Econ quiz 1

A systematic set of procedures through which knowledge is created is:

The scientific method

Macroeconomics is most likely to be concerned with the:

Aggregates in the economy

The primary emphasis on macroeconomics is on

Aggregates in the economy

The problem of scarcity is confronted by:

All societies.

An example of a positive statement is:

An increase in investment spending will reduce unemployment

Economics are:

Concerned with developing theories and interested in solving problems

The problem of determining what goods and services society should produce:

Exists because there are not enough resources to provide all the goods and services that people want to purchase

Many disagreements among economists result because:

Economists sometimes have different opinions on what should be

The economic way of thinking includes:

Emphasis on how choices are made at the margin.

In the 1930s, the federal government established the Social Security system to provide a minimum level of income to elderly and disabled people. This primarily address the economic question of:

For whom shall the goods be produced?

In the 1970s, the organization of petroleum exporting countries (OPEC) tripled the price of petroleum, causing automobile manufacturers to look for ways to produce more fuel-efficient cars by substituting aluminum and plastic for steel. This is primary response to the economic question of:

How should goods and services be produced?

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

Independent variable

The statement that the minimum wage should be increased is a:

Normative statement

A key theme fundamental to all economics is:

People have unlimited wants facing limited means to satisfy them

A hypothesis is an assertion that can be:

Proven to be false

The problem of determining what goods and services society should produce exists because:

Resources are scarce

A high price for a resource implies that it is:

Scarce

The opportunity cost of something is:

What is given up to acquire it

A normative statement deals with:

What ought to be

An answer to the question "For whom" determines:

Who gets the goods and services produced