Exam 1: Economics: Foundations and Models

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

Assume that a city can earn an additional $100,000 of revenue each year from using drones to catch speeding drivers.What must the additional cost of using drones to catch speeders be to make this economically rational?

The basic economic problem of ________ has always existed and will continue to exist.

Tabitha shares a flea market booth with her sister.Her share of the rent is $150 per month.She is considering moving to her own,larger booth which she will not have to share with anyone.The larger booth rents for $450 per month.Recently,you ran into Tabitha in the grocery store and she tells you that she has rented the larger booth.Tabitha is as rational as any other person.As an economics major,you rightly conclude that

Which of the following is an example of a "how much" decision?

Table 1-3 Extra Hour: Open Total Revenue (dollars) 1 \ 70 2 120 3 160 4 184 5 200 6 210 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?

What is an economic model?

Which of the following is motivated by an equity concern?

The highest-valued alternative that must be given up to engage in an activity is the definition of

Explain the term "economics."

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

In 2017,Smileytown consumed 12,000 gallons of mouthwash.In 2018,mouthwash consumption rose to 17,000 gallons.Calculate the percentage change in mouthwash consumption.

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

Technology is defined as

Table 1-1 Extra Hours Open Total Revenue (dollars) 1 \ 50 2 75 3 95 4 110 5 120 6 125 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 extra hours the nail salon is open as shown in the table above. She would have to hire a worker for those extra 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 an extra two hours instead of one hour?

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

Which of the following is a positive economic statement?

What is voluntary exchange?

On a two-dimensional graph,________ illustrate the effects of additional variables.

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 student,you rightly conclude that