Exam 1: Economics: Foundations and Models

Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services.What would Dr.Goldfinger need to do to try to achieve allocative efficiency?

Explain the economic idea that "people respond to incentives."

Which of the following is a positive economic statement?

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

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

Which of the following is part of an economic model?

What is an entrepreneur,and what decisions does an entrepreneur make in a market system?

Before a doctor decides to keep her office open on Saturdays,she should

Table 1-2 Hours Open Tatal Revenue (dallars) 1 \ 25 2 45 3 70 4 90 5 105 6 110 Thuy Anh runs a small flower shop in the town of Florabunda.She is debating whether she should extend her hours of operation.Thuy Anh figures that her sales revenue will depend on the number of hours the flower shop is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $16 per hour. -Refer to Table 1-2.What is Thuy Anh's marginal cost if she decides to stay open for three hours instead of two hours?

Microeconomics is the study of

The idea that because of scarcity,producing more of one good or service means producing less of another good or service refers to the economic concept of

The revenue received from the sale of an additional unit of a product

How does a market system prevent people from getting as many goods and services as they wish?

Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky,and therefore carry a higher cost than not retiring.By using all available information as they act to achieve their goals,these teachers are exemplifying the economic idea that

The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called

Figure 1-1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

Which of the following statements is true about revenue?

Which of the following is a microeconomics question?

The government makes all economic decisions in a centrally planned economy.

What is a mixed economy?