FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Economics: Foundations and Models

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

Consider the following statements: A.Car owners purchase more petrol from a petrol station that sells petrol at a lower price than other rival petrol stations in the area. B.Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment. C.Firms produce more of a particular DVD when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives?

A) b only
B) c only
C) a and b
D) a, b, and c

Correct Answer

verified

Show Answer

Question 42

True/False

Review LaterAdd Note

Review Later

The additional cost to a producer of hiring an additional unit of labour is called the marginal cost.

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

'The distribution of income should be left to the market' is an example of a positive economic statement.

A problem inherent in centrally planned economies is __________.

Assume that a doctor can earn an additional $20 000 of revenue each year from keeping his office open for one additional hour per week.What must the additional cost of keeping the office open this additional hour per week be to make staying open for the extra hour economically rational? __________________________________________________________________________________________________________________________________________________________________________________________

Microeconomics is the study of________.

What is a marginal cost? __________________________________________________________________________________________________________________________________________________________________________________________

In economics,choices must be made because we live in a world of __________.

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit.

What do economists call the idea that because of scarcity,producing more of one good or service means producing less of another good or service?

One desirable outcome of a market economy is that it leads to a more equitable distribution of income.

Which of the following is part of an economic model?

The government makes all economic decisions in a market economy.

Explain the economic idea that 'people respond to incentives'. __________________________________________________________________________________________________________________________________________________________________________________________

When voluntary exchange takes place,neither party gains from the exchange.

A university must decide if it wants to offer more adult literacy classes.This decision involves answering the economic question of 'for whom to produce'.

Which of the following statements about the economic decisions consumers,firms,and the government have to make is false?

Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky,and therefore carry a higher cost than not retiring.By using all available information as they act to achieve their goals,these teachers are exemplifying the economic idea that________.

What is the name of the branch of economics which studies the behaviour of entire economies?

Examining the conditions that could lead to a recession in an economy is an example of a macroeconomics topic.