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.How can Dr.Goldfinger strive to achieve this productive efficiency?

Economics promotes which of the following as the way to make the best decision?

Which of the following is part of an economic model?

Two-dimensional graphs have a horizontal and a vertical axis and are used in economics to illustrate

Which of the following statements is false?

Which of the following is a microeconomics question?

It is necessary for all economic systems to provide people with goods and services and also restrict them from getting as much of these goods and services as they wish,because failure to do this could ________ the efficiency of the system by producing some goods and services that are ________.

When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it,________ occurs.

"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement.

Economists assume that

Which of the following is a normative economic statement?

Which of the following is motivated by an efficiency concern?

Scenario 1-1 Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of $10,000 per week. A manager at the plant observes, "Although the last 400 t-shirts we produced and sold increased our revenue by $4,000 and our costs by $4,800, we are still making an overall profit of $10,000 per week so I think we're on the right track. We are producing the optimal number of t-shirts." -Refer to Scenario 1-1.Had the firm not produced and sold the last 400 t-shirts,would its profit be higher or lower,and if so by how much?

Which of the following is a positive economic statement?

All of the following questions or statements regarding medical school are positive except:

Define allocative efficiency.Explain the significance of this concept in economics?

All ________ economies have been political dictatorships.

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

Holding all other personal characteristics-such as age,gender,and income-constant,economists would expect that

When Dr.Goldfinger decides on the companies in which he will invest,a ________ issue is being addressed.