Exam 1: Economics and Economic Reasoning

The price of a new model of iPad tends to fall significantly a year after it is introduced. Suppose Jane bought an iPad as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy an iPad cover. Which of the following should she consider before buying the new accessory?

The "invisible hand" is the price mechanism that guides people's actions in the market.

Based on scientific nutritional studies, in most countries an income of $1 a day does not provide sufficient food, shelter, and clothing to live. Under these conditions the medical risk of death is high. This statement is:

Using the impartial spectator tool, one arrives at normative judgments based on your estimation of:

Maintaining objectivity is easiest in:

The price mechanism that guides people's actions is called the:

Which of the following is least likely to be studied in macroeconomics?

Microsoft has just taken some senators out to dinner in Paris in a private jet. This is probably an example of an attempt to influence:

Economic forces:

Macroeconomics is:

Positive economics is:

If allocating dorm rooms changes from allocation by lottery to allocation by the market:

An economic model:

Economic forces:

The fact that the price of a gallon of milk is likely to be more expensive at a convenience store than at a supermarket is an example of:

Applying the concept of opportunity cost to the pollution of a lake, an economist probably would conclude that:

Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is allowed 600 minutes of free calls and then pays 10 cents per minute for any calls above 600 minutes. Mary has used 600 minutes this month so far. What is her marginal cost per minute of making additional calls?

The invisible hand theorem comes from:

Social forces:

Prostitution is legal in Churchill County, Nevada, but a referendum threatened to close two brothels (prostitution businesses) in that county. What idea from Chapter 1 of the text does this story best illustrate?