Question: Brazil produces ethanol from sugar, and the

> What is the effect on the price and quantity of MP3 players (such as the iPod) if: More firms produce MP3 players or electronics workers’ wages rise? (Draw the diagrams!).

> What is the effect on the price and quantity of MP3 players (such as the iPod) if: The price of a PC falls or the price of an MP3 download rises? (Draw the diagrams!).

> Why is the equilibrium price the best deal available for both buyers and sellers?

> List all the influences on selling plans, and for each influence, say whether it changes supply.

> What is the law of supply and how do we illustrate it?

> List all the influences on buying plans that change demand, and for each influence, say whether it increases or decreases demand.

> What does the demand curve tell us about the price that consumers are willing to pay?

> What is the law of demand and how do we illustrate it?

> What is the distinction between a money price and a relative price?

> Answer the following questions. a. What would happen to the price of bananas if TR4 spread to Central America? b. What are some of the substitutes for bananas and what would happen to demand, supply, price, and quantity in the markets for these items if

> In the past year, the price of dry-cleaning solvent doubled. More than 4,000 dry cleaners across the United States disappeared as budget-conscious consumers cut back. This year the price of hangers used by dry cleaners is expected to double. a. Explain t

> Cinemas are raising the price of popcorn. Demand for field corn, which is used for animal feed, corn syrup, and ethanol, has increased and its price has exploded. That’s caused some farmers to shift from growing popcorn to easier-to-grow field corn. Expl

> Shoppers bought strawberries in March for $1.25 a pound rather than the $3.49 a pound they paid last year. With the price so low, some growers removed their strawberry plants to make way for spring melons; others froze their harvests and sold them to jui

> In Problem 20, a new dip increases the quantity of potato chips that people want to buy by 30 million bags per week at each price. a. Does the demand for chips change? Does the supply of chips change? Describe the change. b. How do the equilibrium price

> The demand and supply schedules for potato chips are: a. Draw a graph of the potato chip market and mark in the equilibrium price and quantity. b. If the price is 60¢ a bag, is there a shortage or a surplus, and how does the price adjust?

> a. If the price of a pizza is $12, is there a shortage or a surplus and does the price rise or fall? b. Buyers want to pay the lowest possible price, so why would they be willing to pay more than $12 for a pizza? 16 14 12 200 AD0 100 200 Guantily pir

> a. Label the curves. Which curve shows the willingness to pay for a pizza? b. If the price of a pizza is $16, is there a shortage or a surplus and does the price rise or fall? c. Sellers want to receive the highest possible price, so why would they be wi

> With the new way to tap maple trees, farmers could produce 10 times as much maple syrup per acre. Will the new method change the supply of maple syrup or the quantity supplied of maple syrup, other things remaining the same? Explain.

> When a timber mill makes logs from trees it also produces sawdust, which is used to make plywood. a. Explain how a rise in the price of sawdust influences the supply of logs. b. Explain how a rise in the price of sawdust influences the supply of plywood.

> Classify the following pairs of goods and services as substitutes in production, complements in production, or neither. a. Bottled water and health club memberships b. French fries and baked potatoes c. Leather boots and leather shoes d. Hybrids and SUVs

> Think about the demand for the three game consoles: Xbox One, PlayStation 4, and Wii U. Explain the effect of each of the following events on the demand for Xbox One games and the quantity of Xbox One games demanded, other things remaining the same. The

> The price of gasoline has increased during the past year. a. Explain why the law of demand applies to gasoline just as it does to all other goods and services. b. Explain how the substitution effect influences gasoline purchases and provide some examples

> The money price of a textbook is $90 and the money price of the Wii game Super Mario Galaxy is $45. a. What is the opportunity cost of a textbook in terms of the Wii game? b. What is the relative price of the Wii game in terms of textbooks?

> What are the gains from specialization and trade?

> Why do people specialize and trade?

> Distinguish between comparative advantage and absolute advantage.

> What gives a person a comparative advantage?

> What are the flows in the market economy that go from firms to households and the flows from households to firms?

> Why are social institutions such as firms, markets, property rights, and money necessary?

> What is the opportunity cost of economic growth?

> What conditions must be satisfied if resources are used efficiently?

> What is allocative efficiency and how does it relate to the production possibilities frontier?

> What is marginal benefit? How is it measured?

> What is marginal cost? How is it measured?

> Why does the PPF bow outward and what does that imply about the relationship between opportunity cost and the quantity produced?

> Why is opportunity cost a ratio?

