Exam 1: Economics: Foundations and Models

Figure 1.1 -Refer to Figure 1-1.Using the information in the figure above,calculate the percentage change in revenue from alcoholic beverage sales between 2013 and 2016.

Scenario 1-2 Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of $5,000 per week. The plant owner observes, "Although the last 300 hats we produced and sold increased our revenue by $1,000 and our costs by $1,100, we are still making an overall profit of $5,000 per week so I think we're on the right track. We are producing the optimal number of hats." -Refer to Scenario 1-2.Using marginal analysis terminology,another economic term for the incremental cost of producing the last 300 hats is

If a straight line passes through the point x = 8 and y = 4 and also through the point x = 12 and y = 6,the slope of this line is

DeShawn's Detailing is a service that details cars at the customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.What is DeShawn's marginal benefit if he sells a basic detailing package?

How are the fundamental economic decisions determined in Cuba?

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

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?

Scenario 1-3 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 1-3.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 statements about scarcity is true?

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

Competition among sellers generates

Productive efficiency is achieved when

Scenario 1-3 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 1-3.Using marginal analysis terminology,what is another economic term for the incremental revenue received from the sale of the last 400 t-shirts?

"The distribution of income should be left to the market" is an example of a positive economic statement.

Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production.

Physical capital refers to stocks and bonds.

________ involves undertaking an activity until its marginal benefits equal marginal costs.

Table 1-2 Extra Hours Open Total Revenue (dollars) 1 \ 25 2 45 3 70 4 90 5 105 6 110 Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of extra hours the flower shop is open as shown in the table above. She would have to hire a worker for those extra hours at a wage rate of $16 per hour. -Refer to Table 1-2.What is Thuy Anh's marginal cost if she decides to stay open for an extra three hours instead of two hours?

In economics,activities done for others,such as providing house cleaning or dental work,are referred to as

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.gasoline prices b.unemployment c.inflation d.health care costs e.air pollution f.economic growth