Exam 1: Economics: Foundations and Models

The branch of economics which studies the behavior of entire economies is called

Examining the conditions that could lead to unemployment in an economy is an example of a microeconomic topic.

One desirable outcome of a market economy is that it leads to a more equitable distribution of income.

Allison's Auto Art is a company that applies pinstripes to vehicles.Allison's cost for a basic 1-color pinstriping job is $35,and she charges $95 for this service.For a total price of $175,Allison will apply a fancier 3-color pinstripe application to an automobile,a service that adds an additional $40 to the total cost of the package.Should Allison continue to offer the 3-color pinstripe application?

Political candidates often hold fundraisers by charging "per plate" for dinner.Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate.Does this transaction benefit both parties?

Scenario 1-4 Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week. The plant foreman observes, "Although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000, we are only making an overall profit of $3,000 per week so I think we need to cut back on production. -Refer to Scenario 1-4.Had the firm not produced and sold the last 500 cigars,would its profit be higher or lower,and if so by how much?

Who receives the most of what is produced in a market economy?

In economics,the accumulated skills and training that workers have is known as

Of the following examples,which would likely be performed by an economist working for Apple?

The decision about what goods and services will be produced in a market economy is made by

One reason some manufacturing companies have moved production from overseas locations back to the United States is rising foreign labor costs.Assuming that managers at these companies used all available information,including the rising cost of foreign labor,when making the decision to move production back to the United States exemplifies which key economic idea?

According to the Centers for Disease Control and Prevention,________ in 2015 in which less than 20 percent of the population was considered obese.

In the market for factors of production,firms earn income by selling goods and services to households.

Optimal decisions are made at the point where marginal benefit is maximized.

Table 1-2 Extra Hours Open Total Revenue (dollars) 1 \ 25 2 45 3 70 4 90 5 105 6 110 Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of extra hours the flower shop is open as shown in the table above. She would have to hire a worker for those extra hours at a wage rate of $16 per hour. -Refer to Table 1-2.Using marginal analysis,by how many hours should Thuy Anh extend her flower shop's hours of operations?

What is the difference between goods and services?

Which of the following contributed to the downfall of the Soviet Union in 1991?

What is a household? How do households interact with firms in a market?

Which of the following can use economic principles to improve how they make important decisions?

There is often a trade-off between