TEST BANK MICROECONOMICS: CANADA IN THE GLOBAL
ENVIRONMENT (12TH) MICHAEL PARKIN| ALL CHAPTERS 1-
18 WITH COMPLETE SOLUTION 100% VERIFIED ANSWERS
A+ GRADED FREE
Free goods - CORRECT ANSWERS-Goods that are not scarce and therefore available without
limits. Zero opportunity cost e.g. Air
Economic goods - CORRECT ANSWERS-A consumable item that is useful to people but scarce
in relation to its demand
Opportunity cost - CORRECT ANSWERS-The value of the next best alternative foregone
Demand - CORRECT ANSWERS-The quantity of a good or service that consumers are willing
and able to purchase at a given price
Law of demand - CORRECT ANSWERS-A law that states that, ceteris paribus, there is an
inverse relationship between the quantity demanded and price of a product
Notional demand - CORRECT ANSWERS-The desire or want for a product
Effective demand - CORRECT ANSWERS-The willingness to buy a good or service, backed up
by the purchasing power to buy it
Demand curve - CORRECT ANSWERS-A graph that shows how much of a product will be
demanded at any given price
Demand schedule - CORRECT ANSWERS-The collection of data that is used to draw a demand
curve for a product
,Individual demand - CORRECT ANSWERS-The amount of a good or service that an individual
consumer is willing and able to buy at any given price over a period of time
Labour - CORRECT ANSWERS-The human resource that is available in the economy; the
quantity and quality of human resources
Land - CORRECT ANSWERS-The natural resources available in the economy; the quantity and
quality of natural resources
Factor payments/rewards - CORRECT ANSWERS-Capital=Interest
Enterprise=Profits
Labour=wages
Land=rent
A model - CORRECT ANSWERS-A simplified representation of reality used to create
hypotheses about economic decisions and events
Production - CORRECT ANSWERS-Any economic activity that leads to a flow of goods and
services for which people are willing and able to pay
Production possibility frontier - CORRECT ANSWERS-A curve showing the maximum
quantities of different combinations of goods and services that can be produced in a set time period
given the available resources and current state of technology
Law of diminishing returns - CORRECT ANSWERS-As a firm adds variable factors of
production(usually labour) to fixed capital, the marginal returns that the firm gains will gradually begin to
decrease
Consumer good - CORRECT ANSWERS-A finished good that is sold for consumption
, Capital good - CORRECT ANSWERS-Ant tangible asset that an organisation uses to produce
goods or services such as office buildings, machinery etc.
Specialisation - CORRECT ANSWERS-Where individuals, businesses and whole economies are
not self-sufficient but concentrate on producing certain goods and services, then trading their surplus.
Division of labour - CORRECT ANSWERS-The assignment of different parts of a manufacturing
process or task to different specialised people in order to improve efficiency
Productivity - CORRECT ANSWERS-Output of a good or service, per factor of production, per
period of time
Functions of money - CORRECT ANSWERS-A medium of exchange-it should be accepted
universally for the payment of goods, services and debt
Unit of account-It allows the value of goods, services and other assets to be compared so that the prices
of products reflect the value that society places on them
Standard of deferred payment-Money can be used to pay back debt
Store of value-It must be possible to use for future transactions and so it must be non-diminishable
Resource allocation - CORRECT ANSWERS-The way in which a society's factors of production
are divided amongst their alternative uses
Objectives of households - CORRECT ANSWERS-Households make decisions about how to
allocate expenditure based on the utility they derive from consuming a good or service
Objectives of firms - CORRECT ANSWERS-Firms make decisions about what to produce and
how much to produce (how to use their factors of production) in order to receive a return/profit for their
endeavours.
