Exam 1: Economics: the World Around You

The heart of the economic problem is to:

The wage disparity between college-educated and non-college-educated workers in the U.S. has declined since 2001 because:

Rational self-interest depends on:

Which of the following phrases correctly describes at least one of the factors of production?

Whether to have more or less government involvement in the overall economy:

People who choose to do voluntary work:

The common logical mistake of interpreting association as causation:

Economists use the term _____ to emphasize the point that people do not have perfect knowledge or perfect insight.

The common logical mistake of implying a cause-and-effect relationship between two events is called:

Macroeconomics is concerned primarily with:

If two variables change, then it must mean that the change in one variable is caused by a change in the other variable.

Both microeconomic and macroeconomic theories:

Because economics recognizes that any action has costs, it is often counterintuitive in its ability to point out the unintended consequences of public choices.

Which of the following categories of educated workforce in the U.S., aged between 25 and 64, usually receive the highest income?

Goods are scarce when:

Which of the following is an example of capital as a factor of production?

Aunt Flora has discovered that her sick potted philodendron plant responds well to a certain type of fertilizer. She applies the fertilizer to the many flowers in her garden to make them all grow better. All but the philodendron die. Aunt Flora's mistake is called:

It has been generally observed, the rich have limited wants while the poor have unlimited wants.

A rational consumer:

People who choose not to wear seat belts even after being aware that it reduces the probability of death in an accident are considered to be irrational by economists.