Economics 200 Chapter 1 Quiz byuh

The current rate of unemployment is 5 percent. This statement:

Is Positive Statement

A free good is:

It is a good with no opportunity cost.

The opportunity cost of something is:

It is what is given up to acquire it.

The statement that the minimum wage needs to be increased is a:

Normative Statement

A normative statement deals with:

What ought to be.

Scarcity

When we are forced to make choices we are facing the concept of.

Law

a theory that has been subject to even more testing and that has won universal acceptance.

Microeconomics deals with:

how resources are combined in the production of goods. The choices made by consumers and firms and the impacts those choices have on individual markets.

The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies. True or False

False

A tradeoff between two economic goals means that:

if you achieve more of one, you will achieve less of the other.

Margin

is a set of constraints conceptualised as a border. A marginal change is the change associated with a relaxation or tightening of constraints — either change of the constraints, or a change in response to this change of the constraints.

Economists concerned about the behavior of individual households, firms, and industries are studying:

neither macroeconomics nor microeconomics.

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

opportunity costs; choices

The answer to, "What goods are to be produced ?" deals with:

the kinds and quantities of goods and services produced.

Whenever a choice is made:

the opportunity cost of that choice is the highest-valued other choice that could have been made.

The observed correlation between baldness and heart disease demonstrates that:

there is probably some other factor that causes both baldness and heart disease.

The BEST example of making a choice at the margin is:

A coffee drinker drinking another cup of coffee

A choice at the margin is

A decision to do a little more or a little less of something.

Theory

A hypothesis that has been tested extensively without being rejected and has won widespread acceptance is a:

Model

A set of simplifying assumptions about some aspect of the real world for example like price and quantity of a good.

Hypothesis

A simplified representation of a particular problem is a

Macroeconomics

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying: Focuses on the impact of choices on the total or aggregate level of economical activity

A hypothesis is an assertion that can be:

Proven to be true or false.

The Fallacy of False cause is;

Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:

Making choices that are expected to achieve the highest possible value for some objective is termed:

Satisfying

Briefly define scarcity, choice, and opportunity cost and explain carefully how they are related and why they are so essential in the study of economics.

Scarcity- The conditions of having to choose between alternatives. Choice-It is within the context of scarcity that economists define what is perhaps the most important concept in all of economics, the concept of opportunity cost. Opportunity Cost- The value of the best alternative forgone in making any choice.

Ceteris paribus means allowing all things to change.

True

True or False A theory or model is a simplification of reality, in much the same way that a road map shows only those features needed to get from one point to another.

True

The problem of determining what goods and services society should produce

exists because there are not enough resources to provide all the goods and services that people want to purchase.

The Case in Point on oil extraction implies that the environmental damage associated with future oil extraction is likely to :

rise because more environmentally invasive procedures will be required to extract oil.

The Case in Point on oil extraction implies that the environmental damage associated with future oil extraction is likely to:

rise because more environmentally invasive procedures will be required to extract oil.