Question 1

The Case in Point on "baldness and heart disease" suggests that by preventing baldness:

Accepted Answer

A)  men can reduce the likelihood they will develop colon cancer. 
B)  men are unlikely to influence their chances of having heart problems. 
C)  men are likely to reduce their chances of having heart problems. 
D)  men can live longer. 
A)  men can reduce the likelihood they will develop colon cancer. 
B)  men are unlikely to influence their chances of having heart problems. 
C)  men are likely to reduce their chances of having heart problems. 
D)  men can live longer. B

Question 2

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Accepted Answer

A)  chemistry. 
B)  economics. 
C)  history. 
D)  the humanities. 
A)  chemistry. 
B)  economics. 
C)  history. 
D)  the humanities. A

Question 3

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. 
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. C

Question 4

Economists attempt to discover explanations for events that are observed.

Accepted Answer

A) True 
 B)False

Question 5

The statement that the minimum wage needs to be increased is a:

Accepted Answer

A)  positive statement. 
B)  normative statement. 
C)  condition contained in the fallacy of false cause. 
D)  scientific conclusion based on marginal analysis. 
A)  positive statement. 
B)  normative statement. 
C)  condition contained in the fallacy of false cause. 
D)  scientific conclusion based on marginal analysis.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Scarcity is determined by the existence of bad alternatives.

Accepted Answer

A) True 
 B)False

Question 8

Whenever a choice is made:

Accepted Answer

A)  the cost of that choice could be referred to as opportunity cost. 
B)  the cost is easy to measure in dollar terms. 
C)  a free good must be involved. 
D)  scarcity is not the problem. 
A)  the cost of that choice could be referred to as opportunity cost. 
B)  the cost is easy to measure in dollar terms. 
C)  a free good must be involved. 
D)  scarcity is not the problem.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

In economics, the function of theories, laws, and hypotheses is to:

Accepted Answer

A)  prevent any misunderstanding of economic behavior. 
B)  divide topics between microeconomics and macroeconomics. 
C)  generate a complete and unchanging description of economic behavior. 
D)  discover relationships between events that are important to economic behavior. 
A)  prevent any misunderstanding of economic behavior. 
B)  divide topics between microeconomics and macroeconomics. 
C)  generate a complete and unchanging description of economic behavior. 
D)  discover relationships between events that are important to economic behavior.

Question 11

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 
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 12

Macroeconomics is most likely to be concerned with the:

Accepted Answer

A)  amount of unemployment in a specific industry. 
B)  economic behavior of a particular household. 
C)  economic behavior of specific parts or units of the economy. 
D)  aggregates in the economy. 
A)  amount of unemployment in a specific industry. 
B)  economic behavior of a particular household. 
C)  economic behavior of specific parts or units of the economy. 
D)  aggregates in the economy.

Question 13

The statement that "there is no such thing as a free lunch" means:

Accepted Answer

A)  there are no tradeoffs between economic goals. 
B)  any production requires the use of scarce resources, and thus the sacrifice of another alternative. 
C)  choices need not be made in rational behavior. 
D)  scarcity only exists in poor societies. 
A)  there are no tradeoffs between economic goals. 
B)  any production requires the use of scarce resources, and thus the sacrifice of another alternative. 
C)  choices need not be made in rational behavior. 
D)  scarcity only exists in poor societies.

Question 14

Define positive and normative statements and give four examples of each.

Accepted Answer

Positive statements are statements that

Question 15

Positive statements can be tested for being true but they can't be proven false.

Accepted Answer

A) True 
 B)False

Question 16

Water is considered a scarce good rather than a free good because:

Accepted Answer

A)  it has alternative uses. 
B)  it does not have alternative uses. 
C)  scarce goods are less expensive than free goods. 
D)  free goods are more expensive than scarce goods. 
A)  it has alternative uses. 
B)  it does not have alternative uses. 
C)  scarce goods are less expensive than free goods. 
D)  free goods are more expensive than scarce goods.

Question 17

Whenever a choice is made:

Accepted Answer

A)  the value of all the other choices that could have been made is called opportunity cost. 
B)  normative economics is encountered. 
C)  the problem of "all other things unchanged" results. 
D)  the opportunity cost of that choice is the highest-valued other choice that could have been made. 
A)  the value of all the other choices that could have been made is called opportunity cost. 
B)  normative economics is encountered. 
C)  the problem of "all other things unchanged" results. 
D)  the opportunity cost of that choice is the highest-valued other choice that could have been made.

Question 18

Statements that make value judgments are:

Accepted Answer

A)  pecuniary. 
B)  positive. 
C)  nominal. 
D)  normative. 
A)  pecuniary. 
B)  positive. 
C)  nominal. 
D)  normative.

Question 19

The sacrifice of an alternative is called:

Accepted Answer

A)  revenue. 
B)  benefit. 
C)  opportunity cost. 
D)  production. 
A)  revenue. 
B)  benefit. 
C)  opportunity cost. 
D)  production.

Question 20

`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

The Case in Point on "baldness and heart disease" suggests that by preventing baldness:

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Economics, generally speaking, is primarily concerned with:

Economists attempt to discover explanations for events that are observed.

The statement that the minimum wage needs to be increased is a:

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

Scarcity is determined by the existence of bad alternatives.

Whenever a choice is made:

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

In economics, the function of theories, laws, and hypotheses is to:

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

Macroeconomics is most likely to be concerned with the:

The statement that "there is no such thing as a free lunch" means:

Define positive and normative statements and give four examples of each.

Positive statements can be tested for being true but they can't be proven false.

Water is considered a scarce good rather than a free good because:

Whenever a choice is made:

Statements that make value judgments are:

The sacrifice of an alternative is called:

`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.

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters

Exam 1: Economics: the Study of Choice

The Case in Point on "baldness and heart disease" suggests that by preventing baldness:

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Economics, generally speaking, is primarily concerned with:

Economists attempt to discover explanations for events that are observed.

The statement that the minimum wage needs to be increased is a:

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

Scarcity is determined by the existence of bad alternatives.

Whenever a choice is made:

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

In economics, the function of theories, laws, and hypotheses is to:

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

Macroeconomics is most likely to be concerned with the:

The statement that "there is no such thing as a free lunch" means:

Define positive and normative statements and give four examples of each.

Positive statements can be tested for being true but they can't be proven false.

Water is considered a scarce good rather than a free good because:

Whenever a choice is made:

Statements that make value judgments are:

The sacrifice of an alternative is called:

`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.

Demand and Supply

Applications of Supply and Demand

Macroeconomics: the Big Picture

Measuring Total Output and Income

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Inflation and Unemployment

A Brief History of Macroeconomic Thought and Policy

Inequality, Poverty, and Discrimination

Filters