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 best illustrates the fallacy of composition?

A testable proposition that predicts how people will react to changed circumstances is called a hypothesis.

Scarcity means that:

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?

Fundamentally, economics is concerned with:

The fallacy of composition is the erroneous view that:

One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment.

A good economic theory:

Economists believe that individuals act as if they are motivated:

What is the difference between a hypothesis and a theory?

Which of the following is an example of a relationship with a negative slope?

"Government should do all it can to slow the process of global warming." Is this a positive or normative statement? Explain your answer.

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

The central question in economics is how to:

The basic difference between macroeconomics and microeconomics is:

If oil is considered a non-renewable resource, than oil is

Identify the error in judgment in each of the following statements: I."If you leave a concert during the encore, you will avoid traffic and get home more rapidly; therefore everyone should leave during the encore." II."Whenever I wear my lucky baseball cap to an exam, I receive an "A." My baseball cap must induce the teacher to give me good grades." ​

Which of the following is a normative statement?

Microeconomic topics do not usually include: