Exam 1: Economics: Foundations and Models

Table 1-5 Hours Open Total Revenue (dollars) 1 \ 40 2 65 3 80 4 90 5 95 6 98 Julius runs a small tailor shop in the city of Bloomfield.He is debating whether he should extend his hours of operation.Julius figures that his sales revenue will depend on the number of additional hours the tailor shop 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 1-5.Using marginal analysis,how many hours should Julius extend his shop's hours of operations?

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 2012 and 2016.

What is an economic variable?

When voluntary exchange takes place,only one party gains from the exchange.

If it costs Danitra $225 to create 4 necklaces and $275 to create 5 necklaces,then the marginal cost of producing the 5th necklace is $50.

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

The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

Which of the following statements is true about profit?

In economics,activities done for others,such as providing house cleaning or dental work,are referred to as

Which of the following statements about competition in a market is true?

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?

Allocative efficiency is achieved when firms produce goods and services

Economists assume that

Describe what has happened to state obesity rates in the United States since 1994.

The Farm Factory,a booth at the local Farmer's Market,sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon.What is the opportunity cost of buying a dozen eggs?

Economic models do all of the following except

The basic economic problem of ________ has always existed and will continue to exist.

The processes used to produce goods and services describes

Damian shares a small food truck with his sister.His share of the expenses is $500 per month.He has decided to get his own,newer food truck which he will not have to share with anyone.His expenses for the newer truck are $1,400 per month.Damian is as rational as any other person.As an economics major,you rightly conclude that