Question 1

What is a normative statement? Give an example.

Accepted Answer

A normative statement is a statement abo

Question 2

The statement that "peach ice cream is better than chocolate ice cream"

Accepted Answer

A)  can be tested using the scientific approach. 
B)  is a normative statement. 
C)  is a positive statement. 
D)  provides a basis for predicting which type of ice cream will exhibit the most sales. 
A)  can be tested using the scientific approach. 
B)  is a normative statement. 
C)  is a positive statement. 
D)  provides a basis for predicting which type of ice cream will exhibit the most sales.

Question 3

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Accepted Answer

A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up income. 
D)  nothing because you will enjoy the trip to Florida. 
A)  working and doing fix-up projects. 
B)  working or doing fix-up projects, depending on which you would have done otherwise. 
C)  working, because you would be giving up income. 
D)  nothing because you will enjoy the trip to Florida.

Question 4

"If you hire 1 worker, the worker can produce 20 pizzas a day. If you hire a 2nd worker, that worker can produce 10 more pizzas. If you hire a 3rd worker, that worker can produce 2 more pizzas a day." A graph displaying this relationship between the number of employees and total pizza output per day would show

Accepted Answer

A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep. 
A)  a positive linear relationship. 
B)  an upward-sloping curve that becomes less steep. 
C)  a negative linear relationship. 
D)  a negatively-sloped curve that becomes less steep.

Question 5

Define economics and describe its branches of study.

Accepted Answer

Economics is the social science that stu

Question 6

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

Accepted Answer

A) True 
 B)False

Question 7

"The rich should pay higher income tax rates than the poor" is an example of a

Accepted Answer

A)  normative statement. 
B)  positive statement. 
C)  descriptive statement. 
D)  theoretical statement. 
A)  normative statement. 
B)  positive statement. 
C)  descriptive statement. 
D)  theoretical statement.

Question 8

Microeconomics is the study of

Accepted Answer

A)  the choices that individuals and businesses make. 
B)  all aspects of scarcity. 
C)  the global economy. 
D)  the national economy. 
A)  the choices that individuals and businesses make. 
B)  all aspects of scarcity. 
C)  the global economy. 
D)  the national economy.

Question 9

A good economic model

Accepted Answer

A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables. 
A)  describes every aspect of the economic world, with no exception. 
B)  includes all those features of the world that can be described numerically. 
C)  includes only those features of the world that are needed for the purpose at hand. 
D)  should not include more than two variables.

Question 10

An inducement to take a particular action is called

Accepted Answer

A)  the marginal benefit. 
B)  the marginal cost. 
C)  opportunity cost. 
D)  an incentive. 
A)  the marginal benefit. 
B)  the marginal cost. 
C)  opportunity cost. 
D)  an incentive.

Question 11

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

Accepted Answer

A)  the value of working and skiing. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  working, because you would be giving up a week's pay. 
D)  none of the above if you enjoy the time spent in Hawaii. 
A)  the value of working and skiing. 
B)  the value of working or skiing, depending on which you would have done rather than go to Hawaii. 
C)  working, because you would be giving up a week's pay. 
D)  none of the above if you enjoy the time spent in Hawaii.

Question 12

If two variables are positively related, then

Accepted Answer

A)  they move in opposite directions. 
B)  they are independent of each other. 
C)  they move in the same direction. 
D)  their graph will have a negative slope. 
A)  they move in opposite directions. 
B)  they are independent of each other. 
C)  they move in the same direction. 
D)  their graph will have a negative slope.

Question 13

If there is a direct relationship between two variables

Accepted Answer

A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct. 
A)  the graph of the relationship will be upward-sloping. 
B)  the graph of the relationship will be downward-sloping. 
C)  the slope of the line (or the slope of a tangent line to the curve) will be negative. 
D)  Both answers A and C are correct.

Question 14

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

Accepted Answer

A)  "what" 
B)  "why" 
C)  "when" 
D)  "scarcity" 
A)  "what" 
B)  "why" 
C)  "when" 
D)  "scarcity"

Question 15

A normative statement is

Accepted Answer

A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts. 
A)  about what ought to be. 
B)  about what is. 
C)  always true. 
D)  one that does not use marginal concepts.

Question 16

Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?

Accepted Answer

A)  money 
B)  low-skilled labor 
C)  coal 
D)  an engineer 
A)  money 
B)  low-skilled labor 
C)  coal 
D)  an engineer

Question 17

Which of the following is a positive statement?

Accepted Answer

A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza. 
A)  The government must provide health insurance so that the poor can obtain decent medical treatment. 
B)  The government should spend more on education. 
C)  My favorite dinner is pizza and soda. 
D)  An increase in the price of pizza will lead fewer students to buy pizza.

Question 18

"Government should act to reduce poverty levels."

Accepted Answer

A)  This statement is a normative statement. 
B)  This statement is a positive statement. 
C)  This statement is an example of the fallacy of composition. 
D)  This statement is an example of the post hoc fallacy. 
A)  This statement is a normative statement. 
B)  This statement is a positive statement. 
C)  This statement is an example of the fallacy of composition. 
D)  This statement is an example of the post hoc fallacy.

Question 19

Most income in the United States is earned by business owners as profit.

Accepted Answer

A) True 
 B)False

Question 20

The term human capital refers to

Accepted Answer

A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking. 
A)  labor resources used to make capital equipment. 
B)  buildings and machinery. 
C)  people's knowledge and skill. 
D)  entrepreneurship and risk-taking.

What is a normative statement? Give an example.

The statement that "peach ice cream is better than chocolate ice cream"

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Define economics and describe its branches of study.

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

"The rich should pay higher income tax rates than the poor" is an example of a

Microeconomics is the study of

A good economic model

An inducement to take a particular action is called

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

If two variables are positively related, then

If there is a direct relationship between two variables

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

A normative statement is

Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?

Which of the following is a positive statement?

"Government should act to reduce poverty levels."

Most income in the United States is earned by business owners as profit.

The term human capital refers to

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 1: What Is Economics

What is a normative statement? Give an example.

The statement that "peach ice cream is better than chocolate ice cream"

You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is

Define economics and describe its branches of study.

To calculate the slope of a curved line, you can calculate the slope at a point on the curve or across an arc of the curve.

"The rich should pay higher income tax rates than the poor" is an example of a

Microeconomics is the study of

A good economic model

An inducement to take a particular action is called

You have the choice of going to Hawaii for a week, staying at work for the week, or spending the week skiing. If you decide to go to Hawaii, the opportunity cost is

If two variables are positively related, then

If there is a direct relationship between two variables

If Taco Bell decides to produce more tacos and fewer burritos, Taco Bell is answering the ________ part of one of the two big economic questions.

A normative statement is

Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?

Which of the following is a positive statement?

"Government should act to reduce poverty levels."

Most income in the United States is earned by business owners as profit.

The term human capital refers to

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters