Exam 1: The Art and Science of Economic Analysis

It is always rational to acquire more information before making a decision.

Macroeconomists analyze:

Economic decision makers will continue to acquire information only as long as the expected additional benefit exceeds the expected additional cost of the information.

A hypothesis is:

The association is causation fallacy is the error of assuming that what is true for one member of a group must be true for the group.

Consumers need information to make good choices.In the context of this information,which of the following is correct?

The difference between a positive economic statement and a normative economic statement is that:

The difference between positive economic statements and normative economic statements is that:

The difference between a good and a service is that:

Economics is best described as the:

An entrepreneur:

A resource is something that:

A rational decision maker will take only those actions for which the expected marginal benefit:

Economics is best defined as the study of how:

Macroeconomics is the study of:

Environmentalists have continually argued for the use of alternatives to fossil fuels to generate energy.Harnessing wind power by setting up wind farms had been one alternative proposed and implemented.As it is now known that these wind farms lead to the slicing and dicing of migratory birds and the decimation of the local bat population,we could say that environmentalists have committed the:

One problem with rent controls is that policy makers often ignore its secondary effects.

Scarcity:

When economists refer to capital,they might mean:

In an economic model of consumer behavior,rational self-interest would likely be: