Micro (econ212) exam 1
Jane goes to in all you can eat restaurant and makes three trips to the buffet. After finishing food from her third trip, she felt sick and throws up. Which of the following economic explanations best matches Jane's situation?
Jane's marginal benefit from eating the third plate was negative.
Economists Convert cost and benefits into money equivalence by evaluating an individuals
Willingness to pay
An individual supply curve is
A graph with quantities of a product that a seller is willing to supply a different price points
Substitutes in production
Allows of business to have alternative uses of its resources by manufacturing other products using the same inputs
Which factor would cause a supply curve to shift to the left
An increase in the cost of an input used to produce a good
Dan Jacobs is a student studying economics and currently working on her class schedule for next year. When she considers take another economics course and how to meet prerequisites for future economics courses, she is acknowledging dependencies that exist
Through time
Emma spends $40,000 for one year's tuition at university. The opportunity cost for one year at University for Emma is
Whatever she would have purchased with the $40,000 plus whatever she would've earned had she not attended University
The interdependence principal
Implies that buyers decisions are affected by many factors other than the price of an item
Kyle is thinking of buying a car to avoid taking Lyft to work. She is using the cost benefit principal to evaluate this decision in is calculating the cost and benefits to owning the car over the next year. She's gathered the following information to help her maker decision ...
$3800
A product with a network effect is
A social media tool such as WeChat in China
For normal goods:
A tax cut on customer income will lead to a rise in their demand
Which factor is most likely to shift the supply curve for milk to the left?
A tax on each gallon of milk produced
The problem of determining what goods and services society should produce:
exists because there are not enough resources to provide all the goods and services that people want
The rational rules summarizes the marginal principle. It says that if something is worth doing, keep doing it until your marginal:
Benefits equal your marginal cost
Dan Jacobs is a student studying economics and currently working on her class schedule for next semester. When she considers taking another economics course rather than taking a math class in the same timeslot, she is acknowledging that dependencies exist:
Between her own choices
Harry Watson is an engineering student taking an economics elective in his senior year. He has the option after college to work as a petroleum engineer or to design roller coasters. He is using concepts he learned in his economics course to help with this decision. He thinks mini engineers would prefer to design roller coasters and expects a lower salary in this field. With this analysis, he is acknowledging the dependencies that exist:
Between people or businesses in the same market
A market where no single buyer or seller can influence the price is a:
Competitive market
Spaghetti and salad are related goods. Holding everything else constant, if the price of spaghetti decreases and the demand for salad increases, spaghetti and salad are probably:
Complements
Diminishing marginal product occurs when:
Each additional unit of an input adds less to total output than the previous unit
According to the interdependence principal, when faced with a decision, you should ask what
Else made my decision affect and what else might affect my decision
Which Factor would cause a decrease in the supply of soy candles?
Expectations that the price of soy candles Will Rice
Charles McCoy is a manager at a coffee shop it is making hiring decisions. With one worker, he can make 15 drinks that sell for three dollars on average in a single hour. With a second worker, he can make an additional 12 dreams in a single hour. The marginal benefit of each of his additional worker decreases by three drinks with each additional hire. Assuming that workers are paid $12 per hour and work eight hours, how many employees should Charles hire for each hour?
Four
The principle that your best choice depends on your other choices, the choices others make, developments in other markets, and expectations about the future is known as the _____ principal
Interdependence
The demand curve
Is a curve that shows the maximum willingness to pay for a product Is a curve that shows the marginal benefit gained from a product Is a curve that shows the relationship between the price of a product and a customers willingness to buy at each price
Spaghetti and lasagna or substitute. Holding all other things constant, this means that if the price of spaghetti increases the demand for
Lasagna will increase
Dental services can be classified as:
Normal goods
Asking "or what?" allows the _____ principle to be analyzed as a simple question.
Opportunity cost
The typical supply curb illustrates that
Other things equal, as price rises, the quantities applied for the good rises
A seller in a perfectly competitive market cannot
Raise the market price of a product
Rising input cost lead to
Raising marginal costs for a seller
Dependencies overtime reflect the fact that
Resources can be spread across time
Do you like to read Gentlemans quarterly and golf digest. You have only six dollars to spend income by only one magazine, see you by only golf digest. Which economic concept does this statement best represents question
Scarcity
_____ forces us to make choices
Scarcity
Marie Johnson is a manager at an electronics store and has to decide how many workers to hire. If she hires one worker, her revenue is $800 per day. If she hires another worker she can make another $600 per day. The marginal benefit of hiring another worker decreases by $200 with each additional hire. Assuming that workers are paid $20 per hour and work eight hours, how many employees should Mari hire, and what will the total revenue of her store be?
She will hire four workers in the revenue of the store will be $2000
The mile end deli serves traditional delicatessen food in Brooklyn, New York. Which cost is most likely fixed at the deli?
The chairs the customers sit on
What are some example scenarios that depict a rational seller?
The flowery Bauer calculates the marginal cost of a bouquet of red roses as $10 and sells them at $45. United Airlines determines the marginal cost of an extra passenger to be $55 in cells a discount se for $150 An auto-rickshaw driver in New Delhi, India, calculates a trip to have a marginal cost of 350 rupees and excepts a ride request for 500 rupees
German firms import machinery from the UK. What will happen to the supply of German goods manufactured using machinery from the UK, if the value of the euro falls against the British pound?
The supply curve will shift to the left
Juan Donald is willing to pay $900 for a new iPad he offers to pay $800 for an iPad at the Apple Store. It cost Apple $700 to produce this iPad. A voluntary economic transaction between Juan and Apple _____ occur because _____ would be better off due to the transaction.
Will; both juan and Apple
In the local market for coffee, if a newly open Starbucks competes with two local coffee shops (the Java joint and cup of Joe), the _____ curve shifts to the _____
Supply and right
How will the demand for Gucci shoes change today, if the government decides to tax designer shoes next year?
The demand for Gucci shoes will shift to the right today.
If a Canadian consumers expect the value of the Canadian dollar to depreciate against the US dollar (the Canadian dollar becomes weaker against the dollar), what impact would we expect this to have on Canadians demand for American made products?
The demand for American made items would fall
Yogurt is an important ingredient in the production of frozen yogurt. If the price of yogurt increases, then one would expect, holding all other things constant:
The supply curve for frozen yogurt to shift left