Question 1

The sacrifice of an alternative is called:

Accepted Answer

A)   revenue.
B)   benefit.
C)   opportunity cost.
D)   production.

Question 2

Whenever a choice is made:

Accepted Answer

A)   the value of all the other choices that could have been made is called opportunity cost.
B)   normative economics is encountered.
C)   the problem of "all other things unchanged" results.
D)   the opportunity cost of that choice is the highest-valued other choice that could have been made.

Question 3

`Briefly define scarcity, choice, and opportunity cost and explain carefully how they are related and why they are so essential in the study of economics.

Accepted Answer

Scarcity refers to the limited availabil...

Question 4

Whenever a choice is made:

Accepted Answer

A)   the cost of that choice could be referred to as opportunity cost.
B)   the cost is easy to measure in dollar terms.
C)   a free good must be involved.
D)   scarcity is not the problem.

Question 5

Water is considered a scarce good rather than a free good because:

Accepted Answer

A)   it has alternative uses.
B)   it does not have alternative uses.
C)   scarce goods are less expensive than free goods.
D)   free goods are more expensive than scarce goods.

Question 6

Economists attempt to discover explanations for events that are observed.

Accepted Answer

A) True 
 B)False

Question 7

Define positive and normative statements and give four examples of each.

Accepted Answer

Positive statements are statements that ...

Question 8

In economics, the function of theories, laws, and hypotheses is to:

Accepted Answer

A)   prevent any misunderstanding of economic behavior.
B)   divide topics between microeconomics and macroeconomics.
C)   generate a complete and unchanging description of economic behavior.
D)   discover relationships between events that are important to economic behavior.

Question 9

Which of the following is most likely an example of a free good?

Accepted Answer

A)   Sand in aquarium
B)   Sand in the middle of a desert
C)   Sand in a children's sandbox
D)   Sand at the beach

Question 10

The statement that the minimum wage needs to be increased is a:

Accepted Answer

A)   positive statement.
B)   normative statement.
C)   condition contained in the fallacy of false cause.
D)   scientific conclusion based on marginal analysis.

Question 11

The three fundamental economic questions are what, how, and why.

Accepted Answer

A) True 
 B)False

Question 12

Macroeconomics is most likely to be concerned with the:

Accepted Answer

A)   amount of unemployment in a specific industry.
B)   economic behavior of a particular household.
C)   economic behavior of specific parts or units of the economy.
D)   aggregates in the economy.

Question 13

The statement that "there is no such thing as a free lunch" means:

Accepted Answer

A)   there are no tradeoffs between economic goals.
B)   any production requires the use of scarce resources, and thus the sacrifice of another alternative.
C)   choices need not be made in rational behavior.
D)   scarcity only exists in poor societies.

Question 14

Economics, generally speaking, is primarily concerned with:

Accepted Answer

A)   the operation of the bond and stock markets.
B)   the issues of income inequality or income equality.
C)   how people choose among the alternatives available to them.
D)   ceteris paribus, the scientific method, and the margin. C

Question 15

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Accepted Answer

A)   chemistry.
B)   economics.
C)   history.
D)   the humanities. A

Question 16

The value of the next-best choice not chosen is called opportunity cost.

Accepted Answer

A) True 
 B)False

Question 17

Positive statements can be tested for being true but they can't be proven false.

Accepted Answer

A) True 
 B)False

Question 18

Scarcity is determined by the existence of bad alternatives.

Accepted Answer

A) True 
 B)False

Question 19

The Case in Point on "baldness and heart disease" suggests that by preventing baldness:

Accepted Answer

A)   men can reduce the likelihood they will develop colon cancer.
B)   men are unlikely to influence their chances of having heart problems.
C)   men are likely to reduce their chances of having heart problems.
D)   men can live longer. B

Question 20

Statements that make value judgments are:

Accepted Answer

A)   pecuniary.
B)   positive.
C)   nominal.
D)   normative.

Exam 1: Economics: the Study of Choice

The sacrifice of an alternative is called:

Correct AnswerverifiedShow Answer

Whenever a choice is made:

Correct AnswerverifiedShow Answer

`Briefly define scarcity, choice, and opportunity cost and explain carefully how they are related and why they are so essential in the study of economics.

Correct AnswerAnswered by ExamLex AIScarcity refers to the limited availabil...View AnswerShow Answer

Whenever a choice is made:

Correct AnswerverifiedShow Answer

Water is considered a scarce good rather than a free good because:

Correct AnswerverifiedShow Answer

Economists attempt to discover explanations for events that are observed.

Correct AnswerverifiedShow Answer

Define positive and normative statements and give four examples of each.

Correct AnswerAnswered by ExamLex AIPositive statements are statements that ...View AnswerShow Answer

In economics, the function of theories, laws, and hypotheses is to:

Correct AnswerverifiedShow Answer

Which of the following is most likely an example of a free good?

Correct AnswerverifiedShow Answer

The statement that the minimum wage needs to be increased is a:

Correct AnswerverifiedShow Answer

The three fundamental economic questions are what, how, and why.

Correct AnswerverifiedShow Answer

Macroeconomics is most likely to be concerned with the:

Correct AnswerverifiedShow Answer

The statement that "there is no such thing as a free lunch" means:

Correct AnswerverifiedShow Answer

Economics, generally speaking, is primarily concerned with:

Correct AnswerverifiedC

The use of controlled experiments using particular substances to test hypotheses is most likely to be found in:

Correct AnswerverifiedA

The value of the next-best choice not chosen is called opportunity cost.

Correct AnswerverifiedShow Answer

Positive statements can be tested for being true but they can't be proven false.

Correct AnswerverifiedShow Answer

Scarcity is determined by the existence of bad alternatives.

Correct AnswerverifiedShow Answer

The Case in Point on "baldness and heart disease" suggests that by preventing baldness:

Correct AnswerverifiedB

Statements that make value judgments are:

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
Scarcity refers to the limited availabil...
View Answer

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Answered by ExamLex AI
Positive statements are statements that ...
View Answer

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C

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A

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B

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