Question 1

The models used in economics:

Accepted Answer

A)   are usually limited to variables that are directly related.
B)   are essentially not reliable because they are not testable in the real world.
C)   are of necessity unrealistic and have no relationship to the real world.
D)   emphasize basic relationships by abstracting from complexities in the everyday world.

Question 2

The concept of scarcity indicates that:

Accepted Answer

A)   most goods have no alternative uses.
B)   almost all goods have alternative uses.
C)   most decisions can be made without sacrificing alternatives.
D)   certain societies are able to overcome the constraints imposed by alternative uses of resources.

Question 3

Two important notions in economics are the scarcity of resources and the tremendous magnitude of the wants of people.Given this, evaluate and explain the following statement: "The study of economics is essentially to investigate how to maximize the satisfaction of wants utilizing available resources."

Accepted Answer

The statement "The study of economics is...

Question 4

Individuals will usually make choices to minimize the value of some objective.

Accepted Answer

A) True 
 B)False

Question 5

The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.

Accepted Answer

A) True 
 B)False

Question 6

A proposition about the relationship between two variables that can be proven false is called:

Accepted Answer

A)   a hypothesis.
B)   a law.
C)   a theory.
D)   the scientific method.

Question 7

The problem of determining how goods and services should be produced exists because:

Accepted Answer

A)   we do not have enough skilled workers relative to the number of unskilled workers.
B)   we do not have enough unskilled workers relative to the number of skilled workers.
C)   corporations want to avoid changing their methods of production.
D)   most goods can be produced with different combinations of resources.

Question 8

One question that arises when determining for whom goods and services should be produced is:

Accepted Answer

A)   Who gets how much of the economic pie?
B)   How can we import more goods for domestic consumption?
C)   How can we reduce exports so as to leave more goods for domestic consumption?
D)   Should society outlaw child labor?

Question 9

An example of a normative statement is:

Accepted Answer

A)   The rate of unemployment is 4 percent.
B)   A high rate of economic growth is good for the country.
C)   The federal government spends half of its budget on national defense.
D)   People with health insurance tend to spend more on health care than those who are uninsured.

Question 10

"Smokers are more likely to be murdered than nonsmokers." This statement is an example of:

Accepted Answer

A)   the fallacy of unintended consequences.
B)   a positive economic statement.
C)   a normative economic statement.
D)   a value judgment.

Question 11

A key theme fundamental to all of economics is:

Accepted Answer

A)   there are limited wants.
B)   we are a rich country but are simply not aware of it.
C)   people have unlimited wants facing limited means to satisfy them.
D)   there are unlimited resources.

Question 12

Anything that has alternative uses has an opportunity cost and is, therefore, scarce.

Accepted Answer

A) True 
 B)False

Question 13

The incorrect presumption that because two events tend to occur together, one must cause the other is the:

Accepted Answer

A)   confusion of economists.
B)   blunder of science.
C)   fallacy of false cause.
D)   error of inclusion.

Question 14

The "all other things unchanged" assumption is useful because it:

Accepted Answer

A)   states the main economic objectives.
B)   is a vehicle for determining whether a particular outcome is "good" or "bad.".
C)   helps to approximate real-world conditions.
D)   helps to restrict analysis to the effect of a single economic factor.

Question 15

Distinguish between microeconomics and macroeconomics.

Accepted Answer

The answer of Distinguish between microeconomics and macroeconomics....

Question 16

A basic assumption used in many economic models is:

Accepted Answer

A)   as price goes up, the amount purchased will go up too.
B)   as price goes up, less will be offered for sale on the market.
C)   if the underlying theory doesn't represent reality, it is not useful.
D)   ceteris paribus, which means all other things remain unchanged.

Question 17

When we are forced to make choices we are facing the concept of:

Accepted Answer

A)   ceteris paribus.
B)   free goods.
C)   scarcity.
D)   the margin.

Question 18

`Briefly define scarcity, choice, and opportunity cost and explain carefully how they are related and why they are so essential in the study of economics.

Accepted Answer

Scarcity refers to the limited availabil...

Question 19

Which of the following is most likely an example of a free good?

Accepted Answer

A)   Sand in aquarium
B)   Sand in the middle of a desert
C)   Sand in a children's sandbox
D)   Sand at the beach

Question 20

Economics is a:

Accepted Answer

A)   social science that studies goods with no alternative uses.
B)   natural science that studies goods with no alternative uses.
C)   social science concerned chiefly with how people choose among alternatives.
D)   social science concerned chiefly with reasons why society has unlimited resources.

Exam 1: Economics: The Study of Choice

The problem of determining how goods and services should be produced exists because:

Correct Answer
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An example of a normative statement is:

Correct Answer
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A key theme fundamental to all of economics is:

Correct Answer
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Correct Answer
Answered by ExamLex AI
The statement "The study of economics is...
View Answer

The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.

Correct Answer
verified

The "all other things unchanged" assumption is useful because it:

Correct Answer
verified

One question that arises when determining for whom goods and services should be produced is:

Correct Answer
verified

A proposition about the relationship between two variables that can be proven false is called:

Correct Answer
verified

The models used in economics:

Correct Answer
verified

Distinguish between microeconomics and macroeconomics.

Correct Answer
verified

Individuals will usually make choices to minimize the value of some objective.

Correct Answer
verified

`Briefly define scarcity, choice, and opportunity cost and explain carefully how they are related and why they are so essential in the study of economics.

Correct Answer
Answered by ExamLex AI
Scarcity refers to the limited availabil...
View Answer

The concept of scarcity indicates that:

Correct Answer
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Anything that has alternative uses has an opportunity cost and is, therefore, scarce.

Correct Answer
verified

Economics is a:

Correct Answer
verified

Which of the following is most likely an example of a free good?

Correct Answer
verified

A basic assumption used in many economic models is:

Correct Answer
verified

The incorrect presumption that because two events tend to occur together, one must cause the other is the:

Correct Answer
verified

When we are forced to make choices we are facing the concept of:

Correct Answer
verified

"Smokers are more likely to be murdered than nonsmokers." This statement is an example of:

Correct Answer
verified

Exam 1: Economics: The Study of Choice

The problem of determining how goods and services should be produced exists because:

Correct AnswerverifiedShow Answer

An example of a normative statement is:

Correct AnswerverifiedShow Answer

A key theme fundamental to all of economics is:

Correct AnswerverifiedShow Answer

Correct AnswerAnswered by ExamLex AIThe statement "The study of economics is...View AnswerShow Answer

The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.

Correct AnswerverifiedShow Answer

The "all other things unchanged" assumption is useful because it:

Correct AnswerverifiedShow Answer

One question that arises when determining for whom goods and services should be produced is:

Correct AnswerverifiedShow Answer

A proposition about the relationship between two variables that can be proven false is called:

Correct AnswerverifiedShow Answer

The models used in economics:

Correct AnswerverifiedShow Answer

Distinguish between microeconomics and macroeconomics.

Correct AnswerverifiedShow Answer

Individuals will usually make choices to minimize the value of some objective.

Correct AnswerverifiedShow Answer

`Briefly define scarcity, choice, and opportunity cost and explain carefully how they are related and why they are so essential in the study of economics.

Correct AnswerAnswered by ExamLex AIScarcity refers to the limited availabil...View AnswerShow Answer

The concept of scarcity indicates that:

Correct AnswerverifiedShow Answer

Anything that has alternative uses has an opportunity cost and is, therefore, scarce.

Correct AnswerverifiedShow Answer

Economics is a:

Correct AnswerverifiedShow Answer

Which of the following is most likely an example of a free good?

Correct AnswerverifiedShow Answer

A basic assumption used in many economic models is:

Correct AnswerverifiedShow Answer

The incorrect presumption that because two events tend to occur together, one must cause the other is the:

Correct AnswerverifiedShow Answer

When we are forced to make choices we are facing the concept of:

Correct AnswerverifiedShow Answer

"Smokers are more likely to be murdered than nonsmokers." This statement is an example of:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The statement "The study of economics is...
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Scarcity refers to the limited availabil...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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