Exam 1: Economics: Foundations and Models

Suppose the U.S.government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000.These doctors would be exemplifying the economic idea that

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

Explain why economics is considered a social science.

Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________,meaning they make the best decisions given their knowledge of the costs and benefits.

A college must decide if it wants to offer more Internet-based classes.This decision involves answering the economic question of "what to produce."

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

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

The extra cost associated with undertaking an activity is called

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

In the market for factors of production,firms earn income by selling goods and services to households.

Scarcity is a problem that will eventually disappear as technology advances.

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

The revenue received from the sale of ________ of a product is a marginal benefit to the firm.

Consider the following economic agents: a.the government B.consumers C.producers Who,in a centrally planned economy,decides what goods and services will be produced with the scarce resources available in that economy?

Making "how much" decisions involve

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?

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 2008 and 2011.

How are the fundamental economic decisions determined in North Korea?

By definition,economics is the study of

Table 1-2 -Refer to Table 1-2.The table above shows the sales of DVD recorders in North America.Present the information using a bar graph.