Exam 1: Economics: Foundations and Models

What is a marginal benefit?

Suppose that some investors have decided that economic and financial uncertainty have made the prospect of investing in domestic stock markets more risky than investing in foreign stock markets, and therefore choose to invest in foreign markets.By using all available information as they act to achieve their goals, these investors are exemplifying the economic idea that

Which of the following statements is false?

Society faces a trade-off in all of the following situations except

Which of the following is a normative economic statement?

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

The decision about what goods and services will be produced in a market economy is made by

Table 1-3 Santiago runs a comic book store in the town of East Arbor.He is debating whether he should extend his hours of operation.Santiago figures that his sales revenue will depend on the number of extra hours the store is open as shown in the table above.He would have to hire a worker for those extra hours at a wage rate of $18 per hour. -Refer to Table 1-3.Using marginal analysis, by how many hours should Santiago extend his store's hours of operations?

In economics, choices must be made because we live in a world of

Which of the following is a positive economic statement?

Allison's Auto Art is a company that applies pinstripes to vehicles.Allison's cost for a basic 1-color pinstriping job is $35, and she charges $95 for this service.For a total price of $175, Allison will apply a fancier 3-color pinstripe application to an automobile, a service that adds an additional $40 to the total cost of the package.Should Allison continue to offer the 3-color pinstripe application?

If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day

The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomic topic.

At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester.If enrollment the previous semester was 3,250 students, what is the student enrollment this semester?

Making optimal decisions "at the margin" requires

Policies based on positive economic ideas tend to decrease economic efficiency and reduce equity.

The government makes all economic decisions in a market economy.

The U.S.Bureau of Labor Statistics predicts that 13 of the 20 fastest growing occupations over the next ten years will be in

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

What is a firm? What other terms do economists use interchangeably with the term "firm"?