econ test

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You have been invited to play a​ 4-hour round of golf that has a value to you of ​$60. The total price to play the round of golf is ​$25.

35 4 golf

Suppose you currently rent an apartment in Location Upper BBy moving to​ optimize, you change your net benefit by ​$

62

Which of the following statements regarding the principle of optimization is​ true

A. It takes into account and evaluates multiple​ trade-offs. It is the unifying principle that connects various seemingly unrelated decisions.

Empiricism describes a situation where

economists use data to analyze what is happening in the world

During the process of optimization economists believe that people are considering

A. the feasibility of a​ choice, given the information available at the time.

When economists test their theories using​ evidence-based analysis, they are most likely using​

empiricism through the use of data.

The relationship that exists between these two variables can be described as

negatively related

Suppose the university is trying to determine the most efficient way to allocate the rooms such that those who value the rooms the most get them. Which of the following would you suggest as the most​ efficient?

Auctioning the rooms to the highest bidders.

In which of the following situations is optimization a good description of​ behavior?

B. Tia is a very fun loving person. She chooses to go on a vacation with friends instead of volunteering at NGO as a vacation is more enjoyable.

What tool would you employ to analyze the relationship between gasoline prices and consumer​ behavior?

Economic models.

Suppose you are on a date with an economics​ major, and you want to impress them by asking good economic questions. Two characteristics of a good economic question​ are:

It is important to individuals or society It can be answered

In which of the following areas will taking an economics course help benefit you throughout your​ life?

It will instill the concept that what activity is given up by a decision plays an important role when making choices. B. It will give you the logic behind using​ cost-benefit analysis when evaluating decisions. C. It will help you analyze and predict human behavior in a variety of situations.

Suppose apartments are in four​ locations: Location​ A, Location​ B, Location​ C, and Location D. Location A is in the​ city, where your job is. Location B is 10 minutes farther from your job than Location A. Location C is 10 minutes farther from your job than Location​ B, and Location D is 10 minutes farther than Location C. In​ turn, similar apartments in Location B rent for ​$185 less per month than apartments in Location​ A, apartments in Location C rent for ​$185 less than in Location​ B, and apartments in Location D rent for ​$185 less than in Location C. Suppose the value of your time is ​$22 per hour and you work 21 days per​ month, with each day requiring a​ round-trip commute from your apartment to work.For​ simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent an apartment.You should rent an apartment in .

Location D

Which of the following is not a characteristic of a​ market?

Markets are physical locations where trading occurs

Suppose you have just been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. In your first presentation to​ management, how would you describe your planned methodology to perform the​ analysis?

Scientific method.

​Alternatively, you have the option of working as many hours as you​ want, earning ​$11 per hour. Assume this is the next best use of your time. Use the marginal principle to find your optimal number of hours to spend with your spouse per day.

The optimal amount of time for you to spend with your spouse is 5 hours per day. ​ 5 hours is worth 80

Causation implies

a causes b ​if, because of a​, b has occurred.

You should collect indicated by the economic model.

a large, amount of data to create to test the hypotheses hypotheses

Economists study only things related to money all human behavior ​; ​therefore, the unifying feature of economics is a focus on

all human behavior , choice

his can be shown graphically with upply curve or numerically in a table using a The relationship that exists between these two variables can be described as

an upward-sloping supply schedule + relation

Given the supply and demand curves on the​ right, when the price of the good is​ $20, we say that the market is in , At this​ price, we know hat the quantity supplied i the quantity demanded.

competitive equilibrium equal to

Equilibrium describes a situation where

no one would benefit from changing his or her behavior

The amount produced by sellers must be the amount purchased by buyers.

equal to

Buyers must place a value on the uses of the product that is the cost of buying the product.

greater than

An example of causation is​

if you work fewer​ hours, you will earn less money.

The costs of making a product must be the final price at which the product sells

less than

In this​ case, correlation does not equal causation most likely due to .

omitted variables

The goal of optimization for an individual is to maximize

overall well-being

optimization Optimization describes a situation where

people weigh costs and benefits when making a decision

Now assume that you have a job that pays you ​$6 per hour. Would you be optimizing to accept the invitation to play​ golf?

play

The Law of Demand states that as the price of a good​ increases, ceteris paribus​, the decreases. This can be shown graphically with demand curve or numerically in a table using a .

quantity demanded , a downward-sloping demand schedule

Suppose a new​ off-campus university apartment complex could rent its rooms on the open market for​ $900 a month. ​If, instead, the university chooses to cap the price of rooms to​ $500 a month for​ students, the result would be that

quantity demanded would exceed the quantity​ supplied, resulting in a shortage.

The Law of Supply states that as the price of a good​ increases, ceteris paribus​, the of that good increases.

quantity supplied

Suppose you have been hired as a management consultant by a major oil company to help it optimally price gasoline at its service stations. Your client has requested that your consulting team expatiate on the factors that impact gasoline prices. One of the members of your​ team, Debbie, states that she has noticed that gasoline prices seem to rise in years when a National League baseball team wins the World Series. You include this observation in your report because it is correlation, not causation .

should not, orrelation, not causation


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