Question 1

Michigan has an abundant supply of fresh water. However, an economist would consider it a scarce resource because

Accepted Answer

A)  water is necessary for humans' physical survival
B)  pollution will eventually destroy all life in the Great Lakes
C)  water is limited relative to people's unlimited wants
D)  water commands a very high price
E)  nature can destroy water as well as create it

Question 2

Economics is the study of

Accepted Answer

A)  how the human race differs from other species
B)  how individuals amass personal fortunes in the stock market
C)  how individuals and nations deal with the problem of scarcity
D)  role that money plays in the economy
E)  how goods and services are distributed throughout the world

Question 3

Economists believe that individuals respond in a predictable way to changes in costs and benefits. The term that best describes this belief is

Accepted Answer

A)  opportunity cost
B)  demand
C)  supply
D)  scarcity
E)  rational behavior

Question 4

Economics employs a scientific methodology. In part, this means that

Accepted Answer

A)  all economic laws have been proven true by laboratory tests
B)  there is a single economic theory accepted by all economists
C)  economic hypotheses are tested to determine their validity
D)  personal values never enter into economic policy recommendations
E)  assumptions are not necessary in economic science

Question 5

Resources are used only in the production of goods, not services.

Accepted Answer

A) True 
 B)False

Question 6

Economists believe that

Accepted Answer

A)  people who choose to promote the interests of others cannot be acting rationally in their own self-interest
B)  people show concern only for those whom they know personally
C)  charitable donations would disappear if tax deductions for charitable giving were eliminated
D)  the notion of self-interest rules out concern for others
E)  concern for the welfare of others is consistent with the concept of self-interest

Question 7

Step one in the scientific method is

Accepted Answer

A)  formulate a hypothesis
B)  reflect an opinion
C)  specify assumptions
D)  identify the question and define relevant variables
E)  test the hypothesis

Exam 1: The Art and Science of Economic Analysis

Economists believe that

Correct Answer
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Resources are used only in the production of goods, not services.

Correct Answer
verified

Michigan has an abundant supply of fresh water. However, an economist would consider it a scarce resource because

Correct Answer
verified

Economics is the study of

Correct Answer
verified

Step one in the scientific method is

Correct Answer
verified

Economics employs a scientific methodology. In part, this means that

Correct Answer
verified

Economists believe that individuals respond in a predictable way to changes in costs and benefits. The term that best describes this belief is

Correct Answer
verified

Exam 1: The Art and Science of Economic Analysis

Economists believe that

Correct AnswerverifiedShow Answer

Resources are used only in the production of goods, not services.

Correct AnswerverifiedShow Answer

Michigan has an abundant supply of fresh water. However, an economist would consider it a scarce resource because

Correct AnswerverifiedShow Answer

Economics is the study of

Correct AnswerverifiedShow Answer

Step one in the scientific method is

Correct AnswerverifiedShow Answer

Economics employs a scientific methodology. In part, this means that

Correct AnswerverifiedShow Answer

Economists believe that individuals respond in a predictable way to changes in costs and benefits. The term that best describes this belief is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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