Exam 1: The Role and Method of Economics

In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements.Which of these is a normative statement?

Which of the following contains only normative statements?

Which of the following observations regarding economic goods is incorrect?

Which of the following are likely to be studied in a microeconomics course?

In a simple circular flow model,

"The hotter it gets, the more water people drink." This statement implies that the relationship between temperature and water consumption must have:

The determination of prices in the market for automobiles is primarily a concern of:

A theory can best be defined as:

Economics is concerned with:

Which of the following lies primarily within the realm of macroeconomics?

"As a rational person, you would expect individuals to always avoid actions that are illegal."

Economists believe that people respond to incentives in predictable ways.Therefore, if the government imposed a tax on each child born, you would expect that:

Economic goods are:

In economic terms, religious and spiritual services are treated as:

Which of the following lies primarily within the realm of microeconomics?

Exhibit 1-A -Referring to Exhibit 1-A, which point on the demand curve represents the maximum number of CDs purchased?

If a university begins a policy of permanently expelling any student caught cheating in any way, you would expect that:

Which of the following is most likely an example of correlation but not an example of causation?

Scarcity:

"The government should levy higher taxes on the rich and use the additional revenues to provide better housing for the poor." This statement illustrates: