Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

a. the price of ski-lift tickets; your decision to purchase a
ski-lift ticket
b. the hourly wage for your weekend job; the decision to
not work and go skiing on the weekend instead
c. the fine for speeding; your decision to speed on the
highway
d. the weight of your course grade attached to an
assignment; your decision to work hard on that
assignment
e. the level of tuition fees at your college or university; your
decision to attend that college or university
10. State and explain two reasons why the specialization of labour is
more efficient than universal self-sufficiency.
11. Consider the market for doctors’ services. In what way has this
market taken advantage of the specialization of labour?
12. List the four main types of economic systems and their main
attributes.
13. Comment on the following statement: “One of the mysteries of
semantics is why the government-managed economies ever came
to be called planned and the market economies unplanned. It is
the former that are in chronic chaos, in which buyers stand in line
hoping to buy some toilet paper or soap. It is the latter that are in
reasonable equilibrium—where if you want a bar of soap or a
steak or a shirt or a car, you can go to the store and find that the
item is magically there for you to buy. It is the liberal economies
that reflect a highly sophisticated planning system, and the

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