Econ 002 Question Study Bank
CHAPTER 1 The situation when we face alternative choices is called abundance. True False
False
CHAPTER 1 An example of a positive statement is: The rate of unemployment is 4 percent. A high rate of economic growth is good for the country. Everyone in the country needs to be covered by national health insurance. Baseball players should not be paid higher salaries than the president of the United States.
The rate of unemployment is 4 percent.
CHAPTER 1 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 False
True
CHAPTER 1 The problem of scarcity is confronted by: industrialized societies. pre-industrialized societies. societies governed by communist philosophies. all societies.
all societies.
CHAPTER 1 A term that means "all other things unchanged" is: dependent variable. independent variable. quid pro quo. ceteris paribus.
ceteris paribus.
CHAPTER 1 The study of how people choose among the alternatives available to them is the: definition of economics. model of demand. theory of opportunity costs. method of distinguishing between microeconomics and macroeconomics.
definition of economics.
CHAPTER 1 Microeconomics is most likely to be concerned with the: economy as a whole. activity of large segments of the economy. economic behavior of specific parts or units of the economy. economy-wide trends in unemployment, prices, and production.
economic behavior of specific parts or units of the economy.
CHAPTER 1 A theory that has won virtually universal acceptance is a: model. hypothesis. law. variable.
law.
CHAPTER 1 The branch of economics that examines the impact of choices on aggregates in the economy is: positive economics. normative economics. macroeconomics. microeconomics.
macroeconomics.
CHAPTER 1 The economic way of thinking has to do with: analyzing benefits but not costs. analyzing costs but not benefits. making choices at the margin. making the distinction between microeconomics and macroeconomics.
making choices at the margin.
CHAPTER 1 Making choices that are expected to achieve the highest possible value for some objective is termed: maximizing. minimizing. sanitizing. satisfying.
maximizing.
CHAPTER 1 A key theme fundamental to all of economics is: there are limited wants. we are a rich country but are simply not aware of it. people have unlimited wants facing limited means to satisfy them. there are unlimited resources.
people have unlimited wants facing limited means to satisfy them.
CHAPTER 1 Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called: the scientific method. the economic way of thinking. making choices at the margin. the fallacy of false cause.
the fallacy of false cause.
CHAPTER 1 A systematic set of procedures through which knowledge is created is: the economy. the scientific method. a market. a model.
the scientific method.
CHAPTER 1 A hypothesis that has been tested extensively without being rejected and has won widespread acceptance is a: model. constant. variable. theory.
theory.
CHAPTER 1 A normative statement deals with: the facts. what was, is, or will be. what ought to be. the scientific method.
what ought to be.
CHAPTER 1 An answer to the question "For whom" determines: tastes and preferences. how resources are combined in production. the kinds and quantities of goods produced. who gets the goods and services produced.
who gets the goods and services produced.