwi l lde c r e as e . B)ast hepr i c eofba ge l si nc r e as e s ,t hede mandf orba ge l swi l lde c r e as e . C)ast hepr i c eofba ge l si nc r e as e s ,t hequant i t yofba ge l sde mande dwi l li nc r e as e . D)ast hepr i c eofba ge l si nc r e as e s ,t hede mandf orba ge l swi l li nc r e as e . Ans we r :A Di ff: 1 Pa geRe f : 63 Topi c :La w ofDe mand Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 2 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 8)I fade mandc ur ves hi f t st ot her i ght ,t he n A)de mandhasi nc r e as e d. B)quant i t yde mande dhasi nc r e as e d. C)de mandhasde c r e as e d. D)quant i t yde mande dhasde c r e as e d. Ans we r :A Di ff: 1 Pa geRe f : 64 Topi c :De mandCur ve s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 9)Hol di nge ve r yt hi nge l s ec ons t ant ,ani nc r e as ei nt hepr i c eofMP3pl a ye r swi l lr e s ul ti n A)ade c r e as ei nt hequant i t yofMP3pl a ye r ss uppl i e d. B)ade c r e as ei nt hede mandf orMP3pl a ye r s . C)ani nc r e as ei nt hes uppl yofMP3pl a ye r s . D)ade c r e as ei nt hequant i t yofMP3pl a ye r sde mande d. Ans we r :D Di ff: 2 Pa geRe f : 63 Topi c :Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 10)Ac hangei nal loft hef ol l owi ngvar i abl e swi l lc hanget hemar ke tde mandf orapr oduc te x c e p t A)t hepr i c eoft hepr oduc t . B)popul a t i onandde mogr aphi c s . C)i nc ome . D)t as t e s . Ans we r :A Di ff: 1 Pa geRe f : 64 Topi c :Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 3 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e3. 1 Loos eLe af Te a Pr i c eperkg ( dol l ar s ) Suni l ' s Quant i t y Demanded ( kgs ) $8 6 5 4 3 4 7 9 12 15 Mi a' s Quant i t y Demanded ( kgs ) 0 2 3 5 8 Res tof Mar ket Quant i t y Demanded ( kgs ) 30 40 51 64 90 Mar ket Quant i t y Demanded ( kgs ) 11)Re f e rt oTabl e3. 1.Thet abl eaboves howst hede mands c he dul e sf orl oos e l e aft e aoft woi ndi vi dual s ( Suni landMi a)andt her e s toft hemar ke t .Atapr i c eof$5,t hequant i t yde mande di nt hemar ke twoul d be A)51kgs . B)63kgs . C)76kgs D)146kgs . Ans we r :B Di ff: 2 Pa geRe f : 62 Topi c :De mandSc he dul e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 12)Re f e rt oTabl e3. 1.Thet abl eaboves howst hede mands c he dul e sf orl oos e l e aft e aoft woi ndi vi dual s ( Suni landMi a)andt her e s toft hemar ke t .I ft hepr i c eofl oos e l e aft e ar i s e sf r om $3t o$4,t hemar ke t quant i t yde mande dwoul d A)de c r e as eby32kgs . B)i nc r e as eby64kgs . C)i nc r e as eby32kgs . D)de c r e as eby64kgs . Ans we r :A Di ff: 2 Pa geRe f : 62 Topi c :De mandSc he dul e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 13)Thei nc omee ffe c tofapr i c ec hanger e f e r st ot hei mpac tofac hangei n A)i nc omeont hepr i c eofagood. B)de mandwhe ni nc omec hange s . C)t hequant i t yde mande dwhe ni nc omec hange s . D)t hepr i c eofagoodonac ons ume r ' spur c has i ngpowe r . Ans we r :D Di ff: 3 Pa geRe f : 63 Topi c :I nc omeEffe c t Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 14)Whi c hoft hef ol l owi ngwi l ls hi f tt hede mandc ur vef oragood? A)ac hangei nt het e c hnol ogyus e dt opr oduc et hegood B)ani nc r e as ei nt hepr i c eoft hegood C)ade c r e as ei nt hepr i c eofac ompl e me nt ar ygood D)ade c r e as ei nt hepr i c eoft hegood Ans we r :C Di ff: 1 Pa geRe f : 6566 4 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 15)Amove me ntal ongt hede mandc ur vef ort oot hpas t ewoul dbec aus e dby A)ac hangei nt hepr i c eoft oot hbr us he s . B)ac hangei nc ons ume ri nc ome . C)ac hangei nt hepr i c eoft oot hpas t e . D)ac hangei npopul a t i on. Ans we r :C Di ff: 1 Pa geRe f : 62 Topi c :Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 16)Whe nt hepr i c eofanor malgoodf al l s ,c ons ume r sbuyal ar ge rquant i t ybe c aus eoft he________ e ffe c tandt he________e ffe c t . A)s ubs t i t ut i on;i nc ome B)nor mal ; i nf e r i or C)s ubs t i t ut e ;c ompl e me nt D)s uppl y;de mand Ans we r :A Di ff: 1 Pa geRe f : 65 Topi c :Subs t i t ut i onEffe c t Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 17)I ft hepr i c eofgr ape f r ui tr i s e s ,t hes ubs t i t ut i one ffe c tduet ot hepr i c ec hangewi l lc aus e A)ade c r e as ei nt hede mandf orgr ape f r ui t . B)ade c r e as ei nt hede mandf oror ange s ,as ubs t i t ut ef orgr ape f r ui t . C)ade c r e as ei nt hequant i t yde mande dofgr ape f r ui t . D)ade c r e as ei nt hequant i t ys uppl i e dofgr ape f r ui t . Ans we r :C Di ff: 3 Pa geRe f : 63 Topi c :Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 5 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)The________e ffe c tr e f e r st ot hec hangei nquant i t yde mande df oragoodt ha tr e s ul t sf r om t hee ffe c t ofac hangei nt hegood' spr i c eonc ons ume r ' spur c has i ngpowe r . A)c e t e r i spa r i b us B)popul a t i on C)s ubs t i t ut i on D)i nc ome Ans we r :D Di ff: 2 Pa geRe f : 63 Topi c :Ce t e r i sPar i busCondi t i on Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 19)I fani nc r e as ei ni nc omel e adst oi nani nc r e as ei nt hede mandf orpe anutbut t e r ,t he npe anutbut t e ri s A)ane ut r algood. B)anor malgood. C)ane c e s s i t y . D)ac ompl e me nt . Ans we r :B Di ff: 1 Pa geRe f : 65 Topi c :I nc omeEffe c t Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 20)I fani nc r e as ei ni nc omel e adst oade c r e as ei nt hede mandf orpopc or n,t he npopc or ni s A)ani nf e r i orgood. B)ane ut r algood. C)ane c e s s i t y . D)anor malgood. Ans we r :A Di ff: 2 Pa geRe f : 65 Topi c :I nc omeEffe c t Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 21)Whe t he ragoodi snor malori nf e r i orde pe ndson A)pe opl e ' sa t t i t ude s . B)t hepr i c eoft hepr oduc t . C)t het ax e spe opl epa ywhe npur c has i ngi t . D)whe t he rt hepr oduc ti shi ghqual i t y . Ans we r :A Di ff: 2 Pa geRe f : 65 Topi c :I nc omeEffe c t 2CE:1 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheTr ans f or ma t i onofLobs t e rf r om I nf e r i ort oNor malGood 6 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 1 22)Re f e rt oFi g ur e3. 1.Ani nc r e as ei npopul a t i onwoul dber e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :C Di ff: 2 Pa geRe f : 66 Topi c :Popul a t i onandDe mogr aphi c s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 23)Re f e rt oFi g ur e3. 1.Ac as ei nwhi c hc ons ume r snol onge rc ar e df orapr oduc twoul dber e pr e s e nt e d byamove me ntf r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :D Di ff: 2 Pa geRe f : 66 Topi c :Tas t e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 7 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 24)Re f e rt oFi g ur e3. 1.I ft hepr oduc tr e pr e s e nt e di sani nf e r i orgood,ani nc r e as ei ni nc omewoul dbe r e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :D Di ff: 2 Pa geRe f : 65 Topi c :I nc ome Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 25)Re f e rt oFi g ur e3. 1.Ade c r e as ei nt hepr i c eoft hepr oduc twoul dber e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :A Di ff: 2 Pa geRe f : 63 Topi c :Quant i t yDe mande d Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 26)TheI nt e r ne thasc r e a t e dane wc a t e gor yi nt hebooks e l l i ngmar ke t ,name l y ,t he" bar e l yus e d"book. How doe st hea vai l abi l i t yofbar e l yus e dbooksa ffe c tt hemar ke tf orne w books ? A)Thede mandc ur vef orne w bookss hi f t st ot her i ght . B)Thede mandc ur vef orne w bookss hi f t st ot hel e f t . C)Thes uppl yc ur vef orne w bookss hi f t st ot her i ght . D)Thes uppl yc ur vef orne w bookss hi f t st ot hel e f t . Ans we r :B Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 27)El vi r ade c r e as e dhe rc ons umpt i onofbananaswhe nt hepr i c eofpe anutbut t e ri nc r e as e d.ForEl vi r a , pe anutbut t e randbananasar e A)s ubs t i t ut e si nc ons umpt i on. B)bot hi nf e r i orgoods . C)c ompl e me nt si nc ons umpt i on. D)bot hl uxur ygoods . Ans we r :C Di ff: 3 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 8 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 28)I ft hepr i c eofaut omobi l e swast oi nc r e as e ,t he n A)t hede mandf orgas ol i newoul dde c r e as e . B)t hede mandf orgas ol i newoul di nc r e as e . C)t hes uppl yofgas ol i newoul di nc r e as e . D)t hequant i t yde mande dofgas ol i newoul dde c r e as e . Ans we r :A Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 29)Suppos et ha twhe nt hepr i c eofr as pbe r r i e si nc r e as e s ,Lonni ei nc r e as e shi spur c has e sofpapa yas .To Lonni e , A)r as pbe r r i e sandpapa yasar ec ompl e me nt s . B)r a s pbe r r i e sandpapa yasar ei nf e r i orgoods . C)r a s pbe r r i e sandpapa yasar enor malgoods . D)r as pbe r r i e sandpapa yasar es ubs t i t ut e s . Ans we r :D Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 30)Suppos et ha twhe nt hepr i c eofhambur ge r sde c r e as e s ,t heLif ami l yi nc r e as e st he i rpur c has e sof ke t c hup.Tot heLif ami l y A)hambur ge r sandke t c hupar ec ompl e me nt s . B)hambur ge r sandke t c hupands ubs t i t ut e s . C)hambur ge r sandke t c hupar enor malgoods . D)hambur ge r sar enor malgoodsandhotdogsar ei nf e r i orgoods . Ans we r :A Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 31)St udi e sha ves hownl i nksbe t we e nc al c i um c ons umpt i onandar e duc t i oni nos t e opor os i s .How doe s t hi sa ffe c tt hemar ke tf orc al c i um? A)Thec al c i um s uppl yc ur ves hi f t st ot her i ghtbe c aus eofac hangei nt as t e si nf a vourofc al c i um. B)Thec al c i um de mandc ur ves hi f t st ot her i ghtbe c aus eofac hangei nt as t e si nf a vourofc al c i um. C)Thec al c i um de mandc ur ves hi f t st ot hel e f tbe c aus et hi sne wi nf or ma t i onwi l li nc r e as et hepr i c eof c al c i um. D)Thec al c i um s uppl yc ur ves hi f t st ot hel e f tbe c a us et hi sne wi nf or ma t i onwi l li nc r e as et hepr i c eof c al c i um. Ans we r :B Di ff: 2 Pa geRe f : 66 Topi c :Tas t e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 32)Te c hnol ogi c aladvanc e sha ver e s ul t e di nl owe rpr i c e sf ordi gi t alc ame r as .Wha ti st hei mpac toft hi s ont hemar ke tf ort r adi t i onal( nondi gi t al )c ame r as ? A)Thede mandc ur vef ort r adi t i onalc ame r ass hi f t st ot her i ght . B)Thes uppl yc ur vef ort r adi t i onalc ame r ass hi f t st ot her i ght . C)Thede mandc ur vef ort r adi t i onalc ame r ass hi f t st ot hel e f t . D)Thes uppl yc ur vef ort r adi t i onalc ame r ass hi f t st ot hel e f t . Ans we r :C 9 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 33)How doe st hei nc r e as i ngus eofMP3pl a ye r sa ffe c tt hemar ke tf orc ompac tdi s c s ? A)Thede mandc ur vef orc ompac tdi s c ss hi f t st ot her i ght . B)Thes uppl yc ur vef orc ompac tdi s c ss hi f t st ot hel e f t . C)Thes uppl yc ur vef orc ompac tdi s c ss hi f t st ot her i ght . D)Thede mandc ur vef orc ompac tdi s c ss hi f t st ot hel e f t . Ans we r :D Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 34)Te c hnol ogi c aladvanc e me nt sha vel e dt ol owe rpr i c e sandani nc r e as ei nt hes al eofdi gi t alc ame r as . How doe st hi sa ffe c tt hedi gi t alphot opr i nt i ngpape rmar ke t ? A)Thede mandc ur vef ordi gi t alphot opr i nt i ngpape rs hi f t st ot her i ght . B)Thede mandc ur vef ordi gi t alphot opr i nt i ngpape rs hi f t st ot hel e f t . C)Thes uppl yc ur vef ordi gi t alphot opr i nt i ngpape rs hi f t st ot her i ght . D)Thes uppl yc ur vef ordi gi t alphot opr i nt i ngpape rs hi f t st ot hel e f t . Ans we r :A Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 35)Buye r sr us ht opur c has es t oc ksi nOnt ar i ovi ne yar dsf ol l owi ngaf or e c as tofa30pe r c e ntde c l i nei n t hi sye ar ' sgr apehar ve s t .Wha thappe nsi nt heOnt ar i owi nemar ke tasar e s ul toft hi sannounc e me nt ? A)Thede mandc ur vef orOnt ar i owi nes hi f t st ot hel e f ti nant i c i pa t i onofhi ghe rpr i c e si nt hef ut ur e . B)Thede mandc ur vef orOnt ar i owi nes hi f t st ot her i ghti nant i c i pa t i onofhi ghe rpr i c e si nt hef ut ur e . C)Thes uppl yc ur vef orOnt ar i owi nes hi f t st ot her i ghti nant i c i pa t i onofhi ghe rpr i c e si nt hef ut ur e . D)Thes uppl yc ur vef orOnt ar i owi nes hi f t st ot hel e f ti nant i c i pa t i onofl owe rquant i t i e si nt hef ut ur e . Ans we r :B Di ff: 2 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 10 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 36)Tom Se ar c hi nge r ,as e ni ora t t or ne ya tt heEnvi r onme nt alDe f e ns eFund,obs e r ve dt ha tge ne r ousU. S. f ar ms ubs i di e sha vee nc our a ge df a r me r st opr oduc emor ec or nandmor ewhe a t .How doe st hi sa ffe c t t hemar ke tf orf e r t i l i ze r ? A)Thes uppl yoff e r t i l i ze ri nc r e as e s . B)Thes uppl yoff e r t i l i ze rde c r e as e s . C)Thede mandf orf e r t i l i ze ri nc r e as e s . D)Thede mandf orf e r t i l i ze rde c r e as e s . Ans we r :C Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 37)I nJ une ,buye r soft i t ani um e xpe c tt ha tt hepr i c eoft i t ani um wi l lf al li nJ ul y .Wha thappe nsi nt he t i t ani um mar ke ti nJ une ,hol di nge ve r yt hi nge l s ec ons t ant ? A)Thede mandc ur ves hi f t st ot her i ght . B)Thequant i t yde mande di nc r e as e s . C)Thequant i t yde mande dde c r e as e s . D)Thede mandc ur ves hi f t st ot hel e f t . Ans we r :D Di ff: 2 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 38)I nJ anuar y ,buye r sofgol de xpe c tt ha tt hepr i c eofgol dwi l lr i s ei nFe br uar y .Wha thappe nsi nt he gol dmar ke ti nJ anuar y ,hol di ngal le l s ec ons t ant ? A)Thes uppl yc ur ves hi f t st ot her i ght . B)Thede mandc ur ves hi f t st ot hel e f t . C)Thede mandc ur ves hi f t st ot her i ght . D)Thequant i t yde mande di nc r e as e s . Ans we r :C Di ff: 2 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 39)Asi nc ome si nAl be r t af al lpe opl ear edr i nki ngl e s sc r af tbe e randmor ebe e rpr oduc e dby i nt e r na t i onalbr e we r s .Thus ,ane c onomi s twoul dc ons i de rbe e rpr oduc e dbyi nt e r na t i onalbr e we r st obe a( n) A)nor malgood. B)i nf e r i orgood. C)c ompl e me nt ar ygood. D)s ubs t i t ut egood. Ans we r :B Di ff: 2 Pa geRe f : 65 Topi c :I nc ome 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 40)Whi c hoft hef ol l owi ngpr oduc t swoul dbemos tl i ke l yt os e ear i s ei nde manddueadr opi n i nc ome s ? A)i ns t antr ame nnoodl e s B)l obs t e rdi nne r s C)ne wc ar s 11 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 D)hot e lr ooms Ans we r :A Di ff: 2 Pa geRe f : 65 Topi c :I nc ome 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheTr ans f or ma t i onofLobs t e rf r om I nf e r i ort oNor malGood 41)Thepor t i onoft hepopul a t i onove ra ge64hasr i s e nf r om 8% i n1971t o16% i n2015.Whi c hoft he goodsi smos tl i ke l yt os e eani nc r e as ei nde mandasar e s ul t ? A)he al t hc ar e B)uni ve r s i t ye duc a t i on C)e ne r gydr i nks D)c ar s Ans we r :A Di ff: 1 Pa geRe f : 65 Topi c :I nc ome 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheAgi ngBabyBoome r s 42)Whi c hoft hef ol l owi ngi se xpe c t e dt ooc c urast hebabyboom ge ne r a t i ona ge s ? A)Thede mandf orbabyc l ot he ss houl di nc r e as e . B)Thede mandf orpr e s c r i pt i ondr ugss houl dde c r e as e . C)Thede mandf orme di c als e r vi c e ss houl di nc r e as e . D)Thede mandf orl ar ge rhous e ss houl di nc r e as e . Ans we r :C Di ff: 1 Pa geRe f : 6667 Topi c :Popul a t i onandDe mogr aphi c s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheAgi ngBabyBoome r s 12 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 43)Asbabyboome r sa ge ,wewoul de xpe c t A)j obsi nhe al t hc ar et oi nc r e as e . B)j obsi nhe al t hc ar et ode c l i nea taf as t e rr a t et hanove r al lj obsi nt hee c onomy . C)de mandf orme di c als e r vi c e st ode c l i ne ,whi c hwoul dr e s ul ti nade c l i nei na vai l abl ej obsi nt he me di c alfie l d. D)de mandf orl ar gehous e st oi nc r e as e . Ans we r :A Di ff: 1 Pa geRe f : 6667 Topi c :Popul a t i onandDe mogr aphi c s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheAgi ngBabyBoome r s 44)Whe nde c i di ngonwhi c hne w pr oduc t st ode ve l op,afir m mus tde vot epe opl e ,t i me ,andmone yt o de s i gni ngane w pr oduc t .Be c aus eanyfir m hasonl yl i mi t e dr e s our c e s ,i t A)s houl dwai tunt i li t sc ompe t i t or sde ve l opas i mi l arpr oduc tbe f or ede c i di ngonde vot i ngr e s our c e st o i t sownpr oduc tde ve l opme nt . B)i snotabl et ode ve l opmor et hanonene w pr oduc ta tat i me . C)mus tbec e r t ai nt ha tt hepr oduc ti tc hoos e st ode ve l opwi l lbes uc c e s s f ulori twi l lnotbeabl et os t a y i nbus i ne s s . D)f ac e sat r ade off,be c aus er e s our c e sus e dt ode ve l oponepr oduc twi l lnotbea vai l abl et ode ve l op anot he rpr oduc t . Ans we r :D Di ff: 1 Pa geRe f : 66 Topi c :Tas t e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:For e c a s t i ngt heDe mandf ori Pads-dr oppe df r om Canadi ane di t i onbuts t i l l agoodque s t i on. 45)Thei nc omee ffe c tofapr i c ec hanger e f e r st ot hec hangei nt hequant i t yde mande dofagoodt ha t r e s ul t sf r om ac hangei npur c has i ngpowe rasar e s ul toft hepr i c ec hange . Ans we r :TRUE Di ff: 2 Pa geRe f : 65 Topi c :I nc omeEffe c t Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 46)Chi psands al s aar ec ompl e me nt s .I ft hepr i c eofs al s ade c r e as e s ,t hede mandf orc hi pswi l li nc r e a s e . Ans we r :TRUE Di ff: 1 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 13 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 47)Anor malgoodi sagoodf orwhi c ht hede mande di nc r e as e sasi nc omede c r e as e s ,hol di nge ve r yt hi ng e l s ec ons t ant . Ans we r :F ALSE Di ff: 1 Pa geRe f : 6465 Topi c :I nc ome Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 48)Thei nc omee ffe c te xpl ai nswhyt he r ei sani nve r s er e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tand t hequant i t yoft hepr oduc tde mande d. Ans we r :TRUE Di ff: 1 Pa geRe f : 63 Topi c :I nc omeEffe c t Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 49)I fc ons ume r sbe l i e vet hepr i c eofi Padswi l lde c r e as ei nt hef ut ur e ,t hi swi l lc aus et hede mandf or i Padst ode c r e as enow. Ans we r :TRUE Di ff: 1 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 50)Wha ti st hec e t e r i spa r i b usc ondi t i on? Ans we r :Thec e t e r i spa r i b usc ondi t i oni st her e qui r e me ntt ha twhe nanal yzi ngt her e l a t i ons hi pbe t we e n t wovar i abl e s ,s uc haspr i c eandquant i t yde mande d,ot he rvar i abl e smus tbehe l dc ons t ant . Di ff: 1 Pa geRe f : 64 Topi c :Ce t e r i sPar i busCondi t i on Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 51)Wha tar et het woe ffe c t st ha te xpl ai nt heLa w ofDe mand?Br i e flye xpl ai ne ac he ffe c t . Ans we r :Thet woe ffe c t st ha te xpl ai nt heLa w ofDe mandar et hei nc omee ffe c tandt hes ubs t i t ut i on e ffe c t .Thei nc omee ffe c ti st hec hangei nquant i t yde mande dofagoodt ha tr e s ul t sf r om ac hangei n pur c has i ngpowe rduet oac hangei nt hegood' spr i c e .Thes ubs t i t ut i one ffe c ti st hec hangei nquant i t y de mande dofagoodt ha tr e s ul t sf r om t hee ffe c tofac hangei nt hegood' spr i c emaki ngt hegoodmor eor l e s se xpe ns i ver e l a t i vet oot he rgoodst ha tar es ubs t i t ut e s . Di ff: 3 Pa geRe f : 63 Topi c :La w ofDe mand Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 52)Expl ai nt hedi ffe r e nc ebe t we e nanor malgoodandani nf e r i orgood. Ans we r :Anor malgoodi ss ome t hi ngf orwhi c ht hede mandi nc r e as e swhe ni nc omer i s e sandt he de mandde c r e as e swhe ni nc omef al l s .Ani nf e r i orgoodi ss ome t hi ngf orwhi c ht hede mandde c r e as e s whe ni nc omer i s e sandt hede mandi nc r e as e swhe ni nc omef al l s . Di ff: 2 Pa geRe f : 65 Topi c :I nc ome Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 53)Fore ac hoft hef ol l owi ngpai r sofpr oduc t s ,s t a t ewhi c har ec ompl e me nt s ,whi c har es ubs t i t ut e s ,and whi c har eunr e l a t e d. a . di gi t alc ame r aandme mor ys t i c k b. 7UpandMount ai nDe w c .s wi ms ui t sandfli pflops 14 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 d. Tyl e nolandc a tf ood e . phot oc opi e randpape r Ans we r : a .c ompl e me nt s b. s ubs t i t ut e s c .c ompl e me nt s d. unr e l a t e d e .c ompl e me nt s Di ff: 1 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 54)Themar ke tf ore ne r gydr i nkshasbe c omeve r yc ompe t i t i ve .Thei nc r e as ei nc ompe t i t i oni nt hi s mar ke ti sane xampl eofhow t hemar ke tr e s pondst o A)de c r e as e si nt hepr i c eofc offe e( as ubs t i t ut ef ort hepr oduc t ) . B)i nc r e as e si ni nc ome . C)c hange si npopul a t i on. D)c hange si nc ons ume rt as t e s . Ans we r :D Di ff: 2 Pa geRe f : 61 Topi c :Tas t e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Chapt e rOpe ne r :Re dBul landt heMa r ke tf orEne r gyDr i nks 55)I fyouar ec ons i de r i ngbuyi ngane ne r gydr i nk,andyouc hoos eBe a ve rBuzzEne r gyonl ybe c aus et he pr i c ei sl owe r ,t he nyouc ons i de r A)Re dBul landBe a ve rBuzzt obec ompl e me nt s . B)Re dBul landBe a ve rBuzzt obes ubs t i t ut e s . C)Re dBul lt obeanor malgoodandBe a ve rBuzzt obeani nf e r i orgood. D)Re dBul lt obeani nf e r i orgoodandBe a ve rBuzzt obeanor malgood. Ans we r :B Di ff: 1 Pa geRe f : 69/69 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Ec onomi c si nYourLi f e :Re dBul lorBe a ve rBuzzEne r gy: Wha t ' sYourBe ve r a ge ? 