Exam 1: What Is Economics?

When the economy experiences a bust,the government knows exactly which policies will spur an economic recovery.

In the United States,the fact that the gap between the rich and the poor has been increasing is often justified by economists on the grounds that greater

Economics is a social science rather than a "hard" science like physics because

The word "theory" means the same to the scientist as it does to the man on the street.

"Correlation" is a measure of how one variable causes another to change.

Which of the following is an example of a fiscal policy initiative?

Policy-oriented economists seek to develop theories to

Slope is measured as rise/run.

In international trade,one country's gain is another country's loss.

Rational choice requires that opportunity cost be

Economic theory is a necessity,not a luxury.This statement is t because theory

If a government enacts a rent control to protect apartment tenants,the result is likely going to be

A graph with a positive slope indicates that the variables depicted on the axes move in the same directions.

In economic theorizing,common sense will always lead to the correct answer.

In her calculation of the cost of going to college,an economist would include the amount of forgone earnings over the years spent at college.

As a student,one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class.

A contour map illustrates a cause and effect relationship among three variables.

Models are used to describe cause-and-effect relationships.

The statement "saccharine causes cancer" is not a theory; it is a hypothesis.

There is no trade-off between efficiency and equality.