1. a. Canada's rate of economic growth drops because of a fall in output per worker in the Canadian economy. The dependent variable is (Click to select) output per worker in the Canadian economy/ Canada's rate of economic growth and the independent variable is (Click to select) Canada's rate of economic growth/ output per worker in the Canadian economy . b. An increase in income tax rates paid by households reduces consumption spending in the economy. The dependent variable is (Click to select) consumption spending in the economy/ income tax rates paid by households and the independent variable is (Click to select) income tax rates paid by households/ consumption spending in the economy . c. The quantity of smartphone apps purchased increases due to a rise in the number of consumers using smartphones. The dependent variable is (Click to select) the number of consumers using smartphones/ the quantity of smartphone apps purchased and the independent variable is (Click to select) the number of consumers using smartphones/ the quantity of smartphone apps purchased . d. An increase in the price of online advertising raises the hours of TV advertising time bought. The dependent variable is (Click to select) the price of online advertising/ the hours of TV advertising time bought and the independent variable is (Click to select) the price of online advertising/ the hours of TV advertising time bought .

e. The rate of inflation rises because of an increase in spending in the economy. The dependent variable is (Click to select) the rate of inflation/ spending in the economy and the independent variable is (Click to select) the rate of inflation/ spending in the economy .

2.

Identify the following statements as positive or normative. a. The Canadian government should be more concerned with ensuring low unemployment and less concerned with achieving low inflation. The statement is (Click to select) normative/ positive . b. Greater regulation of the financial industry is needed to ensure that the 2008 financial crisis cannot be repeated. The statement is (Click to select) normative/ positive . c. Access to private health care should be allowed for those Canadians wishing it. The statement is (Click to select) positive ormative . d. Population growth rates in Canada exceed rates in most other high-income countries. The statement is (Click to select) positive ormative .

The production possibilities curve below applies to an economy, Prospera, that produces only ice-cream sodas and industrial robots. 3. a. What is the opportunity cost of industrial robots in terms of ice-cream sodas when Prospera moves from point A to B?

O Market Demand for Chocolate Bars 3.0 Tools 2.5 DK Do 2.0 Price ($ per chocolate bar) 1.5 Dmo Dm1 1.0 0.5 0 5 10 15 20 25Market Demand and Supply Curves for Pumpkins 12 Tools 11 10 D So 51 Price ($ per pumpkin) O 100092000030000 4000050000 6000070000 Quantity (pumpkins per month)