Exam 1: The Economic Approach

"The standard of living is too low for many individuals in the United States. The government should implement policies designed to achieve a more equal distribution of income." The preceding statements are

The three major categories of resources are

A local restaurant offers an "all you can eat" buffet for $15. Mia eats four servings but leaves half of a fifth helping uneaten. Why?

Economic analysis indicates that growth in the size of government as a share of the economy will

In economics, the term marginal refers to

Santiago wants to buy some milk and a box of cereal. If he buys 2 quarts of milk at $1 per quart, the box of cereal costs 75 cents. If he buys 3 quarts of milk at $1 per quart, the box of cereal is free. For Santiago, the marginal cost of the third quart of milk is

All but one of the following are elements of the economic way of thinking. Which one is not part of the economic way of thinking?

Which of the following is a positive economic statement?

A rational decision maker takes an action if and only if

Positive economics

Among the 23 long-standing members of the Organization for Economic Cooperation and Development (OECD), the highest rates of economic growth during recent decades have been achieved by

Which of the following was a key belief of Adam Smith?

Evaluate this statement: "People engaged in economizing behavior will always buy the lowest priced item they can find."

Which of the following is an example of a normative economic statement?

Economic theory

Which of the following is true?

During a war, governments will sometimes draft people, most of whom are presently employed, into the army. An economist, computing the real cost of the war, would be sure to include which of the following items?

What percentage of personal income tax revenue was collected from the top 1 percent of earners in 2013?

If scarcity were eliminated,

How have the size and functions of government in the United States changed during the last century?