Exam 1: The Art and Science of Economic Analysis

College graduates with history or literature as their major tend to earn more than those who choose more quantitative disciplines like economics.

One might commit the fallacy of composition by concluding that:

Rational self-interest is equivalent to pure selfishness.

To tell a compelling story,an economist relies on:

One of the difficulties with an economic policy such as rent control is that:

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

Microeconomics: A Contemporary Introduction,McEeachern 11e​

Which of the following broad categories are resources divided into?

Which of the following is not a part of the scientific method in economics?

When constructing an economic model,economists:

Goods and services are scarce because:

The choices made by economic decision makers:

Which of the following is a normative economic statement?

A good economic theory:

Economists believe that individuals respond in a predictable way to changes in costs and benefits.The term that best describes this belief is:

An economic model:

Natural resources are:

Your friend notices that U.S.auto production and U.S.population growth have moved together over several decades.He reasons that one way to slow population growth is for the government to order the auto makers to cut back on production.You gently point out to him that he:

Behavioral assumptions:

The simple circular-flow model for households and firms is an economic model that focuses on the interaction between households and firms.Which of the following statements regarding the model is correct?