Question 1

Water is considered a scarce good rather than a free good because:

Accepted Answer

A)  it has alternative uses. 
B)  it does not have alternative uses. 
C)  scarce goods are less expensive than free goods. 
D)  free goods are more expensive than scarce goods. 
A)  it has alternative uses. 
B)  it does not have alternative uses. 
C)  scarce goods are less expensive than free goods. 
D)  free goods are more expensive than scarce goods.

Question 2

One question that arises when determining for whom goods and services should be produced is:

Accepted Answer

A)  Who gets how much of the economic pie? 
B)  How can we import more goods for domestic consumption? 
C)  How can we reduce exports so as to leave more goods for domestic consumption? 
D)  Should society outlaw child labor? 
A)  Who gets how much of the economic pie? 
B)  How can we import more goods for domestic consumption? 
C)  How can we reduce exports so as to leave more goods for domestic consumption? 
D)  Should society outlaw child labor?

Question 3

A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.

Accepted Answer

A) True 
 B)False

Question 4

Distinguish between microeconomics and macroeconomics.

Accepted Answer

The answer of Distinguish between microeconomics and macroeconomics....

Question 5

The fallacy of false cause is committed when a person mistakenly assumes that one event causes another because the first event precedes the second.

Accepted Answer

A) True 
 B)False

Question 6

The sacrifice of an alternative is called:

Accepted Answer

A)  revenue. 
B)  benefit. 
C)  opportunity cost. 
D)  production. 
A)  revenue. 
B)  benefit. 
C)  opportunity cost. 
D)  production.

Question 7

The three fundamental economic questions are what, how, and why.

Accepted Answer

A) True 
 B)False

Question 8

Suppose you observe that the sun sets every evening after the six o'clock business report. If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

Accepted Answer

A)  division. 
B)  composition. 
C)  false cause. 
D)  science. 
A)  division. 
B)  composition. 
C)  false cause. 
D)  science.

Question 9

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

Accepted Answer

A)  unlimited resources; economic systems 
B)  human interactions; limited resources 
C)  opportunity costs; choices 
D)  social behavior; scarcity 
A)  unlimited resources; economic systems 
B)  human interactions; limited resources 
C)  opportunity costs; choices 
D)  social behavior; scarcity

Question 10

The existence of alternative uses for a resource implies it isn't scarce.

Accepted Answer

A) True 
 B)False

Question 11

Economists concerned about the behavior of individual households, firms, and industries are studying:

Accepted Answer

A)  microeconomics. 
B)  macroeconomics. 
C)  neither macroeconomics nor microeconomics. 
D)  the "forest" of economic behavior, rather than the "trees." 
A)  microeconomics. 
B)  macroeconomics. 
C)  neither macroeconomics nor microeconomics. 
D)  the "forest" of economic behavior, rather than the "trees."

Question 12

The study of how people choose among the alternatives available to them is the:

Accepted Answer

A)  definition of economics. 
B)  model of demand. 
C)  theory of opportunity costs. 
D)  method of distinguishing between microeconomics and macroeconomics. 
A)  definition of economics. 
B)  model of demand. 
C)  theory of opportunity costs. 
D)  method of distinguishing between microeconomics and macroeconomics.

Question 13

Economists are:

Accepted Answer

A)  concerned with developing theories and interested in solving problems. 
B)  interested in solving problems but not concerned with developing theories. 
C)  reluctant to predict changes in variables such as prices, employment, and spending. 
D)  always in agreement on the best way to implement policy decisions. 
A)  concerned with developing theories and interested in solving problems. 
B)  interested in solving problems but not concerned with developing theories. 
C)  reluctant to predict changes in variables such as prices, employment, and spending. 
D)  always in agreement on the best way to implement policy decisions.

Question 14

Explain the following statement: "In economics there are few absolute solutions. Almost all problem solutions require tradeoffs."

Accepted Answer

In economics, it is rare to find absolut

Question 15

Which of the following is most likely an example of a free good?

