Macro Econ Study Set Chapter 1

Use the above table to answer the following question. Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour. What is Eva's marginal cost of staying open five hours instead of four hours?

$12

Which of the following is a normative economic statement?

Fashion designers should be allowed to copyright designs to promote innovation.

Competition among sellers generates

Productive efficiency

Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What should she do?

She should purchase the period fabric, complete the task and then sell the quilt.

Which of the following generates allocative efficiency in a market economy?

Voluntary exchange between buyers and sellers

Which of the following is a macroeconomic question?

What determines the unemployment rate?

Ted quits his $60,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decision?

at least $60,000

Economists assume that

optimal decisions are made at the margin.

Which of the following is an example of an economic trade-off that a firm has to make?

whether it is cheaper to produce with more machines or with more workers

Use the above table to answer the following question. Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour. What is Eva's marginal revenue of staying open five hours instead of four hours?

$8

In 2017, Smileytown consumed 50,000 tubes of toothpaste. In 2018, toothpaste consumption rose to 62,000 tubes. Calculate the percentage change in toothpaste consumption.

24% 62,000 - 50,000 / 50,000