15 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 56)A( n)________i sr e pr e s e nt e dbyar i ght war ds hi f toft hede mandc ur vewhi l ea( n)________i s r e pr e s e nt e dbyamove me ntal ongagi ve nde mandc ur ve . A)i nc r e as ei nde mand;de c r e as ei nde mand B)i nc r e as ei nde mand;i nc r e as ei nquant i t yde mande d C)de c r e as ei nde mand;de c r e as ei nquant i t yde mande d D)i nc r e as ei nquant i t yde mande d;i nc r e as ei nde mand Ans we r :B Di ff: 1 Pa geRe f : 6465 Topi c :De mandvs .Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 57)Ade mandc ur ves howst her e l a t i ons hi pbe t we e n A)t hepr i c eofapr oduc tandt hequant i t yoft hepr oduc tde mande d. B)t heamountofapr oduc ts e l l e r sar ewi l l i ngt os e l la tapar t i c ul arpr i c eandt heamountc ons ume r sar e wi l l i ngt obuya tt ha tpr i c e . C)t hequant i t yt ha tc ons ume r sar ewi l l i ngandabl et obuyandt hequant i t yt ha ts e l l e r sar ewi l l i ngand abl et ooffe r . D)t hepr i c eofapr oduc eandt hede mandf ort hepr oduc t . Ans we r :A Di ff: 1 Pa geRe f : 63 Topi c :De mandCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 58)I f ,i nr e s pons et oade c r e as ei nt hepr i c eofc offe e ,t hequant i t yde mande dofc offe ei nc r e as e s , e c onomi s t swoul dde s c r i bet hi sas A)ani nc r e as ei nde mand. B)ani nc r e as ei nquant i t yde mande d. C)ac hangei nc ons ume ri nc ome . D)ani nc r e as ei nc ons ume r s ' t as t ef orc offe e . Ans we r :B Di ff: 2 Pa geRe f : 63 Topi c :Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 16 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 59)Bydr a wi ngade mandc ur vewi t hpr i c eont heve r t i c alaxi sandquant i t yont hehor i z ont alaxi s , e c onomi s t sas s umet ha tt hemos ti mpor t antde t e r mi na ntoft hede mandf oragoodi s A)c ons ume ri nc ome . B)c ons ume rt as t e sandpr e f e r e nc e s . C)t hepr i c eoft hegood. D)t hequal i t yoft hegood. Ans we r :C Di ff: 1 Pa geRe f : 6263 Topi c :De mandCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 60)Thel a w ofde mandi mpl i e s ,hol di nge ve r yt hi nge l s ec ons t ant ,t ha tast hepr i c eofyogur t A)i nc r e as e s ,t hede mandf oryogur twi l li nc r e as e . B)i nc r e as e s ,t hequant i t yofyogur tde mande dwi l lde c r e as e . C)de c r e as e s ,t hequant i t yofyogur tde mande dwi l lde c r e as e . D)de c r e as e s ,t hede mandf oryogur twi l li nc r e as e . Ans we r :B Di ff: 1 Pa geRe f : 6364 Topi c :La w ofDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 61)Thephr as e" de mandhasi nc r e as e d"me anst ha t A)ade mandc ur vehass hi f t e dt ot hel e f t . B)t he r ehasbe e nanupwar dmove me ntal ongade mandc ur ve . C)t he r ehasbe e nadownwar dmove me ntal ongade mandc ur ve . D)ade mandc ur vehass hi f t e dt ot her i ght . Ans we r :D Di ff: 1 Pa geRe f : 64 Topi c :De mandCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 62)Hol di nge ve r yt hi nge l s ec ons t ant ,ade c r e as ei nt hepr i c eofGPSs ys t e mswi l lr e s ul ti n A)ade c r e as ei nt hequant i t yofGPSs ys t e msde mande d. B)ani nc r e as ei nt hede mandf orGPSs ys t e ms . C)ade c r e as ei nt hes uppl yofGPSs ys t e ms . D)ani nc r e as ei nt hequant i t yofGPSs ys t e msde mande d. Ans we r :D Di ff: 2 Pa geRe f : 6263 Topi c :Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 17 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 63)Ac hangei nwhi c hvar i abl ewi l lc hanget hemar ke tde mandf orapr oduc t ? A)t hepr i c eoft hepr oduc t B)e xpe c t e df ut ur epr i c e s C)t henumbe roffir msi nt hemar ke t D)t hequant i t yoft hepr oduc ts uppl i e d Ans we r :B Di ff: 1 Pa geRe f : 75/75 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Tabl e3. 2 KonaCoffee Pr i c eper ki l ogr am ( dol l ar s ) Luke ' s Quant i t y Demanded ( kg) Ra vi ' s Quant i t y Demanded ( kg) $10 8 6 5 4 3 9 14 18 22 0 3 7 12 18 Res tof Mar ket Quant i t y Demanded ( kg) 23 32 68 85 110 Mar ket Quant i t y Demanded ( kg) 64)Re f e rt oTabl e3. 2.Thet abl eaboves howst hede mands c he dul e sf orKonac offe eoft woi ndi vi dual s ( LukeandRa vi )andt her e s toft hemar ke t .Atapr i c eof$6,t hequant i t yde mande di nt hemar ke twoul d be A)36kg. B)68kg. C)89kg. D)123kg. Ans we r :C Di ff: 2 Pa geRe f : 6263 Topi c :De mandSc he dul e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 18 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 65)Re f e rt oTabl e3. 2.Thet abl eaboves howst hede mands c he dul e sf orKonac offe eoft woi ndi vi dual s ( LukeandRa vi )andt her e s toft hemar ke t .I ft hepr i c eofKonac offe er i s e sf r om $4t o$5,t hemar ke t quant i t yde mande dwoul d A)de c r e as eby35kg. B)i nc r e as eby115kg. C)i nc r e as eby35kg. D)de c r e as eby115kg. Ans we r :A Di ff: 2 Pa geRe f : 6263 Topi c :De mandSc he dul e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 66)The________e ffe c tofapr i c ec hanger e f e r st ot hei mpac tac hangei nt hepr i c eofagoodhasona c ons ume r ' spur c has i ngpowe r . A)i nc ome B)s ubs t i t ut i on C)de mogr aphi c s D)c e t e r i spa r i b us Ans we r :A Di ff: 3 Pa geRe f : 63 Topi c :I nc omeEffe c t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 67)Whi c hoft hef ol l owi ngwi l lno ts hi f tt hede mandc ur vef oragood? A)ani nc r e as ei npopul a t i on B)ani nc r e as ei nt hepr i c eoft hegood C)ade c r e as ei nt hepr i c eofas ubs t i t ut egood D)ani nc r e as ei nc ons ume ri nc ome s Ans we r :B Di ff: 1 Pa geRe f : 64 Topi c :Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 68)A________de mandc ur vef ors hampoowoul dbec a us e dbyac hangei nt hepr i c eofs hampoo. A)r i ght war ds hi f toft he B)l e f t war ds hi f toft he C)move me ntal ongt he D)pos i t i ve l ys l ope d Ans we r :C Di ff: 1 Pa geRe f : 63 Topi c :Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 69)Thes ubs t i t ut i one ffe c tofapr i c ec hanger e f e r st o A)t hec hangei nquant i t yde mande dt ha tr e s ul t sf r om ac hangei npr i c emaki ngagoodmor eorl e s s e xpe ns i ver e l a t i vet oot he rgoodst ha tar es ubs t i t ut e s . B)t hes hi f tofade mandc ur vewhe nt hepr i c eofas ubs t i t ut egoodc hange s . C)t hemove me ntal ongt hede mandc ur veduet oac hangei npur c has i ngpowe rbr oughtaboutbyt he pr i c ec hange . 19 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 D)t hes hi f ti nt hede mandc ur veduet oac hangei npur c has i ngpowe rbr oughtaboutbyt hepr i c e c hange . Ans we r :A Di ff: 3 Pa geRe f : 63 Topi c :Subs t i t ut i onEffe c t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 70)I ft hepr i c eofpot a t oc hi psf al l s ,t hes ubs t i t ut i one ffe c tduet ot hepr i c ec hangewi l lc aus e A)ani nc r e as ei nt hede mandf orpot a t oc hi ps . B)ani nc r e as ei nt hede mandf orc or nc hi ps ,as ubs t i t ut ef orpot a t oc hi ps . C)ani nc r e as ei nt hequant i t yofpot a t oc hi psde ma nde d. D)ade c r e as ei nt hequant i t yofpot a t oc hi psde mande d. Ans we r :C Di ff: 3 Pa geRe f : 63 Topi c :Subs t i t ut i onEffe c t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 71)Thei nc omee ffe c tofapr i c ec hanger e s ul t si na A)s hi f toft hede mandc ur vewhe ni nc omec hange s . B)move me ntal ongt hede mandc ur veduet oac hangei nr e l a t i vepr i c e s . C)s hi f toft hede mandc ur veduet oac hangei npur c has i ngpowe rbr oughtaboutbyt hepr i c ec hange . D)move me ntal ongt hede mandc ur veduet oac hangei npur c has i ngpowe rbr oughtaboutbyt hepr i c e c hange . Ans we r :D Di ff: 2 Pa geRe f : 71/71 Topi c :I nc omeEffe c t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 72)Themor es ubs t i t ut e st he r ear ef oragood A)t hefla t t e rt hede mandc ur vewi l lbe . B)t hes t e e pe rt hede mandc ur vewi l lbe . C)t hel ar ge rt hei nc omee ffe c t . D)t hel e s si mpor t antt hepr i c eoft hegoodwi l lbede t e r mi ni ngde mand. Ans we r :A Di ff: 3 Pa geRe f : 63 Topi c :Subs t i t ut i onEffe c t 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Anal yt i cSki l l s 73)I fade c r e as ei ni nc omel e adst oi nade c r e as ei nt hede mandf ori c ec r e am,t he ni c ec r e am i s A)anor malgood. B)ane ut r algood. C)ac ompl e me nt . D)ane c e s s i t y . Ans we r :A Di ff: 1 Pa geRe f : 64 Topi c :I nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 20 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 74)I fade c r e as ei ni nc omel e adst oani nc r e as ei nt hede mandf ormac ar oni ,t he nmac ar onii s A)ani nf e r i orgood. B)ane ut r algood. C)ane c e s s i t y . D)anor malgood. Ans we r :A Di ff: 2 Pa geRe f : 64 Topi c :I nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 21 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 2 75)Re f e rt oFi g ur e3. 2.Ani nc r e as ei nt hepr i c eofac ompl e me ntwoul dber e pr e s e nt e dbyamove me nt f r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :D Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 76)Re f e rt oFi g ur e3. 2.Ade c r e as ei nt hee xpe c t e df ut ur epr i c eoft hepr oduc twoul dber e pr e s e nt e dbya move me ntf r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :D Di ff: 2 Pa geRe f : 66 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 22 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 77)Re f e rt oFi g ur e3. 2.I ft hepr oduc tr e pr e s e nt e di sanor malgood,ani nc r e as ei ni nc omewoul dbe r e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :C Di ff: 2 Pa geRe f : 65 Topi c :I nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 78)Re f e rt oFi g ur e3. 2.Ani nc r e as ei nt hepr i c eoft hepr oduc twoul dber e pr e s e nt e dbyamove me nt f r om A)At oB. B)Bt oA. C)D1t oD2 . D)D2t oD1. Ans we r :B Di ff: 2 Pa geRe f : 63 Topi c :Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 79)How hast hegr owi ngpopul ar i t yofonl i nes hoppi nga ffe c t e dt hemar ke tf orc l ot hi nga tr e t ai l de par t me nts t or e s ? A)Thede mandc ur vef orc l ot hi nga tr e t ai lde par t me nts t or e shass hi f t e dt ot her i ght . B)Thede mandc ur vef orc l ot hi nga tr e t ai lde par t me nts t or e shass hi f t e dt ot hel e f t . C)Thes uppl yc ur vef orc l ot hi nga tr e t ai lde par t me nts t or e shass hi f t e dt ot her i ght . D)Thes uppl yc ur vef orc l ot hi nga tr e t ai lde par t me nts t or e shass hi f t e dt ot hel e f t . Ans we r :B Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 23 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 80)Suppos et ha tar e c e nts t udyfindst ha ts t r i c t e ral c oholpol i c i e s ,s uc hasr ai s i ngt hepr i c eofal c oholor banni ngt hes al eofal c oholc l os et ouni ve r s i t yc ampus e s ,de c r e as et henumbe rofs t ude nt swhous e mar i j uana .Ont hebas i soft hi si nf or ma t i on,how woul dyoude s c r i beal c oholandmar i j uana? A)Thet wogoodsar es ubs t i t ut e si nc ons umpt i on. B)The r ei snor e l a t i ons hi pbe t we e nt het wogoods . C)Thet wogoodsar ec ompl e me nt si nc ons umpt i on. D)The yar ebot hl uxur ygoods . Ans we r :C Di ff: 3 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 81)I ft hepr i c eofpr opane f ue l l e dgasBBQsde c r e a s e d,t he n A)t hede mandf orpr opanewoul dde c r e as e . B)t hede mandf orpr opanewoul di nc r e as e . C)t hequant i t yofpr opanede mande dwoul di nc r e as e . D)t hequant i t yofpr opanede mande dwoul dde c r e as e . Ans we r :B Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 82)Suppos et ha twhe nt hepr i c eofhambur ge r si nc r e as e s ,t heRui zf ami l ybuysmor ehotdogs .Tot he Rui zf ami l y , A)hambur ge r sandhotdogsar ec ompl e me nt s . B)hambur ge r sandhotdogsar ei nf e r i orgoods . C)hambur ge r sandhotdogsar enor malgoods . D)hambur ge r sandhotdogsar es ubs t i t ut e s . Ans we r :D Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 83)Suppos et ha twhe nt hepr i c eofi c ec r e am i nc r e a s e s ,Li zabuysl e s shotf udge .ToLi za , A)i c ec r e am andhotf udgear ec ompl e me nt s . B)i c ec r e am andhotf udgeands ubs t i t ut e s . C)i c ec r e am andhotf udgear enor malgoods . D)i c ec r e am i sanor malgoodandhotf udgei sani nf e r i orgood. Ans we r :A Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 84)Se ve r als t udi e sha ves hownpr omi s i ngl i nksbe t we e ngr e e nt e ac ons umpt i onandc anc e rpr e ve nt i on. How wi l lt hi saffe c tt hemar ke tf orgr e e nt e a? A)Thequant i t yofgr e e nt e ade mande dwi l li nc r e as ebe c aus eofac hangei nt as t e si nf a vourofgr e e nt e a . B)Thegr e e nt e ade mandc ur vewi l ls hi f tt ot her i ghtbe c aus eofac hangei nt as t e si nf a vourofgr e e nt e a . C)Thegr e e nt e ade mandc ur vewi l ls hi f tt ot hel e f tbe c aus et hi sne wi nf or ma t i onwi l li nc r e as et hepr i c e ofgr e e nt e a . 24 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 D)Thequant i t yofgr e e nt e ade mande dwi l lde c r e as ebe c aus et hi sne wi nf or ma t i onwi l li nc r e as et he pr i c eofgr e e nt e a . Ans we r :B Di ff: 2 Pa geRe f : 66 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 85)I ft hepr i c eofgas ol i nei nc r e as e s ,wha twi l lbet hei mpac ti nt hemar ke tf orpubl i ct r ans por t a t i on? A)Thede mandc ur vef orpubl i ct r ans por t a t i onwi l ls hi f tt ot her i ght . B)Thequant i t yofpubl i ct r ans por t a t i onde mande dwi l li nc r e as e . C)Thede mandc ur vef orpubl i ct r ans por t a t i onwi l ls hi f tt ot hel e f t . D)Thequant i t yofpubl i ct r ans por t a t i onde mande dwi l lde c r e as e . Ans we r :A Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 86)Manyuni ve r s i t i e soffe rs t ude ntbuspas s e s( of t e ni nc l ude dwi t hs t ude ntf e e s )i nane ffor tt or e duc e de mandf oronc ampuspar ki ng.Thi sme ansuni ve r s i t i e smus tbe l i e vet ha t A)buspas s e sandonc ampuspar ki ngar es ubs t i t ut e s . B)t aki ngt hebusi sbe t t e rf ors t ude nt s . C)s t ude nt sar ebada tpar ki ng. D)buspas s e sar enor malgoods . Ans we r :A Di ff: 2 Pa geRe f : 65 Topi c :Subs t i t ut i onEffe c t 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng 25 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 87)How doe st hei nc r e as i ngus eofdi gi t alc ame r asaffe c tt hemar ke tf ort r adi t i onalc ame r afil m? A)Thede mandc ur vef ort r adi t i onalc ame r afil mi ss hi f t i ngt ot her i ght . B)Thequant i t yoft r adi t i onalc ame r afil m de mande di sde c r e as i ng. C)Thequant i t yoft r adi t i onalc ame r afil m de mande di si nc r e as i ng. D)Thede mandc ur vef ort r adi t i onalc ame r afil mi ss hi f t i ngt ot hel e f t . Ans we r :D Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 88)Te c hnol ogi c aladvanc e me nt sha vel e dt ol owe rpr i c e sandani nc r e as ei ns al e sofc ol ourl as e rpr i nt e r s . How wi l lt hi saffe c tt hemar ke tf orl as e rpr i nt e rt one rc ar t r i dge s ? A)Thede mandc ur vef orl as e rpr i nt e rt one rc ar t r i dge swi l ls hi f tt ot her i ght . B)Thede mandc ur vef orl as e rpr i nt e rt one rc ar t r i dge swi l ls hi f tt ot hel e f t . C)Thequant i t yofl as e rpr i nt e rt one rc ar t r i dge sde mande dwi l li nc r e as e . D)Thequant i t yofl as e rpr i nt e rt one rc ar t r i dge sde mande dwi l lde c r e as e . Ans we r :A Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 89)Buye r ss c r ambl e dt os e c ur es t oc ksofAus t r al i anwoolf ol l owi ngaf or e c as t e d11pe r c e ntde c l i nei n woolpr oduc t i on.Wha twi l lhappe ni nt heAus t r al i anwoolmar ke tasar e s ul toft hi sannounc e me nt ? A)Thede mandc ur vef orAus t r al i anwoolwi l ls hi f tt ot hel e f ti nant i c i pa t i onofhi ghe rpr i c e si nt he f ut ur e . B)Thede mandc ur vef orAus t r al i anwoolwi l ls hi f tt ot her i ghti nant i c i pa t i onofhi ghe rpr i c e si nt he f ut ur e . C)Thequant i t yofAus t r al i anwoolde mande dwi l li nc r e as ei nant i c i pa t i onofhi ghe rpr i c e si nt hef ut ur e . D)Thequant i t yofAus t r al i anwoolde mande dwi l lde c r e as ei nant i c i pa t i onofl owe rquant i t i e si nt he f ut ur e . Ans we r :B Di ff: 2 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 26 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 90)Fac t or yi nc e nt i ve sonc e l lphone sha vee nc our a ge dc ons ume r st oupgr adet he i rphone s .How doe s t hi sa ffe c tt hemar ke tf orbl ue t oot hhe ads e t s ? A)I ti nc r e as e st hequant i t yofbl ue t oot hhe ads e t sde mande d. B)I tde c r e as e st hequant i t yofbl ue t oot hhe ads e t sde mande d. C)I ti nc r e as e sde mandf orbl ue t oot hhe ads e t s . D)I tde c r e as e sde mandf orbl ue t oot hhe ads e t s . Ans we r :C Di ff: 2 Pa geRe f : 6566 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 91)I nJ anuar y ,buye r sofgol de xpe c tt ha tt hepr i c eofgol dwi l lf al li nFe br uar y .Wha twi l lhappe ni nt he gol dmar ke ti nJ anuar y ,hol di nge ve r yt hi nge l s ec ons t ant ? A)Thede mandc ur vewi l ls hi f tt ot her i ght . B)Thequant i t yde mande dwi l li nc r e as e . C)Thequant i t yde mande dwi l lde c r e as e . D)Thede mandc ur vewi l ls hi f tt ot hel e f t . Ans we r :D Di ff: 2 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 92)I nSe pt e mbe r ,buye r sofs i l ve re xpe c tt ha tt hepr i c eofs i l ve rwi l lr i s ei nOc t obe r .Wha twi l lhappe ni n t hes i l ve rmar ke ti nSe pt e mbe r ,hol di ngal le l s ec ons t ant ? A)Thequant i t yde mande dwi l lde c r e as e . B)Thede mandc ur vewi l ls hi f tt ot hel e f t . C)Thede mandc ur vewi l ls hi f tt ot her i ght . D)Thequant i t yde mande dwi l li nc r e as e . Ans we r :C Di ff: 2 Pa geRe f : 75/75 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 93)Lobs t e ri sc ons i de r e da A)bot hanor malandi nf e r i orgood,de pe ndi ngonl oc a t i on B)i nf e r i orgood. C)anor malgood. D)bot has ubs t i t ut eandac ompl e me ntgood,de pe ndi ngonl oc a t i on. Ans we r :A Di ff: 2 Pa geRe f : 65 Topi c :I nc ome 2CE:Ne wt o2 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheTr ans f or ma t i onofLobs t e rf r om I nf e r i ort oNor malGood 94)Dur i ngt her e c ove r yf r om t her e c e s s i onof20082009,s al e sofl owc os tbe e rf e l landde mandf or mi c r obr e we dbe e rr os e .Thi sme ans A)t hel owc os tbe e ri sofl ow qual i t y . B)t hebe e ri sbe i ngs ol di nl ar ge randl ar ge rc ont ai ne r s . C)e ve r yonel i ke smi c r obr e we dbe e rbe t t e rt hanl owc os tbe e r . 27 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 D)t hede mandf ormi c r obr e we dbe e ri nc r e as e swhe ni nc omei nc r e as e s . Ans we r :D Di ff: 1 Pa geRe f : 65 Topi c :I nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 95)Thede mandf orme di c als e r vi c e si nCanadai se xpe c t e dt oi nc r e as ei nupc omi ngye ar sbe c aus e A)t hef r ac t i onofpe opl eove rt hea geof65i si nc r e as i ng. B)me di c als e r vi c e sar ebe c omi ngl e s se xpe ns i ve . C)t hebabyboom ge ne r a t i oni sfinal l yl owe r i ngt hef r ac t i onofpe opl eove rt hea geof50. D)e ve rmor eCanadi ansar ee xpe c t e dt ot r a ve lt oot he rc ount r i e st oa voi dl ongwai tt i me sf orme di c al s e r vi c e s . Ans we r :A Di ff: 1 Pa geRe f : 6667 Topi c :Popul a t i onandDe mogr aphi c s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheAgi ngBabyBoome r s 96)Agi ngbabyboome r sar ee xpe c t e dt oha veane ffe c tont hehous i ngmar ke tbe c aus e A)t he yha ver e t i r e me ntmone yt ous et oge toutofapar t me nt sandi nt ol ar gehome s . B)t he yt e ndt obuyl ar gevac a t i onhome st oac c ompanyt he i rpr i mar yr e s i de nc e s . C)ol de rpe opl eof t e ndowns i zet he i rhous i ngbymovi ngf r om l ar ge rhome si nt os mal l e rhome s . D)t he yha ver e ac he dt hea gewhe r et hegove r nme ntwi l ls ubs i di zemor t ga ge sval ue dove r$500, 000. Ans we r :C Di ff: 1 Pa geRe f : 6667 Topi c :Popul a t i onandDe mogr aphi c s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheAgi ngBabyBoome r s 28 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 97)I fc ons ume r svi e wt abl e tc omput e r sasgoodr e pl ac e me nt sf or________,de mandwi l lmos tl i ke l ybe gr e a t e rt hani fc ons ume r svi e wt abl e tc omput e r sasgoodr e pl ac e me nt sf or________. A)e r e ade r s ;l apt opc omput e r s B)e r e ade r s ;de s kt opc omput e r s C)de s kt opc omput e r s ;c omput e r si nge ne r al D)l apt opc omput e r s ;e r e ade r s Ans we r :D Di ff: 1 Pa geRe f : 65 Topi c :Tas t e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 98)Thei nc omee ffe c tofapr i c ec hanger e f e r st ot hec hangei nt hequant i t yde mande dofagoodt ha t r e s ul t sf r om ac hangei nt hepr i c eofas ubs t i t ut epr oduc t . Ans we r :F ALSE Di ff: 2 Pa geRe f : 63 Topi c :I nc omeEffe c t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 99)I ft hepr i c eofpe ac he s( as ubs t i t ut ef orpl ums )i nc r e as e s ,t hede mandf orpl umswi l lde c r e as e . Ans we r :F ALSE Di ff: 1 Pa geRe f : 65 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 100)Ani nf e r i orgoodi sagoodf orwhi c ht hequant i t yde mande di nc r e as e sast hepr i c ede c r e as e s , hol di nge ve r yt hi nge l s ec ons t ant . Ans we r :F ALSE Di ff: 1 Pa geRe f : 65 Topi c :I nc ome 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 101)Onc eagoodi sc ons i de r e di nf e r i or ,i twi l lal wa ysbec ons i de r e di nf e r i or . Ans we r :F ALSE Di ff: 1 Pa geRe f : 65 Topi c :I nc ome 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 1Di s c us st hevar i abl e st ha ti nflue nc ede mand AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheTr ans f or ma t i onofLobs t e rf r om I nf e r i ort oNor malGood 29 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 102)Thes ubs t i t ut i one ffe c te xpl ai nswhyt he r ei sani nve r s er e l a t i ons hi pbe t we e nt hepr i c eofapr oduc t andt hequant i t yoft hepr oduc tde mande d. Ans we r :TRUE Di ff: 1 Pa geRe f : 63 Topi c :Subs t i t ut i onEffe c t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 103)I fc ons ume r sbe l i e vet hepr i c eofhybr i dve hi c l e swi l lde c r e as ei nt hef ut ur e ,t hi swi l lc aus et he de mandf orhybr i dve hi c l e st ode c r e as enow. Ans we r :TRUE Di ff: 1 Pa geRe f : 67 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 104)Wha ti st hedi ffe r e nc ebe t we e na" c hangei nde mand"anda" c hangei nquant i t yde mande d" ? Ans we r :A" c hangei nde mand"me anst hede mandc ur vehass hi f t e d.Thi si sc aus e dbyac hangei nany var i abl eot he rt hanpr i c et ha tc ani nflue nc et hemar ke tde mandoft hegoodi nque s t i on.A" c hangei n quant i t yde mande d"r e f e r st oamove me ntal ongt hede mandc ur veandt hi si sc aus e dbyac hangei nt he pr i c eoft hegoodi nque s t i on. Di ff: 1 Pa geRe f : 6869 Topi c :De mandvs .Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 105)Expl ai nt hel a w ofde mand. Ans we r :Thel a w ofde mandi st her ul et ha t ,hol di nge ve r yt hi nge l s ec ons t ant ,whe nt hepr i c eofa pr oduc tf al l s ,t hequant i t yde mande doft hepr oduc twi l li nc r e as e ,andwhe nt hepr i c eofapr oduc tr i s e s , t hequant i t yde mande doft hepr oduc twi l lde c r e as e . Di ff: 3 Pa geRe f : 63 Topi c :La w ofDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 30 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 106)Col ewasdi s c us s i ngt hemar ke tf orc oc oabe answi t hhi sf r i e ndJ ohnSc hmi dt .Col es ai d," Eve rs i nc e Ve ne zue l aannounc e dt ha ti t sc oc oahar ve s twasi t sl owe s te ve ri nfif t e e nye ar s ,t hepr i c eofc oc oabe ans hasbe e nr i s i ngandr i s i ngandpe opl ear ebuyi ngmor eandmor e .It hi nkt hede mandf orc oc oabe ans mus tbeupwar ds l opi ng. "I sCol er i ght ?Br i e flye xpl ai nwhyorwhynot . Ans we r :Col ehasc onf us e dac hangei nde mand( asar e s ul tofac hangei nt hee xpe c t e df ut ur epr i c eof c oc oabe ans )wi t hac hangei npr i c e .Fol l owi ngt heannounc e me ntoft hepoorhar ve s t ,buye r se xpe c t e d t ha tt hepr i c eofc oc oabe answoul dr i s e .I nant i c i pa t i onofhi ghe rpr i c e si nt hef ut ur e ,de mandi nc r e as e d; t hi sl e dt oahi ghe re qui l i br i um pr i c e .Asl ongasbuye r sbe l i e vet ha tt hepr i c eofc oc oabe answi l lr i s ei n t hef ut ur e ,t he ywi l li nc r e as et he i rde mandt oda y . Di ff: 2 Pa geRe f : 6869 Topi c :De mandvs .Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 107)St a t ewhe t he re ac hoft hef ol l owi ngpai r sofpr oduc t sar ec ompl e me nt s ,s ubs t i t ut e s ,orunr e l a t e d. a . s wi m finsands c ubat anks b. Coc aCol aandVol ks wa ge ns c . pr i nt e r sandi nkc ar t r i dge s d. i c eandi c ec he s t s e . He i ne ke nandCor ona Ans we r : a .c ompl e me nt s b. unr e l a t e d c .c ompl e me nt s d. c ompl e me nt s e .s ubs t i t ut e s Di ff: 1 Pa geRe f : 65 Topi c :Pr i c eofRe l a t e dGoods 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 31 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 3.2 Discuss the variables that influence supply 1)As uppl ys c he dul e A)i sat abl et ha ts howst her e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tandt hequant i t yoft hepr oduc t s uppl i e d. B)i sac ur vet ha ts howst her e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tandt hequant i t yoft hepr oduc t s uppl i e d. C)i st her e l a t i ons hi pbe t we e nt hes uppl yofagoodandt hec os tofpr oduc i ngt hegood. D)i sat abl et ha ts howst her e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tandt hequant i t yoft hepr oduc t t ha tpr oduc e r sandc ons ume r sar ewi l l i ngt oe x c hange . Ans we r :A Di ff: 1 Pa geRe f : 6970 Topi c :Suppl ySc he dul e s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 2)I fi nt hemar ke tf orbl ue be r r i e s ,t hes uppl yc ur vehass hi f t e dt ot hel e f t , A)t hes uppl yofpe ac he shasi nc r e as e d. B)t hes uppl yofpe ac he shasde c r e as e d. C)t hequant i t yofpe ac he ss uppl i e dhasi nc r e as e d. D)t hequant i t yofpe ac he ss uppl i e dhasde c r e as e d. Ans we r :B Di ff: 1 Pa geRe f : 70 Topi c :Suppl yCur ve s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 3)I f ,i nt hemar ke tf oror ange s ,t hes uppl yhasi nc r e as e d,t he n A)t hes uppl yc ur vef oror ange shass hi f t e dt ot her i ght . B)t hes uppl yc ur vef oror ange shass hi f t e dt ot hel e f t . C)t he r ehasbe e namove me ntupwar dsal ongt hes uppl yc ur vef oror ange s . D)t he r ehasbe e namove me ntdownwar dsal ongt hes uppl yc ur vef oror ange s . Ans we r :A Di ff: 1 Pa geRe f : 70 Topi c :Suppl yCur ve s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 4)Las tye ar ,t hePot t e r yPal ac es uppl i e d8, 000c e r ami cpot sa t$40e ac h.Thi sye ar ,t hec ompanys uppl i e d t hes amequant i t yofc e r ami cpot sa t$55e ac h.Bas e dont hi se vi de nc e ,t hePot t e r yPal ac ehas e xpe r i e nc e d A)ade c r e as ei ns uppl y . B)ani nc r e as ei ns uppl y . C)ani nc r e as ei nt hequant i t ys uppl i e d. D)ade c r e as ei nt hequant i t ys uppl i e d. Ans we r :A Di ff: 2 Pa geRe f : 70 Topi c :Suppl ySc he dul e s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 5)Wha ti st hedi ffe r e nc ebe t we e nan" i nc r e as ei ns uppl y"andan" i nc r e as ei nquant i t ys uppl i e d" ? A)The r ei snodi ffe r e nc ebe t we e nt het wot e r ms ;t he ybot hr e f e rt oas hi f toft hes uppl yc ur ve . B)The r ei snodi ffe r e nc ebe t we e nt het wot e r ms ;t he ybot hr e f e rt oamove me ntal ongagi ve ns uppl y c ur ve . C)An" i nc r e as ei ns uppl y"me anst hes uppl yc ur vehass hi f t e dt ot her i ghtwhi l ean" i nc r e as ei nquant i t y 32 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 s uppl i e d"me ansa tanygi ve npr i c es uppl yhasi nc r e as e d. D)An" i nc r e as ei ns uppl y"me anst hes uppl yc ur vehass hi f t e dt ot her i ghtwhi l ean" i nc r e as ei n quant i t ys uppl i e d"r e f e r st oamove me ntal ongagi ve ns uppl yc ur vei nr e s pons et oani nc r e as ei npr i c e . Ans we r :D Di ff: 1 Pa geRe f : 73 Topi c :Suppl yvs .Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 6)Onewoul ds pe akofac hangei nt hequant i t yofagoods uppl i e d,r a t he rt hanac hangei ns uppl y ,i f A)s uppl i e re xpe c t a t i onsaboutf ut ur epr i c e sc hange . B)t hepr i c eoft hegoodc hange s . C)t hec os tofpr oduc i ngt hegoodc hange s . D)pr i c e sofs ubs t i t ut e si npr oduc t i onc hange . Ans we r :B Di ff: 1 Pa geRe f : 73 Topi c :Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 7)Whi c hoft hef ol l owi ngwoul dc aus eade c r e as ei nt hes uppl yofmi l k? A)ani nc r e as ei nt hepr i c eofc ooki e s( as s umi ngt ha tmi l kandc ooki e sar ec ompl e me nt s ) B)ade c r e as ei nt hepr i c eofmi l k C)ani nc r e as et hepr i c eofapr oduc tt ha tpr oduc e r ss e l li ns t e adofmi l k D)ani nc r e as ei nt henumbe roffir mst ha tpr oduc emi l k Ans we r :C Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofSubs t i t ut e si nPr oduc t i on Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 8)I nOc t obe r ,mar ke tanal ys t spr e di c tt ha tt hepr i c eofpl a t i num wi l lf al li nNove mbe r .Wha thappe nsi n t hepl a t i num mar ke ti nOc t obe r ,hol di nge ve r yt hi nge l s ec ons t ant ? A)Thes uppl yc ur ves hi f t st ot her i ght . B)Thes uppl yc ur ves hi f t st ot hel e f t . C)Thequant i t yde mande dandt hequant i t ys uppl i e dofpl a t i num i nc r e as e . D)Thede mandc ur ves hi f t st ot her i ght . Ans we r :A Di ff: 2 Pa geRe f : 72 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 33 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 3 9)Re f e rt oFi g ur e3. 3.Ani nc r e as ei npr i c eofi nput swoul dber e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :D Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofI nput s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 10)Re f e rt oFi g ur e3. 3.Ani nc r e as ei nt henumbe roffir msi nt hemar ke twoul dber e pr e s e nt e dbya move me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :C Di ff: 2 Pa geRe f : 71 Topi c :Numbe rofFi r msi nt heMa r ke t Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 34 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 11)Re f e rt oFi g ur e3. 3.Ani nc r e as ei nt hepr i c eofs ubs t i t ut e si npr oduc t i onwoul dber e pr e s e nt e dbya move me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :D Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofSubs t i t ut e si nPr oduc t i on Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 12)Re f e rt oFi g ur e3. 3.Ade c r e as ei nt hepr i c eoft hepr oduc twoul dber e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :B Di ff: 2 Pa geRe f : 72 Topi c :Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 13)I fCanadabanst hei mpor t a t i onofbe l ugac a vi a r( t hemos tpr i ze dofc a vi ar s )f r om t heCas pi anSe a , wha thappe nsi nt hemar ke tf orc a vi ari nCanada? A)Thes uppl yc ur ves hi f t e dt ot hel e f t . B)Thes uppl yc ur ves hi f t e dt ot her i ght . C)Thede mandc ur ves hi f t e dt ot her i ght . D)Thede mandc ur ves hi f t e dt ot hel e f t . Ans we r :A Di ff: 2 Pa geRe f : 71 Topi c :Numbe rofFi r msi nt heMa r ke t Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 14)Dani e l l eOc e anpa ysf ormont hl ypoolmai nt e nanc ef orhe rhomes wi mmi ngpool .La s twe e kt he owne roft hepools e r vi c ei nf or me dDani e l l et ha ts hewi l lha vet or ai s ehe rmont hl ys e r vi c ef e ebe c aus e ofi nc r e as e si nt hepr i c eofpoolc he mi c al s .How i st hemar ke tf orpoolmai nt e nanc es e r vi c e sa ffe c t e dby t hi s ? A)The r ei sani nc r e as ei nt hes uppl yofpoolmai nt e nanc es e r vi c e s . B)The r ei sade c r e as ei nt hede mandf orpoolmai nt e nanc es e r vi c e s . C)The r ei sade c r e as ei nt hequant i t yofpoolmai nt e nanc es e r vi c e ss uppl i e d. D)The r ei sade c r e as ei nt hes uppl yofpoolmai nt e nanc es e r vi c e s . Ans we r :D Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofI nput s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 15)Thepopul ar i t yofdi gi t alc ame r ashase nt i c e dl ar gedi s c ounts t or e sl i keWal mar tandCos t c ot ooffe r di gi t alphot opr i nt i ngs e r vi c e s .How doe st hi sa ffe c tt hedi gi t alphot opr i nt i ngmar ke t ? A)Thede mandc ur vef ordi gi t alphot opr i nt i ngs e r vi c e ss hi f t st ot her i ght . B)Thede mandc ur vef ordi gi t alphot opr i nt i ngs e r vi c e ss hi f t st ot hel e f t . C)Thes uppl yc ur vef ordi gi t alphot opr i nt i ngs e r vi c e ss hi f t st ot her i ght . D)Thes uppl yc ur vef ordi gi t alphot opr i nt i ngs e r vi c e ss hi f t st ot hel e f t . 35 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Ans we r :C Di ff: 2 Pa geRe f : 71 Topi c :Numbe rofFi r msi nt heMa r ke t Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 16)Al be r t ar anc he r sc anr ai s ee i t he rc a t t l eors he e pont he i rl and.Whi c hoft hef ol l owi ngwoul dc aus e t hes uppl yofs he e pt oi nc r e as e ? A)ani nc r e as ei nt hepr i c eofs he e p B)ade c r e as ei nt hepr i c eofc a t t l e C)ani nc r e as ei nt hede mandf orc a t t l e D)ani nc r e as ei nt hepr i c eofs he e pf e e d Ans we r :B Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofSubs t i t ut e si nPr oduc t i on Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 17)Whi c hoft hef ol l owi ngwoul ds hi f tt hes uppl yc ur vef ormus i cs t r e ami ngappst ot her i ght ? A)ani nc r e as ei nt hepr i c eofas ubs t i t ut ei npr oduc t i on B)ani nc r e as ei nc ons ume ri nc ome( as s umi ngt ha tal lmus i cs t r e ami ngappsar enor malgoods ) C)ade c r e as ei nt henumbe roffir mst ha tpr oduc emus i cs t r e ami ngapps D)ade c r e as ei nt hepr i c eofani nputus e dt opr oduc emus i cs t r e ami ngapps Ans we r :D Di ff: 3 Pa geRe f : 71 Topi c :Pr i c e sofI nput s 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 18)I fafir m hasani nc e nt i vet oi nc r e as es uppl ynow andde c r e as es uppl yi nt hef ut ur e ,t hefir me xpe c t s t ha tt he A)pr i c eofi t spr oduc twi l lbel owe ri nt hef ut ur et hani ti st oda y . B)pr i c eofi t spr oduc twi l lbehi ghe ri nt hef ut ur et hani ti st oda y . C)pr i c eofi nput swi l lbel owe ri nt hef ut ur et hant he yar et oda y . D)de mandf ort hepr oduc twi l lbel owe ri nt hef ut ur et hani ti st oda y . Ans we r :A Di ff: 3 Pa geRe f : 72 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 36 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 19)I fafir me xpe c t st ha tt hepr i c eofi t spr oduc twi l lbehi ghe ri nt hef ut ur et hani ti st oda y , A)t hefir m wi l lgooutofbus i ne s s . B)t hefir m hasani nc e nt i vet oi nc r e as es uppl ynow andde c r e as es uppl yi nt hef ut ur e . C)t hefir m hasani nc e nt i vet ode c r e as equant i t ys uppl i e dnow andi nc r e as equant i t ys uppl i e di nt he f ut ur e . D)t hefir m hasani nc e nt i vet ode c r e as es uppl ynow andi nc r e as es uppl yi nt hef ut ur e . Ans we r :D Di ff: 2 Pa geRe f : 72 Topi c :Expe c t e dFut ur ePr i c e s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 20)Thes uppl yc ur vef orwa t c he s A)s howst hes uppl yofwa t c he sc ons ume r sar ewi l l i ngandabl et obuya tanygi ve npr i c e . B)i sdownwar ds l opi ng. C)s howst her e l a t i ons hi pbe t we e nt hequant i t yofwa t c he sfir msar ewi l l i ngandabl et os uppl yandt he quant i t yofwa t c he sc ons ume r sar ewi l l i ngandabl et opur c has e . D)s howst her e l a t i ons hi pbe t we e nt hepr i c eofwa t c he sandt hequant i t yofwa t c he ss uppl i e d. Ans we r :D Di ff: 2 Pa geRe f : 7071 Topi c :Suppl yCur ve s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 21)Ade c r e as ei nt hepr i c eofGPSs ys t e mswi l lr e s ul ti n A)as mal l e rquant i t yofGPSs ys t e mss uppl i e d. B)al ar ge rquant i t yofGPSs ys t e mss uppl i e d. C)ade c r e as ei nt hede mandf orGPSs ys t e ms . D)ani nc r e as ei nt hes uppl yofGPSs ys t e ms . Ans we r :A Di ff: 1 Pa geRe f : 72 Topi c :Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 22)Ani nc r e as ei nt henumbe roffir msi namar ke twi l lc aus et hequant i t yofagoods uppl i e dt o i nc r e as e . Ans we r :F ALSE Di ff: 1 Pa geRe f : 71 Topi c :Numbe rofFi r msi nt heMa r ke t Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 23)Ac hangei ns uppl yi sr e pr e s e nt e dbyas hi f toft hes uppl yc ur ve . Ans we r :TRUE Di ff: 1 Pa geRe f : 72 Topi c :Suppl yCur ve s Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 37 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 24)Ani nc r e as ei nt hequant i t yofapr oduc ts uppl i e di sc aus e dbyani nc r e as ei nt hepr i c eoft he pr oduc t . Ans we r :TRUE Di ff: 1 Pa geRe f : 72 Topi c :Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 25)Quant i t ys uppl i e dr e f e r st ot heamountofagoodors e r vi c et ha tafir mi swi l l i ngandabl et os uppl y a tagi ve npr i c e . Ans we r :TRUE Di ff: 1 Pa geRe f : 69 Topi c :Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 26)Wha ti st hel a w ofs uppl y?Wha tdoe st hi sl a wi mpl yaboutt hes hapeoft hes uppl yc ur ve ? Ans we r :Thel a w ofs uppl ys t a t e st ha t ,hol di nge ve r yt hi nge l s ec ons t ant ,ani nc r e as ei npr i c ec aus e san i nc r e as ei nquant i t ys uppl i e d.Thepos i t i ver e l a t i ons hi pbe t we e npr i c eandquant i t ys uppl i e dgi ve sr i s e t oanupwar ds l opi ngs uppl yc ur ve . Di ff: 1 Pa geRe f : 70 Topi c :La w ofSuppl y Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 27)Fr om as uppl ype r s pe c t i ve ,wha ti mpac twoul dani nc r e as ei nt hepr i c eofmot or c yc l e sha veont he mar ke tf ormot or c yc l e s ? Ans we r :Ani nc r e as ei nt hepr i c eofmot or c yc l e swoul dge ne r a t eani nc r e as ei nt hequant i t yof mot or c yc l e ss uppl i e di nt hemar ke t . Di ff: 2 Pa geRe f : 70 Topi c :Quant i t ySuppl i e d Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 28)I ndi c a t ewhe t he re ac hoft hef ol l owi ngs i t ua t i onswoul ds hi f tt hes uppl yc ur vet ot hel e f t ,t ot he r i ght ,ornota tal l . a . Ani nc r e as ei nt henumbe roffir msi nt hemar ke t b. Ani nc r e as ei nt hec ur r e ntpr i c eoft hepr oduc t c . Ade c r e as ei npr oduc t i vi t y d. Ani nc r e as ei nt hee xpe c t e df ut ur epr i c eofapr oduc t e . Ade c r e as ei nt hepr i c eofani nput Ans we r : a . Shi f tt ot her i ght b. Nos hi f t c . Shi f tt ot hel e f t d. Shi f tt ot hel e f t e . Shi f tt ot her i ght Di ff: 2 Pa geRe f : 7172 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 29)As uppl yc ur ve A)i sat abl et ha ts howst her e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tandt hequant i t yoft hepr oduc t s uppl i e d. B)i sac ur vet ha ts howst her e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tandt hequant i t yoft hepr oduc t s uppl i e d. 38 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 C)i st her e l a t i ons hi pbe t we e nt hes uppl yofagoodandt hec os tofpr oduc i ngt hegood. D)i sac ur vet ha ts howst her e l a t i ons hi pbe t we e nt hepr i c eofapr oduc tandt hequant i t yoft hepr oduc t t ha tpr oduc e r sandc ons ume r sar ewi l l i ngt oe x c hange . Ans we r :B Di ff: 1 Pa geRe f : 69 Topi c :Suppl yCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 30)I f ,i nt hemar ke tf orappl e s ,t hes uppl yhasde c r e as e d,t he n A)t hes uppl yc ur vef orappl e shass hi f t e dt ot her i ght . B)t he r ehasbe e namove me ntupwar dsal ongt hes uppl yc ur vef orappl e s . C)t hes uppl yc ur vef orappl e shass hi f t e dt ot hel e f t . D)t he r ehasbe e namove me ntdownwar dsal ongt hes uppl yc ur vef orappl e s . Ans we r :C Di ff: 1 Pa geRe f : 7071 Topi c :Suppl yCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 31)I f ,i nt hemar ke tf orbananas ,t hes uppl yc ur vehass hi f t e dt ot her i ght ,t he n A)t hes uppl yofbananashasi nc r e as e d. B)t hequant i t yofbananass uppl i e dhasi nc r e as e d. C)t hes uppl yofbananashasde c r e as e d. D)t hequant i t yofbananass uppl i e dhasde c r e as e d. Ans we r :A Di ff: 1 Pa geRe f : 7071 Topi c :Suppl yCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 39 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 32)Las tmont h,t heTe c ums e hCor por a t i ons uppl i e d4 00uni t soft hr e e r i ngbi nde r sa t$6pe runi t .Thi s mont h,t hec ompanys uppl i e dt hes amequant i t yofbi nde r sa t$4pe runi t .Bas e dont hi se vi de nc e , Te c ums e hhase xpe r i e nc e d A)ade c r e as ei ns uppl y . B)ani nc r e as ei ns uppl y . C)ani nc r e as ei nt hequant i t ys uppl i e d. D)ade c r e as ei nt hequant i t ys uppl i e d. Ans we r :B Di ff: 2 Pa geRe f : 7071 Topi c :Suppl ySc he dul e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 33)________me anst hes uppl yc ur vehass hi f t e dt ot her i ght ,whi l e________r e f e r st oamove me ntal ong agi ve ns uppl yc ur vei nr e s pons et oani nc r e as ei npr i c e . A)Ani nc r e as ei ns uppl y;ade c r e as ei ns uppl y B)Ade c r e as ei ns uppl y;ani nc r e as ei ns uppl y C)Ani nc r e as ei ns uppl y;ani nc r e as ei nquant i t ys uppl i e d D)Ade c r e as ei ns uppl y;ade c r e as ei nquant i t ys uppl i e d Ans we r :C Di ff: 1 Pa geRe f : 7071 Topi c :Suppl yvs .Quant i t ySuppl i e d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 34)Onewoul ds pe akofamove me ntal ongas uppl yc ur vef oragood,r a t he rt hanac hangei ns uppl y ,i f A)t hec os tofpr oduc i ngt hegoodc hange s . B)s uppl i e re xpe c t a t i onsaboutf ut ur epr i c e sc hange . C)t hepr i c eoft hegoodc hange s . D)pr i c e sofs ubs t i t ut e si npr oduc t i onc hange . Ans we r :C Di ff: 1 Pa geRe f : 7071 Topi c :Quant i t ySuppl i e d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 35)Whi c hoft hef ol l owi ngwoul dc aus eani nc r e as ei nt hes uppl yofc he e s e ? A)ade c r e as ei nt hepr i c eofwi ne( as s umi ngt ha tc he e s eandwi near ec ompl e me nt s ) B)ani nc r e as ei nt hepr i c eofc he e s e C)ani nc r e as ei nt hepr i c eofapr oduc tt ha tpr oduc e r ss e l li ns t e adofc he e s e D)ani nc r e as ei nt henumbe roffir mst ha tpr oduc ec he e s e Ans we r :D Di ff: 2 Pa geRe f : 7172 Topi c :Numbe rofFi r msi nt heMa r ke t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 36)I fgua r ana( ake yi ngr e di e nti nmanye ne r gydr i nks )be c ome sl e s se xpe ns i ve ,wewoul de xpe c t A)t hes uppl yc ur vef ore ne r gydr i nkst os hi f tt ot her i ght . B)t hes uppl yc ur vef ore ne r gydr i nkst os hi f tt ot hel e f t . C)t hede mandc ur vef ore ne r gydr i nkst os hi f tt ot her i ght . D)t hede mandc ur vef ore ne r gydr i nkst os hi f tt ot hel e f t . Ans we r :A 40 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Di ff: 2 Pa geRe f : 7172 Topi c :Pr i c e sofI nput s 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Re fle c t i veThi nki ng 37)I nJ ul y ,mar ke tanal ys t spr e di c tt ha tt hepr i c eofgol dwi l lr i s ei nAugus t .Wha thappe nsi nt hegol d mar ke ti nJ ul y ,hol di nge ve r yt hi nge l s ec ons t ant ? A)Thes uppl yc ur ves hi f t st ot her i ght . B)Thes uppl yc ur ves hi f t st ot hel e f t . C)Thequant i t yde mande dandt hequant i t ys uppl i e dofgol di nc r e as e . D)Thede mandc ur ves hi f t st ot hel e f t . Ans we r :B Di ff: 2 Pa geRe f : 72 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 41 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 4 38)Re f e rt oFi g ur e3. 4.At e c hnol ogi c aladvanc e me ntwoul dber e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :C Di ff: 2 Pa geRe f : 71 Topi c :Te c hnol ogi c alChange 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 39)Re f e rt oFi g ur e3. 4.Ani nc r e as ei nt hee xpe c t e df ut ur epr i c eoft hepr oduc twoul dber e pr e s e nt e dby amove me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :D Di ff: 2 Pa geRe f : 72 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 42 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 40)Re f e rt oFi g ur e3. 4.Ade c r e as ei nt hepr i c eofi nput swoul dber e pr e s e nt e dbyamove me ntf r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :C Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofI nput s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 41)Re f e rt oFi g ur e3. 4.Ani nc r e as ei nt hepr i c eoft hepr oduc twoul dber e pr e s e nt e dbyamove me nt f r om A)At oB. B)Bt oA. C)S1t oS2. D)S2t oS1. Ans we r :A Di ff: 2 Pa geRe f : 70 Topi c :Quant i t ySuppl i e d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 42)I fCanadar e move dt headdi t i onalt ax e si tc ur r e nt l yc har ge sonFr e nc hc he e s e ,wha twoul dhappe ni n t heCanadi anmar ke tf orFr e nc hc he e s e ? A)Thes uppl yc ur vewoul ds hi f tt ot hel e f t . B)Thes uppl yc ur vewoul ds hi f tt ot her i ght . C)Thede mandc ur vewoul ds hi f tt ot her i ght . D)Thede mandc ur vewoul ds hi f tt ot hel e f t . Ans we r :B Di ff: 2 Pa geRe f : 7172 Topi c :Numbe rofFi r msi nt heMa r ke t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 43 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 43)Ge or geGna ts ubs c r i be st oamont hl ype s tc ont r ols e r vi c ef orhi shome .Las twe e kt heowne roft he s e r vi c ei nf or me dGe or get ha thewi l lha vet or ai s ehi smont hl ys e r vi c ef e ebe c aus eofi nc r e as e si nt he pr i c eofgas ol i neus e dbyhi swor ke r sont he i rs e r vi c et r i ps .How i st hemar ke tf orpe s tc ont r ols e r vi c e s affe c t e dbyt hi s ? A)The r ei sani nc r e as ei nt hes uppl yofpe s tc ont r ols e r vi c e s . B)The r ei sade c r e as ei nt hede mandf orpe s tc ont r ols e r vi c e s . C)The r ei sade c r e as ei nt hequant i t ys uppl i e dofpe s tc ont r ols e r vi c e s . D)The r ei sade c r e as ei nt hes uppl yofpe s tc ont r ols e r vi c e s . Ans we r :D Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofI nput s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 44)Thegr owi ngpopul ar i t yofe ne r gyc ons e r va t i onhase nt i c e dl ar gehomei mpr ove me nts t or e sl i ke Ronat ooffe rt ankl e s swa t e rhe a t e r s .How doe st hef ac tt ha thomei mpr ove me nts t or e snow offe rt he s e pr oduc t saffe c tt het ankl e s swa t e rhe a t e rmar ke t ? A)Thede mandc ur vef ort ankl e s swa t e rhe a t e r ss hi f t st ot her i ght . B)Thede mandc ur vef ort ankl e s swa t e rhe a t e r ss hi f t st ot hel e f t . C)Thes uppl yc ur vef ort ankl e s swa t e rhe a t e r ss hi f t st ot her i ght . D)Thes uppl yc ur vef ort ankl e s swa t e rhe a t e r ss hi f t st ot hel e f t . Ans we r :C Di ff: 2 Pa geRe f : 7172 Topi c :Numbe rofFi r msi nt heMa r ke t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 45)Far me r sc anpl ante i t he rwhe a torl e nt i l si nt he i rfie l ds .Whi c hoft hef ol l owi ngwoul dc aus et he s uppl yofl e nt i l st oi nc r e as e ? A)ani nc r e as ei nt hepr i c eofl e nt i l s B)ade c r e as ei nt hepr i c eofwhe a t C)ani nc r e as ei nt hede mandf orwhe a t D)ani nc r e as ei nt hepr i c eofs oybe ans e e ds Ans we r :B Di ff: 2 Pa geRe f : 71 Topi c :Pr i c e sofSubs t i t ut e si nPr oduc t i on 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 44 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 46)Whi c hoft hef ol l owi ngwoul ds hi f tt hes uppl yc ur vef ore ne r gydr i nkst ot hel e f t ? A)ade c r e as ei nt hee xpe c t e df ut ur epr i c eofe ne r gydr i nks B)ani nc r e as ei nc ons ume ri nc ome( as s umi ngt ha te ne r gydr i nksar enor malgoods ) C)ade c r e as ei nt henumbe roffir mst ha tpr oduc ee ne r gydr i nks D)ade c r e as ei nt hepr i c eofani nputus e dt opr oduc ee ne r gydr i nks Ans we r :C Di ff: 3 Pa geRe f : 7172 Topi c :Numbe rofFi r msi nt heMa r ke t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 47)I tbe c ome sc ommonknowl e dget ha tpl ant i ngmus t a r dhe l pspr ot e c tpot a t oc r opsf r om nume r ous di s e as e s .Asar e s ul twewoul de xpe c t A)ani nc r e as ei nt hes uppl yofmus t ar d. B)ade c r e as ei nt hes uppl yofpot a t oe s . C)ade c r e as ei nt hes uppl yofmus t ar d. D)de mandf ormus t ar dt oi nc r e as e . Ans we r :A Di ff: 2 Pa geRe f : 7172 Topi c :Pr i c e sofSubs t i t ut e si nPr oduc t i on 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 2Di s c us st hevar i abl e st ha ti nflue nc es uppl y AACSB:Anal yt i cSki l l s 48)I fafir me xpe c t st ha tt hepr i c eofi t spr oduc twi l lbel owe ri nt hef ut ur et hani ti st oda y , A)t hefir m hasani nc e nt i vet oi nc r e as es uppl ynow andde c r e as es uppl yi nt hef ut ur e . B)t hefir m hasani nc e nt i vet ode c r e as es uppl ynow andi nc r e as es uppl yi nt hef ut ur e . C)t hefir m hasani nc e nt i vet oi nc r e as equant i t ys uppl i e dnow andde c r e as equant i t ys uppl i e di nt he f ut ur e . D)t hefir m wi l lnotc hanges uppl yunt i li tknowsf orc e r t ai nwha twi l lhappe nt oi t spr i c e . Ans we r :A Di ff: 3 Pa geRe f : 71 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 49)Afir m hasani nc e nt i vet ode c r e as es uppl ynow a ndi nc r e as es uppl yi nt hef ut ur ei fi te xpe c t st ha t A)mor efir mswi l le nt e rt hemar ke ti nt hef ut ur e . B)t hepr i c e sofi nput sus e dt opr oduc ei t spr oduc twi l lr i s ei nt hef ut ur e . C)t hepr i c eofi t spr oduc twi l lbel owe ri nt hef ut ur et hani ti st oda y . D)t hepr i c eofi t spr oduc twi l lbehi ghe ri nt hef ut ur et hani ti st oda y . Ans we r :D Di ff: 2 Pa geRe f : 71 Topi c :Expe c t e dFut ur ePr i c e s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 45 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 50)Thes uppl yc ur vef orumbr e l l as A)s howst hes uppl yofumbr e l l asc ons ume r sar ewi l l i ngandabl et obuya tanygi ve npr i c e . B)i sdownwar ds l opi ng. C)s howst her e l a t i ons hi pbe t we e nt hequant i t yofumbr e l l asfir msar ewi l l i ngandabl et os uppl yand t hequant i t yofumbr e l l asc ons ume r sar ewi l l i ngandabl et opur c has e . D)s howst her e l a t i ons hi pbe t we e nt hepr i c eofumbr e l l asandt hequant i t yofumbr e l l ass uppl i e d. Ans we r :D Di ff: 1 Pa geRe f : 69 Topi c :Suppl yCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 51)Ani nc r e as ei nt hepr i c eofmus i cs t r e ami ngs e r vi c e swi l lr e s ul ti n A)as mal l e rquant i t yofmus i cs t r e ami ngs e r vi c e ss uppl i e d. B)al ar ge rquant i t yofmus i cs t r e ami ngs e r vi c e ss uppl i e d. C)ade c r e as ei nt hede mandf ormus i cs t r e ami ngs e r vi c e s . D)ani nc r e as ei nt hes uppl yofmus i cs t r e ami ngs e r vi c e s . Ans we r :B Di ff: 1 Pa geRe f : 6970 Topi c :Quant i t ySuppl i e d 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 52)Apos i t i vet e c hnol ogi c alc hangewi l lc aus et hequant i t ys uppl i e dofagoodt oi nc r e as e . Ans we r :F ALSE Di ff: 1 Pa geRe f : 71 Topi c :Te c hnol ogi c alChange 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 53)Ani nc r e as ei nquant i t ys uppl i e di sr e pr e s e nt e dbyar i ght war ds hi f toft hes uppl yc ur ve . Ans we r :F ALSE Di ff: 1 Pa geRe f : 7273 Topi c :Quant i t ySuppl i e d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 54)Ade c r e as ei nt hepr i c eofi nput swi l lc aus et hes uppl yc ur vef orapr oduc tt os hi f tt ot her i ght . Ans we r :TRUE Di ff: 1 Pa geRe f : 71 Topi c :Pr i c e sofI nput s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 46 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 55)Whe nal le l s ee qual ,ast hepr i c eofapr oduc tf al l s ,t hequant i t ys uppl i e dde c r e as e s . Ans we r :TRUE Di ff: 1 Pa geRe f : 6970 Topi c :La w ofSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 56)Wha tar et hefivemos ti mpor t antvar i abl e st ha ts hi f tt hemar ke ts uppl yc ur ve ? Ans we r :Pr i c e sofi nput s ;t e c hnol ogi c alc hange ;pr i c e sofs ubs t i t ut e si npr oduc t i on;t henumbe roffir ms i nt hemar ke t ;e xpe c t e df ut ur epr i c e s Di ff: 1 Pa geRe f : 71 Topi c :Suppl yCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 57)Woul dac hangei nt hepr i c eofi nl i nes ka t e sc aus eac hangei nt hes uppl yofi nl i nes ka t e s ?Whyor whynot ? Ans we r :No,ac hangei nt hepr i c eofi nl i nes ka t e swoul dnotc aus eac hangei nt hes uppl yofi nl i ne s ka t e s .Ra t he r ,i twoul dc aus ec hangei nquant i t ys uppl i e d.Suppl yc hange sonl ywhe nt he r ei sac hange i nanyvar i abl eot he rt hanpr i c et ha twoul da ffe c tt hes uppl yoft hegoodi nque s t i on. Di ff: 2 Pa geRe f : 7273 Topi c :Quant i t ySuppl i e d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 58)I ndi c a t ewhe t he re ac hoft hef ol l owi ngs i t ua t i onswoul ds hi f tt hes uppl yc ur vet ot hel e f t ,t ot he r i ght ,ornota tal l . a . ani nc r e as ei nt hepr i c eofani nput b. ani nc r e as ei npr oduc t i vi t y c . ani nc r e as ei nt hepr i c eofas ubs t i t ut ei npr oduc t i on d. ade c r e as ei nt hee xpe c t e df ut ur epr i c eofapr oduc t e . ade c r e as ei nt hec ur r e ntpr i c eoft hepr oduc t Ans we r : a .s hi f tt ot hel e f t b. s hi f tt ot her i ght c .s hi f tt ot hel e f t d. s hi f tt ot her i ght e . nos hi f t Di ff: 2 Pa geRe f : 71 Topi c :Suppl yCur ve s 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 47 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 3.3 Use a graph to illustrate market equilibrium 1)Whi c hoft hef ol l owi ngi st hec or r e c twa yt ode s c r i bee qui l i br i um i namar ke t ? A)Ate qui l i br i um,de mande qual ss uppl y . B)Ate qui l i br i um,quant i t yde mande de qual squant i t ys uppl i e d. C)Ate qui l i br i um,mar ke tf or c e snol onge rappl y . D)Ate qui l i br i um,s c ar c i t yi se l i mi na t e d. Ans we r :B Di ff: 1 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 2)Atapr oduc t ' se qui l i br i um pr i c e , A)t hepr oduc t ' sde mandc ur vei st hes ameast hepr oduc t ' ss uppl yc ur ve . B)t hequant i t yoft hepr oduc tde mande di sgr e a t e rt hant hequant i t yoft hepr oduc ts uppl i e d. C)t hequant i t yoft hepr oduc tde mande di sl e s st ha nt hequant i t yoft hepr oduc ts uppl i e d. D)t hepr oduc t ' sde mandc ur vec r os s e st hepr oduc t ' ss uppl yc ur ve . Ans we r :D Di ff: 1 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 48 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 5 3)Re f e rt oFi g ur e3. 5.Thefigur eaboves howst hes uppl yandde mandc ur ve sf ort womar ke t s :t he mar ke tf oror i gi nalPi c as s opai nt i ngsandt hemar ke tf orde s i gne rj e ans .Whi c hgr aphmos tl i ke l y r e pr e s e nt swhi c hmar ke t ? A)Gr aphBr e pr e s e nt st hemar ke tf oror i gi nalPi c as s opai nt i ngsandGr aphAr e pr e s e nt st hemar ke tf or de s i gne rj e ans . B)Gr aphAr e pr e s e nt st hemar ke tf oror i gi nalPi c as s opai nt i ngsandGr aphBr e pr e s e nt st hemar ke tf or de s i gne rj e ans . C)Gr aphAr e pr e s e nt sbot ht hemar ke tf oror i gi nalPi c as s opai nt i ngsandde s i gne rj e ans . D)Gr aphBr e pr e s e nt sbot ht hemar ke tf oror i gi nalPi c as s opai nt i ngsandde s i gne rj e ans . Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 4)I n2016,f or e s tfir e sf or c e dt hee vac ua t i onofFor tMc Mur r a y .Manyoft hos ee vac ua t e dwe ntt o Edmont on.Asar e s ul toft hee vac ua t i on,wha twoul dwee xpe c tt os e ei nt hemar ke tf orhot e lr oomsi n Edmont ona tt heor i gi nale qui l i br i um pr i c e ? A)as ur pl usofhot e lr ooms B)t hequant i t yde mande de qualt ot hequant i t ys uppl i e d C)as hor t a geofhot e lr ooms D)ani nc r e as ei nt hes uppl yofhot e lr ooms . Ans we r :C Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 49 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 6 5)Re f e rt oFi g ur e3. 6.I ft hepr i c ei s$10, A)t he r ewoul dbeas ur pl usof600uni t s . B)t he r ewoul dbeas hor t a geof600uni t s . C)t he r ewoul dbeas ur pl usof200uni t s . D)t he r ewoul dbeas hor t a geof200uni t s . Ans we r :B Di ff: 2 Pa geRe f : 7. 4 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 6)Re f e rt oFi g ur e3. 6.Atapr i c eof$10,how manyuni t swi l lbes ol d? A)200 B)400 C)600 D)800 Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 7)Re f e rt oFi g ur e3. 6.I ft hec ur r e ntmar ke tpr i c ei s$10,t hemar ke twi l lac hi e vee qui l i br i um by A)apr i c ei nc r e as e ,i nc r e as i ngt hes uppl yandde c r e as i ngt hede mand. B)apr i c ede c r e as e ,de c r e as i ngt hes uppl yandi nc r e as i ngt hede mand. C)apr i c ede c r e as e ,de c r e as i ngt hequant i t ys uppl i e dandi nc r e as i ngt hequant i t yde mande d. D)apr i c ei nc r e as e ,i nc r e as i ngt hequant i t ys uppl i e dandde c r e as i ngt hequant i t yde mande d. Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 50 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 7 8)Re f e rt oFi g ur e3. 7.Atapr i c eof$15, A)t he r ewoul dbeas ur pl usof4uni t s . B)t he r ewoul dbeas hor t a geof2uni t s . C)t he r ewoul dbeas ur pl usof6uni t s . D)t he r ewoul dbeas hor t a geof4uni t s . Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 9)Re f e rt oFi g ur e3. 7.Atapr i c eof$5,t hequant i t ys ol d A)i s2uni t s . B)i s4uni t s . C)i s6uni t s . D)c annotbede t e r mi ne d. Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 10)Re f e rt oFi g ur e3. 7.I naf r e emar ke ts uc hast ha tde pi c t e dabove ,as ur pl usi se l i mi na t e dby A)apr i c ei nc r e as e ,i nc r e as i ngt hes uppl yandde c r e as i ngt hede mand. B)apr i c ede c r e as e ,de c r e as i ngt hes uppl yandi nc r e as i ngt hede mand. C)apr i c ede c r e as e ,de c r e as i ngt hequant i t ys uppl i e dandi nc r e as i ngt hequant i t yde mande d. D)apr i c ei nc r e as e ,i nc r e as i ngt hequant i t ys uppl i e dandde c r e as i ngt hequant i t yde mande d. Ans we r :C Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 11)As s umet he r ei sas hor t a gei nt hemar ke tf ors mar tphone s .Whi c hoft hef ol l owi ngs t a t e me nt s c or r e c t l yde s c r i be st hi ss i t ua t i on? A)Thede mandf ors mar tphone si sl e s st hant hes uppl yofs mar tphone s . 51 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 B)Somec ons ume r swi l lbeunabl et oobt ai ns mar tphone sa tt hemar ke tpr i c eandwi l lha veani nc e nt i ve t ooffe rt obuyt hepr oduc ta tahi ghe rpr i c e . C)Thepr i c eofs mar tphone swi l lr i s ei nr e s pons et ot hes hor t a ge ;ast hepr i c er i s e st hequant i t y de mande dwi l li nc r e as eandt hequant i t ys uppl i e dwi l lde c r e as e . D)Thes hor t a gewi l lc aus eande c r e as ei nt hee qui l i br i um pr i c eofs mar tphone s . Ans we r :B Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 12)I nape r f e c t l yc ompe t i t i vemar ke t ,t he r ear e________buye r sand________s e l l e r s . A)many;f e w B)f e w;many C)many;many D)f e w;f e w Ans we r :C Di ff: 1 Pa geRe f : 74 Topi c :Pe r f e c t l yCompe t i t i veMar ke t Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 52 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 8 13)Re f e rt oFi g ur e3. 8.Thefigur eabover e pr e s e nt st hemar ke tf orc anvast ot eba gs .As s umet ha tt he mar ke tpr i c ei s$35.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)The r ei sas ur pl ust ha twi l lc aus et hepr i c et ode c r e as e ;quant i t yde mande dwi l lt he ni nc r e as eand quant i t ys uppl i e dwi l lde c r e as eunt i lt hepr i c ee qual s$25. B)The r ei sas ur pl ust ha twi l lc aus et hepr i c et ode c r e as e ;quant i t ys uppl i e dwi l lt he ni nc r e as eand quant i t yde mande dwi l lde c r e as eunt i lt hepr i c ee qual s$25. C)The r ewi l lbeas ur pl ust ha twi l lc aus et hepr i c et ode c r e as e ;de mandwi l lt he ni nc r e as eands uppl y wi l lde c r e as eunt i lt hepr i c ee qual s$25. D)The r ei sas ur pl ust ha twi l lc aus et hepr i c et oi nc r e as e ;quant i t yde mande dwi l lt he nde c r e as eand quant i t ys uppl i e dwi l li nc r e as eunt i lt hepr i c ee qual s$25. Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 14)Re f e rt oFi g ur e3. 8.Thefigur eabover e pr e s e nt st hemar ke tf orc anvast ot eba gs .As s umet ha tt he pr i c eoft ot eba gsi s$15.Att hi spr i c e , A)t hequant i t yde mande de x c e e dst hequant i t ys uppl i e doft ot eba gsby75.Thepr i c ewi l le ve nt ual l y r i s et o$25whe r equant i t yde mande dwi l le qualquant i t ys uppl i e d. B)t hede mande x c e e dst hes uppl yoft ot eba gsby55 .Somec ons ume r swi l lha veani nc e nt i vet ooffe rt o buyt ot eba gsa tahi ghe rpr i c e . C)t he r ei sas hor t a ge ,e qualt o55t ot eba gs ,t ha twi l lbee l i mi na t e dwhe nt hepr i c er i s e st o$25. D)t he r ei sas hor t a gee qualt o55t ot eba gs ;t hepr i c eoft ot eba gswi l lr i s eunt i lde mandi se qualt o s uppl y . Ans we r :C Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 53 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 15)Re f e rt oFi g ur e3. 8.Thefigur eabover e pr e s e nt st hemar ke tf orc anvast ot eba gs .As s umet ha tt he pr i c eoft ot eba gsi s$15.Att hi spr i c e , A)t hequant i t yde mande de x c e e dst hequant i t ys uppl i e doft ot eba gsby75.Thepr i c ewi l le ve nt ual l y r i s et o$25whe r equant i t yde mande dwi l le qualquant i t ys uppl i e d. B)t hede mande x c e e dst hes uppl yoft ot eba gsby55 .Somec ons ume r swi l lha veani nc e nt i vet ooffe rt o buyt ot eba gsa tahi ghe rpr i c e . C)t he r ei sas hor t a gee qualt o55t ot eba gs ;t hepr i c eoft ot eba gswi l lr i s eunt i lde mandi se qualt o s uppl y . D)t he r ei sas hor t a ge ,e qualt o55t ot eba gs ,t ha twi l lbee l i mi na t e dwhe nt hepr i c er i s e st o$25. Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 16)Re f e rt oFi g ur e3. 8.Thefigur eabover e pr e s e nt st hemar ke tf orc anvast ot eba gs .Compar et he c ondi t i onsi nt hemar ke twhe nt hepr i c ei s$50andwhe nt hepr i c ei s$35.Whi c hoft hef ol l owi ng de s c r i be show t hemar ke tdi ffe r sa tt he s epr i c e s ? A)Ate ac hpr i c et he r ei sas ur pl us ;t hes ur pl usi sgr e a t e ra t$35t hana t$50. B)Thedi ffe r e nc ebe t we e nquant i t ys uppl i e dandquant i t yde mande di sgr e a t e ra t$50t hana t$35. C)Ate ac hpr i c et he r ei sas ur pl us ;fir mswi l ll owe rt hee qui l i br i um pr i c ei nor de rt oe l i mi na t et he s ur pl us . D)Ate ac hpr i c et hes uppl yoft ot eba gse x c e e dst ha tde mandf ort ot eba gs . Ans we r :B Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 17)I f ,f orapr oduc t ,t hequant i t ys uppl i e de x c e e dst hequant i t yde mande d,t hemar ke tpr i c ewi l lf al l unt i l A)t hequant i t yde mande de x c e e dst hequant i t ys uppl i e d.Themar ke twi l lt he nbei ne qui l i br i um. B)quant i t yde mande de qual squant i t ys uppl i e d.Thee qui l i br i um pr i c ewi l lt he nbel owe rt hant he mar ke tpr i c e . C)al lc ons ume r swi l lbeabl et oa ffor dt hepr oduc t . D)quant i t yde mande de qual squant i t ys uppl i e d.Themar ke tpr i c ewi l lt he ne qualt hee qui l i br i um pr i c e . Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 54 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)Whi c hoft hef ol l owi ngi se vi de nc eofas ur pl usofbananas ? A)Fi r msr ai s et hepr i c eofbananas . B)Thepr i c eofbananasi sl owe r e di nor de rt oi nc r e as es al e s . C)Thee qui l i br i um pr i c eofbananasr i s e sduet oani nc r e as ei nde mand. D)Thequant i t yde mande dofbananasi sgr e a t e rt hant hequant i t ys uppl i e d. Ans we r :B Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 19)Atauc t i one xpe r t se xpe c taJ ac que sPl ant ehoc ke yc ar dt oge tahi ghe rpr i c et hanSi dne yCr os by' s r ooki ec ar d.Whi c hoft hef ol l owi nge ve nt swoul dc aus et hepr i c edi ffe r e nc ei nt he s ec ar dst oge ts mal l e r ? A)Thede mandf orCr os byc ar dsde c r e as e s . B)Thes uppl yofCr os byr ooki ec ar dsi nc r e as e s . C)Thede mandf orCr os byr ooki ec ar dsi nc r e as e sandt hes uppl yofPl ant ec ar dsi nc r e as e s . D)Thede mandf orCr os byr ooki ec ar dsde c r e as e sandt hede mandf orPl ant ec ar dsi nc r e as e s . Ans we r :C Di ff: 1 Pa geRe f : 7576 Topi c :La w ofDe mand Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:De mandandSuppl yBot hCount : A Tal eofTwoHoc ke yCar ds 20)Auc t i onsi nr e c e ntye ar sha ver e s ul t e di nhi ghe rpr i c e spai df orJ ac que sPl ant e( goal i e )hoc ke yc a r ds t hanSi dne yCr os by( f or war d)r ooki ec ar ds .Wha ti sar e as onf ort hi sdi ffe r e nc ei npr i c e ? A)The r ei sas ur pl usofPl ant ehoc ke yc ar dsandas hor t a geofCr os byr ooki ec ar ds . B)Manype opl ear emor ef as c i na t e dbyhoc ke ygoal i e st hanbyhoc ke yf or war ds . C)The r ear emor eCr os byr ooki ec ar dsa vai l abl ef orc ol l e c t or st obuyt hant he r ear ePl ant ec ar ds . D)Pl ant ewast hefir s tgoal i et owe aramas ki nagame ;t hede mandf orhi sc ar dsr os easwe al t hyf or me r goal i e sa t t e mpt e dt obuyt he m ast hanksf ors t i l lha vi ngt e e t h. Ans we r :C Di ff: 1 Pa geRe f : 7576 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:De mandandSuppl yBot hCount : A Tal eofTwoHoc ke yCar ds 21)I nr e s pons et oas ur pl ust hemar ke tpr i c eofagoodwi l lf al l ;ast hepr i c ef al l s ,t hequant i t yde mande d wi l li nc r e as eandquant i t ys uppl i e swi l lde c r e as eunt i le qui l i br i um i sr e ac he d. Ans we r :TRUE Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 55 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 22)Sc a r c i t yi sde fine dast hes i t ua t i ont ha te xi s t swhe nt hequant i t yde mande df oragoodi sgr e a t e rt han t hequant i t ys uppl i e d. Ans we r :F ALSE Di ff: 1 Pa geRe f : 74 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 23)Mar ke te qui l i br i um oc c ur swhe r es uppl ye qual sde mand. Ans we r :F ALSE Di ff: 1 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 24)Ne ar l yaquar t e rofChi na' s1. 3bi l l i onpe opl ear eunde rt hea geof15.How wi l lt hi sa ffe c thi ghs c hool e nr ol l me ntove rt hene xtfif t e e nye ar s ?Thel abourmar ke tove rt hene xtfif t e e nye ar s ? Ans we r :Thede mandf orhi ghs c hoole duc a t i onwi l li nc r e as e .Thes uppl yofl abourove rt hene xt15 ye ar swi l li nc r e as e . Di ff: 1 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 25)Cur r e nt l y ,Chi nabuysmor et han40% oft heCana di anc anol ac r op.I nt hes umme rof2016t he Chi ne s egove r nme ntwaspl anni ngt oi mpl e me ntpol i c i e st ha twoul ds e ve r e l yl i mi tt heabi l i t yof Canadi anf a r me r st os e l lc anol at oChi na .I fChi nawe r et os t opbuyi ngCanadi anc anol awha twoul d happe ni nt hemar ke tf orCanadi anc anol a? Ans we r :Thede mandc ur vef orCanadi anc anol awoul ds hi f tt ot hel e f tr e s ul t i ngi nal owe rmar ke tpr i c e f orCanadi anc anol a . Di ff: 2 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 26)I ft hepr i c eofapr oduc ti sabovee qui l i br i um,wha tf or c e si tdown? Ans we r :Whe nt hepr i c ei sabovee qui l i br i um,as ur pl usoc c ur s .Somepr oduc e r swhoar eunabl et os e l l t hepr oduc twi l lha veani nc e nt i vet ooffe rt os e l lt hepr oduc ta tal owe rpr i c e .Al owe rpr i c ewi l l s i mul t ane ous l yde c r e as et hequant i t ys uppl i e dandi nc r e as et hequant i t yde mande d.Thi sdownwar d pr e s s ur eonpr i c ec ont i nue sunt i lt hes ur pl usi se l i mi na t e dande qui l i br i um i sac hi e ve d. Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng 56 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e3. 3 Pr i c eper Bus he l $3 6 9 12 15 18 21 24 Quant i t y Demanded ( bus he l s ) 30, 000 26, 000 22, 000 18, 000 15, 000 12, 000 8, 000 4, 000 Quant i t y Suppl i ed ( bus he l s ) 0 4, 000 9, 000 12, 000 15, 000 22, 000 28, 000 36, 000 27)Re f e rt oTabl e3. 3.Thet abl ec ont ai nsi nf or ma t i onaboutt hec or nmar ke t .Us et het abl et oans we rt he f ol l owi ngque s t i ons . a . Wha tar et hee qui l i br i um pr i c eandquant i t yofc or n? b. Suppos et hepr e vai l i ngpr i c ei s$9pe rbus he l .I st he r eas hor t a georas ur pl usi nt hemar ke t ? c . Wha ti st hequant i t yoft hes hor t a geors ur pl us ? d. How manybus he l swi l lbes ol di ft hemar ke tpr i c ei s$9pe rbus he l ? e .I ft hemar ke tpr i c ei s$9pe rbus he l ,wha tmus thappe nt or e s t or ee qui l i br i um i nt hemar ke t ? f . Atwha tpr i c ewi l ls uppl i e r sbeabl et os e l l22, 000bus he l sofc or n? g. Suppos et hemar ke tpr i c ei s$21pe rbus he l .I st he r eas hor t a georas ur pl usi nt hemar ke t ? h. Wha ti st hequant i t yoft hes hor t a geors ur pl us ? i . How manybus he l swi l lbes ol di ft hemar ke tpr i c ei s$21pe rbus he l ? j . I ft hemar ke tpr i c ei s$21pe rbus he l ,wha tmus thappe nt or e s t or ee qui l i br i um i nt hemar ke t ? Ans we r : a . Equi l i br i um pr i c e=$15;Equi l i br i um quant i t y=15, 000bus he l s . b. The r ei sas hor t a ge . c . Shor t a ge=22, 000-9, 000=13, 000bus he l s . d. Quant i t ys ol d=9, 000bus he l s . e . Pr i c emus tr i s e . f . At$9pe rbus he l g. The r ei sas ur pl us . h. Sur pl us=28, 000-8, 000=20, 000bus he l s . i . Quant i t ys ol d=8, 000bus he l s . j . Pr i c emus tf al l . Di ff: 2 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Anal yt i cSki l l s 57 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 28)Atmar ke te qui l i br i um, A)de mande qual ss uppl y . B)quant i t yde mande de qual squant i t ys uppl i e d. C)s ur pl us e sar egr e a t e rt hans hor t a ge s . D)s hor t a ge sar egr e a t e rt hans ur pl us e s . Ans we r :B Di ff: 1 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 29)Atapr oduc t ' se qui l i br i um pr i c e , A)anyonewhone e dst hepr oduc twi l lbeabl et obuyt hepr oduc t ,r e gar dl e s sofabi l i t yt opa y . B)t hef e de r algove r nme ntwi l lpr ovi det hepr oduc tt oanyonewhoc annota ffor di t . C)notal ls e l l e r swhoar ewi l l i ngt oac c e ptt hepr i c ewi l lfindbuye r sf ort he i rpr oduc t s . D)anybuye rwhoi swi l l i ngandabl et opa yt hepr i c ewi l lfindas e l l e rf ort hepr oduc t . Ans we r :D Di ff: 1 Pa geRe f : 7374 Topi c :De mandvs .Quant i t yDe mande d 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 58 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 9 30)Re f e rt oFi g ur e3. 9.Thefigur eaboves howst hes uppl yandde mandc ur ve sf ort womar ke t s :t he mar ke tf oror i gi nalMi c he l ange l os c ul pt ur e sandt hemar ke tf orRa yBans ungl as s e s .Whi c hgr aphmos t l i ke l yr e pr e s e nt swhi c hmar ke t ? A)Gr aphBr e pr e s e nt st hemar ke tf oror i gi nalMi c he l ange l os c ul pt ur e sandGr aphAr e pr e s e nt st he mar ke tf orRa yBans ungl as s e s . B)Gr aphAr e pr e s e nt st hemar ke tf oror i gi nalMi c he l ange l os c ul pt ur e sandGr aphBr e pr e s e nt st he mar ke tf orRa yBans ungl as s e s . C)Gr aphAr e pr e s e nt sbot ht hemar ke tf oror i gi nalMi c he l ange l os c ul pt ur e sandf orRa yBans ungl as s e s . D)Gr aphBr e pr e s e nt sbot ht hemar ke tf oror i gi nalMi c he l ange l os c ul pt ur e sandf orRa yBans ungl as s e s . Ans we r :A Di ff: 2 Pa geRe f : 7374 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 31)I nt hes pr i ngof2016t he r ewasas e ve r ef or e s tfir ei nAl be r t a ,whi c hf or c e dt hee vac ua t i onofFor t Mc Mur r a yandt hes hutdownofmanyoi ls andsope r a t i ons .Asar e s ul t ,t he r ewasl e s sc r udeoi l pr oduc e di nAl be r t at hannor mal .Att hepr e fir ee qui l i br i um pr i c e( i . e . ,a tt hei ni t i ale qui l i br i um pr i c e ) , wewoul de xpe c tt os e e A)as ur pl usofgas ol i ne . B)t hequant i t yde mande de qualt ot hequant i t ys uppl i e d. C)as hor t a geofgas ol i ne . D)ani nc r e as ei nt hede mandf orgas ol i ne . Ans we r :C Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 59 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 10 32)Re f e rt oFi g ur e3. 10.I ft hepr i c ei s$25, A)t he r ewoul dbeas ur pl usof300uni t s . B)t he r ewoul dbeas hor t a geof300uni t s . C)t he r ewoul dbeas ur pl usof200uni t s . D)t he r ewoul dbeas hor t a geof200uni t s . Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 33)Re f e rt oFi g ur e3. 10.Atapr i c eof$25,how manyuni t swi l lbes ol d? A)400 B)500 C)600 D)800 Ans we r :B Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 34)Re f e rt oFi g ur e3. 10.I ft hec ur r e ntmar ke tpr i c ei s$25,t hemar ke twi l lac hi e vee qui l i br i um t hr ough A)apr i c ei nc r e as e ,i nc r e as i ngt hes uppl yandde c r e as i ngt hede mand. B)apr i c ede c r e as e ,de c r e as i ngt hes uppl yandi nc r e as i ngt hede mand. C)apr i c ede c r e as e ,de c r e as i ngt hequant i t ys uppl i e dandi nc r e as i ngt hequant i t yde mande d. D)apr i c ei nc r e as e ,i nc r e as i ngt hequant i t ys uppl i e dandde c r e as i ngt hequant i t yde mande d. Ans we r :C Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s Fi gur e3. 11 60 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 35)Re f e rt oFi g ur e3. 11.Atapr i c eof$5, A)t he r ewoul dbeas ur pl usof4uni t s . B)t he r ewoul dbeas c ar c i t yof4uni t s . C)t he r ewoul dbeas hor t a geof6uni t s . D)t he r ewoul dbeas hor t a geof4uni t s . Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 36)Re f e rt oFi g ur e3. 11.Atapr i c eof$15,t hequant i t ys ol d A)i s2uni t s . B)i s4uni t s . C)i s6uni t s . D)c annotbede t e r mi ne d. Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 61 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 37)Re f e rt oFi g ur e3. 11.I naf r e emar ke ts uc hast ha tde pi c t e dabove ,as hor t a gei se l i mi na t e dby A)apr i c ei nc r e as e ,i nc r e as i ngt hes uppl yandde c r e as i ngt hede mand. B)apr i c ede c r e as e ,de c r e as i ngt hes uppl yandi nc r e as i ngt hede mand. C)apr i c ede c r e as e ,de c r e as i ngt hequant i t ys uppl i e dandi nc r e as i ngt hequant i t yde mande d. D)apr i c ei nc r e as e ,i nc r e as i ngt hequant i t ys uppl i e dandde c r e as i ngt hequant i t yde mande d. Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 38)As s umet he r ei sas ur pl usi nt hemar ke tf orhybr i daut omobi l e s .Whi c hoft hef ol l owi ngs t a t e me nt s c or r e c t l yde s c r i be st hi ss i t ua t i on? A)Thes uppl yofhybr i daut omobi l e si sgr e a t e rt hant hede mandf orhybr i daut omobi l e s . B)Somec ons ume r swi l lbeunabl et oobt ai nhybr i daut omobi l e sa tt hemar ke tpr i c eandwi l lha vean i nc e nt i vet ooffe rt obuyt hepr oduc ta tahi ghe rpr i c e . C)Thepr i c eofhybr i daut omobi l e swi l lf al li nr e s pons et ot hes ur pl us ;ast hepr i c ef al l st hequant i t y de mande dwi l li nc r e as eandt hequant i t ys uppl i e dwi l lde c r e as e . D)Thes ur pl uswi l lc aus eani nc r e as ei nt hee qui l i br i um pr i c eofhybr i daut omobi l e s . Ans we r :C Di ff: 2 Pa geRe f : 74 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 39)Whi c hoft hef ol l owi ngde s c r i be sac har ac t e r i s t i cofape r f e c t l yc ompe t i t i vemar ke t ? A)The r ear emanybuye r sbutf e ws e l l e r s . B)The r ear emanys e l l e r sbutf e w buye r s . C)The r ear emanybuye r sands e l l e r s . D)Equi l i br i um i sac hi e ve dwhe nde mandf ort hepr oduc ts ol di nt hemar ke te qual st hes uppl y . Ans we r :C Di ff: 1 Pa geRe f : 7374 Topi c :Pe r f e c t l yCompe t i t i veMar ke t 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 62 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 12 40)Re f e rt oFi g ur e3. 12.Thefigur eabover e pr e s e nt st hemar ke tf orc offe egr i nde r s .As s umet ha tt he mar ke tpr i c ei s$21.Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)The r ei sas hor t a get ha twi l lc aus et hepr i c et oi nc r e as e ;quant i t yde mande dwi l lt he nde c r e as eand quant i t ys uppl i e dwi l li nc r e as eunt i lt hepr i c ee qual s$25. B)The r ei sas hor t a get ha twi l lc aus et hepr i c et oi nc r e as e ;quant i t ys uppl i e dwi l lt he nde c r e as eand quant i t yde mande dwi l li nc r e as eunt i lt hepr i c ee qual s$25. C)The r ei sas hor t a get ha twi l lc aus et hepr i c et oi nc r e as e ;de mandwi l lt he nde c r e as eands uppl ywi l l i nc r e as eunt i lt hepr i c ee qual s$25. D)The r ei sas hor t a get ha twi l lc aus et hepr i c et ode c r e as e ;quant i t yde mande dwi l lt he ni nc r e as eand quant i t ys uppl i e dwi l lde c r e as eunt i lt hepr i c ee qual s$25. Ans we r :A Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 41)Re f e rt oFi g ur e3. 12.Thefigur eabover e pr e s e nt st hemar ke tf orc offe egr i nde r s .As s umet ha tt he pr i c eofc offe egr i nde r si s$50.Att hi spr i c e A)t hequant i t ys uppl i e de x c e e dst hequant i t yde mande dby100.Thepr i c ewi l le ve nt ual l yf al lt o$25 whe r equant i t yde mande dwi l le qualquant i t ys uppl i e d. B)t hes uppl ye x c e e dsde mandby90.Somepr oduc e r swi l lha veani nc e nt i vet ooffe rt os e l lc offe e gr i nde r sa tal owe rpr i c e . C)t he r ei sas ur pl use qualt o90c offe egr i nde r st ha twi l lbee l i mi na t e dwhe nt hepr i c ef al l st o$25. D)t he r ei sas ur pl use qualt o90c offe egr i nde r s ,andt hepr i c eofc offe egr i nde r swi l lf al lunt i lde ma ndi s e qualt os uppl y . Ans we r :C Di ff: 3 Pa geRe f : 83 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 63 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 42)Re f e rt oFi g ur e3. 12.Thefigur eabover e pr e s e nt st hemar ke tf orc offe egr i nde r s .Compar et he c ondi t i onsi nt hemar ke twhe nt hepr i c ei s$15andwhe nt hepr i c ei s$21.Whi c hoft hef ol l owi ng de s c r i be show t hemar ke tdi ffe r sa tt he s epr i c e s ? A)Ate ac hpr i c et he r ei sas hor t a ge ;t hes hor t a gei sgr e a t e ra t$15t hana t$21. B)Thedi ffe r e nc ebe t we e nquant i t ys uppl i e dandquant i t yde mande di sgr e a t e ra t$21t hana t$15. C)Ate ac hpr i c et he r ei sas hor t a ge ;fir mswi l lr ai s et hee qui l i br i um pr i c ei nor de rt oe l i mi na t et he s hor t a ge . D)Ate ac hpr i c et hede mandf orc offe egr i nde r se x c e e dst hes uppl yofc offe egr i nde r s . Ans we r :A Di ff: 3 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 43)I ft hequant i t yde mande df orapr oduc te x c e e dst hequant i t ys uppl i e d,t hemar ke tpr i c ewi l lr i s e unt i l A)t hequant i t yde mande de qual st hequant i t ys uppl i e d.Thepr oduc twi l lt he nnol onge rbes c ar c e . B)quant i t yde mande de qual squant i t ys uppl i e d.Thee qui l i br i um pr i c ewi l lt he nbegr e a t e rt hant he mar ke tpr i c e . C)onl ywe al t hyc ons ume r swi l lbeabl et oa ffor dt hepr oduc t . D)quant i t yde mande de qual squant i t ys uppl i e d.Themar ke tpr i c ewi l lt he ne qualt hee qui l i br i um pr i c e . Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 44)Whi c hoft hef ol l owi ngi se vi de nc eofas hor t a geofc hoc ol a t e ? A)Fi r msl owe rt hepr i c eofc hoc ol a t e . B)Thepr i c eofc hoc ol a t ei sr ai s e di nor de rt oi nc r e as es al e s . C)Thee qui l i br i um pr i c eofc hoc ol a t ef al l sduet oade c r e as ei nde mand. D)Thequant i t yofc hoc ol a t ede mande di sgr e a t e rt hant hequant i t ys uppl i e d. Ans we r :D Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 64 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 45)Eve nwhe nt hede mandf oronegoodi shi gh,t hepr i c eoft hegoodi sal s oaffe c t e dbys uppl y .The t e xt booki l l us t r a t e st hi sbyc ompar i ngt hepr i c eoft woi t e ms .Whi c hoft hef ol l owi ngde s c r i be st heva l ue oft he s ei t e ms ? A)ASi dne yCr os byhoc ke yc ar ds ol df orahi ghe rpr i c et hanaJ ac que sPl ant ehoc ke yc ar d. B)ASi dne yCr os byhoc ke yc ar ds ol df orahi ghe rpr i c et hanaWa yneGr e t zs kyhoc ke yc ar d. C)AJ ac que sPl ant ehoc ke yc ar ds ol df orahi ghe rpr i c et hanat hanaPa t r i c kRoyhoc ke yc ar d. D)AJ ac que sPl ant ehoc ke yc ar ds ol df orahi ghe rpr i c et hanaSi dne yCr os byhoc ke yc ar d. Ans we r :D Di ff: 1 Pa geRe f : 7576 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:De mandandSuppl yBot hCount : A Tal eofTwoHoc ke yCar ds 46)I ft hede mandf orSi dne yCr os byhoc ke yc ar dsi sgr e a t e rt hant hede mandf orJ ac que sPl ant ehoc ke y c ar ds ,wha twoul dha vet obet r uef ort hemar ke te qui l i br i um pr i c e sf ort he s ehoc ke yc ar dst obee qual ? A)Thes uppl yofCr os byhoc ke yc ar dswoul dha vet obel e s st hant hes uppl yofPl ant ehoc ke yc ar ds . B)Thes uppl yofPl ant ehoc ke yc ar dswoul dha vet obel e s st hant hes uppl yofCr os byhoc ke yc ar ds . C)Thes uppl yofCr os byhoc ke yc ar dsandt hes uppl yofPl ant ehoc ke yc ar dswoul dha vet obee qual . D)I ft hede mandf orCr os byhoc ke yc ar dsi sgr e a t e rt hant hede mandf orPl ant ehoc ke yc ar ds ,t he mar ke te qui l i br i um pr i c ef orCr os byhoc ke yc ar dswi l lal wa ysbegr e a t e rt hant hemar ke te qui l i br i um pr i c ef orPl ant ehoc ke yc ar ds . Ans we r :B Di ff: 1 Pa geRe f : 7778 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:De mandandSuppl yBot hCount : A Tal eofTwoHoc ke yCar ds 47)Ne wt e c hnol ogywhi c hwoul dal l ow or di nar ywi ndowst ober e pl ac e dwi t hs ol a rc e l l swoul dha ve wha ti mpac tont hemar ke tf ors ol a re l e c t r i c i t y ,al le l s ee qual ? A)As hi f toft hes uppl yc ur vet ot her i ghtandani nc r e as ei npr i c e . B)As hi f ti nt hede mandc ur vet ot her i ghtandar e duc t i oni npr i c e . C)As hi f ti nt hes uppl yc ur vet ot hel e f tandani nc r e as ei npr i c e . D)As hi f ti nt hede mandc ur vet ot hel e f tandr e duc t i oni npr i c e . Ans we r :A Di ff: 1 Pa geRe f : 7778 Topi c :Mar ke tEqui l i br i um 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 3Us eagr apht oi l l us t r a t emar ke te qui l i br i um AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:I nvi s i bl eSol a rCe l l s 65 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 48)I nr e s pons et oas hor t a ge ,t hemar ke tpr i c eofagoodwi l lr i s e ;ast hepr i c er i s e s ,de mandwi l l de c r e as eands uppl ywi l li nc r e as eunt i le qui l i br i um i sr e ac he d. Ans we r :F ALSE Di ff: 2 Pa geRe f : 74 Topi c :Shor t a ge 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 49)As ur pl usi sde fine dast hes i t ua t i ont ha te xi s t swhe nt hequant i t yofagoods uppl i e di sgr e a t e rt han t hequant i t yde mande d. Ans we r :TRUE Di ff: 1 Pa geRe f : 74 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 50)Mar ke te qui l i br i um oc c ur swhe r et hequant i t ys uppl i e di se qualt ot hequant i t yde mande d. Ans we r :TRUE Di ff: 1 Pa geRe f : 74 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 66 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 51)Cons i de rt hec ol l e c t or s ' mar ke tf orfir s te di t i onsoft wopopul arc hi l dr e n' sbooks ,Ha r r yPo t t e ra ndt he Or de ro ft hePho e ni xbyJ .K.Rowl i ngandRub yi nt heSmo k ebyPhi l i pPul l man.Sal e soft heHar r yPot t e r nove lar emuc hgr e a t e rt hans al e sofRub yi nt heSmo k e ,ye tt hepr i c eoft heHar r yPot t e rnove li smuc h l owe rt hant hepr i c eofPul l man' snove l . a . Ononel ar gedi a gr am,dr a w ade mandands uppl ygr aphf orfir s te di t i onsofHa r r yPo t t e ra ndt he Or de ro ft hePho e ni xandanot he rde mandands uppl ygr aphf orfir s te di t i onsofRub yi nt heSmo k e . b. Show how i ti spos s i bl ef ort hepr i c eoft heHar r yPot t e rnove lt obemuc hl owe rt hant hepr i c eof Pul l man' snove l ,e ve nt hought hede mandf ort heHar r yPot t e rnove li smuc hgr e a t e rt hant hede mand f orRub yi nt heSmo k e . c . Pr ovi deawr i t t e ne xpl ana t i ont oac c ompanyyourgr aphi c ali l l us t r a t i on. Ans we r : a .andb.Se et hefigur ebe l ow. c . Thede mandf ort heHar r yPot t e rnove li smuc hgr e a t e rt hant hede mandf ort hePul l mannove lye t t hel a t t e rc ommandsahi ghe rpr i c e .Theonl ywa yt hi sc anbet r uei si ft hes uppl yoft heHar r yPot t e r booki smuc hgr e a t e rt hant hes uppl yoft hePul l mannove l .I nde e d,t hi si st r ue .Fol l owi ngt hes uc c e s sof e ar l i e rHar r yPot t e rnove l s ,t hepubl i s he ri nc r e as e dt hequant i t ys uppl i e doft hefir s te di t i onofJ .K. Rowl i ng' sl a t e rbook,Ha r r yPo t t e ra ndt heOr de ro ft hePho e ni x .Pul l man' snove l s ,ont heot he rhand,ha ve e nj oye donl ymode s ts uc c e s s . Di ff: 3 Pa geRe f : 7576 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:De mandandSuppl yBot hCount : A Tal eofTwoHoc ke yCar ds 67 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 52)I nmuc hofEur ope ,t hel e gala get oobt ai nadr i ve r ' sl i c e ns ei s18.I ft hel e galdr i vi nga gei nCanada wasc hange dt o18,how woul dt hi saffe c tt hemar ke tf orne w aut omobi l e sandt hemar ke tf oraut omobi l e i ns ur anc e ? Ans we r :Thede mandf orne w aut omobi l e swoul dde c r e as e ,aswoul dt hede mandf oraut omobi l e i ns ur anc e .( Thi si mpac tont hede mandf orne w aut omobi l e swoul dl i ke l ybeve r ys mal l ,wi t has l i ght l y l ar ge ri mpa c tont hemar ke tf oraut omobi l ei ns ur anc east heove r whe l mi ngma j or i t yofc a rowne r sar e ove r18ye ar sol d,asar emos tdr i ve r s . ) Di ff: 1 Pa geRe f : 7374 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 68 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Tabl e3. 4 Pr i c eper Bus he l $2 4 6 8 10 12 14 16 Quant i t y Demanded ( bus he l s ) 40, 000 36, 000 30, 000 24, 000 20, 000 18, 000 12, 000 6, 000 Quant i t y Suppl i ed ( bus he l s ) 0 4, 000 8, 000 16, 000 20, 000 28, 000 36, 000 40, 000 53)Re f e rt oTabl e3. 4.Thet abl ec ont ai nsi nf or ma t i onaboutt hes or ghum mar ke t .Us et het abl et oans we r t hef ol l owi ngque s t i ons . a . Wha tar et hee qui l i br i um pr i c eandquant i t yofs or ghum? b. Suppos et hepr e vai l i ngpr i c ei s$6pe rbus he l .I st he r eas hor t a georas ur pl usi nt hemar ke t ? c . Wha ti st hequant i t yoft hes hor t a geors ur pl us ? d. How manybus he l swi l lbes ol di ft hemar ke tpr i c ei s$6pe rbus he l ? e .I ft hemar ke tpr i c ei s$6pe rbus he l ,wha tmus thappe nt or e s t or ee qui l i br i um i nt hemar ke t ? f . Atwha tpr i c ewi l ls uppl i e r sbeabl et os e l l36, 000bus he l sofs or ghum? g. Suppos et hemar ke tpr i c ei s$14pe rbus he l .I st he r eas hor t a georas ur pl usi nt hemar ke t ? h. Wha ti st hequant i t yoft heaboves hor t a geors ur pl us ? i . How manybus he l swi l lbes ol di ft hemar ke tpr i c ei s$14pe rbus he l ? j . I ft hemar ke tpr i c ei s$14pe rbus he l ,wha tmus thappe nt or e s t or ee qui l i br i um i nt hemar ke t ? Ans we r : a .e qui l i br i um pr i c e=$10;e qui l i br i um quant i t y=2 0, 000bus he l s b.t he r ei sas hor t a ge c .s hor t a ge=30, 000-8, 000=22, 000bus he l s d.quant i t ys ol d=8, 000bus he l s e .pr i c emus tr i s e f .a t$4pe rbus he l g.t he r ei sas ur pl us h.s ur pl us=36, 000-12, 000=24, 000bus he l s i . quant i t ys ol d=12, 000bus he l s j . pr i c emus tf al l Di ff: 2 Pa geRe f : 83 Topi c :Mar ke tEqui l i br i um 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 69 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 3.4 Use demand and supply graphs to predict changes in prices and quantities 1)Le tD=de mand,S=s uppl y ,P=e qui l i br i um pr i c e ,Q=e qui l i br i um quant i t y .Wha thappe nsi nt he mar ke tf ort r opi c alhar dwoodt r e e si ft hegove r nme nt sr e s t r i c tt heamountoff or e s tl andst ha tc anbe l ogge d? A)Dde c r e as e s ,Snoc hange ,PandQ de c r e as e B)Sde c r e as e s ,D noc hange ,Pi nc r e as e s ,Qde c r e as e s C)DandSde c r e as e ,PandQ i nc r e as e D)D noc hange ,Sde c r e as e s ,Pi nc r e as e s ,Qi nc r e as e s Ans we r :B Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 2)I n2016,Canadi anwhe a tandbar l e yc r opspr oduc e dmor egr ai nt hant he yus ual l ydo.I nt hemar ke t f orgr ai ns , A)t hes uppl yc ur ves hi f t e dt ot her i ght ,r e s ul t i ngi nande c r e as ei nt hee qui l i br i um pr i c e . B)t hes uppl yc ur ves hi f t e dt ot hel e f t ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um pr i c e . C)t hede mandc ur ves hi f t e dt ot her i ght ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um pr i c e . D)t hede mandc ur ves hi f t e dt ot hel e f t ,r e s ul t i ngi nade c r e as ei nt hee qui l i br i um pr i c e . Ans we r :A Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 3)Ol i veoi lpr oduc e r swantt os e l lmor eol i veoi la tahi ghe rpr i c e .Whi c hoft hef ol l owi nge ve nt swoul d ha vet hi se ffe c t ? A)ani nc r e as ei nt hepr i c eofol i veoi lpr e s s e s B)ade c r e as ei nt hec os toft r ans por t i ngol i veoi lt omar ke t s C)ani nc r e as ei nt hepr i c eofl andus e dt opl antol i ve s D)Re s e ar c hfindst ha tc ons umpt i onofol i veoi lr e duc e st her i s kofhe ar tdi s e as e . Ans we r :D Di ff: 3 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 4)Whi c hoft hef ol l owi ngwoul dc aus ebot ht hee qui l i br i um pr i c eande qui l i br i um quant i t yofc ot t on ( as s umet ha tc ot t oni sanor malgood)t oi nc r e as e ? A)ani nc r e as ei nc ons ume ri nc ome B)adr oughtt ha ts har pl yr e duc e sc ot t onout put C)ade c r e as ei nc ons ume ri nc ome D)unus ual l ygoodwe a t he rt ha tr e s ul t si nabumpe rc r opofc ot t on Ans we r :A Di ff: 3 Pa geRe f : 78 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 5)Whi c hoft hef ol l owi ngwoul dc aus et hee qui l i br i um pr i c eofwhi t ebr e adt ode c r e as eandt he e qui l i br i um quant i t yofwhi t ebr e adt oi nc r e as e ? A)ade c r e as ei nt hepr i c eofflour B)ani nc r e as ei nt hepr i c eofflour 70 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 C)ani nc r e as ei nt hepr i c eofr yebr e ad,as ubs t i t ut ef orwhi t ebr e ad D)ani nc r e as ei nt hepr i c eofbut t e r ,ac ompl e me ntf orwhi t ebr e ad Ans we r :A Di ff: 3 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 6)As s umet ha tt hehour l ypr i c ef ort hes e r vi c e soft ar otc ar dr e ade r shasr i s e nands al e soft he s es e r vi c e s ha veal s or i s e n.Onec anc onc l udet ha t A)t hel a w ofde mandhasbe e nvi ol a t e d. B)t henumbe roft ar otc ar dr e ade r shasi nc r e as e d. C)t hede mandf ort a r otc ar dr e ade r shasi nc r e as e d. D)t ar otc ar dr e ade r sar ede l i be r a t e l yc har gi nghi ghpr i c e sbe c aus et he ypr ovi des e r vi c e sf or s upe r s t i t i ousc l i e nt s . Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 7)Pr i c e sofBCMe r l otwi ne( as s umet ha tt hi si sanor malgood)ha ver i s e ns t e adi l yi nr e c e ntye ar s .Ove r t hi ss amepe r i od,pr i c e sf orFr e nc hoakbar r e l sus e df orwi nes t or a geha vedr oppe dandc ons ume r i nc ome sha ver i s e n.Whi c hoft hef ol l owi ngbe s te xpl ai nst her i s i ngpr i c e sofBCMe r l ot s ? A)Thes uppl yc ur vef orMe r l othass hi f t e dt ot her i ghtwhi l et hede mandc ur vef orMe r l othass hi f t e dt o t hel e f t . B)Thede mandc ur vef orMe r l othass hi f t e dt ot her i ghtmor et hant hes uppl yc ur vehass hi f t e dt ot he r i ght . C)Thede mandc ur veandt hes uppl yc ur vef orMe r l otha vebot hs hi f t e dt ot hel e f t . D)Thes uppl yc ur vef orMe r l othass hi f t e dt ot her i ghtmor et hant hede mandc ur vehass hi f t e dt ot he r i ght . Ans we r :B Di ff: 3 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 71 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 8)I nr e c e ntye ar st hec os tofpr oduc i ngor gani cpr oduc ei nCanadahasde c r e as e dl ar ge l yduet o t e c hnol ogi c aladvanc e me nt .Att hes amet i me ,mor ea ndmor eCanadi anspr e f e ror gani cpr oduc eove r c onve nt i onalpr oduc e .Whi c hoft hef ol l owi ngbe s te xpl ai nst hee ffe c toft he s ee ve nt si nt heor gani c pr oduc emar ke t ? A)Thes uppl yc ur vehass hi f t e dt ot hel e f tandt hede mandc ur vehass hi f t e dt ot her i ght .Asar e s ul t t he r ehasbe e nani nc r e as ei nt hee qui l i br i um quant i t yandanunc e r t ai ne ffe c tont hee qui l i br i um pr i c e . B)Bot ht hes uppl yandde mandc ur ve sha ves hi f t e dt ot her i ght .Asar e s ul t ,t he r ehasbe e nani nc r e as e i nt hee qui l i br i um quant i t yandanunc e r t ai ne ffe c tont hee qui l i br i um pr i c e . C)Bot ht hes uppl yandde mandc ur ve sha ves hi f t e dt ot her i ght .Asar e s ul t ,t he r ehasbe e nani nc r e as e i nbot ht hee qui l i br i um pr i c eandt hee qui l i br i um quant i t y . D)Thes uppl yc ur vehass hi f t e dt ot hel e f tandt hede mandc ur vehass hi f t e dt ot her i ght .Asar e s ul t , t he r ehasbe e nani nc r e as ei nt hee qui l i br i um pr i c eandanunc e r t ai ne ffe c tont hee qui l i br i um quant i t y . Ans we r :B Di ff: 3 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 9)Anar t i c l ei nt heWa l lSt r e e tJ o ur na li ne ar l y2001not e dt wode ve l opme nt si nt hemar ke tf orl as e re ye s ur ge r y .Thefir s tde ve l opme ntc onc e r ne ds i dee ffe c t sf r om t hes ur ge r y ,i nc l udi ngbl ur r e dvi s i on.The s e c ondde ve l opme ntwast ha tt hec ompani e sr e nt i nge ye s ur ge r ymac hi ne r yt odoc t or shadr e duc e d t he i rc har ge s .I nt hemar ke tf orl as e re yes ur ge r i e s ,t he s et wode ve l opme nt s A)de c r e as e dde mandandde c r e as e ds uppl y ,r e s ul t i ngi nade c r e as ei nt hee qui l i br i um quant i t yandan i nc r e as ei nt hee qui l i br i um pr i c eofl as e re yes ur ge r i e s . B)de c r e as e dde mandandi nc r e as e ds uppl y ,r e s ul t i ngi nani nc r e as ei nbot ht hee qui l i br i um quant i t y andt hee qui l i br i um pr i c eofl as e re yes ur ge r i e s . C)de c r e as e dde mandandi nc r e as e ds uppl y ,r e s ul t i ngi nade c r e as ei nt hee qui l i br i um pr i c eandan unc e r t ai ne ffe c tont hee qui l i br i um quant i t yofl as e re yes ur ge r i e s . D)de c r e as e dde mandandi nc r e as e ds uppl y ,r e s ul t i ngi nade c r e as ei nbot ht hee qui l i br i um pr i c eand t hee qui l i br i um quant i t yofl as e re yes ur ge r i e s . Ans we r :C Di ff: 3 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 10)Ani nc r e as ei nt hede mandf orl obs t e rduet oc hange si nc ons ume rt as t e s ,ac c ompani e dbyade c r e as e i nt hes uppl yofl obs t e rasar e s ul tofbadwe a t he rr e duc i ngt henumbe roffis he r me nt r appi ngl obs t e r , wi l lr e s ul ti n A)ade c r e as ei nt hee qui l i br i um quant i t yofl obs t e randnoc hangei nt hee qui l i br i um pr i c e . B)ani nc r e as ei nt hee qui l i br i um pr i c eofl obs t e randnoc hangei nt hee qui l i br i um quant i t y . C)ani nc r e as ei nt hee qui l i br i um pr i c eofl obs t e r ;t hee qui l i br i um quant i t yma yi nc r e as eorde c r e as e . D)ade c r e as ei nt hee qui l i br i um quant i t yofl obs t e r ;t hee qui l i br i um pr i c ema yi nc r e as eorde c r e as e . Ans we r :C Di ff: 3 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Hi ghDe mandandLow Pr i c e si nt heLobs t e rMar ke t ? Fi gur e3. 13 72 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 11)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orbi c yc l ehe l me t s .Whi c hpane lbe s tde s c r i be swha thappe nsi nt hi smar ke ti ft he r ei sas ubs t ant i al i nc r e as ei nt hepr i c eofbi c yc l e s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :D Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 73 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 12)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orwome n' sc l ot hi ng.Whi c hpane lbe s tde s c r i be swha thappe nsi nt hi smar ke twhe nt hewa ge sof s e ams t r e s s e sr i s e ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :B Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 13)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f oral monds .Whi c hpane lbe s tde s c r i be swha thappe nsi nt hi smar ke twhe nt he r ei sani nc r e as ei nt he pr oduc t i vi t yofal mondhar ve s t e r s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :A Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 14)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orFr ui t opi a ,as of tdr i nk.Whi c hpane lde s c r i be swha thappe nsi nt hemar ke tf orFr ui t opi awhe nt he pr i c eofSnappl e ,as ubs t i t ut epr oduc t ,de c r e as e s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :D Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 74 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 15)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orpot a t oe sandt ha ts t e akandpot a t oe sar ec ompl e me nt s .Wha tpane lde s c r i be swha thappe nsi nt hi s mar ke twhe nt hepr i c eofs t e akr i s e s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :D Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 16)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orr i c e .Wha thappe nsi nt hi smar ke ti fbuye r se xpe c tt hepr i c eofr i c et of al l ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :D Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 17)Re f e rt oFi g ur e3. 13.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orus e dc l ot hi ng,ani nf e r i orgood.Whi c hpane lde s c r i be swha thappe nsi nt hi smar ke tasar e s ul tofa de c r e as ei ni nc ome ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :C Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 75 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 18)Pos i t i vet e c hnol ogi c alc hangei nt hepr oduc t i onofLCDt e l e vi s i onsc aus e dt hepr i c eofLCD t e l e vi s i onst of al l .Hol di nge ve r yt hi nge l s ec ons t a nt ,how woul dt hi sa ffe c tt hemar ke tf orBl ur a ypl a ye r s ( ac ompl e me ntt oLCDt e l e vi s i ons ) ? A)Thes uppl yofbl ur a ypl a ye r swoul di nc r e as eandt hee qui l i br i um pr i c eofbl ur a ypl a ye r swoul d de c r e as e . B)Thede mandf orbl ur a ypl a ye r swoul di nc r e as eandt hee qui l i br i um pr i c eofbl ur a ypl a ye r swoul d i nc r e as e . C)Thede mandf orbl ur a ypl a ye r swoul dde c r e as ebe c aus ec ons ume r sc oul da ffor dt obuyf e we rLCD t e l e vi s i onsandbl ur a ypl a ye r s . D)Thede mandf orbl ur a ypl a ye r swoul di nc r e as eandt hee qui l i br i um pr i c eofbl ur a ypl a ye r swoul d de c r e as e . Ans we r :B Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 19)As s umet ha tbot ht hede mandc ur veandt hes uppl yc ur vef ors mar tphone ss hi f tt ot her i ghtbutt he de mandc ur ves hi f t smor et hant hes uppl yc ur ve .Asar e s ul t A)bot ht hee qui l i br i um pr i c eandquant i t yofs mar tphone swi l li nc r e as e . B)t hee qui l i br i um pr i c eofs mar tphone swi l li nc r e as e ;t hee qui l i br i um quant i t yma yi nc r e as eor de c r e as e . C)t hee qui l i br i um pr i c eofs mar tphone sma yi nc r e as eorde c r e as e ;t hee qui l i br i um quant i t ywi l l i nc r e as e . D)t hee qui l i br i um pr i c eofs mar tphone swi l lde c r e as e ;t hee qui l i br i um quant i t yma yi nc r e as eor de c r e as e . Ans we r :A Di ff: 3 Pa geRe f : 7879 Topi c :Shi f t si nDe mandandSuppl y 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 76 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 20)" Thepr i c eofc ompac tLEDl i ght sf e l lbe c aus eofi mpr ove me nt si npr oduc t i ont e c hnol ogy .Asar e s ul t , t hede mandf ori nc ande s c e ntl i ghtbul bsde c r e as e d.Thi sc aus e dt hepr i c eofi nc ande s c e ntl i ghtbul bst o f al l ;ast hepr i c eofi nc ande s c e ntl i ghtbul bsf e l lt hede mandf ori nc ande s c e ntl i ghtbul bsde c r e as e de ve n f ur t he r . "Eval ua t et hi ss t a t e me nt . A)Thes t a t e me nti sf al s e .Ade c r e as ei nt hepr i c eofc ompac tLEDl i ght swoul dde c r e as et hede mandf or i nc ande s c e ntl i ghtbul bs ,butade c r e as ei nt hepr i c eofi nc ande s c e ntl i ghtbul bswoul dnotc aus et he de mandf ori nc ande s c e ntl i ghtbul bst ode c r e as e . B)Thes t a t e me nti sf al s ebe c aus et hede mandf ori nc ande s c e ntl i ghtbul bswoul di nc r e as east hepr i c eof c ompac tLEDl i ght sf e l l . C)Thes t a t e me nti sf al s ebe c aus ec ompac tLEDl i ght spr oduc e r swoul dnotr e duc et he i rpr i c e sasar e s ul t ofi mpr ove me nt si nt e c hnol ogy;doi ngs owoul dr e duc et he i rpr ofit s . D)Thes t a t e me nti sf al s ebe c aus ei tc onf us e st hel a w ofde mandwi t ht hel a w ofs uppl y . Ans we r :A Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mand 2CE:Ne wt o2 CE Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s Fi gur e3. 14 21)Re f e rt oFi g ur e3. 14.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf orappl e sa tt hei nt e r s e c t i onofD1andS1( poi ntA) .I ft hepr i c eofor ange s ,as ubs t i t ut ef or appl e s ,de c r e as e sandt hewa ge sofappl ewor ke r si nc r e as e ,how wi l lt hee qui l i br i um poi ntc hange ? A)Thee qui l i br i um poi ntwi l lmovef r om At oE. B)Thee qui l i br i um poi ntwi l lmovef r om At oB. C)Thee qui l i br i um poi ntwi l lmovef r om At oC. D)Thee qui l i br i um wi l lfir s tmovef r om At oB,t he nr e t ur nt oA. Ans we r :A Di ff: 3 Pa geRe f : 7879 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 77 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 22)Re f e rt oFi g ur e3. 14.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf orappl e sa tt hei nt e r s e c t i onofD1andS1( poi ntA) .I fwor mse a thal ft heappl ec r op,how wi l l t hemar ke te qui l i br i um poi ntc hange ? A)Thee qui l i br i um poi ntwi l lmovef r om At oB. B)Thee qui l i br i um poi ntwi l lmovef r om At oC. C)The r ewi l lbenoc hangei nt hee qui l i br i um poi nt . D)Thee qui l i br i um poi ntwi l lmovef r om At oE. Ans we r :A Di ff: 2 Pa geRe f : 7879 Topi c :Shor t a ge Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 23)Re f e rt oFi g ur e3. 14.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf orappl e sa tt hei nt e r s e c t i onofD2andS2( poi ntE) .Whi c hoft hef ol l owi ngc hange swoul dc aus e t hee qui l i br i um t oc hanget opoi ntA? A)apos i t i vec hangei nt het e c hnol ogyus e dt opr oduc eappl e sandde c r e as ei nt hepr i c eofor ange s ,a s ubs t i t ut ef orappl e s B)ani nc r e as ei nt hewa ge sofappl ewor ke r sandade c r e as ei nt hepr i c eofor ange s ,as ubs t i t ut ef or appl e s C)ani nc r e as ei nt henumbe rofappl epr oduc e r sandade c r e as ei nt henumbe rofappl et r e e sasar e s ul t ofdi s e as e D)ade c r e as ei nt hewa ge sofappl ewor ke r sandani nc r e as ei nt hepr i c eofor ange s ,as ubs t i t ut ef or appl e s Ans we r :D Di ff: 3 Pa geRe f : 7879 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 24)Re f e rt oFi g ur e3. 14.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf orappl e sa tt hei nt e r s e c t i onofD1andS1( poi ntA) .I ft he r ei sani nc r e as ei nt hewa ge sofappl e wor ke r sandani nc r e as ei nt hepr i c eofor ange s ,as ubs t i t ut ef orappl e s ,t hee qui l i br i um c oul dmovet o whi c hpoi nt ? A)noneoft hepoi nt ss hown B)B C)C D)E Ans we r :A Di ff: 3 Pa geRe f : 7879 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 78 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 25)Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)Ani nc r e as ei nde mandc aus e sac hangei ne qui l i br i um pr i c e ;t hec hangei npr i c edoe snotc aus ea f ur t he rc hangei nde mandors uppl y . B)Ade c r e as ei ns uppl yc aus e se qui l i br i um pr i c et or i s e ;t hei nc r e as ei npr i c et he nr e s ul t si nade c r e as e i nde mand. C)I fbot hde mandands uppl yi nc r e as e ,t he r emus tbeani nc r e as ei ne qui l i br i um pr i c e ;e qui l i br i um quant i t yma ye i t he ri nc r e as eorde c r e as e . D)I fde mandde c r e as e sands uppl yi nc r e as e s ,onec annotde t e r mi nei fe qui l i br i um pr i c ewi l li nc r e as eor de c r e as ewi t houtknowi ngwhi c hc hangei sgr e a t e r . Ans we r :A Di ff: 3 Pa geRe f : 78 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 26)Ade c r e as ei nt hee qui l i br i um pr i c ef orapr oduc twi l lr e s ul t A)whe nt hequant i t yde mande df ort hepr oduc te x c e e dst hequant i t ys uppl i e d. B)whe nt he r ei sade c r e as ei ns uppl yandade c r e as ei nde mandf ort hepr oduc t . C)whe nt he r ei sani nc r e as ei ns uppl yandade c r e as ei nde mandf ort hepr oduc t . D)whe nt he r ei sade c r e as ei nde mandandade c r e as ei nt henumbe roffir mspr oduc i ngt hepr oduc t . Ans we r :C Di ff: 2 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 27)Hur r i c aneJ uanhi tHal i f axi n2003.Thes t or m di dove r$300mi l l i oni ndama ge .I nt hee ffor tt or e pai r t hedama gedonebyt hes t or m,t hepr i c e sofbas i cbui l di ngma t e r i al sandc ont r ac t or si nc r e as e d dr ama t i c al l y .Manyr e s i de nt sc ompl ai ne dofpr ofit e e r i ngandpr i c egougi ngbyc ont r ac t or sandhome i mpr ove me nts t or e s .Whi c hoft hef ol l owi ngoffe r st hebe s te xpl ana t i onoft hepr i c ei nc r e as e spe opl e we r es e e i ng? A)Thehur r i c aner e duc e dt henumbe rofs uppl i e r sofbui l di ngma t e r i al s . B)Thehur r i c anec r e a t e danar t i fic i als hor t a geofbui l di ngma t e r i al s . C)Thehur r i c anec aus e dani nc r e as ei nt hede mandf orbui l di ngma t e r i al s . D)The r ewasar e duc t i oni ns uppl yasfir mss hi ppe dpl ywoodandot he rma t e r i al st ol oc a t i onsnot affe c t e dbyt hes t or m. Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 79 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 28)Whi c hoft hef ol l owi ngwoul dc aus eade c r e as ei nt hee qui l i br i um pr i c eandani nc r e as ei nt he e qui l i br i um quant i t yofs al mon? A)ade c r e as ei nde mandgr e a t e rt hant hei nc r e as ei ns uppl y B)ani nc r e as ei ns uppl y C)ani nc r e as ei ns uppl yandani nc r e as ei nde mandgr e a t e rt hant hei nc r e as ei ns uppl y D)ade c r e as ei nde mandandade c r e as ei ns uppl y Ans we r :B Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 29)Se l e c tt hephr as et ha tc or r e c t l yc ompl e t e st hef ol l owi ngs t a t e me nt ." Apos i t i vec hangei nt e c hnol ogy c aus e dani nc r e as ei nt hes uppl yoffla t s c r e e nt e l e vi s i ons .Asar e s ul t ,________. " A)t hepr i c eoffla t s c r e e nt e l e vi s i onsde c r e as e dandt hede mandf orfla t s c r e e nt e l e vi s i onsi nc r e as e d B)t hee qui l i br i um quant i t yoffla t s c r e e nt e l e vi s i onsde c r e as e d C)t hepr i c eoffla t s c r e e nt e l e vi s i onsde c r e as e dandt hequant i t yde mande doffla t s c r e e nt e l e vi s i ons i nc r e as e d D)t hepr i c eoffla t s c r e e nt e l e vi s i onsde c r e as e d,a ndt hel owe rpr i c ec aus e dt hes uppl yoffla t s c r e e n t e l e vi s i onst ode c r e as e Ans we r :C Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 30)Wha twoul dhappe ni nt hemar ke tf orl as e re yes ur ge r yi fpr ovi nc i alhe al t hpl anss t ar t e dt oc ove ra por t i onoft hepr i c eofvol unt ar ypr oc e dur e s ? A)De mandwi l li nc r e as e ,butt hi swi l lnots hi f tt hes uppl yc ur ve . B)Suppl ywi l li nc r e as e ,butt hi swi l lnots hi f tt hede mandc ur ve . C)De mandands uppl ywi l lbot hi nc r e as e . D)De mandwi l li nc r e as eands uppl ywi l lde c r e as e . Ans we r :A Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 31)I fpr ovi nc e sde c i det oc ove rpar toft hepr i c eofvol unt ar yl as e re yes ur ge r yandmor edoc t or sde c i de t oe nt e rt hefie l dofl as e re yes ur ge r y ,wha twi l lhappe ni nt hemar ke tf orl as e re yes ur ge r yasar e s ul tof t he s et wof a c t or s ? A)De mandwi l li nc r e as e ,butt he s et wof ac t or swi l lnots hi f tt hes uppl yc ur ve . B)Suppl ywi l li nc r e as e ,butt he s et wof ac t or swi l lnots hi f tt hede mandc ur ve . C)De mandands uppl ywi l lbot hi nc r e as e . D)De mandwi l li nc r e as eands uppl ywi l lde c r e as e . Ans we r :C Di ff: 2 Pa geRe f : 7879 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 32)Phot ovol t ai cc e l l s( s ol arpane l s )ha vebe e ni nus es i nc et he1970s .Re c e nt l y ,ne wt e c hnol ogyhasbe e n de ve l ope dwhi c hs omet hi nkwi l lal l ow r e gul arwi ndowst ober e pl ac e dwi t hs ol arpane l s .I ft hi s t e c hnol ogywor ksast he s epe opl ee xpe c twha twi l lhappe ni nt hemar ke tf ors ol are ne r gy? A)Thene wt e c hnol ogywi l lc aus et hes uppl yofs ol a re ne r gyt os hi f tt ot her i ghtandt hepr i c eofs ol a r e ne r gyt of al l . 