Question 1

A simplified representation of a particular problem is a:

Accepted Answer

A)  model. 
B)  constant. 
C)  hypothesis. 
D)  law. 
A)  model. 
B)  constant. 
C)  hypothesis. 
D)  law.

Question 2

An example of a normative statement is:

Accepted Answer

A)  The rate of unemployment is 4 percent. 
B)  A high rate of economic growth is good for the country. 
C)  The federal government spends half of its budget on national defense. 
D)  People with health insurance tend to spend more on health care than those who are uninsured. 
A)  The rate of unemployment is 4 percent. 
B)  A high rate of economic growth is good for the country. 
C)  The federal government spends half of its budget on national defense. 
D)  People with health insurance tend to spend more on health care than those who are uninsured.

Question 3

The problem of determining how goods and services should be produced is a problem of deciding:

Accepted Answer

A)  the best combinations of resources to be used for producing goods and services. 
B)  the extent to which imports should be reduced relative to exports. 
C)  the extent to which exports should be reduced relative to imports. 
D)  who owns the resources. 
A)  the best combinations of resources to be used for producing goods and services. 
B)  the extent to which imports should be reduced relative to exports. 
C)  the extent to which exports should be reduced relative to imports. 
D)  who owns the resources.

Question 4

Scarcity in economics means:

Accepted Answer

A)  not having sufficient resources to produce all the goods and services we want. 
B)  the wants of people are limited. 
C)  there must be poor people in rich countries. 
D)  economists are clearly not doing their jobs. 
A)  not having sufficient resources to produce all the goods and services we want. 
B)  the wants of people are limited. 
C)  there must be poor people in rich countries. 
D)  economists are clearly not doing their jobs.

Question 5

A scarce resource is one that:

Accepted Answer

A)  is free. 
B)  is abundant. 
C)  has alternative uses. 
D)  has no alternative uses. 
A)  is free. 
B)  is abundant. 
C)  has alternative uses. 
D)  has no alternative uses.

Question 6

Margin suggests additional or incremental.

Accepted Answer

A) True 
 B)False

Question 7

The Case in Point on the Simpsons indicated that even fictional characters face:

Accepted Answer

A)  diminishing marginal product. 
B)  opportunity costs. 
C)  the fallacy of false cause. 
D)  positive statements. 
A)  diminishing marginal product. 
B)  opportunity costs. 
C)  the fallacy of false cause. 
D)  positive statements.

Question 8

The observed correlation between baldness and heart disease demonstrates that:

Accepted Answer

A)  being bald causes a man to have heart disease. 
B)  being bald actually makes heart disease less likely. 
C)  bald men are generally unreliable. 
D)  there is probably some other factor that causes both baldness and heart disease. 
A)  being bald causes a man to have heart disease. 
B)  being bald actually makes heart disease less likely. 
C)  bald men are generally unreliable. 
D)  there is probably some other factor that causes both baldness and heart disease.

Question 9

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

Accepted Answer

A)  exists because we can produce more than we need or want. 
B)  exists because there are not enough resources to provide all the goods and services that people want to purchase. 
C)  would not exist if all goods and services were scarce. 
D)  would not exist if government owned all of the resources. 
A)  exists because we can produce more than we need or want. 
B)  exists because there are not enough resources to provide all the goods and services that people want to purchase. 
C)  would not exist if all goods and services were scarce. 
D)  would not exist if government owned all of the resources.

A simplified representation of a particular problem is a:

An example of a normative statement is:

The problem of determining how goods and services should be produced is a problem of deciding:

Scarcity in economics means:

A scarce resource is one that:

Margin suggests additional or incremental.

The Case in Point on the Simpsons indicated that even fictional characters face:

The observed correlation between baldness and heart disease demonstrates that:

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

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

A simplified representation of a particular problem is a:

An example of a normative statement is:

The problem of determining how goods and services should be produced is a problem of deciding:

Scarcity in economics means:

A scarce resource is one that:

Margin suggests additional or incremental.

The Case in Point on the Simpsons indicated that even fictional characters face:

The observed correlation between baldness and heart disease demonstrates that:

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

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