Question 1

A term that means "all other things unchanged" is:

Accepted Answer

A)   dependent variable.
B)   independent variable.
C)   quid pro quo.
D)   ceteris paribus.E) C) and D)
F) A) and B)

Question 2

The basic concern of economics is to:

Accepted Answer

A)   keep business firms from losing money.
B)   prove that capitalism is better than socialism.
C)   study the choices people make.
D)   use unlimited resources to produce goods and services to satisfy limited wants.E) A) and B)
F) A) and D)

Question 3

Unemployment and inflation are:

Accepted Answer

A)   not relevant in the U.S.economy today.
B)   major topics in macroeconomics.
C)   unique only to capitalistic economies.
D)   very important in the study of microeconomics.E) B) and C)
F) None of the above

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.E) None of the above
F) All of the above

Question 5

Economists are:

Accepted Answer

A)   concerned with developing theories but not interested in solving problems.
B)   interested in solving problems but not concerned with developing theories.
C)   reluctant to predict changes in variables such as prices, employment, and spending.
D)   not always in agreement on the best way to implement policy decisions.E) A) and B)
F) All of the above

Question 6

Macroeconomics deals with:

Accepted Answer

A)   bits and pieces of the economy.
B)   the question of how a business unit should operate profitably.
C)   the analysis of the aggregate values in the economy.
D)   ceteris paribus.E) C) and D)
F) All of the above

Question 7

Microeconomics deals with:

Accepted Answer

A)   the working of the entire economy or large sectors of it.
B)   employment, growth, and inflation.
C)   individual units in the economy.
D)   normative economics for the most part.E) B) and D)
F) None of the above

Question 8

Microeconomics is most likely to be concerned with the:

Accepted Answer

A)   economy as a whole.
B)   activity of large segments of the economy.
C)   economic behavior of specific parts or units of the economy.
D)   economy-wide trends in unemployment, prices, and production.E) A) and B)
F) A) and C)

Question 9

The scientific method is more difficult for economists than, say, chemists, because:

Accepted Answer

A)   controlled laboratory conditions are more problematic in economics.
B)   it is difficult to hold other factors that may affect the variables being studied constant in economics.
C)   economic conditions may change quickly and unexpectedly.
D)   all of the above.E) A) and D)
F) B) and D)

Question 10

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

Accepted Answer

A)   microeconomics.
B)   macroeconomics.
C)   specific units or parts of the economy.
D)   the "trees" of economic behavior, rather than the "forest."E) A) and D)
F) A) and C)

Question 11

The economic way of thinking includes:

Accepted Answer

A)   attention paid to the opportunity costs involved in any choice.
B)   the assumption that individuals choose to average out some objective.
C)   concern with the biological make up of decision makers.
D)   emphasis on how choices affect total values rather than marginal values.E) C) and D)
F) A) and D)

Question 12

A free good is one that can be acquired without sacrifice.

Accepted Answer

A) True 
 B)False

Question 13

The opportunity cost of going to a movie is:

Accepted Answer

A)   the money spent on the ticket only.
B)   all of the other movies that could have been seen instead.
C)   the time spent in the theater only.
D)   the next best use of the time and the money spent.E) All of the above
F) B) and C)

Question 14

According to the text, which of the following is true?

Accepted Answer

A)   Scientists can prove a hypothesis is true.
B)   Scientists can show that a hypothesis is false.
C)   Economists really don't try to use the scientific method.
D)   None of the above is true.E) All of the above
F) None of the above

Question 15

Although water is very abundant in most places, it is scarce because:

Accepted Answer

A)   it has no alternative uses.
B)   it has two or more alternative uses.
C)   it is a free good and not expensive.
D)   scarce goods in general are not all that costly.E) B) and C)
F) A) and D)

Question 16

A model or theory in economics is:

Accepted Answer

A)   based mostly on value judgments.
B)   built using relevant observations, assumptions, and abstractions.
C)   only useful if it correctly portrays the real world and its complexities.
D)   useful only if it is based on normative economic statements.E) All of the above
F) None of the above

Question 17

The current rate of unemployment is 5 percent.This statement:

Accepted Answer

A)   is positive.
B)   is normative.
C)   involves a value judgment.
D)   is a personal reflection and has no value in economics.E) B) and D)
F) A) and B)

Question 18

Positive statements:

Accepted Answer

A)   imply value judgments must be made.
B)   are factual and can be tested.
C)   deal with what ought to be.
D)   are dealt with primarily in microeconomics.E) A) and B)
F) A) and C)

Question 19

The branch of economics that examines the choices of consumers and firms is:

Accepted Answer

A)   positive economics.
B)   normative economics.
C)   macroeconomics.
D)   microeconomics.E) A) and D)
F) A) and C)

Question 20

Explain how and why the concept of "all other things unchanged" is so important in the study of economics.

Accepted Answer

The concept of "all other things unchang...

Exam 1: Economics: The Study of Choice

Positive statements:

Correct AnswerverifiedShow Answer

The opportunity cost of going to a movie is:

Correct AnswerverifiedShow Answer

Whenever a choice is made:

Correct AnswerverifiedShow Answer

Unemployment and inflation are:

Correct AnswerverifiedShow Answer

Although water is very abundant in most places, it is scarce because:

Correct AnswerverifiedShow Answer

A model or theory in economics is:

Correct AnswerverifiedShow Answer

The branch of economics that examines the choices of consumers and firms is:

Correct AnswerverifiedShow Answer

The economic way of thinking includes:

Correct AnswerverifiedShow Answer

The basic concern of economics is to:

Correct AnswerverifiedShow Answer

Microeconomics is most likely to be concerned with the:

Correct AnswerverifiedShow Answer

Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:

Correct AnswerverifiedShow Answer

Macroeconomics deals with:

Correct AnswerverifiedShow Answer

A term that means "all other things unchanged" is:

Correct AnswerverifiedShow Answer

Microeconomics deals with:

Correct AnswerverifiedShow Answer

The current rate of unemployment is 5 percent.This statement:

Correct AnswerverifiedShow Answer

Economists are:

Correct AnswerverifiedShow Answer

A free good is one that can be acquired without sacrifice.

Correct AnswerverifiedShow Answer

Explain how and why the concept of "all other things unchanged" is so important in the study of economics.

Correct AnswerAnswered by ExamLex AIThe concept of "all other things unchang...View AnswerShow Answer

According to the text, which of the following is true?

Correct AnswerverifiedShow Answer

The scientific method is more difficult for economists than, say, chemists, because:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The concept of "all other things unchang...
View Answer

Correct Answer
verified

Correct Answer
verified