Exam 1: Economics: Foundations and Models

Which of the following is a macroeconomic question?

Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services.What would Dr.Goldfinger need to do to try to achieve allocative efficiency?

A university must decide if it should stop offering foreign language classes.This decision involves answering the economic question of "how to produce."

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 the marginal cost of completing the task?

Who receives the goods and services produced in the United States depends largely on

Consider the following economic agents: A.the government B.consumers C.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Table 1-5 Hours Open Total Revenue (dollars) 1 \ 40 2 65 3 80 4 90 5 95 6 98 Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of additional hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour. -Refer to Table 1-5.What is Julius's marginal cost if he decides to stay open for three hours instead of two hours?

Scenario 1-4 Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week. The plant foreman observes, "Although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000, we are only making an overall profit of $3,000 per week so I think we need to cut back on production. -Refer to Scenario 1-4.Using marginal analysis terminology,what is another economic term for the incremental revenue received from the sale of the last 500 cigars?

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

Of the following examples,which would most likely be performed by an economist working for the U.S.Federal Trade Commission?

Lionel's Lawn Care is a company that maintains residential yards.Lionel's cost for his standard package of mowing,edging,and trimming is $15,and he charges $25 for this service.For a total price of $40,Lionel will also trim shrubs,a service that adds an additional $10 to the total cost of the standard package.What is Lionel's marginal cost of adding the shrub-trimming service to the standard package?

Which of the following is not an example of an economic trade-off that a firm has to face?

Which of the following is a normative economic statement?

Which of the following is a macroeconomic question?

Mr.Peabody chooses to invest in companies that produce goods and services based on consumer preferences.Mr.Peabody is investing in companies that are attempting to be

In economics,choices must be made because we live in a world of

Economics is the study of the ________ people make to attain their goals,given their ________ resources.

________ is a situation in which a good or service is produced at the lowest possible cost.

Examining the conditions that could lead to a recession in an economy is an example of a macroeconomic topic.

When Mr.Peabody decides on the companies to which he will donate his time and money,a ________ issue is being addressed.