> Inexpensive broadband access has created a generation of television producers for whom the Internet is their native medium. As they redirect the focus from TV to computers, cellphones, and iPods, the video market is developing into an open digital networ

> Answer the following questions. a. How does the discovery of new oil and gas reserves change Canada’s PPF? b. How do technological advances in the production of other goods and services change Canada’s PPF? c. How are Husky’s discoveries changing Canada’

> The table describes the preferences in Yucatan. a. What is the marginal benefit from sunscreen and how is it measured? b. Use the table in Problem 11. What does Yucatan produce to achieve allocative efficiency? Wileg p (klogrom d loed pe Suraaren pe

> In Problem 11, what is the marginal cost of 1 kilogram of food in Yucatan when the quantity produced is 150 kilograms per day? What is special about the marginal cost of food in Yucatan? Problem 11: Suppose that Yucatan’s production po

> Suppose that Yucatan’s production possibilities are: What feature of a PPF illustrates increasing opportunity cost? Explain why Yucatan’s opportunity cost does or does not increase. Food Suracreen kkgam pe no fu p

> Suppose that Yucatan’s production possibilities are: a. Draw a graph of Yucatan’s PPF and explain how your graph illustrates a tradeoff. b. If Yucatan produces 150 kilograms of food per month, how much sunscreen must

> For 50 years, Cuba has had a centrally planned economy in which the government makes the big decisions on how resources will be allocated. a. Why would you expect Cuba’s production possibilities (per person) to be smaller than those of Canada? b. What ar

> Suppose that Tessa buys a new machine that enables her to make 20 jackets an hour. (She can still make only 80 caps per hour.) a. Who now has a comparative advantage in producing jackets? b. Can Sue and Tessa still gain from trade? c. Would Sue and Tessa

> On a graph of the circular flows in the market economy indicate the real and money flows in which the following items belong: a. You buy an iPad from the Apple Store. b. Apple Inc. pays the designers of the iPad. c. Apple Inc. decides to expand and rents

> In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. a. Calculate Sue’s opportunity cost of producing a cap. b. Calculate Tessa’s opportunity cost of producing a cap. c. Who has a comparative advantage in producing

> A farm grows wheat and produces pork. The marginal cost of producing each of these products increases as more of it is produced. a. Make a graph that illustrates the farm’s PPF. b. The farm adopts a new technology that allows it to use fewer resources to

> Distinguish between production efficiency and allocative efficiency. Explain why many production possibilities achieve production efficiency but only one achieves allocative efficiency.

> Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table sets out Brazil’s production possibilities for ethanol and food crops: Define marginal benefit. Explain how it is measured an

> Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table sets out Brazil’s production possibilities for ethanol and food crops: Does Brazil face an increasing opportunity cost of eth

> Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table sets out Brazil’s production possibilities for ethanol and food crops: a. If Brazil increases ethanol production from 40 barr

> Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table sets out Brazil’s production possibilities for ethanol and food crops: a. Draw a graph of Brazil’s PPF and

> The table gives data about umbrellas: price, the number purchased, and rainfall in millimetres (mm). What happens in the graph in Problem 21 if the rainfall increases from 200 mm to 400 mm? Problem 21: Draw a graph to show the relationship between the

> The table gives data about umbrellas: price, the number purchased, and rainfall in millimetres (mm). What happens in the graph in Problem 21 if the price rises and rainfall is constant? Problem 21: Draw a graph to show the relationship between the pric

> Tony and Patty produce skis and snowboards. The tables show their production possibilities. Tony produces 5 snowboards and 40 skis a week; Patty produces 10 snowboards and 5 skis a week. a. Who has a comparative advantage in producing (i) snowboards an

> Calculate the slope across the arc AB.

> The spreadsheet provides data on oil and gasoline: Column A is the year, column B is the price of oil (dollars per barrel), column C is the price of gasoline (cents per litre), column D is oil production, and column E is the quantity of gasoline refined

> The spreadsheet provides data on oil and gasoline: Column A is the year, column B is the price of oil (dollars per barrel), column C is the price of gasoline (cents per litre), column D is oil production, and column E is the quantity of gasoline refined

> The spreadsheet provides data on oil and gasoline: Column A is the year, column B is the price of oil (dollars per barrel), column C is the price of gasoline (cents per litre), column D is oil production, and column E is the quantity of gasoline refined

> Calculate the slope at point A and at point B.

