Exam 1: Economics: Foundations and Models

Economics is the study of the ________ people make to attain their goals,given their ________ resources.

Which of the following is a macroeconomic question?

Consumers make all economic decisions in a mixed economy.

Which of the following statements is true about revenue?

Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services.How can Dr.Goldfinger strive to achieve this productive efficiency?

Consider the following statements: a.Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area. B.Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment. C.Manufacturers produce less of a particular cell phone when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives?

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

There is often a trade-off between

The economic analysis of minimum wage involves both normative and positive analysis.Consider the following consequences of a minimum wage: a.The minimum wage law causes unemployment. B.Unemployment would be lower without a minimum wage law. C.Minimum wage laws benefit some workers and harm others. D.The minimum wage should be more than $7.25 per hour. Which of the consequences above are positive statements and which are normative statements?

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?

The Stogie Shop,a cigar store in the mall,sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each.What is the opportunity cost of buying a hand-rolled cigar?

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?

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

Physical capital refers to stocks and bonds.

Table 1-2 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 1-2.What is Julius's marginal cost if he decides to stay open for three hours instead of two hours?

Human capital refers to

Which of the following statements is correct?

Marginal cost is the ________ associated with a particular increase in an activity.

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

Examining the conditions that could lead to economic growth is an example of a macroeconomic topic.