Exam 1: Economics: Foundations and Models

-Refer to Figure 1 -2. Calculate the area of the triangle A.

Suppose that in 2010, Alexandria consumed 205,000 tons of sugar. In 2011, sugar consumption rose to 245,000 tons. Calculate the percentage change in sugar consumption.

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

The economic system in most Arab countries today is considered

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. A minimum wage law benefits some groups and hurts others. C. In some cities such as Dubai and Doha, it would be impossible for low -skilled workers to live in the city without minimum wage laws. D. The gains to winners of a minimum wage law should be valued more highly than the losses to losers because the latter primarily comprises businesses. Which of the consequences above are positive statements and which are normative statements?

If, per child, a woman can get up to 48 months of pension benefits and is guaranteed a maternity allowance two months before and after she gives birth, how will these benefits affect a woman's decision to have children?

You explain to your friend, Hanaa (who runs a catering service) about an economic theory asserts that consumers will purchase less of a product at higher prices than they will at lower prices. She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales. How would you respond to Hanaa?

How are the fundamental economic decisions determined in a centrally planned economy?

Consider the following three factors: A. A study conducted by Statistical Bulletin of the GCC General Secretariat found that 435,000 graduates are currently unemployed in the GCC countries. B. In the next 10 years, 100,000 Emiratis will be seeking employment (including 70,000 in Abu Dhabi) according to estimates from the Abu Dhabi Tawteen Council. C. Jobseekers in Oman increased to 88,000 at the end of 2008, from 24,000 at the end of 2007. These statements suggest that

In the Arab world, young populations and high birth rates threaten public finances. As the population becomes younger, there are more workers needing education and jobs relative to the number of schools and jobs available. Which of the following government policies would NOT help reduce the pressure on public finances?

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

Khaled's Furniture alters, reconstructs, and restores an old French chest. Khaled has just spent US$800 purchasing, cleaning and reconstructing the antique chest which he expects to sell for US$1,500. After having spent US$800, Khaled discovers that he would need some special wood that would cost him US$200 to complete the task. Alternatively, he can sell the chest "as is" now for US$900. What should he do?

Identify the main difference between the nature of the business cycle in the GCC countries in the past and now.

Mouza shared a one -bedroom apartment with her classmate. Her share of the rent was US$700 per month. She considered moving to a studio apartment so that she wouldn't have to share with anyone. The studio apartment she looked at has a rental value of US$950 per month. She decided to move into the studio apartment. Mouza is as rational as any other person. As an economics major, you can rightly conclude that

Khaled's Furniture alters, reconstructs, and restores an old French chest. Khaled has just spent US$800 purchasing, cleaning and reconstructing the antique chest which he expects to sell for US$1,500. After having spent US$800, Khaled discovers that he would need some special wood that would cost him US$200 to complete the task. Alternatively, he can sell the chest "as is" now for US$900. What is the marginal cost of completing the task?

Assume that Apple computer can earn an additional US$81 million of revenue from making 300,000 more iPods. What must the additional cost of producing these 300,000 be to make the additional output economically rational?

The competition is intensifying between the Gulf states to extend their ties with the rising powers in the east through

Suppose the extra cost to Apple Computer of producing another iPod is US$270. Then, Apple should not produce this unit if it can only sell it for US$270.

Khaled's Furniture alters, reconstructs, and restores an old French chest. Khaled has just spent US$800 purchasing, cleaning and reconstructing the antique chest which he expects to sell for US$1,500. After having spent US$800, Khaled discovers that he would need some special wood that would cost him US$200 to complete the task. Alternatively, he can sell the chest "as is" now for US$900. What is his marginal benefit if he sells the chest "as is" now?

What is an economic model?