Exam 1: Economics: Foundations and Models

Scenario 1-2 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 1-2.Using marginal analysis terminology,what is another economic term for the incremental revenue received from the sale of the last 500 cigars?

Suppose the extra cost for a municipality to enact a "no texting while driving" law is $15,000 per year.Then,the municipality should enact the law if it receives a total benefit from all of its traffic laws of $15,000 per year.

Fiona shares an office with her ex-husband.Her share of the rent and utilities is $625 per month.She is considering moving to a home office which she will not have to share with anyone.The home office will not cost her anything as far as extra rent or utilities.Recently,you ran into Fiona at the gym and she tells you that she has moved into her home office.Fiona is as rational as any other person.As an economics major,you rightly conclude that

Of the following examples,which would most likely be performed by an economist working for the Federal Reserve Bank of San Francisco?

In economics,the total amount received for selling a good or service is referred to as

Trade-offs force society to make choices when answering what three fundamental questions?

Human capital refers to the accumulated skills and training that workers possess.

Figure 1.1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in revenue from alcoholic beverage sales between 2013 and 2015.

Which of the following is an example of an economic trade-off that a firm has to make?

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

Which of the following statements about positive economic analysis is true?

In 2017,Peelville consumed 30,000 bananas.In 2018,banana consumption rose to 35,000.Calculate the percentage change in banana consumption.

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

Which of the following is correct about the economic decisions consumers,firms,and the government have to make?

In 2017,Smileytown consumed 50,000 tubes of toothpaste.In 2018,toothpaste consumption rose to 62,000 tubes.Calculate the percentage change in toothpaste consumption.

The cost incurred from the production of an additional unit of a product

Define macroeconomics.

What are the five steps by which economists arrive at a useful economic model?

What does the word "marginal" mean in economics? What is a marginal benefit? What is a marginal cost? What is marginal analysis?

One example of human capital is the amount of savings that you have.