Question 1

According to the text, which of the following is true?

Accepted Answer

A)  Scientists can prove a hypothesis is true. 
B)  Scientists can show that a hypothesis is false. 
C)  Economists really don't try to use the scientific method. 
D)  None of the above is true. 
A)  Scientists can prove a hypothesis is true. 
B)  Scientists can show that a hypothesis is false. 
C)  Economists really don't try to use the scientific method. 
D)  None of the above is true.

Question 2

The opportunity cost of going to a movie is:

Accepted Answer

A)  the money spent on the ticket only. 
B)  all of the other movies that could have been seen instead. 
C)  the time spent in the theater only. 
D)  the next best use of the time and the money spent. 
A)  the money spent on the ticket only. 
B)  all of the other movies that could have been seen instead. 
C)  the time spent in the theater only. 
D)  the next best use of the time and the money spent.

Question 3

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

Accepted Answer

A)  microeconomics. 
B)  macroeconomics. 
C)  specific units or parts of the economy. 
D)  the "trees" of economic behavior, rather than the "forest." 
A)  microeconomics. 
B)  macroeconomics. 
C)  specific units or parts of the economy. 
D)  the "trees" of economic behavior, rather than the "forest."

Question 4

The basic concern of economics is to:

Accepted Answer

A)  keep business firms from losing money. 
B)  prove that capitalism is better than socialism. 
C)  study the choices people make. 
D)  use unlimited resources to produce goods and services to satisfy limited wants. 
A)  keep business firms from losing money. 
B)  prove that capitalism is better than socialism. 
C)  study the choices people make. 
D)  use unlimited resources to produce goods and services to satisfy limited wants.

Question 5

Whenever a choice is made:

Accepted Answer

A)  the cost of that choice could be referred to as opportunity cost. 
B)  the cost is easy to measure in dollar terms. 
C)  a free good must be involved. 
D)  scarcity is not the problem. 
A)  the cost of that choice could be referred to as opportunity cost. 
B)  the cost is easy to measure in dollar terms. 
C)  a free good must be involved. 
D)  scarcity is not the problem.

Question 6

Economists are:

Accepted Answer

A)  concerned with developing theories but not interested in solving problems. 
B)  interested in solving problems but not concerned with developing theories. 
C)  reluctant to predict changes in variables such as prices, employment, and spending. 
D)  not always in agreement on the best way to implement policy decisions. 
A)  concerned with developing theories but not interested in solving problems. 
B)  interested in solving problems but not concerned with developing theories. 
C)  reluctant to predict changes in variables such as prices, employment, and spending. 
D)  not always in agreement on the best way to implement policy decisions.

Question 7

A free good is one that can be acquired without sacrifice.

Accepted Answer

A) True 
 B)False

Question 8

Microeconomics is most likely to be concerned with the:

Accepted Answer

A)  economy as a whole. 
B)  activity of large segments of the economy. 
C)  economic behavior of specific parts or units of the economy. 
D)  economy-wide trends in unemployment, prices, and production. 
A)  economy as a whole. 
B)  activity of large segments of the economy. 
C)  economic behavior of specific parts or units of the economy. 
D)  economy-wide trends in unemployment, prices, and production.

Question 9

The current rate of unemployment is 5 percent.This statement:

Accepted Answer

A)  is positive. 
B)  is normative. 
C)  involves a value judgment. 
D)  is a personal reflection and has no value in economics. 
A)  is positive. 
B)  is normative. 
C)  involves a value judgment. 
D)  is a personal reflection and has no value in economics.

Question 10

Explain how and why the concept of "all other things unchanged" is so important in the study of economics.

Accepted Answer

The concept of "all other things unchang

Question 11

Macroeconomics deals with:

Accepted Answer

A)  bits and pieces of the economy. 
B)  the question of how a business unit should operate profitably. 
C)  the analysis of the aggregate values in the economy. 
D)  ceteris paribus. 
A)  bits and pieces of the economy. 
B)  the question of how a business unit should operate profitably. 
C)  the analysis of the aggregate values in the economy. 
D)  ceteris paribus.

Question 12

The scientific method is more difficult for economists than, say, chemists, because:

Accepted Answer

A)  controlled laboratory conditions are more problematic in economics. 
B)  it is difficult to hold other factors that may affect the variables being studied constant in economics. 
C)  economic conditions may change quickly and unexpectedly. 
D)  all of the above. 
A)  controlled laboratory conditions are more problematic in economics. 
B)  it is difficult to hold other factors that may affect the variables being studied constant in economics. 
C)  economic conditions may change quickly and unexpectedly. 
D)  all of the above.

Question 13

Although water is very abundant in most places, it is scarce because:

Accepted Answer

A)  it has no alternative uses. 
B)  it has two or more alternative uses. 
C)  it is a free good and not expensive. 
D)  scarce goods in general are not all that costly. 
A)  it has no alternative uses. 
B)  it has two or more alternative uses. 
C)  it is a free good and not expensive. 
D)  scarce goods in general are not all that costly.

Question 14

The economic way of thinking includes:

Accepted Answer

A)  attention paid to the opportunity costs involved in any choice. 
B)  the assumption that individuals choose to average out some objective. 
C)  concern with the biological make up of decision makers. 
D)  emphasis on how choices affect total values rather than marginal values. 
A)  attention paid to the opportunity costs involved in any choice. 
B)  the assumption that individuals choose to average out some objective. 
C)  concern with the biological make up of decision makers. 
D)  emphasis on how choices affect total values rather than marginal values.

Question 15

Microeconomics deals with:

Accepted Answer

A)  the working of the entire economy or large sectors of it. 
B)  employment, growth, and inflation. 
C)  individual units in the economy. 
D)  normative economics for the most part. 
A)  the working of the entire economy or large sectors of it. 
B)  employment, growth, and inflation. 
C)  individual units in the economy. 
D)  normative economics for the most part.

Question 16

A model or theory in economics is:

Accepted Answer

A)  based mostly on value judgments. 
B)  built using relevant observations, assumptions, and abstractions. 
C)  only useful if it correctly portrays the real world and its complexities. 
D)  useful only if it is based on normative economic statements. 
A)  based mostly on value judgments. 
B)  built using relevant observations, assumptions, and abstractions. 
C)  only useful if it correctly portrays the real world and its complexities. 
D)  useful only if it is based on normative economic statements.

Question 17

Positive statements:

Accepted Answer

A)  imply value judgments must be made. 
B)  are factual and can be tested. 
C)  deal with what ought to be. 
D)  are dealt with primarily in microeconomics. 
A)  imply value judgments must be made. 
B)  are factual and can be tested. 
C)  deal with what ought to be. 
D)  are dealt with primarily in microeconomics.

Question 18

A term that means "all other things unchanged" is:

Accepted Answer

A)  dependent variable. 
B)  independent variable. 
C)  quid pro quo. 
D)  ceteris paribus. 
A)  dependent variable. 
B)  independent variable. 
C)  quid pro quo. 
D)  ceteris paribus.

Question 19

Unemployment and inflation are:

Accepted Answer

A)  not relevant in the U.S.economy today. 
B)  major topics in macroeconomics. 
C)  unique only to capitalistic economies. 
D)  very important in the study of microeconomics. 
A)  not relevant in the U.S.economy today. 
B)  major topics in macroeconomics. 
C)  unique only to capitalistic economies. 
D)  very important in the study of microeconomics.

Question 20

The branch of economics that examines the choices of consumers and firms is:

Accepted Answer

A)  positive economics. 
B)  normative economics. 
C)  macroeconomics. 
D)  microeconomics. 
A)  positive economics. 
B)  normative economics. 
C)  macroeconomics. 
D)  microeconomics.

According to the text, which of the following is true?

The opportunity cost of going to a movie is:

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

The basic concern of economics is to:

Whenever a choice is made:

Economists are:

A free good is one that can be acquired without sacrifice.

Microeconomics is most likely to be concerned with the:

The current rate of unemployment is 5 percent.This statement:

Explain how and why the concept of "all other things unchanged" is so important in the study of economics.

Macroeconomics deals with:

The scientific method is more difficult for economists than, say, chemists, because:

Although water is very abundant in most places, it is scarce because:

The economic way of thinking includes:

Microeconomics deals with:

A model or theory in economics is:

Positive statements:

A term that means "all other things unchanged" is:

Unemployment and inflation are:

The branch of economics that examines the choices of consumers and firms 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

According to the text, which of the following is true?

The opportunity cost of going to a movie is:

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

The basic concern of economics is to:

Whenever a choice is made:

Economists are:

A free good is one that can be acquired without sacrifice.

Microeconomics is most likely to be concerned with the:

The current rate of unemployment is 5 percent.This statement:

Explain how and why the concept of "all other things unchanged" is so important in the study of economics.

Macroeconomics deals with:

The scientific method is more difficult for economists than, say, chemists, because:

Although water is very abundant in most places, it is scarce because:

The economic way of thinking includes:

Microeconomics deals with:

A model or theory in economics is:

Positive statements:

A term that means "all other things unchanged" is:

Unemployment and inflation are:

The branch of economics that examines the choices of consumers and firms 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