Exam 1: Economics: Foundations and Models

Consider the following economic agents: A.the government B.consumers C.producers Who,in a modern mixed economy,decides what goods and services will be produced with the scarce resources available in that economy?

Scenario 1-2 Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of $5,000 per week. The plant owner observes, "Although the last 300 hats we produced and sold increased our revenue by $1,000 and our costs by $1,100, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of hats." -Refer to Scenario 1-2.Had the firm not produced and sold the last 300 hats,would its profit be higher or lower,and by how much?

In a modern mixed economy,who decides what goods and services will be produced?

Skeeter's Skeeball Castle has seen its business slow down ever since Kerrie's Off-Key Karaoke opened up next door.Since the opening of Kerrie's Off-Key Karaoke,the opportunity cost of playing skeeball at Skeeter's has

Table 1-8 Year Flat-PanelTV Sets (millions) 2014 1.0 2015 1.5 2016 7.3 2017 12.7 2018 20.0 -Refer to Table 1-8.The table above shows the sales of flat-panel television sets in Central America.Present the information using a bar graph.

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement.

Jewelry manufacturers produce a range of products such as rings,necklaces,bracelets,and brooches.What fundamental economic question are they addressing by offering this range of items?

It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish,because failure to do this could ________ the efficiency of the system by producing some goods and services that are ________.

Which of the following is part of an economic model?

In economics,the difference between a firm's revenues and its costs is referred to as

Cassie's Quilts alters,reconstructs,and restores heirloom quilts.Cassie has just spent $800 purchasing,cleaning,and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished.After having spent $800,Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task.Alternatively,she can sell the quilt "as is" now for $900.What should she do?

In a market economy,those who are willing and able to buy what is produced

Which of the following is not an example of an efficiency-equity trade-off faced by economic agents?

Which of the following is a macroeconomic question?

When goods and services are produced at the lowest possible cost,________ occurs.

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

Suppose that to increase sales of hybrid vehicles,auto manufacturers are offering large cash incentives.This is an example of a macroeconomic topic.

What is a centrally planned economy?

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

Economists assume that