BAM223 Final Exam 2018

1. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. a. variable b. market c. model d. trade-off Scenario 1-2 Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of $5,000 per week. The plant owner observes, “Although the last 300 hats we produced and sold increased our revenue by $1,000 and our costs by $1,100, we are still making an overall profit of $5,000 per week so I think we’re on the right tra...

1. An economic ________ is a simplified version of some aspect of economic life used to analyze an economic issue. a. variable b. market c. model d. trade-off Scenario 1-2 Suppose a hat manufacturer currently sells 2,000 hats per week and makes a profit of $5,000 per week. The plant owner observes, “Although the last 300 hats we produced and sold increased our revenue by $1,000 and our costs by $1,100, we are still making an overall profit of $5,000 per week so I think we’re on the right tra...