Question 1

The concept of scarcity indicates that:

Accepted Answer

A)  most goods have no alternative uses. 
B)  almost all goods have alternative uses. 
C)  most decisions can be made without sacrificing alternatives. 
D)  certain societies are able to overcome the constraints imposed by alternative uses of resources. 
A)  most goods have no alternative uses. 
B)  almost all goods have alternative uses. 
C)  most decisions can be made without sacrificing alternatives. 
D)  certain societies are able to overcome the constraints imposed by alternative uses of resources.

Question 2

Although water is very abundant in most places, it is scarce because:

Accepted Answer

A)  it has no alternative uses. 
B)  it has two or more alternative uses. 
C)  it is a free good and not expensive. 
D)  scarce goods in general are not all that costly. 
A)  it has no alternative uses. 
B)  it has two or more alternative uses. 
C)  it is a free good and not expensive. 
D)  scarce goods in general are not all that costly.

Question 3

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Accepted Answer

A)  chemistry. 
B)  economics. 
C)  history. 
D)  the humanities. 
A)  chemistry. 
B)  economics. 
C)  history. 
D)  the humanities.

Question 4

Explain the following statement: "The relative scarcity of resources makes the operation of any economic system a matter of choosing among various alternatives."

Accepted Answer

The statement "The relative scarcity of

Question 5

Statements that are a hypothesis or statement of fact are:

Accepted Answer

A)  pecuniary. 
B)  positive. 
C)  nominal. 
D)  normative. 
A)  pecuniary. 
B)  positive. 
C)  nominal. 
D)  normative.

Question 6

The fundamental economic questions that every economic system must answer are:

Accepted Answer

A)  what, how, and for whom. 
B)  what, why, and for whom. 
C)  when, why, and for whom. 
D)  how, when, and how much. 
A)  what, how, and for whom. 
B)  what, why, and for whom. 
C)  when, why, and for whom. 
D)  how, when, and how much.

Question 7

The opportunity cost of going to a movie is:

Accepted Answer

A)  the money spent on the ticket only. 
B)  all of the other movies that could have been seen instead. 
C)  the time spent in the theatre only. 
D)  the next best use of the time and the money spent. 
A)  the money spent on the ticket only. 
B)  all of the other movies that could have been seen instead. 
C)  the time spent in the theatre only. 
D)  the next best use of the time and the money spent.

Question 8

Explain the rationale behind the assertion that economics is a social science and uses the scientific method.

Accepted Answer

Economics is considered a social science

Question 9

Ceteris paribus means allowing all things to change.

Accepted Answer

A) True 
 B)False

Question 10

A good is scarce if we must sacrifice something to obtain it.

Accepted Answer

A) True 
 B)False

Question 11

The primary emphasis in macroeconomics is on:

Accepted Answer

A)  how firms set prices. 
B)  aggregates in the economy. 
C)  marginal analysis and normative economics. 
D)  international trade and environmental economics. 
A)  how firms set prices. 
B)  aggregates in the economy. 
C)  marginal analysis and normative economics. 
D)  international trade and environmental economics.

Question 12

A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.

Accepted Answer

A)  free good 
B)  scarce good 
C)  economic good 
D)  monetary good 
A)  free good 
B)  scarce good 
C)  economic good 
D)  monetary good

Question 13

The concept of the margin deals with:

Accepted Answer

A)  making incremental choices. 
B)  one more or one less of something. 
C)  doing a little more or a little less. 
D)  all of the above. 
A)  making incremental choices. 
B)  one more or one less of something. 
C)  doing a little more or a little less. 
D)  all of the above.

Question 14

The existence of alternative uses of a resource implies that it is:

Accepted Answer

A)  free. 
B)  scarce. 
C)  expensive. 
D)  plentiful. 
A)  free. 
B)  scarce. 
C)  expensive. 
D)  plentiful.

