Exam 1: Economics: Foundations and Models

What is an economic variable?

Which of the following statements is false?

Scenario 1-1 Suppose a cell phone manufacturer currently sells 20,000 cell phones per week and makes a profit of $5,000 per week. A manager at the plant observes, "Although the last 3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700, 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 cell phones." -Refer to Scenario 1-1.Had the firm not produced and sold the last 3,000 cell phones,would its profit be higher or lower,and by how much?

At a recent faculty meeting,Lorraine Waverly,president of Skywalker College,announced that enrollment is up by 12 percent over the previous semester.If enrollment the previous semester was 3,250 students,what is the student enrollment this semester?

The prevalence of Alzheimer's dementia is very high among residents living in nursing homes.A student concludes that it is likely that living in a nursing home causes Alzheimer's dementia.What is the flaw in the student's reasoning?

Which of the following is a microeconomic question?

How can the influence of a third variable be shown on a two-dimensional graph?

Scarcity is a problem that will eventually disappear as technology advances.

In 2017,President Trump considered imposing a tariff on automobiles assembled by U.S.manufacturers in Mexico that were to be sold in the United States.If this tariff was imposed and as a result,some of these manufacturers moved their automobile assembly from Mexico back to the United States,these firms would be reacting to which of the three key economic ideas?

The relationship between sales and revenue is

Pookie's Pinball Palace restores old Pinball machines.Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration.After having spent $300,Pookie discovers that he will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration.Alternatively,he can sell the machine "as is" now for $1,000.What is his marginal benefit if he sells the machine "as is" now?

One example of human capital is the amount of skills that you have.

An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue.

Pookie's Pinball Palace restores old Pinball machines.Pookie has just spent $300 purchasing and cleaning a 1960s-era machine which he expects to sell for $2,000 once he is finished with the restoration.After having spent $300,Pookie discovers that he will need to rewire the entire machine at a cost of $1,100 in order to finish the restoration.Alternatively,he can sell the machine "as is" now for $1,000.What should he do?

Suppose when the price of hybrid automobiles rises,consumers buy fewer hybrid automobiles.This implies that

Define macroeconomics.

Which of the following statements about economic resources is false?

What is an entrepreneur,and what decisions does an entrepreneur make in a market system?

How are the fundamental economic decisions determined in North Korea?

One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing preference by U.S.consumers for products made in the United States.Assuming that managers at these companies used all available information,including the increased preference by U.S.consumers for domestically produced,when making the decision to move production back to the United States exemplifies which key economic idea?