Question 1

Economics is the study of how people cope with:

Accepted Answer

A) limited human wants. 
B) scarcity. 
C) unlimited resources. 
D) greed. 
E) limited time and unlimited income. 
A) limited human wants. 
B) scarcity. 
C) unlimited resources. 
D) greed. 
E) limited time and unlimited income.

Question 2

Goods used to produce other goods are called:

Accepted Answer

A) valuables. 
B) final goods. 
C) inputs. 
D) intermediaries. 
E) externalities. 
A) valuables. 
B) final goods. 
C) inputs. 
D) intermediaries. 
E) externalities.

Question 3

An economy's resources:

Accepted Answer

A) are limited in quantity. 
B) are always efficiently utilized. 
C) consist of land,labor,capital,and money. 
D) are unrelated to its standard of living. 
E) increase with the use of the latest technology. 
A) are limited in quantity. 
B) are always efficiently utilized. 
C) consist of land,labor,capital,and money. 
D) are unrelated to its standard of living. 
E) increase with the use of the latest technology.

Question 4

Which of the following is true of microeconomics?

Accepted Answer

A) It is often a focal point of debates in a presidential campaign. 
B) It is the study of the behavior of individual firms and individual consumers. 
C) It is often focused on the tradeoff between the rate of inflation and the unemployment rate. 
D) It is based on theories that help us understand the relationship between the money supply and interest rates. 
E) It is the study of the economy in aggregate. 
A) It is often a focal point of debates in a presidential campaign. 
B) It is the study of the behavior of individual firms and individual consumers. 
C) It is often focused on the tradeoff between the rate of inflation and the unemployment rate. 
D) It is based on theories that help us understand the relationship between the money supply and interest rates. 
E) It is the study of the economy in aggregate.

Question 5

A good or service becomes scarcer over time if:

Accepted Answer

A) the difference between the quantity demanded and the quantity supplied at a zero price decreases. 
B) the excess of the quantity demanded over the quantity supplied at a zero price increases. 
C) the economy is capable of producing more goods and services. 
D) people begin to reduce their requirements for the goods and services that are actually available 
E) the amount of a good available equals the amount desired 
A) the difference between the quantity demanded and the quantity supplied at a zero price decreases. 
B) the excess of the quantity demanded over the quantity supplied at a zero price increases. 
C) the economy is capable of producing more goods and services. 
D) people begin to reduce their requirements for the goods and services that are actually available 
E) the amount of a good available equals the amount desired

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

The category of economics that contains statements about "what ought to be" is known as:

Accepted Answer

A) positive economics. 
B) normative economics. 
C) objective economics. 
D) applied economics. 
E) welfare economics. 
A) positive economics. 
B) normative economics. 
C) objective economics. 
D) applied economics. 
E) welfare economics.

Question 8

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

Accepted Answer

A) rational self-interest. 
B) interpreting association as causation. 
C) the fallacy of composition. 
D) ceteris paribus ("everything else held constant"). 
E) normative analysis. 
A) rational self-interest. 
B) interpreting association as causation. 
C) the fallacy of composition. 
D) ceteris paribus ("everything else held constant"). 
E) normative analysis.

Question 9

Which of the following is true of positive economics?

Accepted Answer

A) It is concerned with what ought to be. 
B) It will usually indicate which economic policy is the best. 
C) It produces verifiable statements. 
D) It is strictly quantitative and so has little to say to those with philosophical goals to achieve in policymaking 
E) It is the same as normative economics. 
A) It is concerned with what ought to be. 
B) It will usually indicate which economic policy is the best. 
C) It produces verifiable statements. 
D) It is strictly quantitative and so has little to say to those with philosophical goals to achieve in policymaking 
E) It is the same as normative economics.

Question 10

The statement,"All Americans should be entitled to public health care," made by a politician would be considered a:

Accepted Answer

A) positive statement. 
B) macroeconomic statement. 
C) microeconomic statement. 
D) normative statement. 
E) model. 
A) positive statement. 
B) macroeconomic statement. 
C) microeconomic statement. 
D) normative statement. 
E) model.

Economics is the study of how people cope with:

Goods used to produce other goods are called:

An economy's resources:

Which of the following is true of microeconomics?

A good or service becomes scarcer over time if:

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.

The category of economics that contains statements about "what ought to be" is known as:

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

Which of the following is true of positive economics?

The statement,"All Americans should be entitled to public health care," made by a politician would be considered a:

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters

Exam 1: Economics: The World Around You

Economics is the study of how people cope with:

Goods used to produce other goods are called:

An economy's resources:

Which of the following is true of microeconomics?

A good or service becomes scarcer over time if:

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.

The category of economics that contains statements about "what ought to be" is known as:

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

Which of the following is true of positive economics?

The statement,"All Americans should be entitled to public health care," made by a politician would be considered a:

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters