Exam 1: Economics: the Study of Choice

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:

Ceteris paribus means:

In the 1970s, the Organization of Petroleum Exporting Countries (OPEC) Tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel.This was primarily a response to the economic question of:

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

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

Microeconomics is most likely to be concerned with the:

A model or theory in economics is:

A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.

Each of the following statements about the use of models in the study of economics is true EXCEPT:

A hypothesis that has been tested extensively without being rejected and has won widespread acceptance is a:

Economists concerned about the behavior of individual households, firms, and industries are studying:

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

Which of the following would be a part of macroeconomics? A study of:

Statements that are a hypothesis or statement of fact are:

The situation when we face alternative choices is called abundance.

Unemployment and inflation are:

The economic way of thinking has to do with:

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

The models used in economics:

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