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E Choi IN CLASS ASSIGNMENT 1 1

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E Choi IN CLASS ASSIGNMENT 1 1. Consider an economy called Choiceland that has 250 workers and produces only two goods, X and Y. Labour is the only factor of production, but some workers are better suited to producing X than Y and vice versa). The table below shows the maximum levels of output of each good possible from various levels of labour input. Number of Workers Annual Production of X Number of Workers Annual Production of Y Producing X Producing Y 0 250 1300 50 20 200 1200 100 45 150 900 150 60 100 600 200 70 SO 350 250 75 0 0 0 a. Draw the production possibilities boundary for Choiceland on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis b. Compute the opportunity cost of producing an extra 15 units of X if the economy is initially producing 45 units of X and 900 units of Y. How does this compare to the opportunity cost if the economy were initially producing 60 units of X and 600 units of Y? c. If Choiceland is producing 40 units of X and 600 units of Y, what is the opportunity cost of producing an extra 20 units of X? d. If the economy produces 50 units of X and 500 units of Y, is it an efficient or inefficient level of output? 2. Determine whether each of the following statements is positive or normative. a. The government should impose stricter regulations on the banking sector to avoid future financial crises. b. Financial aid to developing countries has no impact on per capita GDP in those countries. 6. Tuition fee increases at Canadian universities lead to reduced access for low-income students. d. It is unfair that Canadians have universal access to health care but not to dental care. c. Canadians currently have too much personal debt. f. The coronavirus has crippled the Canadian economy and caused many small businesses to close. 2. The Canadian government is right to enforce quarantine measures to protect its citizens. h. Minimum wage in British Columbia should be increased to $20 per hour to reduce poverty i. Wearing masks is an effective measure to reduce the transmission of the coronavirus. j. Pollution is the most serious economic problem that our society should be focused on now. 3. The following questions will provide practice working with simple linear functions. All questions refer to a coordinate graph with the variable X on the horizontal axis and the variable Y on the vertical axis. a. If two points on a straight line are (X = 3, Y = 2) and (x = 12, Y = 5), what is the slope of the line? b. If point A is at (x - 20, Y - 20) and point B is at (x - 10. Y - 40), what is the slope of the straight-line joining points A and B? c. What is the slope of the function described by Y = 12000 - 0.5X? d. What is the slope of a line described by Y-6.5X? e. What is the slope of a line described by Y = 27+ 3.2X? f. What is the Y-intercept of the function Y - 500+mX? g. What is the Y-intercept of the function Y--100 + 10X? h. What is the X-intercept of the function Y - 10 -0.1X? i. What is the X-intercept of the function Y --1 + 2X?