80 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 B)Thene wt e c hnol ogyc aus e dani nc r e as ei nt hes uppl yofs ol are ne r gyandani nc r e as ei nt hepr i c eof s ol are ne r gy . C)Thene wt e c hnol ogyc aus e dade c r e as ei nt hede ma ndf ors ol a re ne r gy . D)Thene wt e c hnol ogyc aus e dani nc r e as ei nt hequa nt i t yofs ol a re ne r gys uppl i e d. Ans we r :A Di ff: 2 Pa geRe f : 7778 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheFal l i ngPr i c eofs ol are ne r gys 33)" Be c aus eappl e sandor ange sar es ubs t i t ut e s ,ani nc r e as ei nt hepr i c eofor ange swi l lc aus et he de mandf orappl e st oi nc r e as e .Thi si ni t i als hi f ti nde mandf orappl e sr e s ul t si nahi ghe rpr i c ef ora ppl e s ; t hi shi ghe rpr i c ewi l lc aus et hede mandc ur vef ora ppl e st os hi f tt ot her i ght . "Whi c hoft hef ol l owi ng c or r e c t l yc omme nt sont hi ss t a t e me nt ? A)Thes t a t e me ntwi l lbet r uei fc ons ume rt as t e sf orappl e sandor ange sdonotc hange . B)Thes t a t e me nti sf al s ebe c aus eac hangei nt hepr i c eofappl e swoul dnotc hanget hede mandf or appl e s . C)Thes t a t e me nti sf al s ebe c aus eor ange sar ei nf e r i orgoods ;appl e sar enor malgoods . D)Thes t a t e me nti sf al s ebe c aus eonec annotas s umet ha tappl e sandor ange sar es ubs t i t ut e sf oral l c ons ume r s . Ans we r :B Di ff: 2 Pa geRe f : 81 Topi c :Shi f t si nDe mand Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Don' tLe tThi sHappe nt oYou:Re me mbe r :A Changei naGood' sPr i c eDoe sNotCaus et heDe mand orSuppl yCur vet oShi f t 34)Thede mandf orl obs t e ri shi ghe ra tChr i s t mast hani nFe br uar y .I ft hee qui l i br i um pr i c eofl obs t e ri s l owe ra tChr i s t mast hani nFe br uar y ,t he n A)t hes uppl yofl obs t e ri sl owe ri nFe br uar yt hana tChr i s t mas . B)c ons ume r s ' t as t e sf orl obs t e rar egr e a t e ri nFe br uar yt hana tChr i s t mas . C)t he r ei sas ur pl usofl obs t e ra tChr i s t masandas hor t a geofl obs t e ri nFe br uar y . D)t he r ear emor es ubs t i t ut e sf orl obs t e ra tChr i s t mast hant he r ear ei nFe br uar y . Ans we r :A Di ff: 2 Pa geRe f : 8081 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s Spe c i alFe a t ur e :Sol ve dPr obl e m:Hi ghDe mandandLow Pr i c e si nt heLobs t e rMar ke t ? 81 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 35)Al le l s ee qual ,ani nc r e as ei nt henumbe roffir mspr oduc i nge ne r gydr i nkswi l l A)s hi f tt hes uppl yc ur vef ore ne r gydr i nkst ot her i ght . B)s hi f tt hes uppl yc ur vef ore ne r gydr i nkst ot hel e f t . C)s hi f tt hede mandc ur vef ore ne r gydr i nkst ot her i ght . D)s hi f tt hede mandc ur vef ore ne r gydr i nkst ot hel e f t . Ans we r :B Di ff: 2 Pa geRe f : 8485 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Chapt e rOpe ne r :TheMar ke tf orEne r gyDr i nks 36)Al le l s ee qual ,as uc c e s s f ulmar ke t i ngc ampai gnf ore ne r gydr i nkswoul dc aus et hee qui l i br i um pr i c e ofe ne r gydr i nkst o________andt hee qui l i br i um quant i t yofe ne r gydr i nkst o________. A)i nc r e as e ;i nc r e as e B)i nc r e as e ;de c r e as e C)de c r e as e ;i nc r e as e D)de c r e as e ;de c r e as e Ans we r :A Di ff: 1 Pa geRe f : 8485 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Chapt e rOpe ne r :TheMar ke tf orEne r gyDr i nks 37)I ft hede mandf orapr oduc ti nc r e as e sandt hes uppl yoft hes amepr oduc ti nc r e as e s ,t hee qui l i br i um pr i c ewi l li nc r e as e . Ans we r :F ALSE Di ff: 3 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 38)Ast henumbe roffir msi namar ke tde c r e as e s ,t hes uppl yc ur vewi l ls hi f tt ot hel e f tandt he e qui l i br i um pr i c ewi l lr i s e . Ans we r :TRUE Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 39)I ft henumbe roffir mspr oduc i ngmout hwas hi nc r e as e sandc ons ume rpr e f e r e nc ef ormout hwas h i nc r e as e s ,t hee qui l i br i um pr i c eofmout hwas hwi l lde fini t e l yi nc r e as e . Ans we r :F ALSE Di ff: 2 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 82 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 40)I ft hede mandc ur vef orapr oduc ts hi f t st ot hel e f tandt hes uppl yc ur vef ort hepr oduc ts hi f t st ot he l e f t ,t hee qui l i br i um quant i t ywi l lde c r e as e . Ans we r :TRUE Di ff: 2 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 41)Di s c us st hec or r e c tandi nc or r e c te c onomi canal ys i si nt hef ol l owi ngs t a t e me nt s . " Uni f or( t heuni ont ha tr e pr e s e nt sCanadi anaut owor ke r s ,amongot he ri ndus t r i e s )hass uc c e s s f ul l y ne got i a t e da9pe r c e nti nc r e as ei nwa ge sf ori t swor ke r s .Thi si nc r e as ei nt hewa ger a t ec aus e sani nc r e as e i nde mandf oraut omobi l e s ,s i nc emanyc ons ume r snow ha vegr e a t e ri nc ome s ,andal s oc aus e sa de c r e as ei ns uppl yofaut omobi l e sbe c aus et hec os tofpr oduc t i onhasi nc r e as e d.The s ee ffe c t sc anc e l e ac hot he routr e s ul t i ngi nnoc hangei nt hee qui l i br i um pr i c eandquant i t yi nt heaut omobi l emar ke t . " Ans we r :Thewa ger a t ei sade t e r mi nantoft hes uppl yofaut omobi l e s ,butnotade t e r mi nantoft he de mandf oraut omobi l e s( Uni f or ' saut owor ke r smakeupave r ys mal lpor t i onoft hepopul a t i on) .The i nc r e as ei nt hewa ger a t ewi l ls hi f tt heaut omobi l es uppl yc ur vet ot hel e f tal ongagi ve nde mandc ur ve . Thi swi l lr e s ul ti nahi ghe re qui l i br i um pr i c eandal owe re qui l i br i um quant i t yi nt hemar ke tf or aut omobi l e s . Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 42)Expl ai nhow i twoul dbepos s i bl ef ort hee qui l i br i um pr i c eande qui l i br i um quant i t yt obot hi nc r e as e i nt hemar ke tf ormot or c yc l e si fc ons ume rpr e f e r e nc ef ormot or c yc l e si nc r e as e sandt henumbe rof mot or c yc l emanuf ac t ur e r sde c r e as e s . Ans we r :Ani nc r e as ei nc ons ume rpr e f e r e nc ewi l ls hi f tt hede mandc ur vet ot her i ght ,whi c hi nc r e as e s t hee qui l i br i um pr i c eandt hee qui l i br i um quant i t y .Ade c r e as ei nt henumbe rofmanuf ac t ur e r swi l l s hi f tt hes uppl yc ur vet ot hel e f t ,whi c hwi l li nc r e as et hee qui l i br i um pr i c eandde c r e as et hee qui l i br i um quant i t y .I nbot hc as e s ,t hee qui l i br i um pr i c ei nc r e as e s .Fort hee qui l i br i um quant i t yt oi nc r e as e ,t he r i ght war ds hi f ti nde mandr e s ul t i ngf r om t hei nc r e as ei nc ons ume rpr e f e r e nc emus tbemor et hant he l e f t war ds hi f ti ns uppl ywhi c hr e s ul t sf r om t hede c r e as ei nmanuf ac t ur e r s . Di ff: 2 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 83 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 43)I ne ac hoft hef ol l owi ngs i t ua t i ons ,l i s twha twi l lhappe nt ot hee qui l i br i um pr i c eandt he e qui l i br i um quant i t yf orapar t i c ul arpr oduc t ,whi c hi sanor malgood. a . Thepopul a t i oni nc r e as e sandt hepr i c eofi nput si nc r e as e . b. Thepr i c eofac ompl e me nti nc r e as e sandt e c hnol ogyadvanc e s . c . Thenumbe roffir msi nt hemar ke ti nc r e as e sandi nc omei nc r e as e s . d. Pr i c ei se xpe c t e dt oi nc r e as ei nt hef ut ur e . e . Cons ume rpr e f e r e nc ei nc r e as e sandt hepr i c eofas ubs t i t ut ei npr oduc t i onde c r e as e s . Ans we r : a . Pr i c ei nc r e as e s ;Quant i t yma yi nc r e as eorde c r e as e . b. Pr i c ede c r e as e s ;Quant i t yma yi nc r e as eorde c r e as e . c . Quant i t yi nc r e as e s ;Pr i c ema yi nc r e as eorde c r e as e . d. Pr i c ei nc r e as e s ;Quant i t yma yi nc r e as eorde c r e as e . e . Quant i t yi nc r e as e s ;Pr i c ema yi nc r e as eorde c r e as e . Di ff: 3 Pa geRe f : 79 Topi c :Shi f t si nDe mandandSuppl y Le ar ni ngOut c ome :3 . 4Us ede mandands uppl ygr aphst opr e di c tc hange si npr i c e sandquant i t i e s AACSB:Anal yt i cSki l l s 44)Le tD=de mand,S=s uppl y ,P=e qui l i br i um pr i c e ,Q=e qui l i br i um quant i t y .Wha thappe nsi nt he mar ke tf ors ol a rpane l si ft hegove r nme ntoffe r st axbr e akst oe nc our a gemanuf ac t ur e r st opr oduc emor e s ol arpane l s ? A)Di nc r e as e s ,Snoc hange ,PandQ i nc r e as e B)Si nc r e as e s ,D noc hange ,Pde c r e as e s ,Q i nc r e as e s C)DandSi nc r e as e ,PandQde c r e as e D)Dnoc hange ,Si nc r e as e s ,Pde c r e as e s ,Q de c r e as e s Ans we r :B Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 45)Hur r i c aneAr t huri nt e r r upt e ds hi pme nt sofc r udeoi lt or e fine r i e si ne as t e r nCanada .I nt hemar ke t f orgas ol i ne , A)t hes uppl yc ur ves hi f t e dt ot hel e f t ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um pr i c e . B)t hes uppl yc ur ves hi f t e dt ot her i ght ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um pr i c e . C)t hede mandc ur ves hi f t e dt ot hel e f t ,r e s ul t i ngi nade c r e as ei nt hee qui l i br i um pr i c e . D)t hede mandc ur ves hi f t e dt ot her i ght ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um pr i c e . Ans we r :A Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 84 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 46)El e c t r i cc are nt hus i as t swantt obuymor ee l e c t r i cc ar sa tal owe rpr i c e .Al loft hef ol l owi nge ve nt s woul dha vet hi se ffe c te x c e p t A)t e c hnol ogi c aladvanc e me nti nt hepr oduc t i onofe l e c t r i cc a rba t t e r i e s . B)ani nc r e as ei nt henumbe rofmanuf ac t ur e r sofe l e c t r i cc ar s . C)ade c r e as ei nt hepr i c eofl i t hi um,whi c hi sus e di nt hee l e c t r i cc a rba t t e r i e s . D)ani nc r e as ei nt hepr i c eofgas ol i ne . Ans we r :D Di ff: 3 Pa geRe f : 7879 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 47)Whi c hoft hef ol l owi ngwoul dc aus ebot ht hee qui l i br i um pr i c eande qui l i br i um quant i t yofr ame n t oi nc r e as e ?As s umet ha tr ame ni sani nf e r i orgood. A)ani nc r e as ei nc ons ume ri nc ome B)as t r i ket ha ts har pl yr e duc e sr ame nout put C)ade c r e as ei nc ons ume ri nc ome D)adi e tt ha te nc our a ge spe opl enott oe a tnoodl e s . Ans we r :C Di ff: 3 Pa geRe f : 87 Topi c :Shi f t si nDe mand 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 48)Whi c hoft hef ol l owi ngwoul dc aus et hee qui l i br i um pr i c eofke t c hupt oi nc r e as eandt hee qui l i br i um quant i t yofke t c hupt ode c r e as e ? A)ade c r e as ei nt hepr i c eoft oma t oe s B)ani nc r e as ei nt hepr i c eoft oma t oe s C)ani nc r e as ei nt hepr i c eofmus t ar d,as ubs t i t ut ef orke t c hup D)ani nc r e as ei nt hepr i c eoff r e nc hf r i e s ,ac ompl e me ntf orke t c hup Ans we r :B Di ff: 3 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 85 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 49)As s umet ha tt hehour l ypr i c ef ort hes e r vi c e sofpe r s onalt r ai ne r shasr i s e nands al e soft he s es e r vi c e s ha veal s or i s e n.Onec anc onc l udet ha t A)t hel a w ofde mandhasbe e nvi ol a t e d. B)t henumbe rofpe r s onalt r ai ne r shasi nc r e as e d. C)t hede mandf orpe r s onalt r ai ne r shasi nc r e as e d. D)pe r s onalt r ai ne r sar ede l i be r a t e l yc har gi nghi ghpr i c e sbe c aus et he ypr ovi des e r vi c e sf orwe al t hy c l i e nt s . Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 50)Pr i c e sofc omme r c i alai r l i net i c ke t sha vef al l e ni nr e c e ntmont hs .Ove rt hi ss amepe r i od,t hepr i c eof j e tf ue lhasr i s e nandc ons ume ri nc ome sha vef al l e n.Whi c hoft hef ol l owi ngbe s te xpl ai nst hef al l i ng pr i c e sofai r l i net i c ke t s ?As s umet ha tai r l i net i c ke t sar eanor malgood. A)Thes uppl yc ur vef orai r l i net i c ke t shass hi f t e dt ot hel e f twhi l et hede mandc ur vef orai r l i net i c ke t s hass hi f t e dt ot hel e f t . B)Thede mandc ur vef orai r l i net i c ke t shass hi f t e dt ot hel e f tmor et hant hes uppl yc ur vehass hi f t e dt o t hel e f t . C)Thede mandc ur veandt hes uppl yc ur vef orai r l i net i c ke t sha vebot hs hi f t e dt ot her i ght . D)Thes uppl yc ur vef orai r l i net i c ke t shass hi f t e dt ot hel e f tmor et hant hede mandc ur vehass hi f t e dt o t hel e f t . Ans we r :B Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 51)I nr e c e ntye ar st hec os tofpr oduc i ngwi ne si nCanadahasi nc r e as e d,l ar ge l yduet or i s i ngr e ntf or vi ne yar ds .Att hes amet i me ,ani nc r e as i ngnumbe rofCanadi anss a yt he ypr e f e rwi net obe e r .Whi c hof t hef ol l owi ngbe s te xpl ai nst hee ffe c toft he s ee ve nt sont hewi nemar ke t ? A)Thes uppl yc ur vehass hi f t e dt ot hel e f tandt hede mandc ur vehass hi f t e dt ot her i ght .Asar e s ul t , t he r ehasbe e nani nc r e as ei nt hee qui l i br i um quant i t yandanunc e r t ai ne ffe c tont hee qui l i br i um pr i c e . B)Bot ht hes uppl yandde mandc ur ve sha ves hi f t e dt ot her i ght .Asar e s ul t ,t he r ehasbe e nani nc r e as e i nt hee qui l i br i um pr i c eandanunc e r t ai ne ffe c tont hee qui l i br i um quant i t y . C)Bot ht hes uppl yandde mandc ur ve sha ves hi f t e dt ot her i ght .Asar e s ul t ,t he r ehasbe e nani nc r e as e i nbot ht hee qui l i br i um pr i c eandt hee qui l i br i um quant i t y . D)Thes uppl yc ur vehass hi f t e dt ot hel e f tandt hede mandc ur vehass hi f t e dt ot her i ght .Asar e s ul t , t he r ehasbe e nani nc r e as ei nt hee qui l i br i um pr i c eandanunc e r t ai ne ffe c tont hee qui l i br i um quant i t y . Ans we r :D Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 86 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 52)St udi e sha ves hownt ha tdr i nki ngonegl as sofr e dwi nepe rda yma yhe l ppr e ve nthe ar tdi s e as e . As s umet hi si st r ue .Suppos et ha taf ungaldi s e as ede s t r oysal ar gepor t i onoft hegr apehar ve s tofB. C. vi ne yar ds .I nt hemar ke tf orr e dwi ne ,t he s et wode ve l opme nt swoul d A)i nc r e as ede mandandi nc r e as es uppl y ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um quant i t yanda de c r e as ei nt hee qui l i br i um pr i c eofr e dwi ne . B)i nc r e as ede mandandde c r e as es uppl y ,r e s ul t i ngi nade c r e as ei nbot ht hee qui l i br i um quant i t yand t hee qui l i br i um pr i c eofr e dwi ne . C)i nc r e as ede mandandde c r e as es uppl y ,r e s ul t i ngi nani nc r e as ei nt hee qui l i br i um pr i c eandan unc e r t ai ne ffe c tont hee qui l i br i um quant i t yofr e dwi ne . D)i nc r e as ede mandandde c r e as es uppl y ,r e s ul t i ngi nani nc r e as ei nbot ht hee qui l i br i um pr i c eandt he e qui l i br i um quant i t yofr e dwi ne . Ans we r :C Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 53)Ade c r e as ei nt hede mandf ore ggsduet oc hange si nc ons ume rt as t e s ,ac c ompani e dbyade c r e as ei n t hes uppl yofe ggsasar e s ul tofanout br e akofAvi anflu,wi l lr e s ul ti n A)ade c r e as ei nt hee qui l i br i um quant i t yofe ggsa ndnoc hangei nt hee qui l i br i um pr i c e . B)ade c r e as ei nt hee qui l i br i um pr i c eofe ggsandnoc hangei nt hee qui l i br i um quant i t y . C)ade c r e as ei nt hee qui l i br i um pr i c eofe gg;t hee qui l i br i um quant i t yma yi nc r e as eorde c r e as e . D)ade c r e as ei nt hee qui l i br i um quant i t yofe ggs ;t hee qui l i br i um pr i c ema yi nc r e as eorde c r e as e . Ans we r :D Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 87 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 15 54)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orbl ur a ydi s c s .Whi c hpane lbe s tde s c r i be swha thappe nsi nt hi smar ke ti ft he r ei sas ubs t ant i al i nc r e as ei nt hepr i c eofbl ur a ypl a ye r s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 88 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 55)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orl apt opc omput e r s .Whi c hpane lbe s tde s c r i be swha thappe nsi nt hi smar ke twhe nt hepr i c eof c omput e rhar ddr i ve sf al l s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :A Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 56)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f ort una .Whi c hpane lbe s tde s c r i be swha thappe nsi nt hi smar ke twhe nt he r ei sade c r e as ei nt he pr oduc t i vi t yofc omme r c i alfis he r me n? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :B Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 57)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orf r oze nyogur t .Whi c hpane lde s c r i be swha thappe nsi nt hemar ke tf orf r oz e nyogur twhe nt hepr i c e ofi c ec r e am,as ubs t i t ut epr oduc t ,i nc r e as e s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 89 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 58)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f ormus t ar dandt ha tbr a t wur s tandmus t ar dar ec ompl e me nt s .Whi c hpane lde s c r i be swha thappe nsi n t hi smar ke twhe nt hepr i c eofbr a t wur s tf al l s ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 59)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orc offe e .Whi c hpane lde s c r i be swha thappe nsi nt hi smar ke ti fbuye r se xpe c tt hepr i c eofc offe et or i s e ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :C Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 60)Re f e rt oFi g ur e3. 15.As s umet ha tt hegr aphsi nt hi sfigur er e pr e s e ntt hede mandands uppl yc ur ve s f orr ame nnoodl e s ,ani nf e r i orgood.Whi c hpane lde s c r i be swha thappe nsi nt hi smar ke tasar e s ul tofan i nc r e as ei ni nc ome ? A)Pane l( a) B)Pane l( b) C)Pane l( c ) D)Pane l( d) Ans we r :D Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 90 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 61)Dur i ngt he1990 s ,pos i t i vet e c hnol ogi c alc hangei nt hepr oduc t i onofc hi c ke nc aus e dt hepr i c eof c hi c ke nt of al l .Hol di nge ve r yt hi nge l s ec ons t ant ,how woul dt hi saffe c tt hemar ke tf orpor k( as ubs t i t ut e f orc hi c ke n) ? A)Thes uppl yofpor kwoul di nc r e as eandt hee qui l i br i um pr i c eofpor kwoul dde c r e as e . B)Thede mandf orpor kwoul dde c r e as eandt hee qui l i br i um pr i c eofpor kwoul dde c r e as e . C)Thede mandf orpor kwoul di nc r e as ebe c aus ec ons ume r sc oul da ffor dt obuymor ec hi c ke nandpor k. D)Thede mandf orpor kwoul dde c r e as eandt hee qui l i br i um pr i c eofpor kwoul di nc r e as e . Ans we r :B Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 62)As s umet ha tbot ht hede mandc ur veandt hes uppl yc ur vef ort abl e tc omput e r ss hi f tt ot hel e f tbut t hede mandc ur ves hi f t smor et hant hes uppl yc ur ve .Asar e s ul t , A)bot ht hee qui l i br i um pr i c eandquant i t yoft abl e tc omput e r swi l lde c r e as e . B)t hee qui l i br i um pr i c eoft abl e tc omput e r swi l lde c r e as e ;t hee qui l i br i um quant i t yma yi nc r e as eor de c r e as e . C)t hee qui l i br i um pr i c eoft abl e tc omput e r sma yi nc r e as eorde c r e as e ;t hee qui l i br i um quant i t ywi l l de c r e as e . D)t hee qui l i br i um pr i c eoft abl e tc omput e r swi l li nc r e as e ;t hee qui l i br i um quant i t yma yi nc r e as eor de c r e as e . Ans we r :A Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:Cl as s i c( 1CE) -upda t e df or2CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 63)" Thepr i c eofdi gi t alc ame r asf e l lbe c aus eofi mpr ove me nt si npr oduc t i ont e c hnol ogy .Asar e s ul t ,t he de mandf orfil mc ame r asde c r e as e d.Thi sc aus e dt hepr i c eoffil mc ame r ast of al l ;ast hepr i c eoffil m c ame r asf e l l ,t hede mandf orfil mc ame r asde c r e as e de ve nf ur t he r . "Eval ua t et hi ss t a t e me nt . A)Thes t a t e me nti sf al s ebe c aus et hede mandf orfil mc ame r aswoul di nc r e as east hepr i c eofdi gi t al c ame r asf e l l . B)Thes t a t e me nti sf al s e .Ade c r e as ei nt hepr i c eofdi gi t alc ame r aswoul dde c r e as et hede mandf orfil m c ame r as ,butade c r e as ei nt hepr i c eoffil mc ame r aswoul dnotc aus et hede mandf orfil mc ame r ast o de c r e as e . C)Thes t a t e me nti sf al s ebe c aus ei tc onf us e st hel a w ofde mandwi t ht hel a w ofs uppl y . D)Thes t a t e me nti sf al s ebe c aus edi gi t alc ame r apr oduc e r swoul dnotr e duc et he i rpr i c e sasar e s ul tof i mpr ove me nt si nt e c hnol ogy;doi ngs owoul dr e duc et he i rpr ofit s . Ans we r :B Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 91 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 Fi gur e3. 16 64)Re f e rt oFi g ur e3. 16.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf ormot or c yc l e sa tt hei nt e r s e c t i onofD1andS1( poi ntA) .I ft hepr i c eofmot or c yc l ee ngi ne s i nc r e as e s ,andt hewa ge sofmot or c yc l emanuf ac t ur e r si nc r e as e ,how wi l lt hee qui l i br i um poi ntc hange ? A)Thee qui l i br i um poi ntwi l lmovef r om At oE. B)Thee qui l i br i um poi ntwi l lmovef r om At oB. C)Thee qui l i br i um poi ntwi l lmovef r om At oC. D)Thee qui l i br i um wi l lfir s tmovef r om At oB,t he nr e t ur nt oA. Ans we r :B Di ff: 3 Pa geRe f : 88/88 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 65)Re f e rt oFi g ur e3. 