ECO101H1 Midterm: term 1 test
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ECO101H1 Full Course Notes
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Yes or no explaining eco 100 concepts (22 marks) 1. 1 yes or no (12) here is an easy way to start this test just circle either yes or no for the following statements to indicate whether you agree ( yes ) or disagree ( no ) with each of them. Thank your kindly prof for not including a penalty for a wrong answer! (assume positively-sloped supply and negatively-sloped demand as appropriate. Keep in mind the concepts discussed in lectures. ) a) If, during an economic crisis, an economy suffers unemployment, it is not producing at its maximum potential it is at a point inside its production possibility curve (ppc). If the period of unemployment is prolonged and the skills of unemployed workers decline significantly, the ppc shifts inwards. Yes no: the demand schedule for a good is given by this equation: For this demand schedule, the price elasticity of demand has a value of 1. 5 at qd =8.