Exam 1: The Role and Method of Economics

What is the basis of a good economic theory?

Which of the following best illustrates the fallacy of composition?

Which of the following is most likely a topic of discussion in a microeconomics course?

Which of the following does the market place NOT determine?

TABLE 1-4 -Refer to Table 1-4.If the price of a movie ticket is $8,how many movie tickets will a consumer following the rule of rational choice purchase per month?

How is an economic theory tested?

Which of the following statements about specialization is the most accurate?

Which of the following describes the chain of events involved in creating a theory?

How do we find the slope of a nonlinear curve?

What is the basis of a good economic theory?

Which of the following best characterizes marginal thinking?

If Canadian consumers bought more gasoline in 2007 (when prices averaged $1.30 per litre)than they did in 1980 (when prices averaged $0.40 per litre),does that mean that people buy more gasoline at higher prices?

What is the opportunity cost of attending a university for a year?

What is another term for economic resources?

Which of the following is NOT an example of a capital resource?

"A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market." What is this statement an example of?

Implementing a stricter smog control program after determining that the benefits of increased air quality outweigh the costs of pollution reduction is consistent with the rule of rational choice.

A good economic theory should capture as many details about real-world behaviour as possible.

Maggie is a potter and she likes to dig her own clay for producing pots,cups,and other ceramic items.She is aware of two places where she can obtain the right clay for her work.The first field is quite close,just at the edge of town.The second field is 15 miles away and (since there are no access roads)requires a half-day of travel just to get there.Compare the opportunity cost of producing pots using clay from each of these fields.

TABLE 1-1 -Refer to Table 1-1.A student has only a few hours to prepare for two different exams this afternoon.The above table shows alternative possible exam scores with three alternative uses of the student's time.What is the opportunity cost of scoring a 94 on the economics exam rather than a 77?