Exam 1: Economics: Foundations and Models

Which of the following is an example of an activity undertaken by an entrepreneur?

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

________ occurs when economic benefits are distributed fairly.

Examining the conditions that could lead to inflation in an economy is an example of microeconomics topic.

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

What is a market economy?

Consider the following statements: a.Consumers rent more DVDs from a video store that rents DVDs at a lower price than other rival video stores in the area. b.Department stores take steps to increase security since they believe it is more costly to allow shoplifting than to install expensive security monitoring equipment. c.Farmers produce more cotton when its selling price falls. Which of the above statements demonstrates that economic agents respond to incentives?

Economic models

According to the Centers for Disease Control and Prevention,the only state in 2009 in which less than 20 percent of the population was considered obese was

Policies based on normative economic ideas tend to increase economic efficiency and improve equity.

Every society faces economic trade-offs.This means

How can the influence of a third variable be shown on a two-dimensional graph?

Marginal benefit is the benefit that your activity provides to someone else.

Competition among sellers generates

Scenario 1-1 Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of $10,000 per week. A manager at the plant observes, "Although the last 400 t-shirts we produced and sold increased our revenue by $4,000 and our costs by $4,800, we are still making an overall profit of $10,000 per week so I think we're on the right track. We are producing the optimal number of t-shirts." -Refer to Scenario 1-1.Using marginal analysis terminology,what is another economic term for the incremental cost of producing the last 400 t-shirts?

The relationship between sales and revenue is

How are the fundamental economic decisions determined in Cuba?

The government makes all economic decisions in a centrally planned economy.

When voluntary exchange takes place,only one party gains from the exchange.

An office supply store sells a ream of printer paper at a fixed price of $4.50.Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?