Question 1

Under what conditions might government intervention in an economy improve the market outcome?

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Question 2

One tradeoff society faces is between efficiency and equity. Define each term. If the Canadian government redistributes income from the rich to the poor, explain how this action affects equity as well as efficiency in the economy.

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Question 3

With the understanding that people respond to incentives, outline the possible outcome for teachers if the K-12 school year is extended to 11 months per year instead of the existing 10 months per year.

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Question 4

Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run.

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Question 5

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?

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Quiz 1: Ten Principles of Economics

Under what conditions might government intervention in an economy improve the market outcome?

One tradeoff society faces is between efficiency and equity. Define each term. If the Canadian government redistributes income from the rich to the poor, explain how this action affects equity as well as efficiency in the economy.

With the understanding that people respond to incentives, outline the possible outcome for teachers if the K-12 school year is extended to 11 months per year instead of the existing 10 months per year.

Explain how an attempt by the government to lower inflation could cause unemployment to increase in the short-run.

Define opportunity cost. What is the opportunity cost to you of attending college? What was your opportunity cost of coming to class today?