ECONOMICSISWACK - Part I 1 Opportunity cost is that which...

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Part I 1. Opportunity cost is that which we forgo, or give up, when we make a choice or a decision . 2. The tuition you pay is not an opportunity cost of attending college. 3. The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is microeconomics . 4. Positive Question: Will the level of teenage unemployment inc if the minimum wage is increased? 5. Gov’t redistributes income from the rich to the poor with a tax system that requires taxes to rise with income. Which of the following criteria best explains the reason for this tax system? Equity 6. Allocative efficiency means an economy produces what people want at the least possible cost . 7. An economy in which individual people and firms pursue their own self-interest without any central direction or regulation is a laissez-faire economy. 8. Economics studies individual choices under conditions of scarcity. The scarcity principle indicates that because tradeoffs must be made, resources are therefore scarce . 9. Which of the following is an issue in macroeconomics? The effect of price controls of food on overall consumption in Africa . 10. A change in preferences is not represented by a shift in the production possibility frontier . 11. To have an effect on a market, a price floor must be above equilibrium . 12. A price above equilibrium price will lead to a surplus . 13. The demand function for good x is as follows: Qx = 100 – 4Px + 5Py. Qx is the quantity demanded for good x , and Px is the price of good x . Py is the price of good y . This means the goods x and y are substitute goods on the market. (x-y are complements, x+y are substitute) 14. The rationing mechanism in a capitalist market is the process by which market system allocates goods and services to consumers when the market is out of equilibrium Part II
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Hours spent studying Economics 0 1 2 3 4 Economics Score 65 77 86 89 91 Marketing Score 80 79 77 70 50 1. Lucy has 2 exams tomorrow: one in economics and one in marketing. She has a total of 4 hours available for studying. The table below shows the test scores she will make with different amounts of studying time. For example, if she spends one hour studying
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ECONOMICSISWACK - Part I 1 Opportunity cost is that which...

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