Top hat 1.1 Econ 1110

Which of the following is a positive statement?

Many colleges and universities charge students and faculty to park on campus.

The basic economic questions that must be addressed by society include:

Scarcity forces society to address all of the above economic questions. (what outputs should be produced?) (how should outputs be produced?) (who gets to consume the outputs produced?)

A good economic theory or model:

does a good job explaining an economic relationship or predicting outcomes.

Macroeconomics studies the:

reasons for unemployment and inflation in the entire country.

When resources are not freely available in amounts sufficient to satisfy all desired uses for them:

scarcity exists and decisions must be made about how to allocate limited resources among competing uses.

Employees in the defense industry have greater job security and higher pay when the country is engaged in major military conflicts, therefore it is good for the country to be involved in military conflicts is an example of:

the fallacy of composition.

The federal government should provide basic health care services for all U.S. citizens is an example of:

a normative macroeconomic statement.

Economics is:

a social science that studies how choices are made and the consequences of those choices.

An introductory course in microeconomics is likely to study:

the pricing decisions of convenience store owners.

Opportunity cost is:

the value of the best alternative that must be given up when a choice is made.