Question 1

Normative economics is an approach to economics that

Accepted Answer

A)  seeks to understand behavior and the operation of systems without making judgments. 
B)  analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action. 
C)  applies statistical techniques and data to economic problems. 
D)  examines the role of government in the economy. 
A)  seeks to understand behavior and the operation of systems without making judgments. 
B)  analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe preferred courses of action. 
C)  applies statistical techniques and data to economic problems. 
D)  examines the role of government in the economy.

Question 2

Which of the following is a question answered with normative economic reasoning?

Accepted Answer

A)  If the college offers free parking for students, will more students drive to campus? 
B)  If the college provided more financial aid assistance, would more students benefit? 
C)  If the college increased tuition, would class size decline? 
D)  Should the college cut tuition to stimulate enrollment? 
A)  If the college offers free parking for students, will more students drive to campus? 
B)  If the college provided more financial aid assistance, would more students benefit? 
C)  If the college increased tuition, would class size decline? 
D)  Should the college cut tuition to stimulate enrollment?

Question 3

If your tuition is $2,000 this semester, your books cost $400, you can only work 10 rather than 40 hours per week during the 15 weeks you are taking classes and you make $12 per hour, and your room and board is $4,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Accepted Answer

A)  $2,400. 
B)  $2,760. 
C)  $7,800. 
D)  $11,800. 
A)  $2,400. 
B)  $2,760. 
C)  $7,800. 
D)  $11,800.

Question 4

Refer to the information provided in Figure 1.4 below to answer the questions that follow.   Figure 1.4
-Refer to Figure 1.4. Panel C shows a curve which has a slope that is

Accepted Answer

A)  first positive and then negative. 
B)  first negative and then positive. 
C)  infinite throughout. 
D)  zero throughout. 
A)  first positive and then negative. 
B)  first negative and then positive. 
C)  infinite throughout. 
D)  zero throughout.

Question 5

Equity is synonymous with fairness.

Accepted Answer

A) True 
 B)False

Question 6

The cost involved when choosing between alternatives is known as the

Accepted Answer

A)  marginal cost. 
B)  sunk cost. 
C)  opportunity cost. 
D)  normative cost. 
A)  marginal cost. 
B)  sunk cost. 
C)  opportunity cost. 
D)  normative cost.

Question 7

Opportunity costs arise due to scarce resources.

Accepted Answer

A) True 
 B)False

Question 8

Post hoc, ergo propter hoc literally translated means, "all else equal."

Accepted Answer

A) True 
 B)False

Question 9

Economic stability refers to the condition of steady growth in national output, with ________ inflation and ________ employment of resources.

Accepted Answer

A)  negative; low 
B)  low; full 
C)  high; full 
D)  no; no 
A)  negative; low 
B)  low; full 
C)  high; full 
D)  no; no

Question 10

An efficient economy is one that produces what consumers demand and does so at the least possible cost.

Accepted Answer

A) True 
 B)False

Question 11

Refer to Scenario 1.2 below to answer the questions that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. The statement that an increase in automobile emissions causes an increase in global warming is an example of

Accepted Answer

A)  an economic theory. 
B)  a fallacy. 
C)  deductive reasoning. 
D)  normative economics. 
A)  an economic theory. 
B)  a fallacy. 
C)  deductive reasoning. 
D)  normative economics.

Question 12

A basic understanding of economics is needed to be an informed citizen.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the information provided in Figure 1.1 below to answer the questions that follow.   Figure 1.1
-Refer to Figure 1.1. The relationship between the daily temperature and the number of gallons of ice cream purchased demonstrates

Accepted Answer

A)  an infinite slope. 
B)  a negative slope. 
C)  a positive slope. 
D)  a zero slope. 
A)  an infinite slope. 
B)  a negative slope. 
C)  a positive slope. 
D)  a zero slope.

Question 14

Refer to Scenario 1.2 below to answer the questions that follow.
SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.
-Refer to Scenario 1.2. The statement, "automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures," is an example of

Accepted Answer

A)  positive economics. 
B)  marginal economics. 
C)  normative economics. 
D)  the fallacy of logic. 
A)  positive economics. 
B)  marginal economics. 
C)  normative economics. 
D)  the fallacy of logic.

Question 15

Refer to the information provided in Figure 1.4 below to answer the questions that follow.   Figure 1.4
-Refer to Figure 1.4. Panel B shows a curve which has a slope that is

Accepted Answer

A)  first positive and then negative. 
B)  first negative and then positive. 
C)  infinite throughout. 
D)  zero throughout. 
A)  first positive and then negative. 
B)  first negative and then positive. 
C)  infinite throughout. 
D)  zero throughout.

