Exam 1: The Role and Method of Economics

Every time an individual decides to try out new equipment, or finds better ways to manage money, he or she is exhibiting traits of:

An economic hypothesis:

In the discussion of correlation and causation, correlation means:

Which of the following is true?

Which of the following is not a factor of production?

Figure 1-A -Refer to Figure 1-A.In the circular flow diagram, payments for goods and services:

A good economic theory:

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

If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?

Economists believe that individuals act as if they are motivated:

Which of the following is not a resource exchanged in the factor markets?

When economists refer to economic behavior, they mean that:

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

Which of the following represents a normative statement?

If scarcity was not a fact,

A macroeconomist would most likely study the effect of a reduction in income tax rates on:

An economic theory is tested by:

"The minimum wage should be increased so that low-income workers can afford to feed their families." This is an example of:

Economists use theories to:

Which of the following is likely to provide teenagers with the greatest incentive not to smoke?