SSC102_OBJ_Questions.txt
[MAX]200[/MAX]
[QUESTIONS]
<1>An incentive
<2>The most fundamental economic problem is
<3>Economics is best defined as the study of how people, businesses, governments, and societies
<4>Economists point out that scarcity confronts
<5>Scarcity requires that people must
<6>As an economic concept, scarcity applies to
<7>Which is the most accurate definition of the study of economics? Economics is the study of
<8>Which of the following is a macroeconomic topic?
<9>Which of the following is a microeconomic topic?
<10>Microeconomics focuses on all of the following EXCEPT
<11>In broad terms the difference between microeconomics and macroeconomics is that
<12>Studying the determination of prices in individual markets is primarily a concern of
<13>The analysis of the behavior of individual decision-making units is the definition of
<14>Which of the following topics would be studied in a microeconomics course?
<15>Which of the following is a macroeconomic issue?
<16>Which of the following is an issue in macroeconomics?
<17>Macroeconomic topics include
<18>Macroeconomics is the branch of economics that studies
<19>When an economy produces more houses and fewer typewriters, it is answering the ____ question.
<20>When firms in an economy start producing more computers and fewer televisions, they are answering the ____ question.
<21>U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the ____ question.
<22>The question “Should movies or compact discs be produced?” is an example of the
<23>Which of the following statements is correct?
<24>Which of the following is correct concerning production in the United States?
<25>When China builds a dam using few machines and a great deal of labor, it is answering the ____ question.
<26>When a textile company keeps track of its inventory using a computer and its competitor uses a spreadsheet and pencil, they are both answering the ____ question.
<27>Human capital is
<28>Entrepreneurs do all of the following EXCEPT
<29>To answer the “for whom” question, we study
<30>The fact that people with higher incomes get to consume more goods and services addresses the ____ question.
<31>Which of the following is NOT a factor of production?
<32>Which of the following is NOT a factor of production?
<33>An autoworker is considered ____ and earns ____.
<34>Overtime worked by a JCPenney associate is considered ____ and earns ____.
<35>When a university decides to add to the football stadium instead of adding to the baseball stadium, it faces the
<36>When a farmer decides to increase the amount of acreage devoted to wheat and grow fewer acres of soybeans, the farmer is facing the
<37>When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the
<38>The “how” tradeoff occurs when
<39>When the government decides to provide tax relief for small businesses while placing higher taxes on large corporations, it is facing the
<40>Because we face scarcity, every choice involves
<41>The term used to emphasize that making choices in the face of scarcity involves a cost is
<42>The loss of the highest-valued alternative defines the concept of
<43>Opportunity cost means
<44>The opportunity cost of any action is
<45>The opportunity cost of something you decide to get is
<46>The ultimate cost of any choice is
<47>During the summer you have made the decision to attend summer school, which precludes you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. The opportunity cost of attending summer school is
<48>On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
<49>You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is
<50>When an action is chosen, the highest-valued alternative NOT chosen is called the
<51>The term “opportunity cost” points out that
<52>During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book
<53>Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is
<54>Which of the following is NOT an example of an opportunity cost?
<55>From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is
<56>When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of
<57>Marginal benefit is the benefit
<58>The benefit that arises from an increase in an activity is called
<59>Marginal cost is the cost
<60>Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares
<61>In economics, positive statements are about
<62>A positive statement is
<63>A positive statement is
<64>A positive statement
<65>Which of the following are true regarding “positive” statements?
I. They describe what “ought to be.”
II. They describe what is believed about how the world appears.
III. They can be tested as to their truthfulness.
<66>Positive and normative statements differ in that
<67>Which of the following is an example of a positive statement?
<68>Which of the following is an example of a positive statement?
<69>Which of the following is a positive statement?
<70>When Al makes the statement, “The cost of living has increased 10 percent over the past 10 years,” he is
<71>Which of the following is a positive statement?
<72>The statement “Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10” is
<73>The statement “An increase in the price of gasoline will lead to a decrease in the amount purchased” is
<74>Which of the following is a positive statement?
<75>Which of the following is a positive statement?
<76>The statement “The unemployment rate for teens is higher than that for adults” is
<77>The statement “Prices rise more in countries with rapid growth in the money supply” is
<78>Statements about what ought to be are called
<79>Normative statements are statements about
<80>A normative statement is
<81>In economics, normative statements are about
<82>Which of the following is a normative statement?
<83>Which of the following is a normative statement?
<84>“Government should act to reduce poverty levels.”
<85>When Susan makes the statement, “The government should spend less money to take care of national parks,” she is
<86>“All children should have health insurance” is a
<87>“The rich should pay higher income tax rates than the poor” is an example of a
<88>Which of the following is a normative statement?
<89>Which of the following is a normative statement?
<90>Which of the following is an example of a normative statement?
<91>Which of the following is a normative statement?
<92>Suppose that an economist tells you that people in the United States do not save enough out of their incomes. This is an example of ____ statement.
<93>The task of economic science is to discover ____ that are consistent with ____.
<94>Economic models
<95>Economic models
<96>An economic theory is
<97>Three steps that economists take to discover how the economic world works are
<98>The birth of economics as an intellectual discipline can be dated fairly precisely in the eighteenth century with
<99>Who wrote The Wealth of Nations?
<100>Adam Smith wrote the book
<101>The author of the book The Wealth of Nations is
<102>Allowing only one factor to vary at any given time, keeping all other factors constant, is using the technique of
<103>Holding all variables except one constant and assessing the impact of the one variable which has changed is an example of using
<104>Ceteris paribus is the Latin expression for
<105>The expression that means “other things being equal” is
<106>The Latin term “ceteris paribus” means
<107>“Ceteris paribus” means
<108>The term “ceteris paribus” means
<109>“Ceteris paribus” means
<110>When economists study the effects of unemployment insurance on the unemployment rate by comparing the United States with Canada, they assume that other conditions in the two economies do not differ significantly. This procedure is an example of
<111>The fallacy of composition is evident in which of the following statements?
<112>The fallacy of composition is the false belief that
<113>The fallacy of composition is the (false) statement that
<114>The fallacy of composition is the
<115>A farmer grazes two cows on one acre of land. To increase total milk yield, he purchases two more cows and allows all four cows to graze on his land. Unfortunately the cows overgraze on his land and the food supply to the cows is reduced, which causes the total milk yield of the four cows to fall below that achieved when only two cows were grazed. The farmer has fallen prey to
<116>Because total income in the United States has increased over time, everyone’s total income has increased as well. This incorrect argument is an example of
<117>The fallacy of composition is
<118>“Hunting limits on deer help ensure a constant population. Therefore, if I only hunt to my limit, there will be sufficient deer for all.” This statement is an example of a possible
<119>To better see a football game, one spectator stands. Assuming that everyone trying to get a good view of the game can also stand represents an example of the
<120>The post hoc fallacy is the error of reasoning
<121>You are not surprised that it has started to rain. After all, a hour ago you just finished washing your car. Your reasoning is an example of
<122>The post hoc, ergo propter hoc fallacy is
<123>A rooster crows and then the sun rises. The rooster thinks that the sun rises because he crows. And he is very proud of it. The rooster falls prey to
<124>“Every time I go to a basketball game, our team wins.” This statement is an example of
<125>An economic expansion follows a stock market boom. A cautious economist would not claim that the stock market caused the expansion because the economist wants to avoid
<126>Most economists agree that
<127>The fact that wants cannot be fully satisfied with available resources reflects the definition of
<128>Studying the effects choices have on the individual markets within the economy is part of
<129>Which of the following is NOT part of the first big economic question?
<130>The question, “Should Taco Bell produce more tacos or more burritos?” is an example of the
<131>The fact that KFC decides to produce chicken rather than meatloaf best reflects ____ tradeoff.
<132>From 8 P.M to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn’t, she would otherwise have talked with friends. The opportunity cost of attending the movie is
<133>When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of
<134>A normative statement is
<135>Which of the following is a positive statement?
<136>An economic model includes
<137>The Latin term ceteris paribus means
<138>One student in a football stadium with 30,000 students can see the game better if he or she stands up. Assuming that all 30,000 students can each see the game better if they all stand is an example of the
<139>The post hoc fallacy is the
<140>Economics can be defined as the social science that explains the ____.
<141>Scarcity is a situation in which ____.
<142>Microeconomics is the study of ____.
<143>Factors of production include all of the following EXCEPT ____.
<144>The income earned by the people who sell the services of the factor of production ____ is called ____.
<145>When the government chooses to spend the tax dollars that it collects on homeland security, its choice ____.
<146>Making a choice at the margin means ____.
<147>Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months, ____.
<148>If the cost of a computer falls by a large amount, you have an incentive to ____.
<149>The statement that ____ is a positive statement.
<150>The task of economic science is to ____.
<151>Economists make progress by ____.
<152>The term ceteris paribus means ____.
<153>Which statement is an example of the post hoc fallacy?
<154>The statement that ____ is an example of the fallacy of composition.
<155>In criticizing the wealth based definition of Economics, who referred to Economics as a "Gospel of Mammon"
<156>"Economics is the study of mankind in the ordinary business of life..." was defined by
<157>J.B Say defined Economics as
<158>Adams Smiths defined Economics as an inquiry into the nature and causes of the wealth of Nations in
<159>In economic theory, the principal owner of factors of production is
<160>If the price level of a country was 100 in 2016 and 102 in 2017, the inflation rate was
<161>Economics deals primarily with the concept of
<162>Normative Economics is NOT characterized by ----------
<163>Making of economic policies and decisions belong to the realm of Normative Economics
<164>--------- is a systematic body of knowledge that can be ascertained through observation and experimentation.
<165>The concept of Ethical Standards and norms of Fairness is more pronounced in positive Economics.
<166>The type of inflation caused by excess demand over supply is
<167>__________ will occur in an economy if the governments mistakenly increase the price of goods
<168>The study of the behaviour of individual decision making units is the study of
<169>Which of the following is a passive factor of production?
<170>The higher the price, the higher the quantity supplied
<171>Market failure arises from all But one of the following
<172>In the real world, 100% employment is possible
<173>The Cliché, “Too much money chasing few goods“ is a description of________
<174>A centrally planned economic system provides solutions to economic problems through the __________
<175>At zero prices, the quantity demanded of a free good usually _______ the quantity supplied
<176>Monetary policies are enacted by the government through the
<177>A trained medical doctor workingas a cleaner in a hospital can be said to be ……………… unemployed.
<178>Economics definitions can be broadly divided into ____ kinds
<179>The two types of economics definitions are
<180>____ defined Economics as an enquiry into the nature and causes of wealth of
nations.
<181>The book “The wealth of nations” was written by ____
<182>The factors responsible for the expansion of wealth are the ____ focus of Adams Smith definition.
<183>Adams Smith did not consider the sharing or distribution of resources.
<184>Adams Smith basically emphasized on production.
<185>____ shifted the emphasis on production and expansion of wealth to the distribution of wealth.
<186>____ said economics is concerned with the law that govern distribution of national output.
<187>____ defined economics as the study of the laws which govern wealth.
<188>J.B Say is a/an _____ economist
<189>F.A Walker's is a/an _____ economist
<190>_____ defined economics as the body of knowledge which relate to wealth.
<191>Alfred Marshall belongs to the group of ____ economists.
<192>___ defined Economics as the study of mankind in the ordinary business of life.
<193>Alfred Marshall’s contributions to economics was to lay emphasis on man and his welfare.
<194>______ separated economics from politics.
<195>Lionel Robbins is a distinguished ___ economist.
<196>Economics is related to those activities which promote social welfare and also
include socially undesirable activities like robbery, prostitution, corruption,
Advanced free fraud (419), constitutional vices etc.
<197>The definition of economics by Alfred Marshall suffered two main criticism put forward by
<198>Robbins scarcity definition of economics was put forward in his book titled
<199>____ refers to the various human want in the society.
<200>Ends are unlimited and are of varying importance.
[/QUESTIONS]
[OPTIONS]
<1>could be a reward but could not be a penalty.
could be a penalty but could not be a reward.
could be either a reward or a penalty.
is the opposite of a tradeoff.
<2>security.
scarcity.
health.
the fact the United States buys more goods from foreigners than we sell to foreigners.
<3>choose abundance over scarcity.
make choices to cope with scarcity.
use their infinite resources.
attain wealth.
<4>neither the poor nor the rich.
the poor but not the rich.
the rich but not the poor.
both the poor and the rich.
<5>cooperate.
compete.
trade.
make choices.
<6>both money and time.
money but not time.
time but not money.
neither time nor money.
<7>the distribution of surplus goods to those in
need.
affluence in a morally bankrupt world.
the choices we make because of scarcity.
ways to reduce wants to eliminate the problem of scarcity.
<8>The reasons for a rise in the price of orange
juice.
The reasons for the rise in average prices.
Why plumbers earn more than janitors.
Whether the army should buy more tanks or more rockets.
<9>The reasons why Kathy buys less orange juice.
The reasons for a decline in average prices.
The cause of why total employment may decrease.
The effect of the government budget deficit on inflation.
<10>the purchasing decisions that an individual consumer makes.
the effect of increasing the money supply on in-
flation.
the hiring decisions that a business makes.
the effect of an increase in the tax on cigarettes on cigarette sales.
<11>they use different sets of tools and ideas.
microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.
macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not.
microeconomics studies the effects of government taxes on the national unemployment rate.
<12>positive economics.
negative economics.
macroeconomics.
microeconomics.
<13>microeconomics.
positive economics.
macroeconomics.
normative economics.
<14>How a trade agreement between the United States and Mexico affects both nations’ unemployment rates.
Comparing inflation rates across countries.
How rent ceilings impact the supply of apartments.
How a tax rate increase will impact total production.
<15>How a rise in the price of sugar affects the market for sodas.
How federal government budget deficits affect interest rates.
What determines the amount a firm will produce.
The cause of a decline in the price of peanut butter.
<16>the purchasing decisions that an individual consumer makes
the effect of increasing the money supply on inflation
the hiring decisions that a business makes
the effect of an increase in the tax on cigarettes on cigarette sales
<17>total, nationwide employment.
studying what factors influence the price and quantity of automobiles.
studying the determination of wages and production costs in the software industry.
the impact of government regulation of markets.
<18>prices of individual goods.
the way individual markets work.
the economy as a whole.
important, as opposed to trivial, issues.
<19>“what”
“how”
“where”
“for whom”
<20>“when”
“for whom”
“what”
“where”
<21>“what”
“how”
“when”
“how many”
<22>“what” question.
“how” question.
“where” question.
“for whom” question.
<23>The United States produces more goods than services.
The United States produces more services than goods.
The percentage of people producing goods in the United States has steadily increased over the last 60 years.
The United States produces an equal amount of goods and services.
<24>The percentage of people employed in farming has decreased over the last 60 years.
The percentage of people employed in manufacturing has increased over the last 60 years.
The percentage of people employed in construction has increased over the last 60 years.
The percentage of people employed in services has decreased over the last 60 years.
<25>“what”
“how”
“where”
“for whom”
<26>“what”
“how”
“for whom”
“where”
<27>all capital owned by individuals, but not by corporations or governments.
all capital owned by individuals or corporations, but not by governments.
machinery that meets or exceeds federal safety standards for use by humans.
the skill and knowledge of workers.
<28>organize labor, land, and capital.
come up with new ideas about what, how, when and where to produce.
bear risk from business decisions.
own all the other resources.
<29>the global economy.
income differences.
business cycles.
technological change.
<30>“for whom”
“when”
“where”
“how”
<31>the water used to cool a nuclear power plant.
the effort of farmers raising cattle.
the wages paid to workers.
the management skill of a small business owner.
<32>a new computer used by a small business owner.
the time worked by elementary school teachers.
a tractor used by a wheat farmer.
a share of stock issued by a firm.
<33>labor; rent.
entrepreneurship; wages.
labor; wages.
capital; rent.
<34>labor; wages.
entrepreneurship; profit.
human capital; interest.
labor; profit.
<35>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
macroeconomic question.
<36>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
microeconomic question.
<37>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
microeconomic question.
<38>a firm decides to produce refrigerators instead of dishwashers.
a farm uses machinery to pick oranges instead of employing migrant workers.
the government increases income taxes paid by the rich.
we answer the macroeconomic question.
<39>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
macroeconomic question.
<40>money
the question “what.”
giving up something for nothing.
an opportunity cost
<41>substitution cost.
opportunity cost.
utility cost.
accounting cost.
<42>marginal benefit.
scarcity.
entrepreneurship.
opportunity cost.
<43>the accounting cost minus the marginal cost.
the highest-valued alternative forgone.
the accounting cost minus the marginal benefit.
the monetary costs of an activity.
<44>all the possible alternatives forgone.
the highest-valued alternative forgone.
the time required but not the monetary cost.
the monetary cost but not the time required.
<45>all possible alternatives that you give up to get it.
the highest valued alternative you give up to get it.
the lowest valued alternative you give up to get it.
the amount of money you pay to get it.
<46>the dollars expended.
the highest-valued alternative forgone.
the after-tax cost.
what someone else would be willing to pay.
<47>$10,300.
$6,000.
$4,300.
$3,300.
<48>working out at the gym, having breakfast with friends, and sleeping late.
working out at the gym.
zero because you do not have to pay money to use the library.
not clear because not enough information is given.
<49>$2,000
$750
$2,750
$1,250
<50>implicit cost.
explicit cost.
accounting cost.
opportunity cost.
<51>there may be such a thing as a free lunch.
not all individuals will make the most of life’s opportunities because some will fail to achieve their goals.
executives do not always recognize opportunities for profit as quickly as they should.
any decision regarding the use of a resource involves a costly choice.
<52>is how much the book cost when it was purchased.
is the value of playing basketball if John prefers that to watching television.
is the value of playing basketball and the value of watching television.
equals how much John enjoys the book.
<53>Brand B plus Brand C.
twenty dollars.
Brand A.
Brand B or Brand C, depending on which is considered the highest-value alternative forgone.
<54>By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.
Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year.
Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
<55>going to the symphony and the basketball game.
going to the symphony.
going to the basketball game.
three hours of time.
<56>a market mechanism.
macroeconomics.
opportunity cost.
a fallacy of composition.
<57>that your activity provides to someone else.
of an activity that exceeds its cost.
that arises from the secondary effects of an activity.
that arises from an increase in an activity.
<58>the marginal benefit.
the marginal cost.
opportunity cost.
an incentive.
<59>that your activity imposes on someone else.
that arises from an increase in an activity.
of an activity that exceeds its benefit.
that arises from the secondary effects of an activity.
<60>the total revenue from sales of printers to the total cost of producing all the printers.
the extra revenue from selling a few additional printers to the extra costs of producing the printers.
the extra revenue from selling a few additional printers to the average cost of producing the additional printers.
HP’s printers to printers from competing companies, such as Lexmark.
<61>the way things ought to be.
the way things are.
macroeconomics, not microeconomics.
microeconomics, not macroeconomics.
<62>about what ought to be.
about what is.
the result of a model’s normative assumptions.
valid only in the context of a model with simple assumptions.
<63>about what ought to be.
about what is.
always true.
one that does not use the ceteris paribus clause.
<64>is an affirming statement that is strongly
worded.
is a statement of what ought to be.
is a statement of what is.
cannot be tested by checking it against the facts.
<65>I and II.
II and III.
I and III.
I, II and III.
<66>positive statements can be tested, whereas normative statements cannot.
normative statements can be tested, whereas positive statements cannot.
normative statements depict “what is” and positive statements depict “what ought to be.”
positive statements can be graphed, whereas normative statements cannot.
<67>Government should not redistribute income.
Business firms ought to contribute more to charities.
Households are the primary source of saving.
The foreign sector should be more tightly controlled.
<68>We should cut back on our use of carbon-based fuels such as coal and oil.
Increasing the minimum wage results in more unemployment.
Every American should have equal access to health care.
The Federal Reserve ought to cut the interest rate
<69>Taxes should be lower because then people get to keep more of what they earn, so they will work more.
My economics class should last for two terms because it is my favorite class.
A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
Given their negative impact on productivity, the government should eliminate labor unions.
<70>making a normative statement.
making a positive statement.
testing an economic model.
facing the standard of living tradeoff.
<71>State lotteries are good methods to use for raising revenues.
Increased prison sentences are the best way to reduce the crime rate.
An increase in gas prices leads people to carpool more.
Inflation is a more serious problem than is deflation.
<72>a political statement.
a positive statement.
a normative statement.
an ethical statement.
<73>a political statement.
a positive statement.
a normative statement.
a scientific statement.
<74>The government must lower the price of a pizza so that more students can afford to buy it.
The best level of taxation is zero percent because then people get to keep everything they earn.
My economics class should last for two terms because it is my favorite class.
An increase in tuition will cause fewer students to apply to college.
<75>Low rents will restrict the supply of housing.
Low rents are good because they make apartments more affordable.
Housing costs too much.
Owners of apartment buildings ought to be free to charge whatever rent they want.
<76>a political statement.
a positive statement.
a normative statement.
an ethical statement.
<77>a political statement.
a positive statement.
a normative statement.
an ethical statement.
<78>positive statements.
normative statements.
assumptions.
implications.
<79>prices.
quantities.
what is.
what ought to be.
<80>about what ought to be.
about what is.
always true.
one that does not use the ceteris paribus clause.
<81>the way things ought to be.
the way things are.
marginal benefits, not marginal costs.
marginal costs, not marginal benefits.
<82>The price of candy bars is $1.25 each.
Candy bars are more expensive than newspapers.
You should eat less candy.
Popcorn and candy are sold in movie theaters.
<83>The unemployment rate is too high.
Forty percent of the public believes that the un-
employment rate is too high.
The unemployment rate rose last month.
All of the above.
<84>This statement is a normative statement.
This statement is a positive statement.
This statement is an example of the fallacy of composition.
This statement is an example of the post hoc fallacy.
<85>making a normative statement.
making a positive statement.
testing an economic model.
facing the standard of living tradeoff.
<86>positive statement
normative statement
fallacy of composition
post hoc fallacy
<87>normative statement.
positive statement.
descriptive statement.
theoretical statement.
<88>Studying more hours leads to an increase in your GPA.
An increase in tax rates means people work fewer hours.
Taking extra vitamin C prevents catching a cold.
States should require all motorcycle riders to wear helmets to reduce the number of riders killed.
<89>Low rents will restrict the supply of housing.
Low rents are good because they make apartments more affordable.
Housing costs are rising.
Owners of apartment buildings are free to charge whatever rent they want.
<90>Household consumption is the largest component of spending.
Government spending rose in the 1990s.
The business sector is the primary source of jobs.
Households should save more.
<91>Next year’s inflation rate will be under 4 percent.
Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday.
The government’s cuts in welfare spending impose an unfair hardship on the poor.
The current butter surplus is the result of federal policies.
<92>an autonomous
a positive
a normative
a ceteris paribus
<93>positive statements; what we observe
normative statements; positive statements
positive statements; normative statements
ways to make money; the law
<94>are essentially different from those used in other
sciences.
always use graphs.
simplify reality.
include all relevant facts.
<95>do not address questions about the economy.
are better if they include most of the detail of the real economy.
rely on simplification.
make no assumptions that have not been proved.
<96>a generalization that summarizes what we understand about economic choices.
always a mathematical, or nonverbal, model.
usually more complex than the real world.
a positive statement that cannot use the ceteris paribus clause.
<97>speculation; observation and measurement; and, drawing conclusions.
observation and measurement; model building; and, testing models.
model building; speculation; and, revision.
data mining; data testing; and, drawing conclusions.
<98>the opening of the London stock exchange.
the publication of the book, The Wealth of Nations.
the introduction of paper currency.
the development of the factory system.
<99>Thomas Jefferson.
Karl Marx.
Adam Smith.
Michael Parkin.
<100>First Principles of Economics.
The Wealth of Nations.
Poverty and Progress.
The Dismal Science.
<101>James Madison.
Adam Smith.
Thomas Carlyle.
John Pierpont Morgan.
<102>post hoc.
ceteris paribus.
composition.
compensation.
<103>the ceteris paribus assumption.
normative economic analysis.
a flawed economic model.
an untestable proposition.
<104>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
the error of reasoning that a first event causes a second event because the first event occurred before the second event.
an expression that means “other things being equal.”
a statement about the way the economic world ought to be.
<105>The fallacy of composition.
the post hoc fallacy.
ceteris paribus.
normative economics.
<106>“false unless proven true”
“other things being equal”
“after this, therefore because of this”
“what is true of the whole is not necessarily true of the parts”
<107>what is
what ought to be
that which will be
other things being equal
<108>using market mechanisms.
the study of scarcity and choice.
value free and testable.
all other things remaining constant or equal.
<109>making all the necessary changes.
other things being equal.
for certain parameters.
let the buyer beware.
<110>the fallacy of composition.
the post hoc fallacy.
applying the ceteris paribus principle.
falling prey to the post composition fallacy.
<111>“X and Y go together, therefore X has caused Y.”
“What is bad for the Joneses is bad for the Smiths.”
“Technological progress helps everybody.”
“If each farmer works harder, all farmers will be richer.”
<112>what is true for the parts is also true for the whole.
because event A occurred before event B, event A caused event B.
because event A occurred after event B, event A caused event B.
the ceteris paribus condition does not apply.
<113>theories bridge models and the real world.
models can be positive without being normative.
what is true of the parts is true of the whole.
experiments can be designed to analyze human behavior.
<114>assertion that what is true for the parts of the whole must be true for the whole.
claim that one event caused another because the first event came first.
use of ceteris paribus in order to study the impact of one factor.
claim that the timing of two events has nothing to do with which event caused the other.
<115>the fallacy of composition.
the post hoc fallacy.
the ceteris paribus normative fallacy.
the marginal benefit/marginal cost fallacy.
<116>opportunity cost.
the fallacy of composition.
the post hoc fallacy.
voluntary exchange.
<117>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
the error of reasoning that a first event causes a second event because the first event occurred before the second event.
an expression that means “other things being equal.”
a statement about the way the economic world ought to be.
<118>ceteris paribus fallacy.
fallacy of composition.
post hoc fallacy.
normative statement.
<119>opportunity cost fallacy.
fallacy of composition.
fallacy of truth.
post hoc fallacy.
<120>from predictions to theories.
from models to predictions.
from cause and effect to models.
from timing to cause and effect.
<121>the ceteris paribus assumption.
the fallacy of composition.
the post hoc fallacy.
the distinction between positive and normative statements.
<122>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
the error of reasoning that a first event causes a second event because the first event occurred before the second event.
an expression that means “other things being equal.”
a statement about the way the economic world ought to be.
<123>his self interest
the post hoc fallacy
marginal thinking
the fallacy of composition
<124>ceteris paribus fallacy.
fallacy of composition.
post hoc fallacy.
a normative economic statement.
<125>the fallacy of composition, which is an error in reasoning from timing to cause and effect.
the post hoc fallacy, which is an error in reasoning from timing to cause and effect.
the fallacy of composition, which states that what is true of the parts is true of the whole.
the post hoc fallacy, which states that what is true of the parts is true of the whole.
<126>Tariffs and import restrictions make most people worse off.
A minimum wage increases unemployment among young workers and low-skilled workers.
Rent ceilings cut the availability of housing.
All of the above.
<127>the what tradeoff.
scarcity.
the big tradeoff.
for whom to produce.
<128>scarcity.
microeconomics.
macroeconomics.
incentives.
<129>What goods and services are produced?
How are goods and services produced?
For whom are goods and services produced?
Why do incentives affect only marginal costs?
<130>“what” question.
“how” question.
“where” question.
“for whom” question.
<131>a what
a how
a for whom
an incentive
<132>talking with friends and studying.
studying.
talking with friends.
two hours of time.
<133>an incentive.
a social interest/private interest conflict.
opportunity cost.
marginal benefit.
<134>about what ought to be.
about what is.
always true.
one that does not use the ceteris paribus clause.
<135>The government must provide health insurance so that the poor can obtain decent medical treatment.
The government should spend more on education.
My favorite dinner is pizza and soda.
An increase in the price of pizza will lead fewer students to buy pizza.
<136>post hoc statements.
no use of ceteris paribus.
all known details in order to increase its accuracy.
only details considered essential.
<137>“false for the whole, false for the parts.”
“other things the same.”
“true for the parts not necessarily true for the whole.”
“buyer beware.”
<138>fallacy of ceteris paribus.
fallacy of composition.
fallacy of large numbers.
post hoc fallacy.
<139>assertion that what is true for parts of the whole must be true for the whole.
claim that one event caused another because the one event came first.
incorrect use of ceteris paribus in order to study the impact of one factor.
claim that normative statements are less important than positive statements.
<140>choices made by politicians
choices we make when we trade in markets
choices that we make as we cope with scarcity
choices made by households
<141>some people are poor and others are rich
something is being wasted
we are unable to satisfy all our wants
long lines form at gas stations
<142>the choices that individuals and businesses make
all aspects of scarcity
the global economy
the national economy
<143>machines made in past years.
money
entrepreneurship
an wheat field that is not irrigated
<144>capital; rent
entrepreneurship; wages
land; profit
entrepreneurship; profit
<145>involves a tradeoff of other goods and services such as education for more homeland security
illustrates that scarcity does not always exist
involves no tradeoff because the defense is necessary
primarily affects who gets the goods and services produced.
<146>letting someone else choose for you
waiting until the last minute to make a choice
deciding to do a little bit more or a little bit less of an activity
making a choice by comparing the total benefit and the total cost
<147>your marginal cost of studying economics for an hour must have exceeded its marginal benefit
the marginal cost of studying economics must have fallen
your marginal benefit from studying economics an hour must have been greater than its marginal cost
the opportunity cost of studying economics must have risen.
<148>buy a new computer
take a shorter vacation
use your friend’s computer rather than buy one yourself
avoid buying anew computer because it is now less valuable
<149>more students should study economics
the price of gasoline is too high
too many people in the United States have no health care insurance
the price of sugar in the United States is higher than the price in Australia
<150>help us understand how the economic world works
tell us what is good for us
make moral choices about things like drugs
save the earth from the overuse of natural resources
<151>concentrating on clarifying all normative statements while disregarding positive statements
discarding normative statements that do not pass extensive testing
building and testing economic models
asking people whether they are better off or worse off
<152>other things being equal
equal access to public transportation
when other things all change
for better or worse
<153>Fans crowding into a college football stadium cause the football game to be played.
There should be equal access to public transportation.
The reason cows are not an endangered species is because many people eat beef.
