1.Identify each of the following statements as either positive (P) or normative (N)

a) The federal government's budget this year is the largest in history.

b) The national debt is at a manageable level and therefore is nothing to worry about.

c) The price of gasoline is higher than it needs to be.

d) Rising Canadian exports are creating many new jobs in the country.

2.Identify which of the following topics would likely appear in a microeconomics course and which in a macroeconomics course.

a) The price of iPods

b) Unemployment rates

c) The presence of monopolies

d) The rate of economic growth

3.Decide whether each of the following is a consumer good (C), capital good (K), or both (B):

a) A jackhammer

b) A carton of cigarettes

c) An office building

d) A tooth-brush

e) A hammer

f) A farm tractor

4.a) If society produces 1000 units of butter, how many guns can it produce?

b) If society is at "b" on the PPC, what is the cost of 1000 more units of butter?

c) Is opportunity cost greater for move from "c" to "d" compared to a move from "b" to "c"

a. If society produces 1000 units of butter, how many guns can it produce? b. If society is at "b" on the PPC, what is the cost of 1000 more units of butter? Quantity of guns per period b 400 c. Is opportunity cost C greater for move 300 from "c" to "d" compared to a move from "b" to "c"? 150 1000 2000 3000 10 3014 McGraw-Hill Ryerson Limited Quantity of butter per period