Exam 1: Economics: Foundations and Models

DeShawn's Detailing is a service that details cars at the customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.Should DeShawn continue to offer the engine detailing service?

Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky,and therefore carry a higher cost than not retiring.By using all available information as they act to achieve their goals,these teachers are exemplifying the economic idea that

Allocative efficiency is achieved when

"A decrease in the price of tablet computers will decrease the demand for desktop computers." This statement is an example of a normative economic statement.

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

Suppose the extra cost to a city of lowering the speed limits in all school zones by 10 mph is $10,000 per year.Then,the city should lower the school-zone speed limits by 10 mph if doing so results in an additional benefit of less than $10,000 per year.

Which of the following is a positive economic statement?

The government makes all economic decisions in a mixed economy.

Which of the following is a normative economic statement?

The term "market" in economics refers to

Which of the following best describes an assumption economists make about human behavior?

What is the difference between an invention and an innovation?

Economists assume that rational behavior is useful in explaining choices people make

What is a mixed economy?

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

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

Even if the population declines,scarcity will still exist.

Describe what has happened to state obesity rates in the United States since 1994.

Table 1-7 Year LED Light Bulbs (millions) 2014 12.5 2015 14.0 2016 17.2 2017 20.0 2018 21.7 -Refer to Table 1-7.The table above shows the sales of LED light bulbs in North America.Present the information using a bar graph.