Question 1

Positive statements can be tested for being true but they can't be proven false.

Accepted Answer

A) True 
 B)False

Question 2

An attempt should always be made to maximize opportunity cost.

Accepted Answer

A) True 
 B)False

Question 3

Explain the following statement: "In economics there are few absolute solutions.Almost all problem solutions require tradeoffs."

Accepted Answer

In economics, it is rare to find absolut

Question 4

The observed correlation between baldness and heart disease demonstrates that:

Accepted Answer

A)  being bald causes a man to have heart disease. 
B)  being bald actually makes heart disease less likely. 
C)  bald men are generally unreliable. 
D)  there is probably some other factor that causes both baldness and heart disease. 
A)  being bald causes a man to have heart disease. 
B)  being bald actually makes heart disease less likely. 
C)  bald men are generally unreliable. 
D)  there is probably some other factor that causes both baldness and heart disease.

Question 5

Making choices that are expected to achieve the highest possible value for some objective is termed:

Accepted Answer

A)  maximizing. 
B)  minimizing. 
C)  sanitizing. 
D)  satisfying. 
A)  maximizing. 
B)  minimizing. 
C)  sanitizing. 
D)  satisfying.

Question 6

Economists attempt to discover explanations for events that are observed.

Accepted Answer

A) True 
 B)False

Question 7

Microeconomics is a branch of economics that examines the impact of choices on aggregates in the economy.

Accepted Answer

A) True 
 B)False

Question 8

The opportunity cost of something is:

Accepted Answer

A)  greater during periods of rising prices. 
B)  equal to the money cost. 
C)  less during periods of falling prices. 
D)  what is given up to acquire it. 
A)  greater during periods of rising prices. 
B)  equal to the money cost. 
C)  less during periods of falling prices. 
D)  what is given up to acquire it.

Question 9

Ceteris paribus means allowing all things to change.

Accepted Answer

A) True 
 B)False

Question 10

The "all other things unchanged" assumption is used to:

Accepted Answer

A)  express the fundamental questions in economics. 
B)  approximate real-world conditions. 
C)  simplify the very complex real world. 
D)  do all of the above. 
A)  express the fundamental questions in economics. 
B)  approximate real-world conditions. 
C)  simplify the very complex real world. 
D)  do all of the above.

Question 11

A feature that distinguishes economists' approach to making choices is (are):

Accepted Answer

A)  assigning opportunity costs a major role in their analyses of choices. 
B)  assuming individuals make choices to maximize objectives. 
C)  emphasizing that choices are made at the margin. 
D)  all of the above. 
A)  assigning opportunity costs a major role in their analyses of choices. 
B)  assuming individuals make choices to maximize objectives. 
C)  emphasizing that choices are made at the margin. 
D)  all of the above.

Question 12

"Since economics is a science, economists must not become involved in making any value judgments in their formulation of policy." Do you agree with this statement? Explain.

Accepted Answer

I do not agree with the statement that e

Question 13

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

Accepted Answer

A)  unlimited resources; economic systems 
B)  human interactions; limited resources 
C)  opportunity costs; choices 
D)  social behavior; scarcity 
A)  unlimited resources; economic systems 
B)  human interactions; limited resources 
C)  opportunity costs; choices 
D)  social behavior; scarcity

Question 14

Water is considered a scarce good rather than a free good because:

Accepted Answer

A)  it has alternative uses. 
B)  it does not have alternative uses. 
C)  scarce goods are less expensive than free goods. 
D)  free goods are more expensive than scarce goods. 
A)  it has alternative uses. 
B)  it does not have alternative uses. 
C)  scarce goods are less expensive than free goods. 
D)  free goods are more expensive than scarce goods.

Question 15

Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:

Accepted Answer

A)  the scientific method. 
B)  the economic way of thinking. 
C)  making choices at the margin. 
D)  the fallacy of false cause. 
A)  the scientific method. 
B)  the economic way of thinking. 
C)  making choices at the margin. 
D)  the fallacy of false cause.

Question 16

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Accepted Answer

A)  chemistry. 
B)  economics. 
C)  history. 
D)  the humanities. 
A)  chemistry. 
B)  economics. 
C)  history. 
D)  the humanities.

Question 17

The statement that "there is no such thing as a free lunch" means:

Accepted Answer

A)  there are no tradeoffs between economic goals. 
B)  any production requires the use of scarce resources, and thus the sacrifice of another alternative. 
C)  choices need not be made in rational behavior. 
D)  scarcity only exists in poor societies. 
A)  there are no tradeoffs between economic goals. 
B)  any production requires the use of scarce resources, and thus the sacrifice of another alternative. 
C)  choices need not be made in rational behavior. 
D)  scarcity only exists in poor societies.

Question 18

A systematic set of procedures through which knowledge is created is:

Accepted Answer

A)  the economy. 
B)  the scientific method. 
C)  a market. 
D)  a model. 
A)  the economy. 
B)  the scientific method. 
C)  a market. 
D)  a model.

Question 19

Scarcity is determined by the existence of bad alternatives.

Accepted Answer

A) True 
 B)False

Question 20

An example of a normative statement is:

Accepted Answer

A)  The rate of unemployment is 4 percent. 
B)  A high rate of economic growth creates more jobs for the country. 
C)  The federal government spends half of its budget on national defense. 
D)  Everyone in the country needs to be covered by national health insurance. 
A)  The rate of unemployment is 4 percent. 
B)  A high rate of economic growth creates more jobs for the country. 
C)  The federal government spends half of its budget on national defense. 
D)  Everyone in the country needs to be covered by national health insurance.

Positive statements can be tested for being true but they can't be proven false.

An attempt should always be made to maximize opportunity cost.

Explain the following statement: "In economics there are few absolute solutions.Almost all problem solutions require tradeoffs."

The observed correlation between baldness and heart disease demonstrates that:

Making choices that are expected to achieve the highest possible value for some objective is termed:

Economists attempt to discover explanations for events that are observed.

Microeconomics is a branch of economics that examines the impact of choices on aggregates in the economy.

The opportunity cost of something is:

Ceteris paribus means allowing all things to change.

The "all other things unchanged" assumption is used to:

A feature that distinguishes economists' approach to making choices is (are):

"Since economics is a science, economists must not become involved in making any value judgments in their formulation of policy." Do you agree with this statement? Explain.

Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of _.

Water is considered a scarce good rather than a free good because:

Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

The statement that "there is no such thing as a free lunch" means:

A systematic set of procedures through which knowledge is created is:

Scarcity is determined by the existence of bad alternatives.

An example of a normative statement is:

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 1: Economics: The Study of Choice

Positive statements can be tested for being true but they can't be proven false.

An attempt should always be made to maximize opportunity cost.

Explain the following statement: "In economics there are few absolute solutions.Almost all problem solutions require tradeoffs."

The observed correlation between baldness and heart disease demonstrates that:

Making choices that are expected to achieve the highest possible value for some objective is termed:

Economists attempt to discover explanations for events that are observed.

Microeconomics is a branch of economics that examines the impact of choices on aggregates in the economy.

The opportunity cost of something is:

Ceteris paribus means allowing all things to change.

The "all other things unchanged" assumption is used to:

A feature that distinguishes economists' approach to making choices is (are):

"Since economics is a science, economists must not become involved in making any value judgments in their formulation of policy." Do you agree with this statement? Explain.

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

Water is considered a scarce good rather than a free good because:

Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

The statement that "there is no such thing as a free lunch" means:

A systematic set of procedures through which knowledge is created is:

Scarcity is determined by the existence of bad alternatives.

An example of a normative statement is:

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Economics is different from other social sciences because it gives special emphasis to the study of ; it is similar to other social sciences because they are all concerned with the study of _.