Exam 1: The Economic Approach

A student noted that the football team won by a larger margin when the third-string played more minutes. Therefore, he recommended that the third-stringers become the first team. His conclusion was probably erroneous because he

Adam Smith believed that if people were free to pursue their own interests,

Which of the following is a positive economic statement?

Which of the following is a normative economic statement?

Economists use the term ceteris paribus to indicate that

Ethan washes and irons his own shirts. Sophia, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?

An opinion based on personal preferences and value judgments is called

The economic way of thinking suggests that if the government imposed a $500 tax on owners of red automobiles,

Deciding how to make the best use of limited resources to satisfy virtually unlimited wants is known in economics as

According to Adam Smith, individual self-interest

Which of the following statements is correct about the economic way of thinking?

The economic way of thinking stresses that

The economic way of thinking is

Which of the following is often referred to as the basic postulate of economics?

The Latin phrase "ceteris paribus" means

Legislation to protect red-cockaded woodpeckers created incentives that resulted in premature harvesting of trees the woodpeckers like to nest in. This is an example of which of the following?

Economists use the term ceteris paribus to indicate that

The three major categories of resources are

In economics, secondary effects refer to the

If you win the lottery this would be great for you, but if everyone simultaneously won the lottery this wouldn't be nearly as good, why?