Accepted Answer

A)  Sand in aquarium 
B)  Sand in the middle of a desert 
C)  Sand in a children's sandbox 
D)  Sand at the beach 
A)  Sand in aquarium 
B)  Sand in the middle of a desert 
C)  Sand in a children's sandbox 
D)  Sand at the beach

Question 16

An example of a positive statement is:

Accepted Answer

A)  The rate of unemployment should be 4 percent. 
B)  A high rate of economic growth is good for the country. 
C)  an increase in investment spending tends to reduce unemployment.. 
D)  Everyone in the country needs to be covered by national health insurance. 
A)  The rate of unemployment should be 4 percent. 
B)  A high rate of economic growth is good for the country. 
C)  an increase in investment spending tends to reduce unemployment.. 
D)  Everyone in the country needs to be covered by national health insurance.

Question 17

A model or theory in economics is:

Accepted Answer

A)  based mostly on value judgments. 
B)  built using relevant observations, assumptions, and abstractions. 
C)  only useful if it correctly portrays the real world and its complexities. 
D)  useful only if it is based on normative economic statements. 
A)  based mostly on value judgments. 
B)  built using relevant observations, assumptions, and abstractions. 
C)  only useful if it correctly portrays the real world and its complexities. 
D)  useful only if it is based on normative economic statements.

Question 18

The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

Accepted Answer

A) True 
 B)False

Question 19

A feature that distinguishes economists' approach to making choices is (are):

Accepted Answer

A)  assigning opportunity costs a major role in their analyses of choices. 
B)  assuming individuals make choices to maximize objectives. 
C)  emphasizing that choices are made at the margin. 
D)  all of the above. 
A)  assigning opportunity costs a major role in their analyses of choices. 
B)  assuming individuals make choices to maximize objectives. 
C)  emphasizing that choices are made at the margin. 
D)  all of the above.

Question 20

Many disagreements among economists result because:

Accepted Answer

A)  economists deal only with positive economics. 
B)  economists sometimes make normative judgments. 
C)  economics is a social science. 
D)  economics deals so much with theories and models. 
A)  economists deal only with positive economics. 
B)  economists sometimes make normative judgments. 
C)  economics is a social science. 
D)  economics deals so much with theories and models.

Water is considered a scarce good rather than a free good because:

One question that arises when determining for whom goods and services should be produced is:

A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.

Distinguish between microeconomics and macroeconomics.

The fallacy of false cause is committed when a person mistakenly assumes that one event causes another because the first event precedes the second.

The sacrifice of an alternative is called:

The three fundamental economic questions are what, how, and why.

Suppose you observe that the sun sets every evening after the six o'clock business report. If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of _.

The existence of alternative uses for a resource implies it isn't scarce.

Economists concerned about the behavior of individual households, firms, and industries are studying:

The study of how people choose among the alternatives available to them is the:

Economists are:

Explain the following statement: "In economics there are few absolute solutions. Almost all problem solutions require tradeoffs."

Which of the following is most likely an example of a free good?

An example of a positive statement is:

A model or theory in economics is:

The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

A feature that distinguishes economists' approach to making choices is (are):

Many disagreements among economists result because:

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Exam 1: Economics: the Study of Choice

Water is considered a scarce good rather than a free good because:

One question that arises when determining for whom goods and services should be produced is:

A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.

Distinguish between microeconomics and macroeconomics.

The fallacy of false cause is committed when a person mistakenly assumes that one event causes another because the first event precedes the second.

The sacrifice of an alternative is called:

The three fundamental economic questions are what, how, and why.

Suppose you observe that the sun sets every evening after the six o'clock business report. If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

The existence of alternative uses for a resource implies it isn't scarce.

Economists concerned about the behavior of individual households, firms, and industries are studying:

The study of how people choose among the alternatives available to them is the:

Economists are:

Explain the following statement: "In economics there are few absolute solutions. Almost all problem solutions require tradeoffs."

Which of the following is most likely an example of a free good?

An example of a positive statement is:

A model or theory in economics is:

The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

A feature that distinguishes economists' approach to making choices is (are):

Many disagreements among economists result because:

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Economic Development

Socialist Economies in Transition

Filters

Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of _.