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.What is DeShawn's marginal benefit if he sells a basic detailing package?

Trina's Tropical Fish Store sells goldfish for $2 each and angelfish for $10 each.The opportunity cost of buying a goldfish is _________.

What does the term 'equity' mean,in economics?

Suppose a doctor can earn an additional $25 000 in revenue per year by keeping her office open on Sundays.At what additional cost would keeping the office open on Sundays not be considered economically rational? __________________________________________________________________________________________________________________________________________________________________________________________

All centrally planned economies________.

A grocery store sells a bag of potatoes at a fixed price of $2.30.Which of the following is a term used by economists to describe the money received from the sale of an additional bag of potatoes?

The Coffee Nook,a small cafe near campus,sells cappuccinos for $2.50 and Russian tea cakes for $1.00 each.What is the opportunity cost of buying a cappuccino?

________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production.

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Marginal analysis involves undertaking an activity________.

Automobile manufacturers produce a range of automobiles such as sports utility vehicles,luxury sedans,pickup trucks,and compact cars.What fundamental economic question are they addressing by making this range of products?

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.petrol prices b.unemployment c.inflation d.healthcare costs e.air pollution f.economic growth __________________________________________________________________________________________________________________________________________________________________________________________

Which of the following are positive economic statements and which are normative economic statements? a.An increase in the price of petrol will decrease the quantity of petrol purchased. b.The government should eliminate the minimum wage. c.All states should raise the minimum wage to at least $10 per hour. d.The government should scrap its current income tax structure in favour of a flat tax. e.Unemployment has increased since the onset of the recession. f.The government should not bail out investment banks during a financial crisis. __________________________________________________________________________________________________________________________________________________________________________________________

Why is it necessary for all economic systems to not only provide people with goods and services,but also restrict them from getting as much of these goods and services as they wish?

What is opportunity cost? __________________________________________________________________________________________________________________________________________________________________________________________

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.What is the marginal cost of adding the engine detailing to the basic detailing package?

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

What do markets promote?

The ________ the sale of an additional unit of a product is a marginal benefit to the firm.

Which of the following is not an example of an economic trade-off that a firm has to make?