Short answer questions: - 1. List three things that you use in life that are scarce. 2. What are the major factors of productions? When a business purchases a machine to make a product, that is considered what type of factor of production? 3. How can a government influence hoe scarce resources are used in a mixed economy like Canada? 4. What is the difference between a linear production possibility boundary and a concave (bowed outward) production possibility boundary? Problem Solving Exercises: - 5. Suppose Jodi likes to spend Thursday nights playing pool and watching movie soda. Jodi's budget for Thursday nights is $10, a movie ticket costs $5, and one game of pool costs $2. a. Draw a graph of Jodi's budget line. b. In your graph, label the affordable (attainable) and unaffordable (unattainable) areas. C. What is the opportunity of one game of pool? d. If the cost of movie ticket decreases to $2, what happens to Alan's budget line? Show in the graph. 6. The figure below represents the production possibilities boundary for a country. a. The nation is currently producing at point B and wants to move to point C. What is the opportunity cost of the move? b. The nation is currently producing at point B and wants to move to point A. What is the opportunity cost of the move? C. The nation is currently producing at point D and wants to move to point B. What is the opportunity cost of the move? d. How is economic growth shown in a production possibilities boundary graph? e. Why are all combinations on the PPB considered efficient?80 - 60- regular coffees 40 D 20 - 0 10 15 20 coffee lattes 5. The table below illustrates that, in one day, Tristan can produce either 12 fishing lures or mow 3 lawns, while Thomas can produce either 6 fishing lures or mow 6 lawns. Fishing Lures Mowed Lawns Tristan 12 3 Thomas 6 6 a. What is Tristan's opportunity cost of producing one fishing lure? b. What is Tristan's opportunity cost of producing one mowed lawn? C. If Tristan and Thomas want to maximize their joint output from one day of work, how should they specialize their production