Question: Think of examples of goods whose relative

> 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?

> How is real GDP calculated?

> 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

> 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

> Coffman Company sold bonds with a face value of $1,000,000 for $940,000. The bonds have a coupon rate of 10 percent, mature in 10 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Re

> Coffman Company sold bonds with a face value of $1,000,000 for $940,000. The bonds have a coupon rate of 10 percent, mature in 10 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Us

> Trew Company plans to issue bonds with a face value of $900,000 and a coupon rate of 6 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. Determine

> Oak Corporation’s financial statements for the current year showed the following: Income Statement Revenues ………………………………………………………$800,000 Expenses ………………………………………………………(620,000) Interest expense ……………………………………………...(12,600) Pretax income …………………………………………

> You purchased a new car and promised to pay the dealership five payments of $8,000 at the end of each of the next five years. The applicable interest rate is 8%. What is the present value of this annuity?

> Using the data from the previous exercise, complete the following requirements. Data from previous Exercise: Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Neiman Marcus is one of

> Using Table E.1 in Appendix E, fill in the present value factors for the following interest rates and periods: Table E1: Present Value Factors i = 5% i = 10% i = 14% n = 4 n = 7 n = 10 PV of $1 PV of annuity of $1 Pariad 1.a% 2.0% 3

> On April 1 of the current year, a company borrowed $4,000 from a bank. The annual interest rate was 12%. When the company prepares its year-end financial statements on December 31, how much will it report as interest expense associated with this note?

> If you hold a valid contract that will pay you $8,000 cash in 10 years and the going annual rate of interest is 10%, what is the contract’s present value? Show your computations.

> Wefald Company sold bonds with a face value of $600,000 for $580,000. The bonds have a coupon rate of 10 percent, mature in 10 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Recor

> Wefald Company sold bonds with a face value of $600,000 for $580,000. The bonds have a coupon rate of 10 percent, mature in 10 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Using

> 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. Record the sale of the bo

> Using the data from the previous problem, complete the following: Required: For each transaction (including adjusting entries) listed in the previous problem, indicate the effects (e.g., cash + or −) using the format below. You do not need to include am

> Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,045,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value

> Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,045,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value

> After hearing a knock at your front door, you are surprised to see the Prize Patrol from your state’s online lottery agency. Upon opening your door, you learn you have won the lottery of $12.5 million. You discover that you have three options: (1) you ca

> Calculate the book value of a three-year-old machine that has a cost of $31,000, an estimated residual value of $1,000, and an estimated useful life of five years. The company uses straight-line depreciation.

> For each of the following transactions, determine whether cash flows from operating activities will increase, decrease, or remain the same: a. Purchased merchandise on credit. b. Paid an account payable in cash. c. Accrued payroll for the month but did n

> StarGaze Company leased a truck for three months. Accounting guidance classifies the lease as an operating lease. StarGaze makes lease payments of $800 at the end of each month. What journal entry will StarGaze enter upon signing the lease? What journal

> For each of the following scenarios, indicate whether an asset has been impaired (Y for yes and N for no) and, if so, the amount of loss that should be recorded. Is Asset Impaired? Book Estimated Fair Amount Value Future Cash Flows Value of Loss $ 15

> Wygant Corporation borrowed $290,000 on October 1 last year. The note carried a 10% interest rate with the principal and interest payable on May 1 this year. Prepare the journal entry to record the note on October 1. Prepare the adjusting entry to record

> Ospry Company has working capital in the amount of $1,240,000. For each of the following transactions, determine whether working capital will increase, decrease, or remain the same. a. Paid accounts payable in the amount of $50,000. b. Recorded accrued s

> What is the present value of 10 equal payments of $15,000 to be made at the end of each year for the next 10 years? The annual interest rate is 10%.

> A number of events over the life of a bond have effects that are reported on the statement of cash flows. For each of the following events, determine whether the event affects the statement of cash flows and, if so, whether it affects operating, investin