Exam 1: Economics: Foundations and Models

One example of human capital is the amount of savings that you have.

Scenario 1-1 Suppose a t-shirt manufacturer currently sells 5,000 t-shirts per week and makes a profit of $10,000 per week.A manager at the plant observes,"Although the last 400 t-shirts we produced and sold increased our revenue by $4,000 and our costs by $4,800,we are still making an overall profit of $10,000 per week so I think we're on the right track.We are producing the optimal number of t-shirts." -Refer to Scenario 1-1.Using marginal analysis terminology,what is another economic term for the incremental revenue received from the sale of the last 400 t-shirts?

Examining the conditions that could lead to inflation in an economy is an example of a microeconomics topic.

What is an economic variable? Give an example of an economic variable.

Table 1-1 Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour. -Refer to Table 1-1.Using marginal analysis,how many hours should Eva extend her bakery's hours of operations?

An economic model is a complex version of reality used to analyze real-world economic situations.

At a recent company meeting,Geraldine Erwin,sales manager of Dastoria,a flavored-beverage producer announced,"We have increased our sales by 8 percent in just six months." Suppose six months ago,its sales amounted to $452,000,what is the value of its sales today?

The relationship between sales and revenue is

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

How can the influence of a third variable be shown on a two-dimensional graph?

What is a household? How do households interact with firms in a market?

Which of the following is a macroeconomics question?

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

________ occurs when economic benefits are distributed fairly.

Consumers make all economic decisions in a mixed economy.

Zane's Vanes is a service that restores old weather vanes.Zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed.After having spent $125,Zane realizes that he will need to spend an additional $200 on materials to complete the restoration.Alternatively,he can sell the weather vane without restoring it for $200.What is his marginal benefit if he sells the weather vane without restoring it?

Scarcity refers to the situation in which

In market economies,income distribution is always going to be completely equitable.

Which of the following is counted as "capital" in economics?

Lionel's Lawn Care is a company that maintains residential yards.Lionel's cost for his standard package of mowing,edging,and trimming is $15,and he charges $25 for this service.For a total price of $40,Lionel will also trim shrubs,a service that adds an additional $10 to the total cost of the standard package.What is Lionel's marginal cost of adding the shrub-trimming service to the standard package?