Exam 1: Economics: Foundations and Models

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

The machines workers have to work with are considered

In economics,the term ________ means "additional" or "extra."

Macroeconomics is the study of

Suppose the extra cost for a doctor to keep his office open for one extra hour is $200.Then,the doctor should stay open for the extra hour even if he can generate additional revenue of $200 for that hour.

Which of the following is a result of a market economy?

Which of the following statements is false?

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 major,you rightly conclude that

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

Where do economic agents such as individuals,firms and nations,interact with each other?

Political candidates often hold fund raisers by charging "per plate" for dinner.Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate.Is this transaction economically efficient?

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

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement.

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

All of the following are part of an economic model except

Table 1-1 Lydia runs a small nail salon in the town of New Hope. She is debating whether she should extend her hours of operation. Lydia figures that her sales revenue will depend on the number of hours the nail salon is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $10 per hour. -Refer to Table 1-1.What is Lydia's marginal cost if she decides to stay open for two hours instead of one hour?

The relationship between consumer spending and disposable personal income is

Define productive efficiency.Does productive efficiency imply allocative efficiency? Explain.

Why is it necessary for all economic systems to not only provide people with goods and services,but also restrict them from getting as much of these 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