Exam 1: Economics: Foundations and Models

What is an economic model?

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

In economics, an organization that produces a good or service is called a

The U.S.Bureau of Labor Statistics forecasts that by 2024, total employment in U.S.manufacturing will

Suppose a town can earn an additional $10,000 per year in revenue if it installs a red-light camera at its busiest intersection.At what additional cost would installing this camera not be considered economically rational?

One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing preference by U.S.consumers for products made in the United States.If buyers have increased their preference for domestically produced goods and manufacturers believe they can increase revenues by supplying more of these goods, firms are following which key economic idea when they return production to the United States?

________ is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X.

Which of the following is an example of an activity undertaken by an entrepreneur?

What is a marginal benefit?

Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________.

Soo Jin shares a one-bedroom apartment with her classmate.Her share of the rent is $700 per month.She is considering moving to a studio apartment which she will not have to share with anyone.The studio apartment rents for $950 per month.Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment.Soo Jin is as rational as any other person.As an economics student, you rightly conclude that

All centrally planned economies

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

Which of the following is motivated by an equity concern?

The basic economic problem of ________ has always existed and will continue to exist.

Of the following examples, which would most likely be performed by an economist working for the U.S.Federal Trade Commission?

Which of the following is a normative economic statement?

In a modern mixed economy, who decides what goods and services will be produced?

"The distribution of income should be determined by the government" is an example of a positive economic statement.

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