> Calculate the slope of the curve in the figure in the next column at point A. 10

> Draw a graph that shows the relationship between the two variables x and y: Calculate the slope of the relationship across the arc as x increases from 4 to 5. * D 1 2 3 45 25 24 22 18 12 0

> Draw a graph that shows the relationship between the two variables x and y: Calculate the slope of the relationship between x and y when x equals 3. * D 1 2 3 45 25 24 22 18 12 0

> Draw a graph that shows the relationship between the two variables x and y: a. Is the relationship positive or negative? b. Does the slope of the relationship become steeper or flatter as the value of x increases? c. Think of some economic relationships

> The table gives data about umbrellas: price, the number purchased, and rainfall in millimetres (mm). Draw a graph to show the relationship between the price and the number of umbrellas purchased, holding the amount of rainfall constant at 200 mm. Descri

> Kim can produce 40 pies or 400 cakes an hour. Liam can produce 100 pies or 200 cakes an hour. a. Draw a graph of Kim’s PPF and Liam’s PPF and show the point at which each produces when they spend 30 minutes of each hour producing pies and 30 minutes prod

> Draw a graph of two variables whose relationship shows (i) a maximum and (ii) a minimum.

> Explain how we “read” the three scatter diagrams in Figs. A1.3 and A1.4. FIGURE A1.3 A Scatter Diagram Tickah DVD Movie lioal kon Man 3 50 1.1 1.3 The Hanger Gomar: Catting fire 49 20 Despkable Me 2 45 1.8 Man of

> Explain how we “read” the three graphs in Figs. A1.1 and A1.2. FIGURE A1.1 Making a Graph D end 1419 ocand -20 20,0. parahun Paite FIGURE A1.2 Two Graphs of Economic Data 1 per e and 112 milee EVeid In 2013, 1.3 b

> What are the two ways of calculating the slope of a curved line?

> Provide two microeconomic statements and two macroeconomic statements. Classify your statements as positive or normative. Explain why.

> Look at today’s National Post. What is the leading economic news story? With which of the big economic questions does it deal and what tradeoffs does it discuss or imply?

> What might be an incentive for you to take a class in summer school? List some of the benefits and costs involved in your decision. Would your choice be rational?

> When Costco opened a gas bar just off Highway 401, the neighbourhood was swamped with cars as drivers lined up to get the discount of 10 cents a litre. a. What is the opportunity cost of a litre of gas? Explain. b. To control the crowd, Costco hires traf

> How does a successful movie illustrate self-interested choices that are also in the social interest?

> How does the creation of a successful movie influence what, how, and for whom goods and services are produced?

> Kim can produce 40 pies or 400 cakes an hour. Liam can produce 100 pies or 200 cakes an hour. a. Calculate Kim’s opportunity cost of a pie and Liam’s opportunity cost of a pie. b. If each spends 30 minutes of each hour producing pies and 30 minutes produ

> Explain what change will bring a shift of a curve.

> Explain what change will bring a movement along a curve.

> How do we graph a relationship among more than two variables?

> Which of the relationships in Questions 4 and 5 is a positive relationship and which is a negative relationship? Questions 4: Draw a graph to show the relationship between two variables that move in the same direction. Questions 5: Draw a graph to show

> Draw a graph to show the relationship between two variables that move in opposite directions.

> Draw a graph to show the relationship between two variables that move in the same direction.

> Explain what scatter diagrams show and why we use them.

> The night before an economics test, you decide to go to the movies instead of staying home and working your MyEconLab Study Plan. You get 50 percent on your test compared with the 70 percent that you normally score. a. Did you face a tradeoff? b. What wa

> Explain how the following news headlines concern self-interest and the social interest. a. Starbucks Expands in China b. McDonald’s Moves into Gourmet Coffee c. Food Must Be Labelled with Nutrition Data

> How is economics used as a policy tool?

> Toyota will continue to produce 3 million cars per year and will use the balance of its resources to upgrade its workers’ skills and create new technology. In three years’ time, Toyota plans to produce better cars and be more productive. a. What is the o

> How do economists try to disentangle cause and effect?

> What is a model? Can you think of a model that you might use in your everyday life?

> Distinguish between a positive statement and a normative statement and provide examples.

> Use headlines from the recent news to illustrate the potential for conflict between self-interest and the social interest.

> Find an example of the distinction between microeconomics and macroeconomics in today’s headlines.

> Find examples of scarcity in today’s headlines.

> Describe the broad facts about what, how, and for whom goods and services are produced.

> The Russian government spent $6.7 billion on Olympic facilities and $16.7 billion upgrading Sochi area infrastructure. Sponsors spent $27.6 billion on hotels and facilities hoping to turn Sochi into a year-round tourist magnet. Was the opportunity cost o

> The table gives the price of a balloon ride, the temperature, and the number of rides a day. Draw a graph to show the relationship between the price and the number of rides when the temperature is 20°C. Describe this relationship Baloon r

> Calculate the slope of the relationship at point A and at point B. 100 40 1.5 10

> How does the production possibilities frontier illustrate production efficiency?

> Calculate the slope of the following relationship. 10 10 120