macro

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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 fundamental​questions?

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


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