Exam 1: Economics: Foundations and Models

Consider the following economic agents: a.the government b.consumers c.producers Who,in a modern mixed economy,decides what goods and services will be produced with the scarce resources available in that economy?

Which of the following statements is true?

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

Which of the following is a problem inherent in centrally planned economies?

The basic economic problem of scarcity

Trade-offs force society to make choices when answering what three fundamental questions?

Suppose the extra cost to a doctor of keeping her office open on Saturdays is $800.Then,the doctor should not stay open on Saturdays if keeping the office open can only bring in additional revenue of $800.

Which of the following contributes to the efficiency of markets?

What does the word "marginal" mean in economics? What is a marginal benefit? What is a marginal cost? What is marginal analysis?

Which of the following is not an example of an efficiency-equity trade-off faced by economic agents?

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

In a centrally planned economy,the government decides how economic resources will be allocated.

The branch of economics which studies how households and firms make choices,interact in markets and how government attempts to influence their choices is called

If a straight line passes through the point x = 12 and y = 4 and also through the point x = 4 and y = 8,the slope of this line is

What is an economic model?

Fast food restaurants produce a range of menu items such as hamburgers,chicken sandwiches,salads,and french fries.What fundamental economic question are they addressing by offering this range of items?

Productive efficiency is achieved when firms produce goods and services

You explain to your friend Haslina,who runs a catering service called "Meals in a Zip",about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower prices. She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales.How would you respond to Haslina?

The processes used to produce goods and services describes

What is the "reverse causality" problem in determining cause and effect?