Macro Ag
When economists test their theories using evidence-based analysis, they are most likely using __________.
empiricism through the use of data
Marginal analysis sometimes always never picks out a different the same optimum as minimization of total cost.
always, the same
the completive equilibrium price equates
quantity supplied to quantity demanded.
If Natalie finds a theater project that pays $2,500 per month and it is assumed that her non-wage attributes are zero, using cost-benefit analysis her net benefit is $nothing.
6000
Suppose your New Year resolution is to get back in shape. You are considering various ways of doing this: you can sign up for a gym membership, walk to work, take the stairs instead of the elevator, or watch your diet. How would you evaluate these options and choose an optimal one?
Do a cost-benefit analysis to compare the alternatives.
If the price of a good in an equilibrium market is $112, all of the following statements are true except:
Producers know that if they colluded, they could increase the price.
Natalie is a skilled theater artist. She is offered a job as a manager in a bank with an annual salary of $30,000, and she has a fixed monthly expense of $2,000. However, getting theater projects is challenging due to competing with the other skilled and competitive artists causing her to, on average, solicit projects that result in an annual salary of $18,000 per year. Which of the following statements is not true?
The net benefit of working as a theater artist is negative $12,000.
Let's say that you are trying to decide what to do on Friday at 11 a.m. You rank your possible options from the one you value the most to the one that you value the least in the following order: going to class, sleeping in late, going to work early, getting lunch, going to the gym to exercise, and watching television. If you decide to go to class, then what do we know about the opportunity cost of your decision?
The opportunity cost would be sleeping in late, since it was your next-best option.
Which of the following statements regarding economic questions is not correct?
The questions must have implication on individuals' choices and their budget.
Which of the following questions is not an example of an issue a researcher could study to contribute to the welfare of society?
What combination of colors can one use to paint his bedroom wall?
Holding all else equal, if the price of a digital camera rises, then we can expect
a decrease in the quantity demanded of digital cameras.
A supply curve has a slope due to the Law of Supply. The Law of Supply states that supplies as price increases.
a postive, increase
When optimizing for total value, opportunity cost must be total cost. Assuming benefits, the lowest cost option is the optimal choice.
added to, equal
When making your decision about which activity to choose, you should consider the monetary cost the opportunity cost of the activities. The goal is to choose the option that offers the greatest benefit.
as well as, net
This third principle of economics, supported by the scientific method, is:
empiricism
Market demand is derived by __________.
fixing the price and adding up the quantities that each buyer demands.
Which of the following do you provide as a positive question?
how much is the national debt
An argument against evidence-based economics would be:
it is only an approximation, often based on averages.
For most people, one of the biggest challenges involved in studying economics is:
it looks beyond simple cause and effect to the many possible long term effects of an action.
Willingness to accept is the price that a seller is willing to get paid to sell an extra unit of a good. Willingness to accept is the same as the cost of production.
lowest, marginal
When one of the four major factors changes, causing an increase in supply, the supply curve shifts
rightward
Which of the following examples do you provide as a normative question?
should welfare be appealed
Which of the following is not one of the four major factors that shifts the supply curve when it changes?
the income of consumers
One reason free-riders exist could be that:
the private benefit exceeds the private cost.
If Jay's Fruit Stand is able to charge considerably higher prices than other fruit stands with the same produce, it is likely that
there are no fruit stands in close proximity to Jay's.
When John determines what choice of walking shoes will give him the best bang for his buck, he is using optimization based on When Janet looks at the additional value of purchasing a new laptop to the cost as compared to keeping her old one, she is using optimization based on
total value, marginal anlysis
The opportunity cost of an activity is a measure of ▼ what is given up the benefits you gain when you do that activity.
what is given up
You say that positive questions ask what is or what will be and normative questions ask what ought to be .
what is or what will be, what ought to be
Does the shape of the market demand curve differ from the shape of an individual demand curve?
No, they both tend to be downward-sloping curves.