Exam 1: Economics: Foundations and Models

Mrs.Lovejoy decides to invest in companies which she believes are producing its goods based on the preferences of consumers.Mrs.Lovejoy is investing in companies that are

In 2013,Smileytown consumed 12,000 gallons of mouthwash.In 2014,mouthwash consumption rose to 17,000 gallons.Calculate the percentage change in mouthwash consumption.

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal cost.

The term "market" refers only to trading arrangements that have been approved by the government.

Assume that a doctor can earn an additional $20,000 of revenue each year from keeping his office open for one additional hour per week.What must the additional cost of keeping the office open this additional hour per week be to make staying open for the extra hour economically rational?

A firm's technology may depend on which of the following factors?

In a market economy,________ interact in markets to decide the answers to the fundamental economic questions.

According to the Centers for Disease Control and Prevention,________ in 2013 in which less than 20 percent of the population was considered obese.

Which of the following is an example of an efficiency-equity trade-off faced by economic agents?

Examining the conditions that could lead to unemployment in an economy is an example of microeconomics topic.

Suppose the U.S.government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000.These doctors would be exemplifying the economic idea that

Optimal decisions are made at the point where marginal benefit is maximized.

Which of the following is a normative economic statement?

Arlene quits her $125,000-a-year job to take care of her ailing parents.What is the opportunity cost of her decision?

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

Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production.

According to census figures and the Congressional Budget Office,the number of people aged 65 and older is projected to ________ and the number of uninsured people is projected to ________ by the year 2020.

Which of the following is a normative economic statement?

Explain the difference between a firm's revenue and its profit.

What is an economic variable?