Exam 1: Economics: Foundations and Models

Define allocative efficiency.Explain the significance of this concept in economics?

In the market for factors of production,households earn income by supplying factors of production to firms.

When goods and services are produced at the lowest possible cost,________ occurs.

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

In a market economy,those who are willing and able to buy what is produced

All of the following questions or statements regarding medical school are positive except:

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

Assume that it will cost a plumber an additional $35,000 each year by keeping her shop open for one additional hour per week.What must the additional revenue from keeping the shop open this additional hour per week be to make staying open for the extra hour economically rational?

Table 1-1 Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour. -Refer to Table 1-1.What is Eva's marginal benefit if she decides to stay open for two hours instead of one hour?

Figure 1-4 -Refer to Figure 1-4.Which of the following statements is true?

Table 1-1 Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour. -Refer to Table 1-1.Using marginal analysis,determine how many hours should Eva extend her bakery's hours of operations?

What is an economic model?

As population declines,scarcity eventually disappears.

Which of the following is a problem inherent in centrally planned economies?

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

What is an economic market?

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 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,determine how many hours should Julius extend his shop's hours of operations?

Article Summary In an August 2013 speech from the Lincoln Memorial, President Obama was expected to emphasize that increased economic equality is needed to improve racial equality. Economic gaps based on race have endured for 50 years, with the differences in unemployment rates between blacks and whites remaining virtually unchanged and the gap in wealth actually increasing. "If you look at 50 years after the 1960s civil rights movement, the most stubborn and persistent challenge when it comes to the nation's racial challenge remains in the areas of economics and wealth," said Marc Morial, president of the National Urban League. Source: Zachary A. Goldfarb, "For Obama, 50 years after historic march, economic equality the path to racial justice," Washington Post, August 17, 2013. -Refer to the Article Summary.The article mentions increased economic equality is needed in terms of wealth.How would a more equal distribution of wealth differ from a more equitable distribution of wealth?

What is technology and what factors does it depend on?

In 2012,Smileytown consumed 50,000 tubes of toothpaste.In 2013,toothpaste consumption rose to 62,000 tubes.Calculate the percentage change in toothpaste consumption.