Exam 1: Economics: the Study of Choice

Two important notions in economics are the scarcity of resources and the tremendous magnitude of the wants of people. Given this, evaluate and explain the following statement: "The study of economics is essentially to investigate how to maximize the satisfaction of wants utilizing available resources."

The opportunity cost of something is:

The models used in economics:

Each of the following statements about the use of models in the study of economics is true EXCEPT:

The economic way of thinking includes:

Which of the following statements is (are) true?

A non-free good is one that is:

Economists attempt to discover explanations for events that are observed.

A free good is different from a scarce good because it is:

The economic way of thinking has to do with:

The Case in Point on Canadian politics, voters faced a choice between:

Positive statements can be tested for being true but they can't be proven false.

Scarcity exists when:

The problem of determining for whom to produce exists because:

An answer to the question "How are goods produced?" determines:

An attempt should always be made to maximize opportunity cost.

The BEST example of making a choice at the margin is:

Anything whose value can change is a:

The problem of determining what goods and services society should produce exists because:

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying: