Exam 1: The Art and Science of Economic Analysis

You want to sell your old iPad that you no longer use,and your cousin wants to give you $300 for it.If you decide to sell your iPad to your cousin,you'll have to pay $40 for shipping the iPad to your cousin.As a rational decision maker,you should:

Economists believe that:​

Step one in the scientific method is to:

Profit is the payment received by resource owners for the use of their capital.

A good economic theory:

Which of the following is an example of a positive economic statement?

Profit is the payment made for land resources.

Labor and capital are exchanged in the resource market.

Economics is the only social science and the only business discipline for which the Nobel Prize is awarded.

College graduates with history or literature as their major tend to earn more than those who choose more quantitative disciplines like economics.

Most economists consider a theory a good one if it predicts well.

A good economic theory:

A rational individual would make charitable contributions only if such contributions receive favorable tax treatment.

The other-things-constant assumption:

"An increase in the price of a product causes consumers to purchase more of that product" is an example of a positive economic statement.

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:

Which of the following would an economist classify as physical capital?

Economic theories are:

"There should be less discrimination against women" is an example of a positive economic statement.

A fallacy of composition involves assuming that: