Exam 1: Introducing the Economic Way of Thinking

Which of the following would be studied by a macroeconomist rather than a microeconomist?

Suppose an economist tests the theory that when the price of leather increases, fewer pairs of shoes are produced. He observes more shoes being produced when the price of leather increases. At the same time, a new production technology allowed for more shoes to be produced in less time. He has

Scarcity:

The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a

Which of the following would an economist classify as capital?

Normative economics deals with ____ and positive economics deals with ____.

To abstract from reality in an economic model means that:

"The government should provide health care for all citizens." This statement is an illustration of:

The mental and physical capacity of workers to produce goods and services is known as:

Which of the following is not an example of a factor of production?

100 shares of stock in General Motors is considered which type of resource?

Distinguish macroeconomics and microeconomics.

A positive economic statement is:

An economic model is defined as:

If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?

An entrepreneur is:

Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:

The finite nature of the economy's resource base:

The silly clothes worn by a circus clown are an example of:

"An increase in the federal minimum wage causes an increase in unemployment among teenagers" is a: