Principles Of Macroeconomics 1st Edition Pearson Canada - Solutions

Discover comprehensive resources for "Principles Of Macroeconomics 1st Edition Pearson Canada" with our extensive collection of solutions. Access an online answers key and solution manual, featuring solved problems and step-by-step answers. Dive into questions and answers, along with a test bank that enhances learning. Explore chapter solutions and an instructor manual to guide your studies. Whether you need a textbook reference or a solutions PDF, our platform offers everything you need for success. Enjoy a free download to ensure you have the complete set of educational tools at your fingertips.

2. Does the term consumption refer to spending by households on domestically produced goods and services only? Does the term investment include the purchase of stocks and bonds?
1. If the economy is in disequilibrium because total income exceeds aggregate expenditure, what must be happening to inventories?
LO5 Explain the importance of productivity in encouraging growth and some of the problems of unchecked growth.
LO4 Measure and describe the benefits of economic growth.
LO3 Describe the components of GDP accounting and some of the problems in determining official statistics.
LO2 Explain the concept of equilibrium and why national income can rise and fall.
LO1 Describe the circular flow of national income.
6. Suppose that the demand equation is: Qd = 520 - 3P and the supply equation is Qs = 100 + 4P.a) If the quantity presently supplied is 380, what is the price?b) At the price in (a), what is the quantity demanded?c) At the price in (a), is there a surplus or a shortage?
5. Suppose that the demand equation is Qd = 230 - 3P and the supply equation is Qs = -10 + 9P.a) If the price is 15, will there be a surplus or a shortage?How much?b) If the price is 22, will there be a surplus or a shortage?How much?
4. The following table shows the demand and supply of kiwi fruit in Montreal.a) What is the algebraic expression for the demand curve?b) What is the algebraic expression for the supply curve?c) Find algebraically the values of equilibrium price and quantity
3.a) If P = 61 - 0.25Qd, what is the algebraic expression for Qd?b) If P = 16 + 2Qs, what is the algebraic expression for Qs?c) What are the equilibrium values of price and quantity?
2.a) If Qd = 100 - 5P and Qs = 10 + P, what are the equilibrium values of price and quantity?b) If demand increases by 12 and price remains the same as in (a), will there be a surplus or a shortage?How much?c) If demand increases by 12, what will be the new equilibrium price and quantity?
1. If Qd = 40 - 2P and Qs = 10 + 3P, what are the equilibrium values of price and quantity?
12. (LO 6) Suppose that in response to the high rent and low supply of affordable rental accommodation in the Toronto market, the city constructed 5000 additional rental units and put them on the market at below-equilibrium rents.Draw a supply-and-demand graph showing the effects on the rental
11. (LO 4, 5, 6) Identify any two possible causes and five specific effects involved in the movement from point a to b to c in Figure 2.21.
10. (LO 4, 5) Explain, step by step, how an increase in demand eventually affects both price and quantity traded.Advanced (Problems 11–12)
9. (LO 5) Briefly explain the five determinants of market demand.
8. (LO 1, 5) “The prices of houses rise when the demand increases. The demand for houses decreases when prices increase.” Change one of these statements so that the two are consistent with each other.
7. (LO 4, 5, 6) Consider the effects of each of the events outlined in Table 2.19 on the market indicated. Place a(↑), (↓) or (-) under the appropriate heading to indicate whether there will be an increase, decrease, or no change in demand (D), supply (S), equilibrium price (P), and the
6. (LO 1, 4) Explain the effect of a shortage on prices.Intermediate (Problems 7–10)
5. (LO 1, 5) What is the distinction between demand and quantity demanded?
4. (LO 5, 6) What must have happened to demand or supply to cause the following changes?a) The price of guitars falls, but the quantity traded increases.Demand/supply must have .b) The price and quantity traded of saxophones decrease.Demand/supply must have .c) The price of trombones increases,
3. (LO 4, 5, 6) Suppose that new medical research strongly indicates that the consumption of coffee can cause cancer of the colon. What effect will this news have on the equilibrium price and quantity traded of the following products?a) coffee beans Price: Quantity traded:b) tea, a substitute for
2. (LO 1, 2, 5, 6) In each of the two graphs in Figure 2.20, explain the change in equilibrium from a to b in terms of 1) an increase (or decrease) in demand (or supply)2) an increase (or decrease) in the quantity demanded(or quantity supplied)
1. (LO 5) Circle which of the following factors will lead to an increase in the demand for cranberry juice (which is a normal good).a) A decrease in the price of cranberry juiceb) A decrease in the price of cranberriesc) The expectation by consumers that the price of cranberry juice is likely to
(LO 1, 2, 4, 5, 6) Table 2.18 shows the market for wool in the economy of Odessa (the quantities are in tonnes per year).Price ($)200 100 0400 300 600 500 800 700 20 40 60 80 100 120 140 Quantity of wool FIGURE 2.19 Price ($) 100 200 300 400 500 600 700 Quantity Demanded 130 110 90 70 50 30 10
10. (LO 4, 5, 6) Table 2.17 shows the market for probiotic yoghurt in Canada.a) Suppose the price of a complementary product were to increase in price causing the demand to change by 30. Show the new demand in column 4 in Table 2.17.b) What will be the new equilibrium price and quantity?Price:
9. (LO 4) Figure 2.18 shows the market for the new Guns and Butter album, Live at Saskatoon.a) Suppose that the album producers put it on sale for$14 each. How much will be the surplus or shortage?How many will be sold?Surplus/shortage of:Quantity sold:b) What is the minimum price that suppliers
8. (LO 4) Figure 2.18 shows the market for the new Guns and Butter album, Live at Saskatoon.a) Suppose that the album producers put it on sale for $8 each. How much will be the surplus or shortage?How many will be sold?Surplus/shortage of:Quantity sold:b) What is the maximum price at which the
7. (LO 1, 4) In Kirin, at a market price of $1 per kilo, there is a shortage of 60 kilos of avocados. For each 50-cent increase in the price, the quantity demanded drops by 5 kilos while the quantity supplied increases by 10 kilos.a) Complete Table 2.16.b) What will be the equilibrium
6. (LO 4, 5, 6) Table 2.15 shows the demand and supply for the World Cup Final game in the Maracana Stadium in Rio.2011 2012 2013 Quantity Quantity Quantity Price $ Demanded Demanded Demanded 320 000 5200 5500 5300 340 000 5100 5400 5200 360 000 5000 5300 5100 380 000 4900 5200 5000 400 000 4800
5. (LO 4, 5, 6) Table 2.14 shows the demand for new townhouses for 2011, 2012, and 2013.a) When the price in 2011 changed from $400 000 to $420 000, what happened in the market for townhouses?demanded)b) What happened between 2011 and 2012?c) What happened between 2012 and 2013?d) When the price in
4. (LO 3) Figure 2.17 shows the market for halibut fillets.For the halibut market, fill in Table 2.13 showing the amount of surplus (+) or shortage (-) at each price.Intermediate (Problems 5–6)
3. (LO 4, 5, 6) Table 2.12 shows the market demand and supply for Fuji apples in Peterborough.a) What is the equilibrium price and quantity traded?Price: Quantity:b) Suppose that supply increases by 30. Complete the column in Table 2.12.Quantity Quantity Quantity Price Demanded Supplied 1 Supplied
2. (LO 3) Figure 2.16 shows the market for large bags of potato chips.S D0 20 30 40 50 60 70 80 10 Quantity per week 0.50 0.00 1.00 1.50 2.00 3.00 2.50 Price ($)FIGURE 2.16 Quantity per week Price per kilo ($)0 18 20 22 24 26 28 30 32 0 20 40 60 80 100 120 140 160 SD FIGURE 2.17a) What is the
1. (LO 4)a) Given the data in Table 2.11, draw the demand curve in Figure 2.15.Price Quantity Demanded 1 80 2 70 3 60 4 50 5 40 6 30 TABLE 2.11 Price Quantity of copy paper 12 0 20 40 60 80 100 120 140b) What is the equilibrium price and quantity?Price: Quantity:
8. The following are changes that occur in different markets.Explain what will happen to either demand or supply and to the equilibrium price and quantity traded.a) an increase in income on the market for an inferior productb) a decrease in the price of steel on the automobile industryc) a
7. What effect will the following changes have on the supply, price, and quantity traded of wine?a) A poor harvest in the grape industry results in a big decrease in the supply of grapes.b) The number of wineries increases.c) The sales tax on wine increases.d) The introduction of a new fermentation
6. Suppose that the demand and supply for strawberries in Corona are as follows (the quantities are in thousands of kilos per week):QUANTITY Quantity Quantity Quantity Price Demanded Supplied 1 Supplied 2$4.00 140 60 4.50 120 80 5.00 100 100 5.50 80 120a) What are the present equilibrium price and
5. What effect will the following changes have on (i) the demand for, (ii) the price of, and (iii) the quantity traded of commercially brewed beer?a) a new medical report affirming the beneficial health effects of drinking beer (in moderation, of course)b) a big decrease in the price of
4. The accompanying table shows the initial weekly demand (D1 ) and the new demand (D2 ) for packets of pretzels (a bar snack). To explain the change in demand from D1 to D2 , what might have happened to the price of a complementary product such as beer? Alternatively, what might have happened to
3. The following table shows the demand and supply of eggs (in hundreds of thousands per day).a) What are the equilibrium price and the equilibrium quantity?b) Complete the surplus/shortage column. Using this column, explain why your answer to question (a) must be correct.c) What would be the
2. What effect does a surplus have on the price of a product?What about a shortage?
LO7 Explain why demand and supply determine price and the quantity traded, and not the reverse.
LO6 Demonstrate the causes and effects of a change in supply.
LO5 Demonstrate the causes and effects of a change in demand.
LO4 Explain the concept of (price and quantity) equilibrium.
LO3 Explain the term market.
LO2 Explain the concept of supply.
LO1 Explain the concept of demand.
The opportunity cost of pushing the PPF outward isa. the price of resources.c. the quantity of resources.b. the unemployment rate.d. preferences for wine and wool.e. all of the above.a. capital accumulation.b. technological change.c. reduced current consumption.d. the gain in future consumption.e.
The PPF for wine and wool will shift if there is a change in
A movement along a given PPF will result froma. benefit equals marginal cost. h. benefit is at its maximum.c. benefit exceeds marginal cost by as much as possible.d. cost exceeds marginal benefit by as much as possible.e. cost is at its minimum.a. technological change.b. change in the stock of
With allocative efficiency, for each good produced, marginal |
Suppose the PPF for skirts and pants is a straight line. As the production of skirts increases, the marginal benefit of skirtsa. increases and marginal cost is constant.b. is constant and marginal cost increases.e. decreases and marginal cost decreases.d. decreases and marginal cost increases.e.
The marginal benefit curve for a gooda. shows the benefit a firm receives from producing one more unit.b. shows the amount a consumer is willing to pay for one more unit.c. is upward sloping.d. is bowed out.e. is none of the above..
With increasing production of food, its marginal benefita. increases and marginal cost increases.b. increases and marginal cost decreases.c. decreases and marginal cost increases.d. decreases and marginal cost decreases.e. decreases and marginal cost is constant. Using Resources Efficiently
According to this PPFa. b. resources are equally productive in all activities. a combination of 3 hockey sticks and 9 maple leaves is attainable.c. a combination of 3 hockey sticks and 9 maple leaves would not employ all resources.d. the opportunity cost of producing hockey sticks increases as more
In moving from combination e to combinationb, the oppor tunity cost of producing one additional hockey stick isa. 2 maple leaves.b. 1/2 a maple leaf.c. 6 maple leaves.d. 1/6 a maple leaf.e. 3 maple leaves. Good
Refer to Fig. 4, which shows the PPF for an economy without discrimination operating at maximum efficiency. If discrimi- nation against women workers is currently occurring in this economy, the elimination of discrimination would result in a(n)a. movement from a to bb. movement from b toc. c.
TABLE 1 Production Possibilities Units of Hockey Sticks 3 Units of Maple Possibility Leaves 0 b 2 3 0 9
Use the information in Table 1 to answer Questions 6 and
Which of the following state- ments is false?a. Resources are not equally productive in all activities.b. Points inside the frontier represent unemployed resources.c. Starting at pointa, an increase in the production of good Y will shift the frontier out.d. The opportunity cost of producing good Y
Refer to the PPF in Fig.
Economic growth, by shifting out the PPF, eliminates the problem of scarcity.
The marginal benefit of good X is the amount of good Y a person is willing to forgo to obtain one more unit of X. Economic Growth
All points on a PPF represent both production efficiency and allocative efficiency.
The marginal cost of the 4th pizza is the cost of producing all 4 pizzas.
The principle of decreasing marginal benefit states that the more we have of a good, the less we are willing to pay for an additional unit of it. Using Resources Efficiently
In moving from point to pointd, the opportunity cost of increasing the production of good 2 equals the absolute value of the slope of the PPF between b and d.
3. Pointe is not attainable.
The opportunity cost of increasing the production of good 2 from 7 to 8 units is 4 units of good
Point a is not attainable. Good2
D A FIGURE 2
Is the relationship between y and z positive or negative?Refer to the production possibility frontier (PPF) in Fig. 2 for Questions 1 to
In Table A4, x represents the number of umbrellas sold per month, y represents the price of an umbrella, and z repre- sents the average number of rainy days per month. TABLE A4 Umbrellas Sold Price per Average Number of per Month Umbrella Rainy Days per Month (x) (2) 120 $10 4 140 $10 5 160 $10 6
Use the graph in Fig. A9 to compute the slope FIGURE A9a. across the are between points a and bb. al point b.c. at pointc, and explain your answer.
Explain two ways to measure the slope of a curved line.
The equation for a straight line is y = 4-2x.a. Calculate the y-intercept, the x-intercept, and the slope.b. On the grid, draw the graph of the line.
On the grid, draw each of the following:a. a straight line with slope -10 and passing through the point (2,80).b. a straight line with slope 2 and passing through the point (6, 10).
On the grid on the next page, draw a graph of variables x and y that illustrates each of the following relationships:a. x and y move up and down together.b. x and y move in opposite directions.c. as x increases y reaches a maximum.d. as x increases y reaches a minimum.e. x and y move in opposite
In Fig. A7, a decrease in the value of will cause, ceteris paribus,a. a decrease in the value of x.b. an increase in the value of x.c. an increase in the value of y.d. no change in the value of y.e. no change in the value of x.
In Fig. A7, xisa. positively related to y and negatively related to zb. positively related to both y and zc. negatively related to y and positively related to zd. negatively related to both y and ze. greater than z. FIGURE A7
Given the data in Table A3, holding price constant, the graph relating family income (vertical axis) to the purchases of strawberries (horizontal axis) is aa. vertical line.b. horizontal line.c. positively sloped line.d. negatively sloped line.e. positively or negatively sloped line, depending on
Given the data in Table A3, suppose family income decreases from $400 to $300 per week. Then the graph relating the price of strawberries (vertical axis) to the pur- chases of strawberries (horizontal axis) willa. become negatively sloped.b. become positively sloped.c. shift rightward.d. shift
Given the data in Table A3, holding income constant, the graph relating the price of strawberries (vertical axis) to the purchases of strawberries (horizontal axis)a. is a vertical line.b. is a horizontal line.c. is a positively sloped line.d. is a negatively sloped line.e. reaches a minimum.
To graph a relationship among more than two variables, what kind of assumption is necessary?a. normativeb. positivec. lineard. independence of variablese. ceteris paribus
d. 3 and the y-intercept is -2. 1.3.e. 3 and the y-intercept is -6. Graphing Relationships Among More Than Two Variables
b. -3 and the y-intercept is -2.c. 3 and the y-intercept is
18. If the equation of a straight line is y6+3x, the slope isa. -3 and the y-intercept is
d. 2 and the x-intercept is -4.e. 2 and the x-intercept is
c. -2 and the x-intercept is
If the equation of a straight line is y = 8-2x, then the what would the value of x be when y is zero?a. 0b. 2c. 2/3d. -2/3e. -3/2 slope isa. -2 and the x-intercept is -4.b. -2 and the x-intercept is
If the line in Fig. A6 were to continue down to the x-axis. |
What is the slope of the line in Fig. A6?a. 2b. 1/2c. 3d. 1/3e. -3 FIGURE A6
In Fig. A5, if household expenditure is $28,000, household income isa. $36,000.b. $32,000.c. $28,000.d. $25,000.e. none of the above.
At all points along a straight line, slope isa. positive.b. negative.c. constant.d. zero.e. none of the above.e. impossible to determine from the graph.
b. -$4,000.c. $4,000.d. $8,000.
In Fig. A5, if household income is zero, household expen- diture is a.
In Fig. A5, if household income increases by $1,000, house- hold expenditure willa. increase by $1,333.b. decrease by $1.333.c. remain unchanged.d. increase by $1,000.e. increase by $750. H per year A FIGURE AS 16 24

Showing 4000 - 4100 of 6280

First
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
Last

Principles Of Macroeconomics 1st Edition Pearson Canada - Solutions

Step by Step Answers