Exam 1: Economics: the Study of Choice

Anything that has alternative uses has an opportunity cost and is, therefore, scarce.

A hypothesis that has been tested extensively without being rejected and has won widespread acceptance is a:

The current rate of unemployment of 5 percent is too high. This is a _______ statement.

The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.

Macroeconomics is most likely to be concerned with the:

An example of a normative statement is:

"Smokers are more likely to be murdered than nonsmokers." This statement is an example of :

A free good is one that can be acquired without sacrifice.

The Case in Point on the Canadian government suggests the opportunity cost of economic growth for Canada is:

Microeconomics is most likely to be concerned with the:

A theory that has won virtually universal acceptance is a:

Economists pay special attention to making choices at the margin.

According to the textbook, economics is a:

In economics, the function of theories, laws, and hypotheses is to:

The answer to, "What goods are to be produced ?" deals with:

An answer to the question "For whom" determines:

A choice made _______ is a choice whether to do a little more or a little less of something.

An example of a positive statement is:

Statements that make value judgments are:

The economic way of thinking includes: