Question 1

Economists are:

Accepted Answer

A)   concerned with developing theories and interested in solving problems.
B)   interested in solving problems but not concerned with developing theories.
C)   reluctant to predict changes in variables such as prices, employment, and spending.
D)   always in agreement on the best way to implement policy decisions.E) All of the above
F) A) and B)

Question 2

Positive statements are:

Accepted Answer

A)   microeconomic in nature.
B)   macroeconomic in nature.
C)   statements involving value judgments.
D)   statements that can be tested.E) A) and B)
F) A) and C)

Question 3

A free good is different from a scarce good because it is:

Accepted Answer

A)   not tradable.
B)   not produced.
C)   not scarce.
D)   found only in nature.E) C) and D)
F) B) and C)

Question 4

A choice made _______ is a choice whether to do a little more or a little less of something.

Accepted Answer

A)   at the front end
B)   in the beginning
C)   at the margin
D)   all of the above.E) A) and B)
F) A) and C)

Question 5

A normative statement deals with:

Accepted Answer

A)   the facts.
B)   what was, is, or will be.
C)   what ought to be.
D)   the scientific method.E) A) and D)
F) All of the above

Question 6

The three fundamental economic questions are what, how, and why.

Accepted Answer

A) True 
 B)False

Question 7

The branch of economics that examines the impact of choices on aggregates in the economy is:

Accepted Answer

A)   positive economics.
B)   normative economics.
C)   macroeconomics.
D)   microeconomics.E) B) and C)
F) All of the above

Question 8

A person who mistakenly assumes that because one event follows another, the second event results from the first commits the fallacy of:

Accepted Answer

A)   division.
B)   addition.
C)   composition.
D)   false cause.E) All of the above
F) C) and D)

Question 9

The fundamental economic questions that every economic system must answer are:

Accepted Answer

A)   what, how, and for whom.
B)   what, why, and for whom.
C)   when, why, and for whom.
D)   how, when, and how much.E) None of the above
F) C) and D)

Question 10

The problem of determining how goods and services should be produced is a problem of deciding:

Accepted Answer

A)   the best combinations of resources to be used for producing goods and services.
B)   the extent to which imports should be reduced relative to exports.
C)   the extent to which exports should be reduced relative to imports.
D)   who owns the resources.E) All of the above
F) C) and D)

Question 11

The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

Accepted Answer

A) True 
 B)False

Question 12

The value of the next-best choice not chosen is called opportunity cost.

Accepted Answer

A) True 
 B)False

Question 13

Margin suggests additional or incremental.

Accepted Answer

A) True 
 B)False

Question 14

Suppose you observe that the sun sets every evening after the six o'clock business report.If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

Accepted Answer

A)   division.
B)   composition.
C)   false cause.
D)   science.E) None of the above
F) B) and D)

Question 15

Explain the rationale behind the assertion that economics is a social science and uses the scientific method.

Accepted Answer

Economics is considered a social science...

Question 16

Opportunity cost is:

Accepted Answer

A)   the costs of all sacrifices not chosen when a choice is made.
B)   the highest valued other choice that could have been made.
C)   the result of having made a bad choice.
D)   the result of not making choices at the margin.E) All of the above
F) B) and C)

Question 17

The concept of the margin deals with:

Accepted Answer

A)   making incremental choices.
B)   one more or one less of something.
C)   doing a little more or a little less.
D)   all of the above.E) B) and C)
F) C) and D)

Question 18

Economics, generally speaking, is primarily concerned with:

Accepted Answer

A)   the operation of the bond and stock markets.
B)   the issues of income inequality or income equality.
C)   how people choose among the alternatives available to them.
D)   ceteris paribus, the scientific method, and the margin.E) None of the above
F) B) and C)

Question 19

The economic way of thinking includes:

Accepted Answer

A)   more attention paid to benefits rather than the costs involved in any choice.
B)   the assumption that individuals choose to maximize some objective.
C)   emphasis on how choices affect total values rather than marginal values.
D)   the notion that the world has solved the problem of scarcity.E) A) and B)
F) None of the above

Question 20

Opportunity cost is:

Accepted Answer

A)   zero for the use of a free combo meal offer.
B)   the dollar payment for a product.
C)   the benefit derived from a product.
D)   the value of the best alternative forgone in making any choice.E) A) and B)
F) All of the above

Exam 1: Economics: The Study of Choice

The three fundamental economic questions are what, how, and why.

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The problem of determining how goods and services should be produced is a problem of deciding:

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Opportunity cost is:

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The concept of the margin deals with:

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A choice made _______ is a choice whether to do a little more or a little less of something.

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The branch of economics that examines the impact of choices on aggregates in the economy is:

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Suppose you observe that the sun sets every evening after the six o'clock business report.If you conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of:

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Economics, generally speaking, is primarily concerned with:

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A free good is different from a scarce good because it is:

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Explain the rationale behind the assertion that economics is a social science and uses the scientific method.

Correct AnswerAnswered by ExamLex AIEconomics is considered a social science...View AnswerShow Answer

A person who mistakenly assumes that because one event follows another, the second event results from the first commits the fallacy of:

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Positive statements are:

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Margin suggests additional or incremental.

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Economists are:

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The economic way of thinking includes:

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The fundamental economic questions that every economic system must answer are:

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Opportunity cost is:

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A normative statement deals with:

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The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

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The value of the next-best choice not chosen is called opportunity cost.

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Answered by ExamLex AI
Economics is considered a social science...
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