Exam 1: Economics: Foundations and Models

In 2010,Hooverville consumed 205,000 tons of sugar.In 2011,sugar consumption rose to 245,000 tons.Calculate the percentage change in sugar consumption.

Which of the following is a normative economic statement?

According to census figures,between 1970 and 2007 the number of doctors who described themselves as self-employed

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.Using marginal analysis,determine how many hours should Lydia extend her nail salon's hours of operations?

The decision about what goods and services will be produced made in a market economy is made by

The 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 highest valued alternative that must be given up to engage in an activity is the definition of

Allocative efficiency best explains ________,and productive efficiency best explains ________.

DeShawn's Detailing is a service that details cars at the customers' homes or places of work.DeShawn's cost for a basic detailing package is $40,and he charges $75 for this service.For a total price of $90,DeShawn will also detail the car's engine,a service that adds an additional $20 to the total cost of the package.What is DeShawn's marginal benefit if he sells a basic detailing package?

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 nursing home causes Alzheimer's dementia.What is the flaw in the student's reasoning?

Which of the following is a microeconomics question?

Economists reason that the optimal decision is to continue any activity up to the point where the

Economists assume that rational behavior is useful in explaining choices people make

Which of the following is a normative economic statement?

Which of the following statements is true about scarcity?

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

Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics? a.gasoline prices B)unemployment C)inflation D)health care costs E)air pollution F)economic growth

List the five main factors of production.

Economic models do all of the following except

Which of the following statements is true about profit?