Question 15

Something whose value does not change is a:

Accepted Answer

A)  variable. 
B)  constant. 
C)  hypothesis. 
D)  all of the above. 
A)  variable. 
B)  constant. 
C)  hypothesis. 
D)  all of the above.

Question 16

Positive statements:

Accepted Answer

A)  imply value judgments must be made. 
B)  are factual and can be tested. 
C)  deal with what ought to be. 
D)  are dealt with primarily in microeconomics. 
A)  imply value judgments must be made. 
B)  are factual and can be tested. 
C)  deal with what ought to be. 
D)  are dealt with primarily in microeconomics.

Question 17

The scientific method is more difficult for economists than, say, chemists, because:

Accepted Answer

A)  controlled laboratory conditions are more problematic in economics. 
B)  it is difficult to hold other factors that may affect the variables being studied constant in economics. 
C)  economic conditions may change quickly and unexpectedly. 
D)  all of the above. 
A)  controlled laboratory conditions are more problematic in economics. 
B)  it is difficult to hold other factors that may affect the variables being studied constant in economics. 
C)  economic conditions may change quickly and unexpectedly. 
D)  all of the above.

Question 18

Whenever a choice is made:

Accepted Answer

A)  the value of all the other choices that could have been made is called opportunity cost. 
B)  normative economics is encountered. 
C)  the problem of "all other things unchanged" results. 
D)  the opportunity cost of that choice is the highest-valued other choice that could have been made. 
A)  the value of all the other choices that could have been made is called opportunity cost. 
B)  normative economics is encountered. 
C)  the problem of "all other things unchanged" results. 
D)  the opportunity cost of that choice is the highest-valued other choice that could have been made.

Question 19

The situation when we face alternative choices is called abundance.

Accepted Answer

A) True 
 B)False

Question 20

A key theme fundamental to all of economics is:

Accepted Answer

A)  there are limited wants. 
B)  we are a rich country but are simply not aware of it. 
C)  people have unlimited wants facing limited means to satisfy them. 
D)  there are unlimited resources. 
A)  there are limited wants. 
B)  we are a rich country but are simply not aware of it. 
C)  people have unlimited wants facing limited means to satisfy them. 
D)  there are unlimited resources.

The concept of scarcity indicates that:

Although water is very abundant in most places, it is scarce because:

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Explain the following statement: "The relative scarcity of resources makes the operation of any economic system a matter of choosing among various alternatives."

Statements that are a hypothesis or statement of fact are:

The fundamental economic questions that every economic system must answer are:

The opportunity cost of going to a movie is:

Explain the rationale behind the assertion that economics is a social science and uses the scientific method.

Ceteris paribus means allowing all things to change.

A good is scarce if we must sacrifice something to obtain it.

The primary emphasis in macroeconomics is on:

A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.

The concept of the margin deals with:

The existence of alternative uses of a resource implies that it is:

Something whose value does not change is a:

Positive statements:

The scientific method is more difficult for economists than, say, chemists, because:

Whenever a choice is made:

The situation when we face alternative choices is called abundance.

A key theme fundamental to all of economics is:

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

The concept of scarcity indicates that:

Although water is very abundant in most places, it is scarce because:

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Explain the following statement: "The relative scarcity of resources makes the operation of any economic system a matter of choosing among various alternatives."

Statements that are a hypothesis or statement of fact are:

The fundamental economic questions that every economic system must answer are:

The opportunity cost of going to a movie is:

Explain the rationale behind the assertion that economics is a social science and uses the scientific method.

Ceteris paribus means allowing all things to change.

A good is scarce if we must sacrifice something to obtain it.

The primary emphasis in macroeconomics is on:

A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.

The concept of the margin deals with:

The existence of alternative uses of a resource implies that it is:

Something whose value does not change is a:

Positive statements:

The scientific method is more difficult for economists than, say, chemists, because:

Whenever a choice is made:

The situation when we face alternative choices is called abundance.

A key theme fundamental to all of economics is:

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