Exam 1: Economics: The World Around You

A rational worker:

The category of economics that contains statements about "what ought to be" is known as:

A good or service becomes scarcer over time if:

The good for which has no scarcity is called:

According to the American Shareholders Association, a majority of Americans prefer to invest in education rather than stock markets, because of the volatility in the rate of return from the latter.

Whether to have more or less government involvement in the overall economy:

The wage disparity between college-educated and non-college-educated workers in the U.S.has declined since 2001 because:

Because economics recognizes that any action has costs, it is often counterintuitive in its ability to point out the unintended consequences of public choices.

The common logical mistake of implying a cause-and-effect relationship between two events is called:

If unemployment rises when beer consumption rises, then the statement "Rising unemployment is the result of increased beer consumption" is an example of the ceteris paribusfallacy.

The fallacy of composition:

An economic approach used to search out answers to questions about the real world depends on the principles of:

Which of the following is considered to be the basic economic problem across all countries of the world?

Aunt Flora has discovered that her sick potted philodendron plant responds well to a certain type of fertilizer.She applies the fertilizer to the many flowers in her garden to make them all grow better.All but the philodendron die.Aunt Flora's mistake is called:

Which of the following statements is true of resources?

An economy's resources:

It seems as if the Internet has made the number of choices individuals have infinite.This means that:

To say that "there is a scarcity of gold" means that:

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Which of the following is a microeconomic concern?