macro
Which of the following is a microeconomic question?
How does Fiat decide on the price of the 500 Pop model?
The term "market" in economics refers to
a group of buyers and sellers of a product and the arrangement by which they come together to trade.
Productive efficiency is achieved when firms produce goods and services
at the lowest cost.
When Dr. Goldfinger decides on the companies in which he will invest, a ________ issue is being addressed.
microeconomic
Opportunity cost is defined as
the highest valued alternative that must be given up to engage in an activity.
Consider the following economic agents: a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
the government, consumers, and producers
What does the term "marginal" mean in economics?
an additional or extra
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 to the right. He would have to hire a worker for those hours at a wage rate of $18 per hour. What is Julius's marginal cost if he decides to stay open for three hours instead of two hours?
$18
Which of the following is a microeconomic question?
How will Apple decide on a selling price for the iPad?
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." Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 400 t−shirts?
marginal cost
The Stogie Shop, a cigar store in the mall, sells hand−rolled cigars for $10.00 and machine−made cigars for $2.50 each. What is the opportunity cost of buying a hand−rolled cigar?
4 machine−made cigars
Which of the following is a positive economic statement?
If the price of gasoline rises, a smaller quantity of it will be bought.
Which of the following is motivated by an equity concern?
Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need−based programs, thus harming lower−income students with greater financial need.
Which of the following is a macroeconomic question?
What determines the minimum wage?
Trade−offs force society to make choices when answering what three fundamentalquestions?
What goods and services to produce; how will these goods and services be produced; and who receives them?
Fast food restaurants produce a range of menu items such as hamburgers, chicken sandwiches, salads, and french fries. What fundamental economic question are they addressing by offering this range of items?
What to produce?
Economic models
are simplified versions of reality.
The revenue received from the sale of an additional unit of a product
is a marginal benefit to the firm.
Which of the following generates allocative efficiency in a market economy?
voluntary exchange between buyers and sellers
Which of the following contributes to the efficiency of markets?
Markets promote competition and voluntary exchange.
Which of the following statements is correct?
Mrs. Lovejoy decides to invest in companies which she believes are producing their goods based on the preferences of consumers. Mrs. Lovejoy is therefore investing in companies that are allocatively efficient.
The cost incurred from the production of an additional unit of a product
is a marginal cost to the firm.
The decision about what goods and services will be produced in a centrally planned economy is made by
lawmakers in the government deciding on what will be produced.
Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week. The plant foreman observes, "Although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000, we are only making an overall profit of $3,000 per week so I think we need to cut back on production. Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 500 cigars?
marginal cost
The study of economics arises due to
scarcity
