Chapter 1

Question 1

What are economic resources?

Answer 1

Economic resources are basic items used in all types of production, including natural, capital, and human resources.

Question 2

What is rational behaviour?

Answer 2

Rational behaviour is making choices by logically weighing the personal benefits and costs of available acitons, then selecting the most attractive option.

Question 3

What are economic problems?

Answer 3

Economic problems are having unlimited wants but limited resources with which to satisify them.

Question 4

What are natural resources?

Answer 4

Natural resources are the resources from nature that are used in production, including land, raw materials, and natural processes.

Question 5

What is captial resources?

Answer 5

Captial resources are the processed materials, equipment, and buoldings used in production, also known as captial.

Question 6

What is labour?

Answer 6

Labour is the human effort employed directly in production?

Question 7

What is entrepreneurship?

Answer 7

Entrepreunership is the intiative, risk-taking, and innovation nesscary for production.

Question 8

What is economics?

Answer 8

Economics is the study of how to distrubte scare resources to make choices.

Question 9

What is microeconomics?

Answer 9

Microeconomics is the branch of economics that focuses on the behaviour of indivudal participants in various markets.

Question 10

What is macroeconomics?

Answer 10

Macroeconomics is the branch of economics that takes a wide-ranging view of the economy, studying the behaviour of economic sectors.

Question 11

What are economic models?

Answer 11

Economic models are generalizations about or simplifcations of economic reality; also known as laws, principles, or thoeries.

Question 12

What are variables?

Answer 12

Variables are factors that have measureable values.

Question 13

What is the independent variable?

Answer 13

The independent varible is the variable in a causal relationship that is affect by another variable.

Question 14

What is the depedent variable?

Answer 14

The dependent variable is the variable in a casual realtionship that is affect by another variable.

Question 15

What is a inverse relationship?

Answer 15

A inverse relationship is a change in the indendent variable that cuases a change in the opposute direction of the dependent variable.

Question 16

What is a direct relationship?

Answer 16

A direct relationship is a change in the indendent variable that causes a change in the same direction of the dependent variable.

Question 17

What is ceteris paribus?

Answer 17

Ceteris paribus is the assumption that all other things remain the same.

Question 18

What is postive economics?

Answer 18

Postive economics is the study of ecnomic facts and why the economy operates as it does.

Question 19

What is normative economics?

Answer 19

Normative economics is the study of how the economy ought to operate.

Question 20

What is utility?

Answer 20

Utility is the satisfaction gained from any action.

Question 21

What is self-interest motive?

Answer 21

The self-interest motive is the assumption that people act to max their own welfare.

Question 22

What is opportunity cost?

Answer 22

Opportunuity cost is the ultity that could have been gained by choosing an action’s best alternative.

Question 23

What are production possibilities schedule?

Answer 23

A production possiblitites schedule is a table that shows that possible out put combations

Question 24

What is a production possibiltities curve?

Answer 24

A production possibilities curve is a table that illustrates the possible output combinations for an economy.

Question 25

What is the law of increasing opporuntuity costs?

Answer 25

The law of increasing opporuntuity costs is the concept that as more of one item is produced by an ecnomy, the opporunuity costs of additional units of that product rises.

Question 26

What is economic growth?

Answer 26

Economic growth is an increase in an economy s total output of goods and services.

Question 27

What is the economic system?

Answer 27

The economic system is the organization of an ecnomy, which represents a country’s distinct set of social customs, poltical instutions, and economic practices.

Question 28

What is a traditional eocnomy?

Answer 28

A traditional economy is an ecnomic system in which economic decisiions are made on the basis of custom.

Question 29

What is the market economy?

Answer 29

The market economy is a ecnomic system based on private ownership and the use of markets in economic decision-making.

Question 30

What is the market?

Answer 30

The market is a set of arrangements between buyers and sellers of a certain item.

Question 31

What are product markets?

Answer 31

Product markets are markets in which consumer products are traded.

Question 32

What are resource markets?

Answer 32

Resource markets are markets in which economic resources are traded.

Question 33

What is consumer sovereignty?

Answer 33

Consumer sovereignty is the effect of consumer needs and wants on production decisions.

Question 34

What is a command economy?

Answer 34

A command economy is an economic system based on public ownership and central planning.

Question 35

What is a modern mixed economy?

Answer 35

A modern mixed economy is an economic system that combines aspect of a market economy and a command economy; production decisions are made both in private markets and by government.

Question 36

What is a traditional mixed economy?

Answer 36

A traditional mixed economy is a economic system in which a traditional sector co-exists with modern sectors.

Question 37

What are emerging economics?

Answer 37

Emerging economics are economics that have recently exhibited high rates of economic growth and rising average incomes.

Question 38

What is inflation?

Answer 38

Inflation is a rise in the general level of prices.

Question 39

What is unemployment rate?

Answer 39

The unemployment rate is the percentage of a labour force that is involuntarily unemployed.

Question 40

What is the balance of payments accounts?

Answer 40

The balance of payment accounts is a summary of all transactions between Canadians and foreigners that involve exchanging Canadian dollars for other currencies.

Question 41

What is economic efficiency?

Answer 41

Economic effieciency is employing scare resources in a way that derives the highest benefit.