Micro econ Chapter 1

At a recent faculty meeting, Lorraine Waverly, president of Skywalker College, announced that enrollment is up by 12 percent over the previous semester. If enrollment the previous semester was 3,250 students, what is the student enrollment this semester? 2,860 390 3,640 4,030

3,640

DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service. For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. What is DeShawn's marginal benefit if he sells a basic detailing package? 1. He makes a marginal loss of $15, not a marginal benefit. 2. The marginal benefit cannot be determined. 3. $35 4. $75

75

In economics, an organization that produces a good or service is called a? 1.firm. 2. All of the above are correct. 3.company. 4. business.

All of the above

Which of the following are primarily macroeconomic topics? air pollution inflation health care costs gasoline prices economic growth unemployment

Inflation Economic growth unemployment

In economics, the term ________ means "additional" or "extra."

Marginal

If a straight line passes through the point x = 14 and y = 3 and also through the point x = 4 and y = 10, the slope of this line is? 1. 6 divided by 11. 2. negative seven tenths. 3. seven tenths. 4. negative 11 divided by 6.

Negative seven tenths

The highest valued alternative that must be given up to engage in an activity is the definition of?

Opportunity cost

Which of the following statements is true about scarcity? 1.Scarcity is not a problem for the wealthy. 2. Scarcity is only a problem when a country has too large a population. 3. Scarcity refers to the situation in which unlimited wants exceed limited resources. 4. Scarcity arises when there is a wide disparity in income distribution.

Scarcity refers to the situation in which unlimited wants exceed limited resources.

Which of the following is a microeconomics question? 1. Why has growth in the economy increased since the end of the recession? 2. Will Federal Reserve intervention lower the inflation rate? 3. Will the merger of American Airlines and US Airways increase or decrease airfares? 4. Why do economies experience periods of high inflation?

Will the merger of American Airlines and US Airways increase or decrease airfares?

Political candidates often hold fund raisers by charging "per plate" for dinner. Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate. Is this transaction economically efficient? 1.No, political candidates should never be allowed to overcharge for a fund raising dinner. 2. No, Wendy paid too much for four dinners. 3. Yes, it was a voluntary exchange that benefited both parties. 4. Yes, it is efficient only from the perspective of the candidate but not from the perspective of Wendy.

Yes, it was a voluntary exchange that benefited both parties.

The decision about what goods and services will be produced made in a market economy is made by? 1.workers deciding to produce only what the boss says must be produced. 2. consumers dictating to firms what they need most. 3. lawmakers in the government voting on what will be produced. 4. consumers and firms choosing which goods and services to buy or produce. 5. producers deciding what society wants most.

consumers and firms choosing which goods and services to buy or produce.

Economists assume that rational behavior is useful in explaining choices people make 1.because irrational people do not make economic choices. 2. even though people rarely, if ever, behave in a rational manner. 3. even though people may not behave rationally all the time. 4. because individuals act rationally all the time in all circumstances.

even though people may not behave rationally all the time.

The three fundamental questions that any economy must address are

hat goods and services to produce; how will these goods and services be produced; and who receives them?

Economic models do all of the following except? 1.simplify some aspect of economic life. 2.make economic ideas explicit and concrete for use by decision makers. 3. answer economic questions. 4. portray reality in all its minute details.

portray reality in all its minute details.

Technology is defined as? 1.the process of developing and revising models. 2. new innovations and creations. 3.the processes used to produce goods and services. 4. the process of recycling products.

the processes used to produce goods and services.

Suppose when the price of laptops fall, college students buy more laptops. This implies that? 1. there is a positive relationship between laptop prices and quantities purchased by college students. 2. there is a direct relationship between laptop prices and quantities purchased by college students. 3. there is a one-to-one relationship between laptop prices and quantities purchased by college students. 4. there is a negative relationship between laptop prices and quantities purchased by college students.

there is a negative relationship between laptop prices and quantities purchased by college students.

Which of the following is a positive economic statement? 1.The government should implement a national consumption tax. 2. The U.S. government should increase regulations on the banking industry. 3. If the price of beef falls, a larger quantity of it will be bought. 4. The standard of living in the United States is too low.

If the price of beef falls, a larger quantity of it will be bought

Which of the following statements is true about profit? 1.Profit is the difference between revenue and cost. 2.The terms "accounting profit" and "economic profit" can be used interchangeably. 3.Profit refers to the revenue received from the sale of a quantity of goods. 4. Profit is calculated by multiplying price and quantity sold.

Profit is the difference between revenue and cost