16.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf ormot or c yc l e sa tt hei nt e r s e c t i onofD1andS1( poi ntA) .I ft he r ei sas ur pl usofmot or c yc l e s , how wi l lt hee qui l i br i um poi ntc hange ? A)Thee qui l i br i um poi ntwi l lmovef r om At oB. B)Thee qui l i br i um poi ntwi l lmovef r om At oC. C)The r ewi l lbenoc hangei nt hee qui l i br i um poi nt . D)Thee qui l i br i um poi ntwi l lmovef r om At oE. Ans we r :C Di ff: 2 Pa geRe f : 77 Topi c :Sur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 92 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 66)Re f e rt oFi g ur e3. 16.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf ormot or c yc l e sa tt hei nt e r s e c t i onofD2andS1( poi ntC) .Whi c hoft hef ol l owi ngc hange swoul d c aus et hee qui l i br i um t oc hanget opoi ntB? A)apos i t i vec hangei nt het e c hnol ogyus e dt opr oduc emot or c yc l e sandade c r e as ei nt hepr i c eof mot or c yc l ei ns ur anc e( ac ompl e me ntt omot or c yc l e s ) B)ani nc r e as ei nt hewa ge sofmot or c yc l ewor ke r sa ndade c r e as ei nt hepr i c eofmot or c yc l ei ns ur anc e( a c ompl e me ntt omot or c yc l e s ) C)ani nc r e as ei nt henumbe rofmot or c yc l epr oduc e r sandani nc r e as ei nt henumbe rofc ons ume r swho pr e f e rr i di ngmot or c yc l e s D)ani nc r e as ei nt hewa ge sofmot or c yc l ewor ke r sa ndani nc r e as ei nt hepr i c eofmot or c yc l ei ns ur anc e ( ac ompl e me ntt omot or c yc l e s ) Ans we r :B Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 67)Re f e rt oFi g ur e3. 16.Thegr aphi nt hi sfigur ei l l us t r a t e sani ni t i alc ompe t i t i vee qui l i br i um i nt he mar ke tf ormot or c yc l e sa tt hei nt e r s e c t i onofD1andS1( poi ntA) .I ft he r ei sani nc r e as ei nt hewa ge sof mot or c yc l ewor ke r sandani nc r e as ei nt hepr i c eofmot or c yc l ei ns ur anc e( ac ompl e me ntt omot or c yc l e s ) , t hee qui l i br i um c oul dmovet owhi c hpoi nt ? A)A B)B C)C D)E Ans we r :D Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 68)Whi c hoft hef ol l owi ngs t a t e me nt si st r ue ? A)Ani nc r e as ei nde mandc aus e sani nc r e as ei ne qui l i br i um pr i c e ;t hei nc r e as ei npr i c ec aus e ss uppl yt o i nc r e as e . B)Ade c r e as ei ns uppl yc aus e se qui l i br i um pr i c et or i s e ;t hei nc r e as ei npr i c et he nr e s ul t si nade c r e as e i nquant i t yde mande d. C)I fbot hde mandands uppl yde c r e as e ,t he r emus tbeade c r e as ei ne qui l i br i um pr i c e ;e qui l i br i um quant i t yma ye i t he ri nc r e as eorde c r e as e . D)I fde mandi nc r e as e sands uppl yde c r e as e s ,onec annotde t e r mi nei fe qui l i br i um pr i c ewi l li nc r e as eor de c r e as ewi t houtknowi ngwhi c hc hangei sgr e a t e r . Ans we r :B Di ff: 3 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 93 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 69)Ani nc r e as ei nt hee qui l i br i um pr i c ef orapr oduc twi l lr e s ul t A)whe nt hequant i t yde mande df ort hepr oduc te x c e e dst hequant i t ys uppl i e d. B)whe nt he r ei sade c r e as ei ns uppl yandani nc r e a s ei nde mandf ort hepr oduc t . C)whe nt he r ei sade c r e as ei ns uppl yandade c r e as ei nde mandf ort hepr oduc t . D)whe nt he r ei sani nc r e as ei nde mandandani nc r e as ei nt henumbe roffir mspr oduc i ngt hepr oduc t . Ans we r :B Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 70)Tui t i onr i s e sal mos te ve r yye ar ,ye tuni ve r s i t i e ss e e mt oha vemor eandmor es t ude nt se ve r yye ar . Wha twoul de xpl ai nt hi s ? A)Thede mandf oruni ve r s i t ye duc a t i oni sr i s i ngmor es l owl yt hans uppl y . B)Thes uppl yoft heuni ve r s i t ye duc a t i onhadde c r e as e dandt hede mandf oruni ve r s i t ye duc a t i on r e mai ne dunc hange d. C)Thede mandf oruni ve r s i t ye duc a t i oni sr i s i ngmor equi c kl yt hans uppl y . D)Thes uppl yofuni ve r s i t ye duc a t i onandde mandf oruni ve r s i t ye duc a t i onar ebot hf al l i ng. Ans we r :C Di ff: 2 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:Ne wt o2 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 71)Whi c hoft hef ol l owi ngwoul dc aus eani nc r e as ei nt hee qui l i br i um pr i c eandade c r e as ei nt he e qui l i br i um quant i t yofwa t e r me l on? A)ade c r e as ei nde mandandani nc r e as ei ns uppl y B)ade c r e as ei ns uppl y C)ani nc r e as ei nde mandandani nc r e as ei ns uppl ygr e a t e rt hant hei nc r e as ei nde mand D)ani nc r e as ei nde mandandani nc r e as ei ns uppl y Ans we r :B Di ff: 2 Pa geRe f : 7779 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 72)Se l e c tt hephr as et ha tc or r e c t l yc ompl e t e st hef ol l owi ngs t a t e me nt ." Ade c r e as ei nt henumbe rof manuf ac t ur e r sc aus e dade c r e as ei nt hes uppl yofs ai l boa t s .Asar e s ul t ,________. " A)t hepr i c eofs ai l boa t si nc r e as e dandt hede mandf ors ai l boa t sde c r e as e d B)t hee qui l i br i um quant i t yofs ai l boa t si nc r e as e d C)t hepr i c eofs ai l boa t si nc r e as e dandt hequant i t yde mande dofs ai l boa t sde c r e as e d D)t hepr i c eofs ai l boa t si nc r e as e dandt hehi ghe rpr i c ec aus e dt hes uppl yofs ai l boa t st oi nc r e as e Ans we r :C Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 73)Di gi t alvi de or e c or de r s( DVRsorPVRs )we r ei nt r oduc e dt ot hemar ke ti n1999,andne wt e c hnol ogy hasal l owe df ort hec os tofmanuf ac t ur i ngt her e c or de r st ode c l i nes i gni fic ant l ys i nc et he i ri ni t i al i nt r oduc t i on.How di dt hi sc hangei nt e c hnol ogyaffe c tt hemar ke tf orDVRs ? A)Thene wt e c hnol ogyc aus e dani nc r e as ei nt hes uppl yofDVRsandade c r e as ei nt hepr i c eofDVRs . B)Thene wt e c hnol ogyc aus e dani nc r e as ei nt hes uppl yofDVRsandani nc r e as ei nt hepr i c eofDVRs . 94 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 C)Thene wt e c hnol ogyc aus e dade c r e as ei nt hede ma ndf orDVRs . D)Thene wt e c hnol ogyc aus e dani nc r e as ei nt hequa nt i t yofDVRss uppl i e d. Ans we r :A Di ff: 2 Pa geRe f : 7778 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Maki ngt heConne c t i on:TheFal l i ngPr i c eofs ol are ne r gys 74)Thepr i c eofl obs t e ri st ypi c al l yl owe ri nt hes umme rt hani nt hes pr i ng.Whi c hoft hef ol l owi ng e xpl ana t i onsf ort hi sdi ffe r e nc ei sgi ve ni nt het e xt book? A)Hot ,humi dwe a t he rus ual l yr e duc e st hede mandf orl obs t e r . B)Pe opl ewhous ual l ye a tl obs t e ri not he rs e as onss ubs t i t ut el e s se xpe ns i vefis hwhe nt he ygoon vac a t i on;t hi sdr i ve sdownt hede mandf orl obs t e r . C)Thes uppl yofl obs t e ri sgr e a t e ri nt hes umme rt hani nt hes pr i ng. D)I mpor tr e s t r i c t i onsar ee as e di nt hes umme r ;asmor el obs t e r sar ei mpor t e dt hepr i c eofl obs t e rf al l s . Ans we r :C Di ff: 1 Pa geRe f : 8081 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Sol ve dPr obl e m:Hi ghDe mandandLow Pr i c e si nt heLobs t e rMar ke t ? 75)" Be c aus eCokeandPe ps iar es ubs t i t ut e s ,ade c r e as ei nt hepr i c eofPe ps iwi l lc aus et hede mandf or Coket ode c r e as e .Thi si ni t i als hi f ti nde mandf orCoker e s ul t si nal owe rpr i c ef orCoke ;t hi sl owe rpr i c e wi l lc aus et hede mandc ur vef orCoket os hi f tt ot hel e f t . "Whi c hoft hef ol l owi ngc or r e c t l yc omme nt son t hi ss t a t e me nt ? A)Thes t a t e me ntwi l lbet r uei fc ons ume rt as t e sf orCokeandPe ps idonotc hange . B)Thes t a t e me nti sf al s ebe c aus eac hangei nt hepr i c eofCokewoul dnotc hanget hede mandf orCoke . C)Thes t a t e me nti sf al s ebe c aus ePe ps ii sani nf e r i orgood;Cokei sanor malgood. D)Thes t a t e me nti sf al s ebe c aus eonec annotas s umet ha tCokeandPe ps iar es ubs t i t ut e sf oral l c ons ume r s . Ans we r :B Di ff: 2 Pa geRe f : 81 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :Don' tLe tThi sHappe nt oYou:Re me mbe r :A Changei naGood' sPr i c eDoe sNotCaus et heDe mand orSuppl yCur vet oShi f t 95 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 76)Al le l s ee qual ,a________ofor angej ui c eus e di nbr e akf as tdr i nkswoul ds hi f tt he________c ur vef or br e akf as tdr i nkst ot hel e f t . A)s hor t a ge ;de mand B)s hor t a ge ;s uppl y C)s ur pl us ;de mand D)s ur pl us ;s uppl y Ans we r :B Di ff: 2 Pa geRe f : 8485 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :AnI ns i deLOOK: Pe ps i CoTr i e st oCr e a t eaNe w Ca t e gor yofDr i nkst ha tPr omi s e sEne r gyand He al t hBe ne fit s 77)Al le l s ee qual ,as hor t a geofor angej ui c ewoul dc aus et he A)e qui l i br i um quant i t yofbr e akf as tdr i nkst oi nc r e as eandt hee qui l i br i um pr i c eofbr e akf as tdr i nkst o de c r e as e . B)e qui l i br i um pr i c eofbr e akf as tdr i nkst oi nc r e as eandt hee qui l i br i um quant i t yofbr e akf as tdr i nkst o de c r e as e . C)e qui l i br i um pr i c eandquant i t yofbr e akf as tdr i nkst oi nc r e as e . D)e qui l i br i um pr i c eandquant i t yofbr e akf as tdr i nkst ode c r e as e . Ans we r :B Di ff: 1 Pa geRe f : 85 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng Spe c i alFe a t ur e :AnI ns i deLOOK: Pe ps i CoTr i e st oCr e a t eaNe w Ca t e gor yofDr i nkst ha tPr omi s e sEne r gyand He al t hBe ne fit s 78)I ft hede mandf orapr oduc ti nc r e as e sandt hes uppl yoft hes amepr oduc tde c r e as e s ,t hee qui l i br i um pr i c ewi l li nc r e as e . Ans we r :TRUE Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 79)Ast henumbe roffir msi namar ke ti nc r e as e s ,t hes uppl yc ur vewi l ls hi f tt ot hel e f tandt he e qui l i br i um pr i c ewi l lr i s e . Ans we r :F ALSE Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 96 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 80)I ft hepopul a t i oni nc r e as e sandi nputpr i c e si nc r e as e ,t hee qui l i br i um pr i c eofapr oduc twi l l de fini t e l yi nc r e as e . Ans we r :TRUE Di ff: 2 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 81)I ft hede mandf orapr oduc tde c r e as e sandt hes uppl yoft hepr oduc tdoe snotc hange ,e qui l i br i um pr i c eande qui l i br i um quant i t ywi l lbot hi nc r e as e . Ans we r :TRUE Di ff: 2 Pa geRe f : 78 Topi c :Shi f t si nDe mand 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 82)Di s c us st hec or r e c tandi nc or r e c te c onomi canal ys i si nt hef ol l owi ngs t a t e me nt s . " I fadi s e as eki l l sal ar genumbe roft ur ke ys ,t hes uppl yoft ur ke yswi l lde c r e as e .Thi swi l lr e s ul ti na pr i c ei nc r e as e ,whi c hwi l lt he nc aus et hes uppl yoft ur ke yst oi nc r e as e . " Ans we r :Thes uppl yoft ur ke yswi l lde c r e as e ,r e s ul t i ngi nahi ghe re qui l i br i um pr i c eandal owe r e qui l i br i um quant i t y ,butt hehi ghe rpr i c ewi l lnots hi f tt hes uppl yc ur vef ort ur ke ys . Di ff: 2 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 83)I fpi l ot sandfli ghta t t e ndant sa gr e et owa geandbe ne fitr e duc t i onsi nt hewakeoffinanc i al di ffic ul t i e si nt heai r l i nei ndus t r y ,wha ti mpac twoul dt hi sha veont hes uppl yandde mandi nt hemar ke t f orai r l i nes e r vi c e ,as s umi ngnoot he rc hange st akepl ac ei nt hi smar ke t ? Ans we r :Ar e duc t i onofwa ge sandbe ne fit swi l ls hi f tt hes uppl yc ur vet ot her i ght ,butwi l lnots hi f tt he de mandc ur ve .Thi swi l lde c r e as et hee qui l i br i um pr i c eandi nc r e as et hee qui l i br i um quant i t yi nt he mar ke tf orai r l i nes e r vi c e . Di ff: 3 Pa geRe f : 77 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 97 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 84)At l ant i cs al moni sani nc r e as i ngl ypopul ardi s h.I ti sal s oi nc r e as i ngl ypr oduc e dus i ngaquac ul t ur e ( fis hf ar mi ng)onCanada' se as tc oas t .I fahur r i c anede s t r oysaquac ul t ur ef ac i l i t i e s ,how wi l lt hi sa ffe c t t hee qui l i br i um pr i c eandquant i t yofAt l ant i cs al mon? Ans we r :Thes uppl yc ur vef orAt l ant i cs al monwoul ds hi f tt ot hel e f t ,r e s ul t i ngi nahi ghe re qui l i br i um pr i c eandl owe re qui l i br i um quant i t y . Di ff: 2 Pa geRe f : 85 Topi c :Shi f t si nSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Re fle c t i veThi nki ng 85)I ne ac hoft hef ol l owi ngs i t ua t i ons ,l i s twha twoul dhappe nt ot hee qui l i br i um pr i c eandt he e qui l i br i um quant i t yf orapar t i c ul arpr oduc tt ha ti sani nf e r i orgood. a . Popul a t i onde c r e as e sandpr oduc t i vi t yi nc r e as e s . b. I nc omei nc r e as e sandt hepr i c eofi nput si nc r e as e . c . Thenumbe roffir msi nt hemar ke tde c r e as e sandi nc omede c r e as e s . d. Cons ume rpr e f e r e nc ede c r e as e sandt hepr i c eofac ompl e me nti nc r e as e s . e . Thepr i c eofas ubs t i t ut ei nc ons umpt i oni nc r e as e sandt hepr i c eofas ubs t i t ut ei npr oduc t i on i nc r e as e s . Ans we r : a .Pr i c ede c r e as e s ;quant i t yma yi nc r e as eorde c r e as e . b.Quant i t yde c r e as e s ;pr i c ema yi nc r e as eorde c r e as e . c .Pr i c ei nc r e as e s ;quant i t yma yi nc r e as eorde c r e as e . d.Pr i c ede c r e as e s ;quant i t yde c r e as e s . e .Pr i c ei nc r e as e s ;quant i t yma yi nc r e as eorde c r e as e . Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 98 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 86)Ac c or di ngt ot heAus t r al i anWoolI nnova t i on,s e ve r edr oughtc ondi t i onsi nAus t r al i ac ont r i but e dt o t hel owe s tl e ve lofwoolpr oduc t i oni n50ye ar s .Thi sr e c or dl ow pr oduc t i onhasdr i ve nuppr i c e ss har pl y i nAus t r al i anwoolmar ke t s .Me anwhi l e ,t hepr i c eofr a wc ot t oni nc r e as e ds i gni fic ant l yf ort hefir s tt i me i nmanyye ar s . a . I l l us t r a t et he s eobs e r va t i onswi t honede mandands uppl ygr aphf ort hemar ke tf orAus t r al i anwool andanot he rde mandands uppl ygr aphf orr a wc ot t on. b. Makes ur et ha tyourgr aphsc l e ar l ys how ( 1)t hei ni t i ale qui l i br i um be f or et hede c r e as ei nt hes uppl y ofAus t r al i anwooland( 2)t hefinale qui l i br i um. c . Us ear r owst oi ndi c a t eanys hi f t si nt hede manda nds uppl yc ur ve sf ore ac hmar ke t . d. Labe lyourgr aphsf ul l yandwr i t eane xpl ana t i onofyourwor k. Ans we r :a ,b ,andc ,s e et hefigur ebe l ow. d. I nt heAus t r al i anwoolmar ke t ,t hes uppl yc ur ves hi f t st ot hel e f tasar e s ul toft hedr ought .Thi s l e adst oani nc r e as ei nt hee qui l i br i um pr i c eofwoolandade c r e as ei nt hee qui l i br i um quant i t y .The hi ghe rpr i c eofwoolc aus e sbuye r st os ubs t i t ut ec ot t onf orwool ,t he r e byi nc r e as i ngt hede mandf or c ot t on.I nt hec ot t onmar ke t ,t hede mandc ur vef orc ot t onmove st ot her i ghtal ongagi ve ns uppl yc ur ve , r e s ul t i ngi nahi ghe re qui l i br i um pr i c eandhi ghe re qui l i br i um quant i t yofc ot t on. Di ff: 3 Pa geRe f : 7779 Topi c :Shi f t si nDe mandandSuppl y 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 99 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 3.5 Appendix: Explain how supply and demand function in competitive markets 1)Thef ol l owi nge qua t i onsr e pr e s e ntt hede mandands uppl yf orbi r df e e de r s . QD=35-P QS=5+3P Wha ti st hee qui l i br i um pr i c e( P)andquant i t y( Q -i nt hous ands )ofbi r df e e de r s ? A)P=$10;Q=25t hous and B)P=$35;Q =20t hous and C)P=$20;Q =20t hous and D)P=$5;Q=30t hous and Ans we r :A Di ff: 3 Pa geRe f : 9092 Topi c :De mandandSuppl yEqua t i ons 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 2)I ft hepr i c eofgar l i ci sr e pr e s e nt e dbyt hee qua t i onP=25-QD,t he nt hec or r e s pondi ngquant i t yof gar l i cde mande di sr e pr e s e nt e dbyt hee qua t i on A)QD=P-25. B)QD=P+25. C)QD=25-P. D)QD=25+P. Ans we r :C Di ff: 1 Pa geRe f : 9092 Topi c :De mandandSuppl yEqua t i ons 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 3)I ft hequant i t yoft ac osde mande di sr e pr e s e nt e dbyt hee qua t i onQD =20-0. 5P , t he nt he c or r e s pondi ngpr i c eoft ac osi sr e pr e s e nt e dbyt hee qua t i on A)P=0. 5QD+10. B)P=40-2QD. C)P=10-2QD. D)P=QD+40. Ans we r :B Di ff: 1 Pa geRe f : 9092 Topi c :De mandandSuppl yEqua t i ons 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 100 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 4)I ft hequant i t yofnai lpol i s hs uppl i e di sr e pr e s e nt e dbyt hee qua t i onQS=3+2P ,t he nt he c or r e s pondi ngpr i c eofnai lpol i s hi sr e pr e s e nt e dbyt hee qua t i on A)P=0. 5QS+1. 5. B)P=2QS+6. C)P=2QS-6. D)P=1. 5-0. 5QS. Ans we r :A Di ff: 1 Pa geRe f : 9092 Topi c :De mandandSuppl yEqua t i ons 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s Tabl e3. 5 Demand P=50-QD QD=50-P Suppl y P=10+1/3QS QS=3P-30 5)Re f e rt oTabl e3. 5.Thee qua t i onsabovede s c r i bet hede mandands uppl yf orAuntMaud' sPr e mi um HandLot i on.Wha tar et hee qui l i br i um pr i c eandqua nt i t y( i nt hous ands )f orAuntMaud' sLot i on? A)$20and30t hous and B)$30and20t hous and C)$60and30t hous and D)$20and60t hous and Ans we r :A Di ff: 3 Pa geRe f : 9092 Topi c :De mandandSuppl yEqua t i ons 2CE:1 CE Le ar ni ngOut c ome :Mi c r o4: Expl ai nhow s uppl yandde mandf unc t i oni nc ompe t i t i vemar ke t s AACSB:Anal yt i cSki l l s 6)Re f e rt oTabl e3. 5.Thee qua t i onsabovede s c r i bet hede mandands uppl yf orAuntMaud' sPr e mi um HandLot i on.Thee qui l i br i um pr i c eandquant i t yf orAuntMaud' sl ot i onar e$20and30t hous anduni t s . Wha ti st heval ueofc ons ume rs ur pl us ? A)$300t hous and B)$450t hous and C)$900t hous and D)$1, 500t hous and Ans we r :B Di ff: 3 Pa geRe f : 9092 Topi c :Cal c ul a t i ngSur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o7: Di s c us st hee ffe c t sofc ons ume randpr oduc e rs ur pl us e si namar ke t AACSB:Anal yt i cSki l l s 101 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 7)Re f e rt oTabl e3. 5.Thee qua t i onsabovede s c r i bet hede mandands uppl yf orAuntMaud' sPr e mi um HandLot i on.Thee qui l i br i um pr i c eandquant i t yf orAuntMaud' sl ot i onar e$20and30t hous anduni t s . Wha ti st heval ueofpr oduc e rs ur pl us ? A)$600t hous and B)$300t hous and C)$150t hous and D)$30t hous and Ans we r :C Di ff: 3 Pa geRe f : 9092 Topi c :Cal c ul a t i ngSur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o7: Di s c us st hee ffe c t sofc ons ume randpr oduc e rs ur pl us e si namar ke t AACSB:Anal yt i cSki l l s 8)Re f e rt oTabl e3. 5.Thee qua t i onsabovede s c r i bet hede mandands uppl yf orAuntMaud' sPr e mi um HandLot i on.Thee qui l i br i um pr i c eandquant i t yf orAuntMaud' sl ot i onar e$20and30t hous anduni t s . Wha ti st heval ueofe c onomi cs ur pl usi nt hi smar ke t ? A)$600t hous and B)$1, 050t hous and C)$1, 500t hous and D)$2, 100t hous and Ans we r :A Di ff: 3 Pa geRe f : 9092 Topi c :Cal c ul a t i ngSur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o7: Di s c us st hee ffe c t sofc ons ume randpr oduc e rs ur pl us e si namar ke t AACSB:Anal yt i cSki l l s 9)Youar egi ve nt hef ol l owi ngmar ke tda t af orVe nusaut omobi l e si nSa t ur ni a . De mand: P=35, 000-0. 5Q Suppl y: P=8, 000+0. 25Q whe r eP=Pr i c eandQ =Quant i t y . a . Cal c ul a t et hee qui l i br i um pr i c eandquant i t y . b. Cal c ul a t et hec ons ume rs ur pl usi nt hi smar ke t . c . Cal c ul a t et hepr oduc e rs ur pl usi nt hi smar ke t . Ans we r : a .Quant i t y=36, 000:{ 35, 000-0. 5Q =8, 000+0. 25Q. ;27, 000=0. 75Q;Q=36, 000. } Pr i c e=$17, 000:{ P=35, 000-0. 5( 36, 000) ;P=35, 000-18, 000;P=$17, 000. } b.Cons ume rs ur pl us=( 0. 5) ( $35, 000-$17, 000)×36 , 000=$324mi l l i on c .Pr oduc e rSur pl us=( 0. 5) ( 17, 000-8, 000)×36, 000=$162mi l l i on. Di ff: 3 Pa geRe f : 9092 Topi c :Cal c ul a t i ngSur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o7: Di s c us st hee ffe c t sofc ons ume randpr oduc e rs ur pl us e si namar ke t AACSB:Anal yt i cSki l l s 102 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca) lOMoARcPSD|9882954 10)Thede mandands uppl ye qua t i onsf ort hepe ac hmar ke tar e : De mand: P=24-0. 5Q Suppl y: P=6+2. 5Q whe r eP=pr i c epe rbus he l ,andQ =quant i t y( i nt hous ands ) . a . Cal c ul a t et hee qui l i br i um pr i c eandquant i t y . b. Suppos et hegove r nme ntguar ant e e dpr oduc e r sapr i c eof$24pe rbus he l .Wha twoul dbet hee ffe c t onquant i t ys uppl i e d?Pr ovi deanume r i c alval ue . c . Byhow muc hwoul dt he$24pr i c ec hanget hequant i t yofpe ac he sde mande d?Pr ovi de anume r i c alval ue . d. Woul dt he r ebeas hor t a geors ur pl usofpe ac he s ? e . Wha ti st hes i zeoft hi ss hor t a geors ur pl us ?Pr ovi deanume r i c alval ue . Ans we r : a . Quant i t y=10t hous andbus he l s :{ 24-0. 5Q =6+2. 5Q;30=3Q;Q=10} Pr i c e=$19:{ P=24-0. 5( 10) ;P=24-5;P=$19} b. Quant i t ys uppl i e dwoul di nc r e as et o12t hous andbus he l s :{ 24=6+2. 5Q;30=2. 5Q;Q =12} c . Quant i t yde mande dwoul df al lt oze r obus he l s :{ 24=24-0. 5Q;0=0. 5Q;Q =0} d. The r ewoul dbeas ur pl us . e . Sur pl us=12, 000-0=12t hous andbus he l s . Di ff: 2 Pa geRe f : 9092 Topi c :Cal c ul a t i ngSur pl us 2CE:1 CE Le ar ni ngOut c ome :Mi c r o7: Di s c us st hee ffe c t sofc ons ume randpr oduc e rs ur pl us e si namar ke t AACSB:Anal yt i cSki l l s 103 Copyright © 2018 Pearson Canada, Inc. Downloaded by goobal sahoota (s201064076@ddsbstudent.ca)