ECON DR. O

Albert Einstein once made the following observation about science

"The whole of science is nothing more than the refinement of everyday thinking."

Anger over British taxes played a significant role in bringing about the

American Revolution

In 1776, the American Revolution was sparked by anger over

British taxes imposed on the American colonies.

Which of the following statements is correct?

Buyers always want to pay less and sellers always want to be paid more.

Which of the following is correct

Econ study the management of scarce resources

The English word that comes from the Greek word for "one who manages a household" is

Economy

Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

Einstein

Who once said that taxes are the price we pay for a civilized society?

Oliver Wendell Holmes, Jr.

The word "economy" comes from the Greek word oikonomos, which means

One who manages a household

Economics deals primarily with the concept of

Scarcity

If a country allows trade and, for a certain good, the domestic price without trade is lower that the world price

The country would be an exporter of the good

With which of the Ten Principles of Economics is the study of international trade most closely connected?

Trade can make everyone better off.

Which of the following is not an important question for economic policy raised by the experience of the textile industry

Which argument for restricting free trade is politically feasible?

Rent-control laws dictate

a maximum rent that landlords may charge tenants.

Minimum-wage laws dictate

a minimum wage that firms may pay workers

Which of the following is not correct?

a. Economists have two roles: scientist and policy adviser. b. As scientists, economists develop and test theories to explain the world around them. c. Economic policies rarely have effects that their architects did not intend or anticipate. d. As policy advisers, economists use their theories to help change the world for the better. A

Price controls are usually enacted

a. as a means of raising revenue for public purposes. b. when policymakers believe that the market price of a good or service is unfair to buyers or sellers. c. when policymakers tax a good. d. All of the above are correct. D

In a market economy, supply and demand are important because they

a. play a critical role in the allocation of the economy's scarce resources. b. determine how much of each good gets produced. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct. D

Which of the following tools and concepts is useful in the analysis of international trade?

a. total surplus b. domestic supply c. equilibrium price d. All of the above are correct D

The presence of a price control in a market for a good or service usually is an indication that

an insufficient quantity of the good or service was being produced in that market to meet the public's need

To fully understand how taxes affect economic well-being, we must compare the

decrease in total surplus to the increase in revenue raised by the government.

Economists, like mathematicians, physicists, and biologists

devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories

In considering how to allocate its scarce resources among its various members, a household considers

each members efforts

For any country, if the world price of copper is higher than the domestic price of copper without trade, that country should

export copper, since that country has a comparative advantage in copper

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

foreign competitors that can produce quality textile goods at low cost.

If the world price of apples is higher than Argentinas price of apples without trade, then Argentina

has a comparative advantages in apples

An example of positive analysis is studying

how market forces produce equilibrium

For any country, if the world price of copper is lower than the domestic price of copper without trade, that country should

import copper

Which of the following is not an example of a public policy?

minimum-wage laws

In a market economy, supply and demand determine

neither the quantity of each good produced nor the price at which it is sold.

Assume, for vietnam, that the domestic price of textiles without international trade is higher than the world price of textiles. This suggests that, in the production of textiles

other countries have a comparative advantage over Vietnam and Vietnam will import textiles

Resources are

scare for households but plentiful for economics

The scientific method is applicable to studying

social sciences, but not natural sciences

The forces that make market economies work are

supply and demand

The two words economists use most often are

supply and demand

The two words most often used by economists are

supply and demand

To fully understand how taxes affect economic well-being, we must

take into account the fact that almost all taxes reduce the welfare of buyers, increase the welfare of sellers, and raise revenue for the government.

Welfare economics is the study of how

the allocation of resources affects economic well-being

The scientific method is

the dispassionate development and testing of theories about how the world works

A logical starting point from which the study of international trade begins is

the principle of comparative advantage

The essence of science is

the scientific method

Assume, for vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that, in the production of textiles

vietnam has a comparative advantage over other countries and Vietnam will export textiles

The study of how the allocation of resources affects economic well-being is called

welfare economics