How is real GDP calculated?
> 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
> The spreadsheet provides the economic data: Column A is the year, column B is the inflation rate, column C is the interest rate, column D is the growth rate, and column E is the unemployment rate. Draw a scatter diagram of the interest rate and the unemp
> The spreadsheet provides the economic data: Column A is the year, column B is the inflation rate, column C is the interest rate, column D is the growth rate, and column E is the unemployment rate. Draw a scatter diagram of the growth rate and the unemplo
> The spreadsheet provides the economic data: Column A is the year, column B is the inflation rate, column C is the interest rate, column D is the growth rate, and column E is the unemployment rate. Draw a scatter diagram of the inflation rate and the inte
> The table gives the price of a balloon ride, the temperature, and the number of rides a day. What happens in the graph in Problem 10 if the temperature rises to 30°C? Problem 10: Draw a graph to show the relationship between the price and th
> Explain in which of the years Canada’s standard of living (i) increased and (ii) decreased. Year Real CDP Papulatien $1,311 billion 32.9 million $1,320 billion 3.3 million $1,284 billion 3.7 million $1,325 billion 34.1 million 2007
> The table lists some data for Canada in 2008. Item…………………………………………….. Billions of dollars Wages paid to labour……..……..……..……..……..……… 815 Consumption expenditure……..……..……..…………... 885 Net domestic income at factor cost……..………….. 1,210 Investment……..……..
> The table lists some data for Canada in 2008. Item…………………………………………….. Billions of dollars Wages paid to labour……..……..……..……..……..……… 815 Consumption expenditure……..……..……..…………... 885 Net domestic income at factor cost……..………….. 1,210 Investment……..……..
> How does the growth rate of real GDP contribute to an improved standard of living?
> In response to the Gates Malaria Forum in October 2007, countries are debating the pros and cons of eradication. Dr. Arata Kochi of the World Health Organization believes that with enough money malaria cases could be cut by 90 percent, but it would be ve
> What is the distinction between nominal GDP and real GDP?
> What adjustments must be made to total income to make it equal GDP?
> What is the income approach to measuring GDP?
> What is the expenditure approach to measuring GDP?
> What are the distinctions between domestic and national, and gross and net?
> China’s gross domestic product grew 11.4 percent last year and marked a fifth year of double-digit growth. The increase was especially remarkable given that the United States is experiencing a slowdown due to the sub-prime crisis and housing slump. Citig
> The table lists some data for Xanadu in 2014. Item………………………………………….. Billions of dollars Wages paid to labour…………….…………….…………. 800 Consumption expenditure…………….……………… 1,000 Profit, interest, and rents…………….…………………. 340 Investment…………….…………….…………….…………..
> The table lists some data for Xanadu in 2014. Item………………………………………….. Billions of dollars Wages paid to labour…………….…………….…………. 800 Consumption expenditure…………….……………… 1,000 Profit, interest, and rents…………….…………………. 340 Investment…………….…………….…………….…………..
> The components and robots for Toyota’s auto assembly lines in Canada are built in Japan. Toyota assembles cars for the Canadian market in Ontario. Explain where these activities appear in Japan’s National Income and Expenditure Accounts.
> As the average income in China continues to increase, explain how the following would change: a. The demand for beef b. The demand for rice
> How does the production possibilities frontier illustrate scarcity?
> Tim Hortons has exploded to become a dominant player among quick-serve restaurants. In 2001, it took the risk by switching to centralized production of baked goods, which lowered its labour costs and increased its sales volume. Draw a graph to show the e
> Why is the price at which the quantity demanded equals the quantity supplied the equilibrium price?
> Over what range of prices does a surplus arise? What happens to the price when there is a surplus?
> Over what range of prices does a shortage arise? What happens to the price when there is a shortage?
> What is the equilibrium price of a good or service?
> What happens to the quantity of cellphones supplied and the supply of cellphones if the price of a cellphone falls?
> What does the supply curve tell us about the producer’s minimum supply price?
