Exam 1: The Role and Method of Economics

"When one hockey team spends a large sum of money acquiring better players,it is better off.If all teams do the same thing,all of them are better off." What is this statement an illustration of?

What area of economic study is most concerned with the determination of prices in the market for automobiles?

Which of the following is NOT a function of an entrepreneur?

A hypothesis is a normative statement.

Kelly is a lawyer and also an excellent typist.She can type 120 words per minute but she has all the legal work she can handle at $75 per hour.Kelly's friend Todd works as a waiter earning $25 per hour.Todd would like some typing work but can only type only 60 words per minute.What is the most efficient scenario?

In a four quadrant graph,economics is primarily concerned with which area?

What does macroeconomics primarily examine?

Henry must choose between going to his psychology class this evening or going on a date.If he chooses to go on the date,which of the following statements about the expected value of the psychology lecture is most accurate?

Which of the following is an example of a capital resource?

What is economics most concerned with?

Under what condition does a nation have a comparative advantage over another nation in the production of cars?

Raylene works at an accounting firm.What type of resource is she considered to be?

What is the solution to solving the fundamental economic problem?

According to the rule of rational choice,what must occur for an individual to be willing undertake an activity?

Indicate whether each of the following is a positive or normative economic statement: I.The imposition of a price ceiling below equilibrium price will lead to a shortage of housing. II.The local government should control the rate of increase in rents so that low-income residents are not forced to move from the area.

Which of the following statements about testing an economic hypothesis is the most accurate?

Which of the following statements about the opportunity cost of an action is the most accurate?

Why is there scarcity?

An entrepreneur organizes the other factors of production and bears the business risk.

Which of the following lies primarily within the realm of microeconomics?