Hold everything constant except the price of juice.
<154>the ceteris paribus fallacy cannot lead to the post hoc fallacy
all children should have equal access to good public transportation
end-of the-year holiday season shopping causes the holiday season
if one fan at a football can see better by standing, then all fans can see better if they all stand
<155>Karl Marx
John Lenin
Thomas Carlyle
Alfred Marshal
<156>Adams Smith
David Ricardo
J.BSay
Alfred Marshal
<157>The study of the law which govern wealth
The body of knowledge which relates to wealth
An inquiry into the nature and causes of the wealth of nations
The field of study involved with the distribution of wealth produced by the united application of factors of production.
<158>1905
1867
1776
1609
<159>Household
Landlord
Government
Firm
<160>20%
102%
2%
0.2%
<161>Scarcity
Poverty
Change
Power
<162>Objectivity
Valuejudgment
Recommendation
Fairness
<163>True
False
Partially true
Undecided
<164>Economics
Business
Theory
Science
<165>True
False
Partially true
Unknown
<166>Cost Push
Demand Pull
Demand Push
Cost Pull
<167>Surpluses
Shortages
Equilibrium
None of the above
<168>Microeconomics
Macroeconomics
positive economics
Normative economics
<169>Land
Capital
Neither land nor capital
A&B
<170>True
False
Not certain
None of the above
<171>Public goods
Equity
Corruption
Externalities
<172>True
False
Probably
Unknown
<173>Economic explosion
Inflation
Economic recession
Economic growth
<174>Consumers
Producers
Middlemen
State
<175>Falls short
equals
exceeds
doubles
<176>Federal ministry of finance
Central Bank of Nigeria
Nigerian Stock Exchange
Corporate Affairs Commission
<177>Tactically
Structurally
Frictionally
Disguised
<178>1
2
3
4
<179>Wealth/ Welfare and Scarcity based definitions
Wealth and welfare based definitions
Riches and welfare based definitions
Welfare and wealth based definitions
<180>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<181>Alfred Marshall, 1776
Adam Smith, 1676
Alfred Marshall, 1676
Adam Smith, 1776
<182>first
second
third
fourth
<183>true
false
A and B
none
<184>false
true
A and B
none
<185>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<186>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<187>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<188>English
German
French
Spanish
<189>English
German
French
American
<190>F.A Walker
Adam Smith
J.B Say
David Ricardo
<191>classical
neoclassical
A and B
none
<192>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<193>false
true
A and B
none
<194>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<195>American
English
French
German
<196>false
true
A and B
none
<197>Lionel Robbins
Adam Smith
J.B Say
David Ricardo
<198>An Essay on the nature and significance of economic science
An Essay on the nature and significance of political science
An Essay on the nature and significance of religious science
An Essay on the nature and significance of economists science
<199>scarcity
scale of preference
end
want
<200>false
true
A and B
none
[/OPTIONS]
[ANSWERS]
<1>could be either a reward or a penalty.
<2>scarcity.
<3>make choices to cope with scarcity.
<4>both the poor and the rich.
<5>make choices.
<6>both money and time.
<7>the choices we make because of scarcity.
<8>The reasons for the rise in average prices.
<9>The reasons why Kathy buys less orange juice.
<10>the effect of increasing the money supply on in-
flation.
<11>microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.
<12>microeconomics.
<13>microeconomics.
<14>How rent ceilings impact the supply of apartments.
<15>How federal government budget deficits affect interest rates.
<16>the effect of increasing the money supply on inflation
<17>total, nationwide employment.
<18>the economy as a whole.
<19>“what”
<20>“what”
<21>“what”
<22>“what” question.
<23>The United States produces more services than goods.
<24>The percentage of people employed in farming has decreased over the last 60 years.
<25>“how”
<26>“how”
<27>the skill and knowledge of workers.
<28>own all the other resources.
<29>income differences.
<30>“for whom”
<31>the wages paid to workers.
<32>a share of stock issued by a firm.
<33>labor; wages.
<34>labor; wages.
<35>“what” tradeoff.
<36>“what” tradeoff.
<37>“how” tradeoff.
<38>a farm uses machinery to pick oranges instead of employing migrant workers.
<39>“for whom” tradeoff.
<40>an opportunity cost
<41>opportunity cost.
<42>opportunity cost.
<43>the highest-valued alternative forgone.
<44>the highest-valued alternative forgone.
<45>the highest valued alternative you give up to get it.
<46>the highest-valued alternative forgone.
<47>$10,300.
<48>working out at the gym.
<49>$750
<50>opportunity cost.
<51>any decision regarding the use of a resource involves a costly choice.
<52>is the value of playing basketball if John prefers that to watching television.
<53>Brand B or Brand C, depending on which is considered the highest-value alternative forgone.
<54>Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
<55>going to the symphony.
<56>opportunity cost.
<57>that arises from an increase in an activity.
<58>the marginal benefit.
<59>that arises from an increase in an activity.
<60>the extra revenue from selling a few additional printers to the extra costs of producing the printers.
<61>the way things are.
<62>about what is.
<63>about what is.
<64>is a statement of what is.
<65>II and III.
<66>positive statements can be tested, whereas normative statements cannot.
<67>Households are the primary source of saving.
<68>Increasing the minimum wage results in more unemployment.
<69>A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
<70>making a positive statement.
<71>Inflation is a more serious problem than is deflation.
<72>a positive statement.
<73>a positive statement.
<74>An increase in tuition will cause fewer students to apply to college.
<75>Low rents will restrict the supply of housing.
<76>a positive statement.
<77>a positive statement.
<78>normative statements.
<79>what ought to be.
<80>about what ought to be.
<81>the way things ought to be.
<82>You should eat less candy.
<83>The unemployment rate is too high.
<84>This statement is a normative statement.
<85>making a normative statement.
<86>normative statement
<87>normative statement.
<88>States should require all motorcycle riders to wear helmets to reduce the number of riders killed.
<89>Low rents are good because they make apartments more affordable.
<90>Households should save more.
<91>The government’s cuts in welfare spending impose an unfair hardship on the poor.
<92>a normative
<93>positive statements; what we observe
<94>simplify reality.
<95>rely on simplification.
<96>a generalization that summarizes what we understand about economic choices.
<97>observation and measurement; model building; and, testing models.
<98>the publication of the book, The Wealth of Nations.
<99>Adam Smith.
<100>The Wealth of Nations.
<101>Adam Smith.
<102>ceteris paribus.
<103>the ceteris paribus assumption.
<104>an expression that means “other things being equal.”
<105>ceteris paribus.
<106>“other things being equal”
<107>other things being equal
<108>all other things remaining constant or equal.
<109>other things being equal.
<110>applying the ceteris paribus principle.
<111>“If each farmer works harder, all farmers will be richer.”
<112>what is true for the parts is also true for the whole.
<113>what is true of the parts is true of the whole.
<114>assertion that what is true for the parts of the whole must be true for the whole.
<115>the fallacy of composition.
<116>the fallacy of composition.
<117>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
<118>fallacy of composition.
<119>fallacy of composition.
<120>from timing to cause and effect.
<121>the post hoc fallacy.
<122>the error of reasoning that a first event causes a second event because the first event occurred before the second event.
<123>the post hoc fallacy
<124>post hoc fallacy.
<125>the post hoc fallacy, which is an error in reasoning from timing to cause and effect.
<126>All of the above.
<127>scarcity.
<128>microeconomics.
<129>Why do incentives affect only marginal costs?
<130>“what” question.
<131>a what
<132>talking with friends.
<133>opportunity cost.
<134>about what ought to be.
<135>An increase in the price of pizza will lead fewer students to buy pizza.
<136>only details considered essential.
<137>“other things the same.”
<138>fallacy of composition.
<139>claim that one event caused another because the one event came first.
<140>choices that we make as we cope with scarcity
<141>we are unable to satisfy all our wants
<142>the choices that individuals and businesses make
<143>money
<144>entrepreneurship; profit
<145>involves a tradeoff of other goods and services such as education for more homeland security
<146>deciding to do a little bit more or a little bit less of an activity
<147>your marginal benefit from studying economics an hour must have been greater than its marginal cost
<148>buy a new computer
<149>the price of sugar in the United States is higher than the price in Australia
<150>help us understand how the economic world works
<151>building and testing economic models
<152>other things being equal
<153>Fans crowding into a college football stadium cause the football game to be played.
<154>if one fan at a football can see better by standing, then all fans can see better if they all stand
<155>Thomas Carlyle
<156>Alfred Marshal
<157>The study of the law which govern wealth
<158>1776
<159>Household
<160>2%
<161>Scarcity
<162>Objectivity
<163>False
<164>Theory
<165>False
<166>Demand Pull
<167>Surpluses
<168>Microeconomics
<169>A&B
<170>True
<171>Corruption
<172>False
<173>Inflation
<174>State
<175>equals
<176>Central Bank of Nigeria
<177>Tactically
<178>2
<179>Wealth/ Welfare and Scarcity based definitions
<180>Adam Smith
<181>Adam Smith, 1776
<182>second
<183>true
<184>true
<185>David Ricardo
<186>David Ricardo
<187>J.B Say
<188>French
<189>American
<190>F.A Walker
<191>neoclassical
<192>Alfred Marshall
<193>true
<194>Alfred Marshall
<195>English
<196>false
<197>Lionel Robbins
<198>An Essay on the nature and significance of economic science
<199>end
<200>true
[/ANSWERS]
[QUESTIONS]
<1>An incentive
<2>The most fundamental economic problem is
<3>Economics is best defined as the study of how people, businesses, governments, and societies
<4>Economists point out that scarcity confronts
<5>Scarcity requires that people must
<6>As an economic concept, scarcity applies to
<7>Which is the most accurate definition of the study of economics? Economics is the study of
<8>Which of the following is a macroeconomic topic?
<9>Which of the following is a microeconomic topic?
<10>Microeconomics focuses on all of the following EXCEPT
<11>In broad terms the difference between microeconomics and macroeconomics is that
<12>Studying the determination of prices in individual markets is primarily a concern of
<13>The analysis of the behavior of individual decision-making units is the definition of
<14>Which of the following topics would be studied in a microeconomics course?
<15>Which of the following is a macroeconomic issue?
<16>Which of the following is an issue in macroeconomics?
<17>Macroeconomic topics include
<18>Macroeconomics is the branch of economics that studies
<19>When an economy produces more houses and fewer typewriters, it is answering the ____ question.
<20>When firms in an economy start producing more computers and fewer televisions, they are answering the ____ question.
<21>U.S. producers decide to produce more compact cars and fewer SUVs as the price of gasoline rises. Producers are answering the ____ question.
<22>The question “Should movies or compact discs be produced?” is an example of the
<23>Which of the following statements is correct?
<24>Which of the following is correct concerning production in the United States?
<25>When China builds a dam using few machines and a great deal of labor, it is answering the ____ question.
<26>When a textile company keeps track of its inventory using a computer and its competitor uses a spreadsheet and pencil, they are both answering the ____ question.
<27>Human capital is
<28>Entrepreneurs do all of the following EXCEPT
<29>To answer the “for whom” question, we study
<30>The fact that people with higher incomes get to consume more goods and services addresses the ____ question.
<31>Which of the following is NOT a factor of production?
<32>Which of the following is NOT a factor of production?
<33>An autoworker is considered ____ and earns ____.
<34>Overtime worked by a JCPenney associate is considered ____ and earns ____.
<35>When a university decides to add to the football stadium instead of adding to the baseball stadium, it faces the
<36>When a farmer decides to increase the amount of acreage devoted to wheat and grow fewer acres of soybeans, the farmer is facing the
<37>When a photographer decides to use a digital camera to take shots versus using film, the photographer is facing the
<38>The “how” tradeoff occurs when
<39>When the government decides to provide tax relief for small businesses while placing higher taxes on large corporations, it is facing the
<40>Because we face scarcity, every choice involves
<41>The term used to emphasize that making choices in the face of scarcity involves a cost is
<42>The loss of the highest-valued alternative defines the concept of
<43>Opportunity cost means
<44>The opportunity cost of any action is
<45>The opportunity cost of something you decide to get is
<46>The ultimate cost of any choice is
<47>During the summer you have made the decision to attend summer school, which precludes you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. The opportunity cost of attending summer school is
<48>On Saturday morning, you rank your choices for activities in the following order: go to the library, work out at the gym, have breakfast with friends, and sleep late. Suppose you decide to go to the library. Your opportunity cost is
<49>You decide to take a vacation and the trip costs you $2,000. While you are on vacation, you do not report to work where you could have earned $750. The opportunity cost of the vacation is
<50>When an action is chosen, the highest-valued alternative NOT chosen is called the
<51>The term “opportunity cost” points out that
<52>During the next hour John can play basketball, watch television, or read a book. The opportunity cost of reading a book
<53>Misty has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs ten dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is
<54>Which of the following is NOT an example of an opportunity cost?
<55>From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony. Then the opportunity cost of attending the hockey match is
<56>When the government chooses to use resources to build a dam, these sources are no longer available to build a highway. This choice illustrates the concept of
<57>Marginal benefit is the benefit
<58>The benefit that arises from an increase in an activity is called
<59>Marginal cost is the cost
<60>Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares
<61>In economics, positive statements are about
<62>A positive statement is
<63>A positive statement is
<64>A positive statement
<65>Which of the following are true regarding “positive” statements?
I. They describe what “ought to be.”
II. They describe what is believed about how the world appears.
III. They can be tested as to their truthfulness.
<66>Positive and normative statements differ in that
<67>Which of the following is an example of a positive statement?
<68>Which of the following is an example of a positive statement?
<69>Which of the following is a positive statement?
<70>When Al makes the statement, “The cost of living has increased 10 percent over the past 10 years,” he is
<71>Which of the following is a positive statement?
<72>The statement “Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10” is
<73>The statement “An increase in the price of gasoline will lead to a decrease in the amount purchased” is
<74>Which of the following is a positive statement?
<75>Which of the following is a positive statement?
<76>The statement “The unemployment rate for teens is higher than that for adults” is
<77>The statement “Prices rise more in countries with rapid growth in the money supply” is
<78>Statements about what ought to be are called
<79>Normative statements are statements about
<80>A normative statement is
<81>In economics, normative statements are about
<82>Which of the following is a normative statement?
<83>Which of the following is a normative statement?
<84>“Government should act to reduce poverty levels.”
<85>When Susan makes the statement, “The government should spend less money to take care of national parks,” she is
<86>“All children should have health insurance” is a
<87>“The rich should pay higher income tax rates than the poor” is an example of a
<88>Which of the following is a normative statement?
<89>Which of the following is a normative statement?
<90>Which of the following is an example of a normative statement?
<91>Which of the following is a normative statement?
<92>Suppose that an economist tells you that people in the United States do not save enough out of their incomes. This is an example of ____ statement.
<93>The task of economic science is to discover ____ that are consistent with ____.
<94>Economic models
<95>Economic models
<96>An economic theory is
<97>Three steps that economists take to discover how the economic world works are
<98>The birth of economics as an intellectual discipline can be dated fairly precisely in the eighteenth century with
<99>Who wrote The Wealth of Nations?
<100>Adam Smith wrote the book
<101>The author of the book The Wealth of Nations is
<102>Allowing only one factor to vary at any given time, keeping all other factors constant, is using the technique of
<103>Holding all variables except one constant and assessing the impact of the one variable which has changed is an example of using
<104>Ceteris paribus is the Latin expression for
<105>The expression that means “other things being equal” is
<106>The Latin term “ceteris paribus” means
<107>“Ceteris paribus” means
<108>The term “ceteris paribus” means
<109>“Ceteris paribus” means
<110>When economists study the effects of unemployment insurance on the unemployment rate by comparing the United States with Canada, they assume that other conditions in the two economies do not differ significantly. This procedure is an example of
<111>The fallacy of composition is evident in which of the following statements?
<112>The fallacy of composition is the false belief that
<113>The fallacy of composition is the (false) statement that
<114>The fallacy of composition is the
<115>A farmer grazes two cows on one acre of land. To increase total milk yield, he purchases two more cows and allows all four cows to graze on his land. Unfortunately the cows overgraze on his land and the food supply to the cows is reduced, which causes the total milk yield of the four cows to fall below that achieved when only two cows were grazed. The farmer has fallen prey to
<116>Because total income in the United States has increased over time, everyone’s total income has increased as well. This incorrect argument is an example of
<117>The fallacy of composition is
<118>“Hunting limits on deer help ensure a constant population. Therefore, if I only hunt to my limit, there will be sufficient deer for all.” This statement is an example of a possible
<119>To better see a football game, one spectator stands. Assuming that everyone trying to get a good view of the game can also stand represents an example of the
<120>The post hoc fallacy is the error of reasoning
<121>You are not surprised that it has started to rain. After all, a hour ago you just finished washing your car. Your reasoning is an example of
<122>The post hoc, ergo propter hoc fallacy is
<123>A rooster crows and then the sun rises. The rooster thinks that the sun rises because he crows. And he is very proud of it. The rooster falls prey to
<124>“Every time I go to a basketball game, our team wins.” This statement is an example of
<125>An economic expansion follows a stock market boom. A cautious economist would not claim that the stock market caused the expansion because the economist wants to avoid
<126>Most economists agree that
<127>The fact that wants cannot be fully satisfied with available resources reflects the definition of
<128>Studying the effects choices have on the individual markets within the economy is part of
<129>Which of the following is NOT part of the first big economic question?
<130>The question, “Should Taco Bell produce more tacos or more burritos?” is an example of the
<131>The fact that KFC decides to produce chicken rather than meatloaf best reflects ____ tradeoff.
<132>From 8 P.M to 10 P.M., Susan can attend a movie, study, or talk with friends. Suppose that Susan decides to go to the movie but thinks that, if she hadn’t, she would otherwise have talked with friends. The opportunity cost of attending the movie is
<133>When the government hires people to serve in the army, these people are no longer available to do other work. This choice illustrates the concept of
<134>A normative statement is
<135>Which of the following is a positive statement?
<136>An economic model includes
<137>The Latin term ceteris paribus means
<138>One student in a football stadium with 30,000 students can see the game better if he or she stands up. Assuming that all 30,000 students can each see the game better if they all stand is an example of the
<139>The post hoc fallacy is the
<140>Economics can be defined as the social science that explains the ____.
<141>Scarcity is a situation in which ____.
<142>Microeconomics is the study of ____.
<143>Factors of production include all of the following EXCEPT ____.
<144>The income earned by the people who sell the services of the factor of production ____ is called ____.
<145>When the government chooses to spend the tax dollars that it collects on homeland security, its choice ____.
<146>Making a choice at the margin means ____.
<147>Suppose that for the past two months, you have studied economics one hour a day. You now decide to study economics two hours a day. For the past two months, ____.
<148>If the cost of a computer falls by a large amount, you have an incentive to ____.
<149>The statement that ____ is a positive statement.
<150>The task of economic science is to ____.
<151>Economists make progress by ____.
<152>The term ceteris paribus means ____.
<153>Which statement is an example of the post hoc fallacy?
<154>The statement that ____ is an example of the fallacy of composition.
<155>In criticizing the wealth based definition of Economics, who referred to Economics as a "Gospel of Mammon"
<156>"Economics is the study of mankind in the ordinary business of life..." was defined by
<157>J.B Say defined Economics as
<158>Adams Smiths defined Economics as an inquiry into the nature and causes of the wealth of Nations in
<159>In economic theory, the principal owner of factors of production is
<160>If the price level of a country was 100 in 2016 and 102 in 2017, the inflation rate was
<161>Economics deals primarily with the concept of
<162>Normative Economics is NOT characterized by ----------
<163>Making of economic policies and decisions belong to the realm of Normative Economics
<164>--------- is a systematic body of knowledge that can be ascertained through observation and experimentation.
<165>The concept of Ethical Standards and norms of Fairness is more pronounced in positive Economics.
<166>The type of inflation caused by excess demand over supply is
<167>__________ will occur in an economy if the governments mistakenly increase the price of goods
<168>The study of the behaviour of individual decision making units is the study of
<169>Which of the following is a passive factor of production?
<170>The higher the price, the higher the quantity supplied
<171>Market failure arises from all But one of the following
<172>In the real world, 100% employment is possible
<173>The Cliché, “Too much money chasing few goods“ is a description of________
<174>A centrally planned economic system provides solutions to economic problems through the __________
<175>At zero prices, the quantity demanded of a free good usually _______ the quantity supplied
<176>Monetary policies are enacted by the government through the
<177>A trained medical doctor workingas a cleaner in a hospital can be said to be ……………… unemployed.
<178>Economics definitions can be broadly divided into ____ kinds
<179>The two types of economics definitions are
<180>____ defined Economics as an enquiry into the nature and causes of wealth of
nations.
<181>The book “The wealth of nations” was written by ____
<182>The factors responsible for the expansion of wealth are the ____ focus of Adams Smith definition.
<183>Adams Smith did not consider the sharing or distribution of resources.
<184>Adams Smith basically emphasized on production.
<185>____ shifted the emphasis on production and expansion of wealth to the distribution of wealth.
<186>____ said economics is concerned with the law that govern distribution of national output.
<187>____ defined economics as the study of the laws which govern wealth.
<188>J.B Say is a/an _____ economist
<189>F.A Walker's is a/an _____ economist
<190>_____ defined economics as the body of knowledge which relate to wealth.
<191>Alfred Marshall belongs to the group of ____ economists.
<192>___ defined Economics as the study of mankind in the ordinary business of life.
<193>Alfred Marshall’s contributions to economics was to lay emphasis on man and his welfare.
<194>______ separated economics from politics.
<195>Lionel Robbins is a distinguished ___ economist.
<196>Economics is related to those activities which promote social welfare and also
include socially undesirable activities like robbery, prostitution, corruption,
Advanced free fraud (419), constitutional vices etc.
<197>The definition of economics by Alfred Marshall suffered two main criticism put forward by
<198>Robbins scarcity definition of economics was put forward in his book titled
<199>____ refers to the various human want in the society.
<200>Ends are unlimited and are of varying importance.
[/QUESTIONS]
[OPTIONS]
<1>could be a reward but could not be a penalty.
could be a penalty but could not be a reward.
could be either a reward or a penalty.
is the opposite of a tradeoff.
<2>security.
scarcity.
health.
the fact the United States buys more goods from foreigners than we sell to foreigners.
<3>choose abundance over scarcity.
make choices to cope with scarcity.
use their infinite resources.
attain wealth.
<4>neither the poor nor the rich.
the poor but not the rich.
the rich but not the poor.
both the poor and the rich.
<5>cooperate.
compete.
trade.
make choices.
<6>both money and time.
money but not time.
time but not money.
neither time nor money.
<7>the distribution of surplus goods to those in
need.
affluence in a morally bankrupt world.
the choices we make because of scarcity.
ways to reduce wants to eliminate the problem of scarcity.
<8>The reasons for a rise in the price of orange
juice.
The reasons for the rise in average prices.
Why plumbers earn more than janitors.
Whether the army should buy more tanks or more rockets.
<9>The reasons why Kathy buys less orange juice.
The reasons for a decline in average prices.
The cause of why total employment may decrease.
The effect of the government budget deficit on inflation.
<10>the purchasing decisions that an individual consumer makes.
the effect of increasing the money supply on in-
flation.
the hiring decisions that a business makes.
the effect of an increase in the tax on cigarettes on cigarette sales.
<11>they use different sets of tools and ideas.
microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.
macroeconomics studies the effects of government regulation and taxes on the price of individual goods and services whereas microeconomics does not.
microeconomics studies the effects of government taxes on the national unemployment rate.
<12>positive economics.
negative economics.
macroeconomics.
microeconomics.
<13>microeconomics.
positive economics.
macroeconomics.
normative economics.
<14>How a trade agreement between the United States and Mexico affects both nations’ unemployment rates.
Comparing inflation rates across countries.
How rent ceilings impact the supply of apartments.
How a tax rate increase will impact total production.
<15>How a rise in the price of sugar affects the market for sodas.
How federal government budget deficits affect interest rates.
What determines the amount a firm will produce.
The cause of a decline in the price of peanut butter.
<16>the purchasing decisions that an individual consumer makes
the effect of increasing the money supply on inflation
the hiring decisions that a business makes
the effect of an increase in the tax on cigarettes on cigarette sales
<17>total, nationwide employment.
studying what factors influence the price and quantity of automobiles.
studying the determination of wages and production costs in the software industry.
the impact of government regulation of markets.
<18>prices of individual goods.
the way individual markets work.
the economy as a whole.
important, as opposed to trivial, issues.
<19>“what”
“how”
“where”
“for whom”
<20>“when”
“for whom”
“what”
“where”
<21>“what”
“how”
“when”
“how many”
<22>“what” question.
“how” question.
“where” question.
“for whom” question.
<23>The United States produces more goods than services.
The United States produces more services than goods.
The percentage of people producing goods in the United States has steadily increased over the last 60 years.
The United States produces an equal amount of goods and services.
<24>The percentage of people employed in farming has decreased over the last 60 years.
The percentage of people employed in manufacturing has increased over the last 60 years.
The percentage of people employed in construction has increased over the last 60 years.
The percentage of people employed in services has decreased over the last 60 years.
<25>“what”
“how”
“where”
“for whom”
<26>“what”
“how”
“for whom”
“where”
<27>all capital owned by individuals, but not by corporations or governments.
all capital owned by individuals or corporations, but not by governments.
machinery that meets or exceeds federal safety standards for use by humans.
the skill and knowledge of workers.
<28>organize labor, land, and capital.
come up with new ideas about what, how, when and where to produce.
bear risk from business decisions.
own all the other resources.
<29>the global economy.
income differences.
business cycles.
technological change.
<30>“for whom”
“when”
“where”
“how”
<31>the water used to cool a nuclear power plant.
the effort of farmers raising cattle.
the wages paid to workers.
the management skill of a small business owner.
<32>a new computer used by a small business owner.
the time worked by elementary school teachers.
a tractor used by a wheat farmer.
a share of stock issued by a firm.
<33>labor; rent.
entrepreneurship; wages.
labor; wages.
capital; rent.
<34>labor; wages.
entrepreneurship; profit.
human capital; interest.
labor; profit.
<35>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
macroeconomic question.
<36>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
microeconomic question.
<37>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
microeconomic question.
<38>a firm decides to produce refrigerators instead of dishwashers.
a farm uses machinery to pick oranges instead of employing migrant workers.
the government increases income taxes paid by the rich.
we answer the macroeconomic question.
<39>“what” tradeoff.
“how” tradeoff.
“for whom” tradeoff.
macroeconomic question.
<40>money
the question “what.”
giving up something for nothing.
an opportunity cost
<41>substitution cost.
opportunity cost.
utility cost.
accounting cost.
<42>marginal benefit.
scarcity.
entrepreneurship.
opportunity cost.
<43>the accounting cost minus the marginal cost.
the highest-valued alternative forgone.
the accounting cost minus the marginal benefit.
the monetary costs of an activity.
<44>all the possible alternatives forgone.
the highest-valued alternative forgone.
the time required but not the monetary cost.
the monetary cost but not the time required.
<45>all possible alternatives that you give up to get it.
the highest valued alternative you give up to get it.
the lowest valued alternative you give up to get it.
the amount of money you pay to get it.
<46>the dollars expended.
the highest-valued alternative forgone.
the after-tax cost.
what someone else would be willing to pay.
<47>$10,300.
$6,000.
$4,300.
$3,300.
<48>working out at the gym, having breakfast with friends, and sleeping late.
working out at the gym.
zero because you do not have to pay money to use the library.
not clear because not enough information is given.
<49>$2,000
$750
$2,750
$1,250
<50>implicit cost.
explicit cost.
accounting cost.
opportunity cost.
<51>there may be such a thing as a free lunch.
not all individuals will make the most of life’s opportunities because some will fail to achieve their goals.
executives do not always recognize opportunities for profit as quickly as they should.
any decision regarding the use of a resource involves a costly choice.
<52>is how much the book cost when it was purchased.
is the value of playing basketball if John prefers that to watching television.
is the value of playing basketball and the value of watching television.
equals how much John enjoys the book.
<53>Brand B plus Brand C.
twenty dollars.
Brand A.
Brand B or Brand C, depending on which is considered the highest-value alternative forgone.
<54>By spending Thursday night studying for an economics exam, a student was unable to complete a homework assignment for calculus class.
Because David used all of his vacation time to paint his house, he was unable to visit the Caribbean last year.
Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
By choosing to attend college, Jean was not able to continue working as an electrician; as a result, she gave up more than $85,000 in earnings while she was in college.
<55>going to the symphony and the basketball game.
going to the symphony.
going to the basketball game.
three hours of time.
<56>a market mechanism.
macroeconomics.
opportunity cost.
a fallacy of composition.
<57>that your activity provides to someone else.
of an activity that exceeds its cost.
that arises from the secondary effects of an activity.
that arises from an increase in an activity.
<58>the marginal benefit.
the marginal cost.
opportunity cost.
an incentive.
<59>that your activity imposes on someone else.
that arises from an increase in an activity.
of an activity that exceeds its benefit.
that arises from the secondary effects of an activity.
<60>the total revenue from sales of printers to the total cost of producing all the printers.
the extra revenue from selling a few additional printers to the extra costs of producing the printers.
the extra revenue from selling a few additional printers to the average cost of producing the additional printers.
HP’s printers to printers from competing companies, such as Lexmark.
<61>the way things ought to be.
the way things are.
macroeconomics, not microeconomics.
microeconomics, not macroeconomics.
<62>about what ought to be.
about what is.
the result of a model’s normative assumptions.
valid only in the context of a model with simple assumptions.
<63>about what ought to be.
about what is.
always true.
one that does not use the ceteris paribus clause.
<64>is an affirming statement that is strongly
worded.
is a statement of what ought to be.
is a statement of what is.
cannot be tested by checking it against the facts.
<65>I and II.
II and III.
I and III.
I, II and III.
<66>positive statements can be tested, whereas normative statements cannot.
normative statements can be tested, whereas positive statements cannot.
normative statements depict “what is” and positive statements depict “what ought to be.”
positive statements can be graphed, whereas normative statements cannot.
<67>Government should not redistribute income.
Business firms ought to contribute more to charities.
Households are the primary source of saving.
The foreign sector should be more tightly controlled.
<68>We should cut back on our use of carbon-based fuels such as coal and oil.
Increasing the minimum wage results in more unemployment.
Every American should have equal access to health care.
The Federal Reserve ought to cut the interest rate
<69>Taxes should be lower because then people get to keep more of what they earn, so they will work more.
My economics class should last for two terms because it is my favorite class.
A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
Given their negative impact on productivity, the government should eliminate labor unions.
<70>making a normative statement.
making a positive statement.
testing an economic model.
facing the standard of living tradeoff.
<71>State lotteries are good methods to use for raising revenues.
Increased prison sentences are the best way to reduce the crime rate.
An increase in gas prices leads people to carpool more.
Inflation is a more serious problem than is deflation.
<72>a political statement.
a positive statement.
a normative statement.
an ethical statement.
<73>a political statement.
a positive statement.
a normative statement.
a scientific statement.
<74>The government must lower the price of a pizza so that more students can afford to buy it.
The best level of taxation is zero percent because then people get to keep everything they earn.
My economics class should last for two terms because it is my favorite class.
An increase in tuition will cause fewer students to apply to college.
<75>Low rents will restrict the supply of housing.
Low rents are good because they make apartments more affordable.
Housing costs too much.
Owners of apartment buildings ought to be free to charge whatever rent they want.
<76>a political statement.
a positive statement.
a normative statement.
an ethical statement.
<77>a political statement.
a positive statement.
a normative statement.
an ethical statement.
<78>positive statements.
normative statements.
assumptions.
implications.
<79>prices.
quantities.
what is.
what ought to be.
<80>about what ought to be.
about what is.
always true.
one that does not use the ceteris paribus clause.
<81>the way things ought to be.
the way things are.
marginal benefits, not marginal costs.
marginal costs, not marginal benefits.
<82>The price of candy bars is $1.25 each.
Candy bars are more expensive than newspapers.
You should eat less candy.
Popcorn and candy are sold in movie theaters.
<83>The unemployment rate is too high.
Forty percent of the public believes that the un-
employment rate is too high.
The unemployment rate rose last month.
All of the above.
<84>This statement is a normative statement.
This statement is a positive statement.
This statement is an example of the fallacy of composition.
This statement is an example of the post hoc fallacy.
<85>making a normative statement.
making a positive statement.
testing an economic model.
facing the standard of living tradeoff.
<86>positive statement
normative statement
fallacy of composition
post hoc fallacy
<87>normative statement.
positive statement.
descriptive statement.
theoretical statement.
<88>Studying more hours leads to an increase in your GPA.
An increase in tax rates means people work fewer hours.
Taking extra vitamin C prevents catching a cold.
States should require all motorcycle riders to wear helmets to reduce the number of riders killed.
<89>Low rents will restrict the supply of housing.
Low rents are good because they make apartments more affordable.
Housing costs are rising.
Owners of apartment buildings are free to charge whatever rent they want.
<90>Household consumption is the largest component of spending.
Government spending rose in the 1990s.
The business sector is the primary source of jobs.
Households should save more.
<91>Next year’s inflation rate will be under 4 percent.
Consumers will buy more gasoline over the Christmas holiday even if the price of gas is 10 cents higher than it was during the Thanksgiving holiday.
The government’s cuts in welfare spending impose an unfair hardship on the poor.
The current butter surplus is the result of federal policies.
<92>an autonomous
a positive
a normative
a ceteris paribus
<93>positive statements; what we observe
normative statements; positive statements
positive statements; normative statements
ways to make money; the law
<94>are essentially different from those used in other
sciences.
always use graphs.
simplify reality.
include all relevant facts.
<95>do not address questions about the economy.
are better if they include most of the detail of the real economy.
rely on simplification.
make no assumptions that have not been proved.
<96>a generalization that summarizes what we understand about economic choices.
always a mathematical, or nonverbal, model.
usually more complex than the real world.
a positive statement that cannot use the ceteris paribus clause.
<97>speculation; observation and measurement; and, drawing conclusions.
observation and measurement; model building; and, testing models.
model building; speculation; and, revision.
data mining; data testing; and, drawing conclusions.
<98>the opening of the London stock exchange.
the publication of the book, The Wealth of Nations.
the introduction of paper currency.
the development of the factory system.
<99>Thomas Jefferson.
Karl Marx.
Adam Smith.
Michael Parkin.
<100>First Principles of Economics.
The Wealth of Nations.
Poverty and Progress.
The Dismal Science.
<101>James Madison.
Adam Smith.
Thomas Carlyle.
John Pierpont Morgan.
<102>post hoc.
ceteris paribus.
composition.
compensation.
<103>the ceteris paribus assumption.
normative economic analysis.
a flawed economic model.
an untestable proposition.
<104>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
the error of reasoning that a first event causes a second event because the first event occurred before the second event.
an expression that means “other things being equal.”
a statement about the way the economic world ought to be.
<105>The fallacy of composition.
the post hoc fallacy.
ceteris paribus.
normative economics.
<106>“false unless proven true”
“other things being equal”
“after this, therefore because of this”
“what is true of the whole is not necessarily true of the parts”
<107>what is
what ought to be
that which will be
other things being equal
<108>using market mechanisms.
the study of scarcity and choice.
value free and testable.
all other things remaining constant or equal.
<109>making all the necessary changes.
other things being equal.
for certain parameters.
let the buyer beware.
<110>the fallacy of composition.
the post hoc fallacy.
applying the ceteris paribus principle.
falling prey to the post composition fallacy.
<111>“X and Y go together, therefore X has caused Y.”
“What is bad for the Joneses is bad for the Smiths.”
“Technological progress helps everybody.”
“If each farmer works harder, all farmers will be richer.”
<112>what is true for the parts is also true for the whole.
because event A occurred before event B, event A caused event B.
because event A occurred after event B, event A caused event B.
the ceteris paribus condition does not apply.
<113>theories bridge models and the real world.
models can be positive without being normative.
what is true of the parts is true of the whole.
experiments can be designed to analyze human behavior.
<114>assertion that what is true for the parts of the whole must be true for the whole.
claim that one event caused another because the first event came first.
use of ceteris paribus in order to study the impact of one factor.
claim that the timing of two events has nothing to do with which event caused the other.
<115>the fallacy of composition.
the post hoc fallacy.
the ceteris paribus normative fallacy.
the marginal benefit/marginal cost fallacy.
<116>opportunity cost.
the fallacy of composition.
the post hoc fallacy.
voluntary exchange.
<117>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
the error of reasoning that a first event causes a second event because the first event occurred before the second event.
an expression that means “other things being equal.”
a statement about the way the economic world ought to be.
<118>ceteris paribus fallacy.
fallacy of composition.
post hoc fallacy.
normative statement.
<119>opportunity cost fallacy.
fallacy of composition.
fallacy of truth.
post hoc fallacy.
<120>from predictions to theories.
from models to predictions.
from cause and effect to models.
from timing to cause and effect.
<121>the ceteris paribus assumption.
the fallacy of composition.
the post hoc fallacy.
the distinction between positive and normative statements.
<122>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
the error of reasoning that a first event causes a second event because the first event occurred before the second event.
an expression that means “other things being equal.”
a statement about the way the economic world ought to be.
<123>his self interest
the post hoc fallacy
marginal thinking
the fallacy of composition
<124>ceteris paribus fallacy.
fallacy of composition.
post hoc fallacy.
a normative economic statement.
<125>the fallacy of composition, which is an error in reasoning from timing to cause and effect.
the post hoc fallacy, which is an error in reasoning from timing to cause and effect.
the fallacy of composition, which states that what is true of the parts is true of the whole.
the post hoc fallacy, which states that what is true of the parts is true of the whole.
<126>Tariffs and import restrictions make most people worse off.
A minimum wage increases unemployment among young workers and low-skilled workers.
Rent ceilings cut the availability of housing.
All of the above.
<127>the what tradeoff.
scarcity.
the big tradeoff.
for whom to produce.
<128>scarcity.
microeconomics.
macroeconomics.
incentives.
<129>What goods and services are produced?
How are goods and services produced?
For whom are goods and services produced?
Why do incentives affect only marginal costs?
<130>“what” question.
“how” question.
“where” question.
“for whom” question.
<131>a what
a how
a for whom
an incentive
<132>talking with friends and studying.
studying.
talking with friends.
two hours of time.
<133>an incentive.
a social interest/private interest conflict.
opportunity cost.
marginal benefit.
<134>about what ought to be.
about what is.
always true.
one that does not use the ceteris paribus clause.
<135>The government must provide health insurance so that the poor can obtain decent medical treatment.
The government should spend more on education.
My favorite dinner is pizza and soda.
An increase in the price of pizza will lead fewer students to buy pizza.
<136>post hoc statements.
no use of ceteris paribus.
all known details in order to increase its accuracy.
only details considered essential.
<137>“false for the whole, false for the parts.”
“other things the same.”
“true for the parts not necessarily true for the whole.”
“buyer beware.”
<138>fallacy of ceteris paribus.
fallacy of composition.
fallacy of large numbers.
post hoc fallacy.
<139>assertion that what is true for parts of the whole must be true for the whole.
claim that one event caused another because the one event came first.
incorrect use of ceteris paribus in order to study the impact of one factor.
claim that normative statements are less important than positive statements.
<140>choices made by politicians
choices we make when we trade in markets
choices that we make as we cope with scarcity
choices made by households
<141>some people are poor and others are rich
something is being wasted
we are unable to satisfy all our wants
long lines form at gas stations
<142>the choices that individuals and businesses make
all aspects of scarcity
the global economy
the national economy
<143>machines made in past years.
money
entrepreneurship
an wheat field that is not irrigated
<144>capital; rent
entrepreneurship; wages
land; profit
entrepreneurship; profit
<145>involves a tradeoff of other goods and services such as education for more homeland security
illustrates that scarcity does not always exist
involves no tradeoff because the defense is necessary
primarily affects who gets the goods and services produced.
<146>letting someone else choose for you
waiting until the last minute to make a choice
deciding to do a little bit more or a little bit less of an activity
making a choice by comparing the total benefit and the total cost
<147>your marginal cost of studying economics for an hour must have exceeded its marginal benefit
the marginal cost of studying economics must have fallen
your marginal benefit from studying economics an hour must have been greater than its marginal cost
the opportunity cost of studying economics must have risen.
<148>buy a new computer
take a shorter vacation
use your friend’s computer rather than buy one yourself
avoid buying anew computer because it is now less valuable
<149>more students should study economics
the price of gasoline is too high
too many people in the United States have no health care insurance
the price of sugar in the United States is higher than the price in Australia
<150>help us understand how the economic world works
tell us what is good for us
make moral choices about things like drugs
save the earth from the overuse of natural resources
<151>concentrating on clarifying all normative statements while disregarding positive statements
discarding normative statements that do not pass extensive testing
building and testing economic models
asking people whether they are better off or worse off
<152>other things being equal
equal access to public transportation
when other things all change
for better or worse
<153>Fans crowding into a college football stadium cause the football game to be played.
There should be equal access to public transportation.
The reason cows are not an endangered species is because many people eat beef.
Hold everything constant except the price of juice.
<154>the ceteris paribus fallacy cannot lead to the post hoc fallacy
all children should have equal access to good public transportation
end-of the-year holiday season shopping causes the holiday season
if one fan at a football can see better by standing, then all fans can see better if they all stand
<155>Karl Marx
John Lenin
Thomas Carlyle
Alfred Marshal
<156>Adams Smith
David Ricardo
J.BSay
Alfred Marshal
<157>The study of the law which govern wealth
The body of knowledge which relates to wealth
An inquiry into the nature and causes of the wealth of nations
The field of study involved with the distribution of wealth produced by the united application of factors of production.
<158>1905
1867
1776
1609
<159>Household
Landlord
Government
Firm
<160>20%
102%
2%
0.2%
<161>Scarcity
Poverty
Change
Power
<162>Objectivity
Valuejudgment
Recommendation
Fairness
<163>True
False
Partially true
Undecided
<164>Economics
Business
Theory
Science
<165>True
False
Partially true
Unknown
<166>Cost Push
Demand Pull
Demand Push
Cost Pull
<167>Surpluses
Shortages
Equilibrium
None of the above
<168>Microeconomics
Macroeconomics
positive economics
Normative economics
<169>Land
Capital
Neither land nor capital
A&B
<170>True
False
Not certain
None of the above
<171>Public goods
Equity
Corruption
Externalities
<172>True
False
Probably
Unknown
<173>Economic explosion
Inflation
Economic recession
Economic growth
<174>Consumers
Producers
Middlemen
State
<175>Falls short
equals
exceeds
doubles
<176>Federal ministry of finance
Central Bank of Nigeria
Nigerian Stock Exchange
Corporate Affairs Commission
<177>Tactically
Structurally
Frictionally
Disguised
<178>1
2
3
4
<179>Wealth/ Welfare and Scarcity based definitions
Wealth and welfare based definitions
Riches and welfare based definitions
Welfare and wealth based definitions
<180>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<181>Alfred Marshall, 1776
Adam Smith, 1676
Alfred Marshall, 1676
Adam Smith, 1776
<182>first
second
third
fourth
<183>true
false
A and B
none
<184>false
true
A and B
none
<185>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<186>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<187>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<188>English
German
French
Spanish
<189>English
German
French
American
<190>F.A Walker
Adam Smith
J.B Say
David Ricardo
<191>classical
neoclassical
A and B
none
<192>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<193>false
true
A and B
none
<194>Alfred Marshall
Adam Smith
J.B Say
David Ricardo
<195>American
English
French
German
<196>false
true
A and B
none
<197>Lionel Robbins
Adam Smith
J.B Say
David Ricardo
<198>An Essay on the nature and significance of economic science
An Essay on the nature and significance of political science
An Essay on the nature and significance of religious science
An Essay on the nature and significance of economists science
<199>scarcity
scale of preference
end
want
<200>false
true
A and B
none
[/OPTIONS]
[ANSWERS]
<1>could be either a reward or a penalty.
<2>scarcity.
<3>make choices to cope with scarcity.
<4>both the poor and the rich.
<5>make choices.
<6>both money and time.
<7>the choices we make because of scarcity.
<8>The reasons for the rise in average prices.
<9>The reasons why Kathy buys less orange juice.
<10>the effect of increasing the money supply on in-
flation.
<11>microeconomics studies decisions of individual people and firms and macroeconomics studies the entire national economy.
<12>microeconomics.
<13>microeconomics.
<14>How rent ceilings impact the supply of apartments.
<15>How federal government budget deficits affect interest rates.
<16>the effect of increasing the money supply on inflation
<17>total, nationwide employment.
<18>the economy as a whole.
<19>“what”
<20>“what”
<21>“what”
<22>“what” question.
<23>The United States produces more services than goods.
<24>The percentage of people employed in farming has decreased over the last 60 years.
<25>“how”
<26>“how”
<27>the skill and knowledge of workers.
<28>own all the other resources.
<29>income differences.
<30>“for whom”
<31>the wages paid to workers.
<32>a share of stock issued by a firm.
<33>labor; wages.
<34>labor; wages.
<35>“what” tradeoff.
<36>“what” tradeoff.
<37>“how” tradeoff.
<38>a farm uses machinery to pick oranges instead of employing migrant workers.
<39>“for whom” tradeoff.
<40>an opportunity cost
<41>opportunity cost.
<42>opportunity cost.
<43>the highest-valued alternative forgone.
<44>the highest-valued alternative forgone.
<45>the highest valued alternative you give up to get it.
<46>the highest-valued alternative forgone.
<47>$10,300.
<48>working out at the gym.
<49>$750
<50>opportunity cost.
<51>any decision regarding the use of a resource involves a costly choice.
<52>is the value of playing basketball if John prefers that to watching television.
<53>Brand B or Brand C, depending on which is considered the highest-value alternative forgone.
<54>Because Mary is now being paid a higher wage, she can afford to buy a new car even though she is moving into a bigger apartment.
<55>going to the symphony.
<56>opportunity cost.
<57>that arises from an increase in an activity.
<58>the marginal benefit.
<59>that arises from an increase in an activity.
<60>the extra revenue from selling a few additional printers to the extra costs of producing the printers.
<61>the way things are.
<62>about what is.
<63>about what is.
<64>is a statement of what is.
<65>II and III.
<66>positive statements can be tested, whereas normative statements cannot.
<67>Households are the primary source of saving.
<68>Increasing the minimum wage results in more unemployment.
<69>A 10 percent increase in income leads to a 4 percent increase in the consumption of beef.
<70>making a positive statement.
<71>Inflation is a more serious problem than is deflation.
<72>a positive statement.
<73>a positive statement.
<74>An increase in tuition will cause fewer students to apply to college.
<75>Low rents will restrict the supply of housing.
<76>a positive statement.
<77>a positive statement.
<78>normative statements.
<79>what ought to be.
<80>about what ought to be.
<81>the way things ought to be.
<82>You should eat less candy.
<83>The unemployment rate is too high.
<84>This statement is a normative statement.
<85>making a normative statement.
<86>normative statement
<87>normative statement.
<88>States should require all motorcycle riders to wear helmets to reduce the number of riders killed.
<89>Low rents are good because they make apartments more affordable.
<90>Households should save more.
<91>The government’s cuts in welfare spending impose an unfair hardship on the poor.
<92>a normative
<93>positive statements; what we observe
<94>simplify reality.
<95>rely on simplification.
<96>a generalization that summarizes what we understand about economic choices.
<97>observation and measurement; model building; and, testing models.
<98>the publication of the book, The Wealth of Nations.
<99>Adam Smith.
<100>The Wealth of Nations.
<101>Adam Smith.
<102>ceteris paribus.
<103>the ceteris paribus assumption.
<104>an expression that means “other things being equal.”
<105>ceteris paribus.
<106>“other things being equal”
<107>other things being equal
<108>all other things remaining constant or equal.
<109>other things being equal.
<110>applying the ceteris paribus principle.
<111>“If each farmer works harder, all farmers will be richer.”
<112>what is true for the parts is also true for the whole.
<113>what is true of the parts is true of the whole.
<114>assertion that what is true for the parts of the whole must be true for the whole.
<115>the fallacy of composition.
<116>the fallacy of composition.
<117>the (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
<118>fallacy of composition.
<119>fallacy of composition.
<120>from timing to cause and effect.
<121>the post hoc fallacy.
<122>the error of reasoning that a first event causes a second event because the first event occurred before the second event.
<123>the post hoc fallacy
<124>post hoc fallacy.
<125>the post hoc fallacy, which is an error in reasoning from timing to cause and effect.
<126>All of the above.
<127>scarcity.
<128>microeconomics.
<129>Why do incentives affect only marginal costs?
<130>“what” question.
<131>a what
<132>talking with friends.
<133>opportunity cost.
<134>about what ought to be.
<135>An increase in the price of pizza will lead fewer students to buy pizza.
<136>only details considered essential.
<137>“other things the same.”
<138>fallacy of composition.
<139>claim that one event caused another because the one event came first.
<140>choices that we make as we cope with scarcity
<141>we are unable to satisfy all our wants
<142>the choices that individuals and businesses make
<143>money
<144>entrepreneurship; profit
<145>involves a tradeoff of other goods and services such as education for more homeland security
<146>deciding to do a little bit more or a little bit less of an activity
<147>your marginal benefit from studying economics an hour must have been greater than its marginal cost
<148>buy a new computer
<149>the price of sugar in the United States is higher than the price in Australia
<150>help us understand how the economic world works
<151>building and testing economic models
<152>other things being equal
<153>Fans crowding into a college football stadium cause the football game to be played.
<154>if one fan at a football can see better by standing, then all fans can see better if they all stand
<155>Thomas Carlyle
<156>Alfred Marshal
<157>The study of the law which govern wealth
<158>1776
<159>Household
<160>2%
<161>Scarcity
<162>Objectivity
<163>False
<164>Theory
<165>False
<166>Demand Pull
<167>Surpluses
<168>Microeconomics
<169>A&B
<170>True
<171>Corruption
<172>False
<173>Inflation
<174>State
<175>equals
<176>Central Bank of Nigeria
<177>Tactically
<178>2
<179>Wealth/ Welfare and Scarcity based definitions
<180>Adam Smith
<181>Adam Smith, 1776
<182>second
<183>true
<184>true
<185>David Ricardo
<186>David Ricardo
<187>J.B Say
<188>French
<189>American
<190>F.A Walker
<191>neoclassical
<192>Alfred Marshall
<193>true
<194>Alfred Marshall
<195>English
<196>false
<197>Lionel Robbins
<198>An Essay on the nature and significance of economic science
<199>end
<200>true
[/ANSWERS]
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