> Define the quantity supplied of a good or service.
> Why does demand not change when the price of a good changes with no change in the other influences on buying plans?
> Define the quantity demanded of a good or service.
> Music retailing is changing: Sony Music and Amazon are selling online, discount stores are selling at low prices, and downtown music retailers are all struggling. a. Draw the PPF curves for downtown music retailers and online music retailers before and a
> Think of examples of goods whose relative price has risen or fallen by a large amount.
> If the virus in Problem 22 hits just as the new dip in Problem 21 comes onto the market, how do the equilibrium price and equilibrium quantity of chips change? Problem 22: In Problem 20, if a virus destroys potato crops and the quantity of potato chips
> In Problem 20, if a virus destroys potato crops and the quantity of potato chips produced decreases by 40 million bags a week at each price, how does the supply of chips change? Problem 20: The demand and supply schedules for potato chips are: Quant
> Explain why a relative price is an opportunity cost.
> What features of the world market for crude oil make it a competitive market?
> What is the source of the gains from trade?
> Capital accumulation and technological change bring economic growth: Production that was unattainable yesterday becomes attainable today; production that is unattainable today will become attainable tomorrow. Why doesn’t economic growth bring an end to s
> What are the main functions of markets?
> In response to the Gates Malaria Forum in October 2007, countries are debating the pros and cons of eradication. Dr. Arata Kochi of the World Health Organization believes that with enough money malaria cases could be cut by 90 percent, but it would be ve
> Does economic growth overcome scarcity?
> Explain why Hong Kong has experienced faster economic growth than Canada.
> How does economic growth influence the production possibilities frontier?
> What generates economic growth?
> How does the marginal benefit from a good change as the quantity produced of that good increases?
> How does the production possibilities frontier illustrate opportunity cost?
> Calculate the slope across the arc AB . 100 40 1.5 10
> How does the production possibilities frontier show that every choice involves a tradeoff?
> Which of the following statements is positive, which is normative, and which can be tested? a. Canada should cut its imports. b. China is Canada’s largest trading partner. c. The federal government should increase the production of biofuels.
> Calculate the slope of the relationship in Problem 4 between 2,253 and 3,372 theatres Problem 4: Draw a graph of the relationship between the revenue per theatre on the y -axis and the number of theatres on the x -axis. Reven The unbe dolan Movia pe
> Calculate the slope of the relationship in Problem 4 between 3,775 and 2,253 theatres. Problem 4: Draw a graph of the relationship between the revenue per theatre on the y -axis and the number of theatres on the x -axis. Reven The unbe dolan Movia p
> Eminem will hit the road with Rihanna offering an awesome deal—buy one and get one free! When Eminem gave away tickets, what was free and what was scarce? Explain your answer.
> Super Savers Department Store’s balance sheet revealed the following information: Current assets ………………………………………$750,000 Noncurrent assets ………………………………….450,000 Noncurrent liabilities ……………………………..400,000 Stockholders’ equity ……………………………….380,000 Determ
> What is the present value of $500,000 to be paid in 10 years? The annual interest rate is 8%.
> Refer to the information in Exercsie 7. Information given in Exercise 7: Hulme Company operates a small manufacturing facility as a supplement to its regular service activities. At the beginning of 2017, an asset account for the company showed the follo
> GMAC Corporation is planning to issue bonds with a face value of $250,000 and a coupon rate of 6 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. De
> The balance sheet for Stevenson Corporation reported the following: noncurrent assets, $240,000; total assets, $360,000; noncurrent liabilities, $176,000; total stockholders’ equity, $94,000. Compute Stevenson’s working capital.
> RKO Company sold bonds with a face value of $850,000 for $910,000. The bonds have a coupon rate of 8 percent, mature in 10 years, and pay interest annually every December 31. All of the bonds were sold on January 1 of this year. Using a premium account,
> Waterhouse Company plans to issue bonds with a face value of $500,000 and a coupon rate of 10 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. Det
