Exam 1: Economics: the Study of Choice

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This was primarily a response to the economic question of:

Anything whose value can change is a:

The basic concern of economics is to:

Which of the following would be a part of macroeconomics? A study of:

An example of a normative statement is:

The situation when we face alternative choices is called abundance.

The concept of the margin deals with:

The problem of determining how goods and services should be produced exists because:

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

Economists are:

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

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

According to the text, which of the following is true?

Making choices that are expected to achieve the highest possible value for some objective is termed:

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

The "all other things unchanged" assumption is useful because it:

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

The economic way of thinking includes:

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

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 _______.