ECON 201 Chapter 1 Dynamic Study Module

Which of the following is not an economic agent?

All are economic agents

The opportunity cost of lying in the sun to get a tan is:

All of these are the opportunity cost.

Two events, A and B, tend to happen together, i.e, they are correlated. What would best describe their causation?

All these would describe their causation.

According to the rationality assumption, people:

Do not intentionally make decisions that would leave them worse off.

Which of the following is a positive economic statement?

If minimum wage rates rise, then unemployment will rise.

Which of these covers the study of topics such as inflation and unemployment?

Macroeconomics

__________ is the study of how households and businesses make choices, how they interact in markets, and how government influences their choices.

Microeconomics

Which of the following is not a possible opportunity cost of attending college?

The cost of housing

If the president of Columbia commented that "we should do something to reduce inflation in Columbia," this would be an example of:

a normative statement

Economic activities that are feasible have what characteristics:

affordable and available

Empiricism is:

analyzing data or evidence.

Facts, measurements, or statistics used to describe something specific are collectively known as:

data.

Analyzing data or evidence is called:

empiricism.

Macroeconomics can be used to understand all of the topics listed below, except:

how a consumer decides between the purchase of two different cars

"People are fundamentally good."

is a normative statement.

The measure of benefits minus costs is:

net benefit

Selecting the best feasible option among available manufacturing options is called:

optimization.

Macroeconomics is concerned with all of the following except:

political party affiliation

A free rider is a person who:

receives benefit from a good without paying for the good

Economics is the study of choice under conditions of:

scarcity

The principle of opportunity cost evolves from the concept of:

scarcity

Which of these is a macroeconomic study?

The study of how fast prices in general are rising.

Economics:

is concerned with how people respond to incentives

The optimal economic decision is to continue any activity, investing or otherwise, up to the point where:

marginal benefit equals marginal cost