Exam 1: Economics: Foundations and Models

If a graph has a line that shows the quantity of flat-screen televisions sold in the last five years, it is known as

Table 1-5 Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of additional hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour. -Refer to Table 1-5. What is Julius's marginal cost if he decides to stay open for three hours instead of two hours?

Zane's Vanes is a service that restores old weather vanes. Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed. After having spent $125, Zane realizes that he will need to spend an additional $200 on materials to complete the restoration. Alternatively, he can sell the weather vane without restoring it for $200. What is his marginal cost to complete the restoration?

All of the following are part of an economic model except

All of the following contributed to the downfall of the Soviet Union in 1991 except

Human capital refers to

If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon, what is the percentage change in price?

On a two-dimensional graph, ________ illustrate the effects of additional variables.

The branch of economics which studies how households and firms make choices, interact in markets, and how government attempts to influence their choices is called

What is a centrally planned economy?

All economic questions arise from the fact that resources are unlimited.

A college must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of "what to produce."

In the market for factors of production, households earn income by supplying factors of production to firms.

The branch of economics which studies how households and firms interact in markets is called

Allocative efficiency best explains ________, and productive efficiency best explains ________.

Define microeconomics.

What is an entrepreneur, and what decisions does an entrepreneur make in a market system?

Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."

The U.S. Bureau of Labor Statistics forecasts that by 2024, total employment in U.S. ________ will decline to 11.4 million.

Productive efficiency is achieved when firms produce goods and services