Exam 1: Economics: Foundations and Models

In a centrally planned economy,the government decides how economic resources will be allocated.

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.Using marginal analysis,how many hours should Julius extend his shop's hours of operations?

The Farm Factory,a booth at the local Farmer's Market,sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon.What is the opportunity cost of buying a gallon of milk?

Which of the following is an example of a "how much" decision?

Tabitha shares a flea market booth with her sister.Her share of the rent is $150 per month.She is considering moving to her own,larger booth which she will not have to share with anyone.The larger booth rents for $450 per month.Recently,you ran into Tabitha in the grocery store and she tells you that she has rented the larger booth.Tabitha is as rational as any other person.As an economics major,you rightly conclude that

What is a market economy?

Voluntary exchange increases economic efficiency

Lionel's Lawn Care is a company that maintains residential yards.Lionel's cost for his standard package of mowing,edging,and trimming is $15,and he charges $25 for this service.For a total price of $40,Lionel will also trim shrubs,a service that adds an additional $10 to the total cost of the standard package.What is Lionel's marginal benefit if he sells the standard package?

Who receives the goods and services produced in the United States depends largely on

Economists assume that rational people

If the marginal cost for the state of Montana to increase the speed limit on its interstate highways to 100 mph is estimated to be $500 per day,then Montana should increase the speed limit to 100 mph

One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing preference by U.S.consumers for products made in the United States.Assuming that managers at these companies used all available information,including the increased preference by U.S.consumers for domestically produced,when making the decision to move production back to the United States exemplifies which key economic idea?

An economic model is a complex version of reality used to analyze real-world economic situations.

What is the "reverse causality" problem in determining cause and effect?

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored-beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

All of the following questions or statements regarding tariffs are positive except

If the price of milk was $1.25 a gallon and it is now $2.25 a gallon,what is the percentage change in price?

Ted quits his $60,000-a-year job to be a stay-at-home dad.What is the opportunity cost of his decision?

Figure 1-3 -Refer to Figure 1-3.Calculate the area of the trapezoid X.

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