Question 1

Abstracting from reality is an important element of all economic models.

Accepted Answer

A) True 
 B)False

Question 2

Select the positive statement that completes the following sentence: 'If the competition is prohibited in the car manufacturing industry:

Accepted Answer

A) cost per unit of output will rise'. 
B) cars will be unfairly priced'. 
C) the rate of inflation should hold steady'. 
D) government should pay compensation to workers'. 
A) cost per unit of output will rise'. 
B) cars will be unfairly priced'. 
C) the rate of inflation should hold steady'. 
D) government should pay compensation to workers'.

Question 3

Inflation is a concern of:

Accepted Answer

A) macroeconomics. 
B) microeconomics. 
C) both macroeconomics and microeconomics. 
D) neither macroeconomics or microeconomics. 
A) macroeconomics. 
B) microeconomics. 
C) both macroeconomics and microeconomics. 
D) neither macroeconomics or microeconomics.

Question 4

Which of the following words indicate the positive statement?

Accepted Answer

A) good, bad. 
B) should, need. 
C) if, then. 
D) ought to. 
A) good, bad. 
B) should, need. 
C) if, then. 
D) ought to.

Question 5

An economic model:

Accepted Answer

A) cannot be rejected. 
B) cannot be tested. 
C) always yields accurate predictions. 
D) is valid if the evidence is consistent with the predictions. 
A) cannot be rejected. 
B) cannot be tested. 
C) always yields accurate predictions. 
D) is valid if the evidence is consistent with the predictions.

Question 6

Scarcity is a problem:

Accepted Answer

A) that only poor people face. 
B) because human wants are limited while resources are unlimited. 
C) because human wants are unlimited while resources are limited. 
D) only in third world countries. 
A) that only poor people face. 
B) because human wants are limited while resources are unlimited. 
C) because human wants are unlimited while resources are limited. 
D) only in third world countries.

Question 7

The first step is to define the problem,then to develop a model and finally collect data and test the model.

Accepted Answer

A) True 
 B)False

Question 8

A model is defined as a:

Accepted Answer

A) description of all variables affecting a situation. 
B) positive analysis of all variables affecting an event. 
C) simplified description of reality to understand and predict an economic event. 
D) prediction based on historical evidence. 
A) description of all variables affecting a situation. 
B) positive analysis of all variables affecting an event. 
C) simplified description of reality to understand and predict an economic event. 
D) prediction based on historical evidence.

Question 9

Consider the statement 'The increase in money supply will push the prices downwards'.This is a statement of a:

Accepted Answer

A) microeconomist. 
B) both macroeconomist and microeconomist. 
C) macroeconomist. 
D) resource economist. 
E) social science economist. 
A) microeconomist. 
B) both macroeconomist and microeconomist. 
C) macroeconomist. 
D) resource economist. 
E) social science economist.

Question 10

Land resource includes farming land,forestry and fishery but does not include the atmosphere,the sun,the moon and other planets.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following goods are not capital goods?

Accepted Answer

A) An arrow. 
B) A computer. 
C) Energy. 
D) A car. 
A) An arrow. 
B) A computer. 
C) Energy. 
D) A car.

Question 12

The central question in economics is how to:

Accepted Answer

A) deal with the problem of scarcity. 
B) change government economic policy. 
C) change people's wants to match their needs. 
D) manage money and become wealthy. 
A) deal with the problem of scarcity. 
B) change government economic policy. 
C) change people's wants to match their needs. 
D) manage money and become wealthy.

Question 13

An economist builds a model to:

Accepted Answer

A) define the problem. 
B) capture all the complexities of reality. 
C) collect data. 
D) test the hypothesis. 
A) define the problem. 
B) capture all the complexities of reality. 
C) collect data. 
D) test the hypothesis.

Question 14

Normative economics deals with _____ and positive economics deals with _____.

Accepted Answer

A) what was, what is 
B) fiction, fact 
C) microeconomics, macroeconomics 
D) negative aspects, positive aspects 
E) opinions, facts 
A) what was, what is 
B) fiction, fact 
C) microeconomics, macroeconomics 
D) negative aspects, positive aspects 
E) opinions, facts

Question 15

Scarcity means that rich people are able to have as much as they would like to have.

Accepted Answer

A) True 
 B)False

Question 16

The statement: 'A tax hike for the rich is the fairest way to raise tax collection',is an example of positive economic analysis.

Accepted Answer

A) True 
 B)False

Question 17

The creative ability of individuals to combine and direct resources to produce new products is known as:

Accepted Answer

A) economising. 
B) entrepreneurship. 
C) value judgement. 
D) product sensitivity. 
A) economising. 
B) entrepreneurship. 
C) value judgement. 
D) product sensitivity.

Question 18

Normative statements:

Accepted Answer

A) can always be tested. 
B) are based on value judgements. 
C) are not based on facts. 
D) do not express a collective opinion on a subject. 
A) can always be tested. 
B) are based on value judgements. 
C) are not based on facts. 
D) do not express a collective opinion on a subject.

Question 19

Which of the following is a microeconomics topic?

Accepted Answer

A) Changes in the economy's price levels. 
B) Issues of Gross Domestic Product. 
C) The reasons why industries employ different levels of resources. 
D) Effect of government taxation on consumption. 
E) Issues of inflation and unemployment rates. 
A) Changes in the economy's price levels. 
B) Issues of Gross Domestic Product. 
C) The reasons why industries employ different levels of resources. 
D) Effect of government taxation on consumption. 
E) Issues of inflation and unemployment rates.

Question 20

Which one of the following is the most accurate definition of economics?

Accepted Answer

A) Economics is the study of stocks and bonds. 
B) Economics is the study of how people allocate unlimited resources. 
C) Economics is the study of how consumers choose to spend their income. 
D) Economics is the study of how society chooses to allocate scarce resources. 
A) Economics is the study of stocks and bonds. 
B) Economics is the study of how people allocate unlimited resources. 
C) Economics is the study of how consumers choose to spend their income. 
D) Economics is the study of how society chooses to allocate scarce resources.

Abstracting from reality is an important element of all economic models.

Select the positive statement that completes the following sentence: 'If the competition is prohibited in the car manufacturing industry:

Inflation is a concern of:

Which of the following words indicate the positive statement?

An economic model:

Scarcity is a problem:

The first step is to define the problem,then to develop a model and finally collect data and test the model.

A model is defined as a:

Consider the statement 'The increase in money supply will push the prices downwards'.This is a statement of a:

Land resource includes farming land,forestry and fishery but does not include the atmosphere,the sun,the moon and other planets.

Which of the following goods are not capital goods?

The central question in economics is how to:

An economist builds a model to:

Normative economics deals with _ and positive economics deals with _.

Scarcity means that rich people are able to have as much as they would like to have.

The statement: 'A tax hike for the rich is the fairest way to raise tax collection',is an example of positive economic analysis.

The creative ability of individuals to combine and direct resources to produce new products is known as:

Normative statements:

Which of the following is a microeconomics topic?

Which one of the following is the most accurate definition of economics?

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 1: Thinking like an economist

Abstracting from reality is an important element of all economic models.

Select the positive statement that completes the following sentence: 'If the competition is prohibited in the car manufacturing industry:

Inflation is a concern of:

Which of the following words indicate the positive statement?

An economic model:

Scarcity is a problem:

The first step is to define the problem,then to develop a model and finally collect data and test the model.

A model is defined as a:

Consider the statement 'The increase in money supply will push the prices downwards'.This is a statement of a:

Land resource includes farming land,forestry and fishery but does not include the atmosphere,the sun,the moon and other planets.

Which of the following goods are not capital goods?

The central question in economics is how to:

An economist builds a model to:

Normative economics deals with _____ and positive economics deals with _____.

Scarcity means that rich people are able to have as much as they would like to have.

The statement: 'A tax hike for the rich is the fairest way to raise tax collection',is an example of positive economic analysis.

The creative ability of individuals to combine and direct resources to produce new products is known as:

Normative statements:

Which of the following is a microeconomics topic?

Which one of the following is the most accurate definition of economics?

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Normative economics deals with _ and positive economics deals with _.