(a) Show a point U that would indicate unemployed resources in Sluggerville.
(b) Draw a new curve B that illustrates the results of improved technology in the production of bats, but no change in the production efficiency of peanuts.
(c) Show a point G that would indicate a point that is currently unattainable in the production of peanuts and bats in Sluggerville.
303) Explain how each event affects production possibilities.
(a) The population becomes more educated over time as the number of high school dropouts falls and the number of college graduates rises.
(b) The unemployment rate declines from 8 to 6 percent of the labour force.
(c) Businesses and government are unable to solve a major computer problem, thus reducing economic efficiency and national output.
(d) Advances in telecommunications and new technology significantly contribute to economic growth over time.
(e) The Federal government decides to allocate more resources to national defence.
(a) The population becomes more educated over time as the number of high school dropouts falls and the number of college graduates rises.
(b) The unemployment rate declines from 8 to 6 percent of the labour force.
(c) Businesses and government are unable to solve a major computer problem, thus reducing economic efficiency and national output.
(d) Advances in telecommunications and new technology significantly contribute to economic growth over time.
(e) The Federal government decides to allocate more resources to national defence.
304) Describe the adjustments in the production possibilities curves in each of the following situations for the Canadian economy.
(a) the economy moves from full employment into a deep recession
(b) the economy makes great strides in eliminating discrimination
(c) the end of the Cold War leads to cuts in military spending
(d) the government significantly increases spending for health and education
(a) the economy moves from full employment into a deep recession
(b) the economy makes great strides in eliminating discrimination
(c) the end of the Cold War leads to cuts in military spending
(d) the government significantly increases spending for health and education
305) Evaluate. Since the production possibilities curve can shift outward over time, it is possible for an economy to get more of a product without incurring an opportunity cost.
306) One application of the production possibilities concept has been to explain the difference in growth patterns of a nation with a high level of investment (Alta) and an equivalent nation with a low level of investment (Zorn). Use the concept to explain why Alta's economic growth would be greater than that of Zorn over time.
307) The production possibilities curve suggests that a nation cannot live beyond its means or production potential. Explain why international trade would cause this statement to be modified.
308) Why do economists use graphs in their work?
309) In a two-dimensional graph showing the relationship between income and consumption in the economy, what is shown on the vertical axis and what is shown on the horizontal axis?
310) Define what is meant by a positive or direct relationship between two variables and describe the line graph depicting such a relationship.
311) Define what is meant by an inverse relationship between two variables and describe the line graph depicting such a relationship.
312) Differentiate between the independent and dependent variables in an economic relationship.
313) Describe the slope of a direct and an inverse relationship.
314)