Exam 1: Economics: The Study of Choice

The problem of determining how goods and services should be produced is a problem of deciding:

The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

The three fundamental economic questions are what, how, and why.

A choice made _______ is a choice whether to do a little more or a little less of something.

Economists are:

Positive statements are:

The branch of economics that examines the impact of choices on aggregates in the economy is:

Explain the rationale behind the assertion that economics is a social science and uses the scientific method.

A person who mistakenly assumes that because one event follows another, the second event results from the first commits the fallacy of:

Margin suggests additional or incremental.

A normative statement deals with:

Suppose you observe that the sun sets every evening after the six o'clock business report.If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

A free good is different from a scarce good because it is:

Opportunity cost is:

Economics, generally speaking, is primarily concerned with:

Opportunity cost is:

The fundamental economic questions that every economic system must answer are:

The concept of the margin deals with:

The economic way of thinking includes:

The value of the next-best choice not chosen is called opportunity cost.