Exam 1: Analyzing Economic Problems

A manager cares about the number of workers under her command. She can choose between two projects: Project A allows her to hire workers who must be paid W_A each, Project B allows her to hire workers who must be paid W_B each. She is allocated a budget of $100 that she can allocate to either project. Which of the following accurately represents the manager's problem?

The definition of an exogenous variable is

Which of the following statements has both positive and normative aspects to it?

Suppose the equilibrium price in a market is $5, and the government imposes a $4.50 price ceiling. This will

Which of the following is an example of a constraint?

Identifying the appropriate way to allocate an economy's resources is an example of

What term in microeconomics tells us how a dependent variable changes as a result of adding one unit of an independent variable

In general, economics is the study of