Exam 1: Economics: Foundations and Models

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 2013 and 2016.

Which of the following is a positive economic statement?

Physical capital refers to stocks and bonds.

Which of the following is correct about the economic decisions consumers,firms,and the government have to make?

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

Trade-offs force society to make choices when answering what three fundamental questions?

Explain the term "economics."

If a graph has a line that shows the amount of outsourcing in the last ten years,it is known as

How does a market system prevent people from getting as many goods and services as they wish?

The term "market" in economics refers to

All ________ economies have been political dictatorships.

Your roommate,Serafina,a psychology major,said,"The problem with economics is that it assumes that consumers and firms always make the correct decision.But we know that everyone's human,and we all make mistakes." Do you agree with her comment?

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

Competition among sellers generates

Dr.Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services. -How can Dr.Goldfinger strive to achieve this productive efficiency?

"The unemployment rate is too high" is an example of a positive economic statement.

Which of the following is an example of an efficiency-equity trade-off faced by economic agents?

Figure 1-6 -Refer to Figure 1-6.Calculate the area of the trapezoid X.

Policies based on positive economic ideas tend to decrease economic efficiency and reduce equity.

Which of the following is a microeconomics question?