Objectives of the government - CORRECT ANSWERS-Government's objectives are to maximise
social welfare and will do this through decision making regarding taxation to fund public expenditure,
enforcement of laws and regulation that provide a system for the market to work in. May aim to achieve
'macroeconomic performance indicators'
ENVIRONMENT (12TH) MICHAEL PARKIN| ALL CHAPTERS 1-
18 WITH COMPLETE SOLUTION 100% VERIFIED ANSWERS
A+ GRADED FREE
Free goods - CORRECT ANSWERS-Goods that are not scarce and therefore available without
limits. Zero opportunity cost e.g. Air
Economic goods - CORRECT ANSWERS-A consumable item that is useful to people but scarce
in relation to its demand
Opportunity cost - CORRECT ANSWERS-The value of the next best alternative foregone
Demand - CORRECT ANSWERS-The quantity of a good or service that consumers are willing
and able to purchase at a given price
Law of demand - CORRECT ANSWERS-A law that states that, ceteris paribus, there is an
inverse relationship between the quantity demanded and price of a product
Notional demand - CORRECT ANSWERS-The desire or want for a product
Effective demand - CORRECT ANSWERS-The willingness to buy a good or service, backed up
by the purchasing power to buy it
Demand curve - CORRECT ANSWERS-A graph that shows how much of a product will be
demanded at any given price
Demand schedule - CORRECT ANSWERS-The collection of data that is used to draw a demand
curve for a product
,Individual demand - CORRECT ANSWERS-The amount of a good or service that an individual
consumer is willing and able to buy at any given price over a period of time
Labour - CORRECT ANSWERS-The human resource that is available in the economy; the
quantity and quality of human resources
Land - CORRECT ANSWERS-The natural resources available in the economy; the quantity and
quality of natural resources
Factor payments/rewards - CORRECT ANSWERS-Capital=Interest
Enterprise=Profits
Labour=wages
Land=rent
A model - CORRECT ANSWERS-A simplified representation of reality used to create
hypotheses about economic decisions and events
Production - CORRECT ANSWERS-Any economic activity that leads to a flow of goods and
services for which people are willing and able to pay
Production possibility frontier - CORRECT ANSWERS-A curve showing the maximum
quantities of different combinations of goods and services that can be produced in a set time period
given the available resources and current state of technology
Law of diminishing returns - CORRECT ANSWERS-As a firm adds variable factors of
production(usually labour) to fixed capital, the marginal returns that the firm gains will gradually begin to
decrease
Consumer good - CORRECT ANSWERS-A finished good that is sold for consumption
, Capital good - CORRECT ANSWERS-Ant tangible asset that an organisation uses to produce
goods or services such as office buildings, machinery etc.
Specialisation - CORRECT ANSWERS-Where individuals, businesses and whole economies are
not self-sufficient but concentrate on producing certain goods and services, then trading their surplus.
Division of labour - CORRECT ANSWERS-The assignment of different parts of a manufacturing
process or task to different specialised people in order to improve efficiency
Productivity - CORRECT ANSWERS-Output of a good or service, per factor of production, per
period of time
Functions of money - CORRECT ANSWERS-A medium of exchange-it should be accepted
universally for the payment of goods, services and debt
Unit of account-It allows the value of goods, services and other assets to be compared so that the prices
of products reflect the value that society places on them
Standard of deferred payment-Money can be used to pay back debt
Store of value-It must be possible to use for future transactions and so it must be non-diminishable
Resource allocation - CORRECT ANSWERS-The way in which a society's factors of production
are divided amongst their alternative uses
Objectives of households - CORRECT ANSWERS-Households make decisions about how to
allocate expenditure based on the utility they derive from consuming a good or service
Objectives of firms - CORRECT ANSWERS-Firms make decisions about what to produce and
how much to produce (how to use their factors of production) in order to receive a return/profit for their
endeavours.
Objectives of the government - CORRECT ANSWERS-Government's objectives are to maximise
social welfare and will do this through decision making regarding taxation to fund public expenditure,
enforcement of laws and regulation that provide a system for the market to work in. May aim to achieve
'macroeconomic performance indicators'
