Economics

The problem of determining how goods and services should be produced is a problem of deciding:

the best combinations of resources to be used for producing goods and services

The incorrect presumption that because two events tend to occur together, one must cause the other is the:

fallacy of false cause.

Individuals will usually make choices to minimize the value of some objective.

False

The economic way of thinking pays special attention to costs, assumes individuals seek to maximize some objective, and focuses on choices at the margin.

True

One question that arises when determining for whom goods and services should be produced is

Who gets how much of the economic pie?

Macroeconomics is most likely to be concerned with the:

aggregates in the economy.

An example of a positive statement is:

an increase in investment spending tends to reduce unemployment..

A model or theory in economics is:

built using relevant observations, assumptions, and abstractions

Microeconomics is most likely to be concerned with the:

economic behavior of specific parts or units of the economy

A tradeoff between two economic goals means that:

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

A variable that induces a change in another variable is a(n):

independent variable.

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

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

A key theme fundamental to all of economics is:

people have unlimited wants facing limited means to satisfy them.

A normative statement deals with:

what ought to be.