Question 16

If your tuition is $25,000 this semester, your books cost $1,500, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $7,500 this semester (same as if not attending college), then your opportunity cost of attending college this semester is

Accepted Answer

A)  $26,500. 
B)  $26,800. 
C)  $31,000. 
D)  $38,500. 
A)  $26,500. 
B)  $26,800. 
C)  $31,000. 
D)  $38,500.

Question 17

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as

Accepted Answer

A)  a positive statement. 
B)  an example of the ceteris paribus assumption. 
C)  a normative statement. 
D)  a comparative economics statement. 
A)  a positive statement. 
B)  an example of the ceteris paribus assumption. 
C)  a normative statement. 
D)  a comparative economics statement.

Question 18

Refer to the information provided in Figure 1.7 below to answer the questions that follow.   Figure 1.7
-The slope of a straight line

Accepted Answer

A)  is always positive. 
B)  must first increase then decrease. 
C)  is not constant. 
D)  is constant. 
A)  is always positive. 
B)  must first increase then decrease. 
C)  is not constant. 
D)  is constant.

Question 19

Refer to the information provided in Figure 1.5 below to answer the questions that follow.   Figure 1.5
-Refer to Figure 1.5. Panel B shows a curve with a slope that is

Accepted Answer

A)  positive and increasing. 
B)  positive and decreasing. 
C)  negative and increasing. 
D)  negative and decreasing. 
A)  positive and increasing. 
B)  positive and decreasing. 
C)  negative and increasing. 
D)  negative and decreasing.

Question 20

Normative economics ________ and positive economics ________.

Accepted Answer

A)  involves judgments; does not involve judgments 
B)  involves judgments; also involves judgments 
C)  does not involve judgments; involves judgments 
D)  does not involve judgments; also does not involve judgments 
A)  involves judgments; does not involve judgments 
B)  involves judgments; also involves judgments 
C)  does not involve judgments; involves judgments 
D)  does not involve judgments; also does not involve judgments

Normative economics is an approach to economics that

Which of the following is a question answered with normative economic reasoning?

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4. Panel C shows a curve which has a slope that is

Equity is synonymous with fairness.

The cost involved when choosing between alternatives is known as the

Opportunity costs arise due to scarce resources.

Post hoc, ergo propter hoc literally translated means, "all else equal."

Economic stability refers to the condition of steady growth in national output, with inflation and employment of resources.

An efficient economy is one that produces what consumers demand and does so at the least possible cost.

A basic understanding of economics is needed to be an informed citizen.

Refer to the information provided in Figure 1.1 below to answer the questions that follow. Figure 1.1 -Refer to Figure 1.1. The relationship between the daily temperature and the number of gallons of ice cream purchased demonstrates

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4. Panel B shows a curve which has a slope that is

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -The slope of a straight line

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Panel B shows a curve with a slope that is

Normative economics and positive economics .

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 1: The Scope and Method of Economics

Normative economics is an approach to economics that

Which of the following is a question answered with normative economic reasoning?

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4. Panel C shows a curve which has a slope that is

Equity is synonymous with fairness.

The cost involved when choosing between alternatives is known as the

Opportunity costs arise due to scarce resources.

Post hoc, ergo propter hoc literally translated means, "all else equal."

Economic stability refers to the condition of steady growth in national output, with ________ inflation and ________ employment of resources.

An efficient economy is one that produces what consumers demand and does so at the least possible cost.

A basic understanding of economics is needed to be an informed citizen.

Refer to the information provided in Figure 1.1 below to answer the questions that follow. Figure 1.1 -Refer to Figure 1.1. The relationship between the daily temperature and the number of gallons of ice cream purchased demonstrates

Refer to the information provided in Figure 1.4 below to answer the questions that follow. Figure 1.4 -Refer to Figure 1.4. Panel B shows a curve which has a slope that is

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as

Refer to the information provided in Figure 1.7 below to answer the questions that follow. Figure 1.7 -The slope of a straight line

Refer to the information provided in Figure 1.5 below to answer the questions that follow. Figure 1.5 -Refer to Figure 1.5. Panel B shows a curve with a slope that is

Normative economics ________ and positive economics ________.

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Economic stability refers to the condition of steady growth in national output, with inflation and employment of resources.

Normative economics and positive economics .