Exam 1: Economics: Foundations and Models

Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks and compact cars.What fundamental economic question are they addressing by making this range of products?

What does making optimal decisions 'at the margin' require?

Which of the following is a macroeconomics question?

By definition, economics is the study of:

What term in economics refers to a group of buyers and sellers of a product and the arrangement by which they come together to trade?

The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomics topic.

Economic models do all of the following except:

Microeconomics is the study of________.

What is a centrally planned economy? __________________________________________________________________________________________________________________________________________________________________________________________

The distribution of income primarily determines which of the fundamental economic questions?

Suppose when the price of laptops falls, university students buy more laptops.This implies that________.

Which of the following is part of an economic model?

What is meant by the statement that 'optimal decisions are made at the margin'? __________________________________________________________________________________________________________________________________________________________________________________________

Figure 1.1 -Refer to Figure 1.1.Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2008 and 2011.

All centrally planned economies________.

________ is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X.

What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement. __________________________________________________________________________________________________________________________________________________________________________________________

All economic questions arise from the fact that resources are unlimited.

Allocative efficiency occurs when every good or service is produced up to the point where the last unit provides________.

Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky, and therefore carry a higher cost than not retiring.By using all available information as they act to achieve their goals, these teachers are exemplifying the economic idea that________.