Exam 1: Economics: Foundations and Models

Table 1-3 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 hours the store 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 1-3. Using marginal analysis, determine how many hours should Santiago extend his store's hours of operations?

Since 1994, obesity rates in the United States

Which of the following generates allocative efficiency in a market economy?

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?

Cassie's Quilts alters, reconstructs and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is the marginal cost of completing the task?

How are the fundamental economic decisions determined in Canada?

In a modern mixed economy, who decides what goods and services will be produced?

Table 1-1 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 hours the nail salon is open as shown in the table above. She would have to hire a worker for those 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 two hours instead of one hour?

Define macroeconomics.

The term "market" refers only to trading arrangements that have been approved by the government.

Which of the following is a positive economic statement?

Which of the following is a positive economic statement?

Holding all other personal characteristics-such as age, gender, and income-constant, economists would expect that

In 2012, Peelville consumed 30,000 bananas. In 2013, banana consumption rose to 35,000. Calculate the percentage change in banana consumption.

________ involves undertaking an activity until its marginal benefits equal marginal costs.

Which of the following is a normative economic statement?

In 2013, Smileytown consumed 12,000 gallons of mouthwash. In 2014, mouthwash consumption rose to 17,000 gallons. Calculate the percentage change in mouthwash consumption.

How are the fundamental economic decisions determined in North Korea?

All ________ economies have been political dictatorships.

Figure 1-2 -Refer to Figure 1-2. Calculate the area of the triangle A.