Ch. 1 Quiz
The pie chart illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is ________%. (Enter your response as an integer.)
50%
______________ is concerned with what is, and ____________________ is concerned with what ought to be. Economics is about, ______________ which measures the costs and benefits of different courses of action. positive analysis neutral analysis normative analysis
Positive analysis, normative analysis, positive analysis
________________ occurs when a good or service is produced at the lowest possible cost. _____________________ occurs when production is in accordance with consumer preferences. Voluntary exchange Allocative efficiency Productive efficiency
Productive efficiency, Allocative efficiency
Which of the following covers the study of topics such as inflation or unemployment?
A. Macroeconomics
Microsoft charges a price of $599 for a copy of Windows 7. Is this pricing decision rational?
A. When we assume the managers at Microsoft have used all available information and have weighed all known benefits and costs, we are assuming rationality.
When we graph the relationship between two variables, we often want to draw conclusions about whether changes in one variable are causing changes in the other variable. Doing so, however, can lead to incorrect conclusions. Reasons for drawing incorrect conclusions about cause and effect include
A. both a and b.
Microeconomics is the study of
A. how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.
One of the basic facts of life is that people must make choices as they try to attain their goals. This unavoidable fact comes from a reality an economist calls
A. scarcity.
Equity is
A. the fair distribution of economic benefits
Opportunity cost is
A. the highest valued alternative that must be given up to engage in an activity.
When the federal government crafts environmental policies that make it less expensive for firms to follow green initiatives,
A. the policies are consistent with economic incentives.
Which of the following shows a positive linear relationship? (assume values of X > 0)
A. y = - 45 + 6.4 x
Trade-offs force society to make choices, particularly when answering the following three fundamental questions:
A. One, what goods and services will be produced? Two, how will the goods and services be produced? Three, who will receive the goods and services produced?
Economics is a social science because
D. all of the above.
_______________ is the study of the choices people make to attain theirgoals, given their scarce resources.
Economics
