ECON 1580
According bnto bnthe bntextbook, bneconomics bnis bna:
Select bnone:
a.social bnscience.
b.study bnof bnbusiness bndecisions, bnnot bnsocial bndecisions.
c.part bnof bnoperations bnand bnmanagement bnscience.
d.part bnof bnhumanities. bn- bnanswers--a.social bnscience
A/an bn_______ bndoes bnnot bnpose bnthe bnproblem bnof bnscarcity; bnone bnuse bnof bnthe bngood bnis
bnnot bnan bnalternative bnto bnanother bnuse.
Select bnone:
a.free bngood
b.scarce bngood
c.economic bngood
d.monetary bngood bn- bnanswers--a.free bngood
Water bnis bnconsidered bna bnscarce bngood bnrather bnthan bna bnfree bngood bnbecause:
Select bnone:
a.it bnhas bnalternative bnuses.
b.it bndoes bnnot bnhave bnalternative bnuses.
c.scarce bngoods bnare bnless bnexpensive bnthan bnfree bngoods.
d.free bngoods bnare bnmore bnexpensive bnthan bnscarce bngoods. bn- bnanswers--a.it bnhas bnalternative
bnuses
The bnCase bnin bnPoint bnon bnthe bnoil bnextraction bnsuggests bnthat bnone bnreason bnoil bnmay bnbecome
bnmore bncostly bnis bnthat:
Select bnone:
,a.we bnwill bnhave bnto bngive bnup bnmore bnand bnmore bnvaluable bnalternatives bnto bnextract bnoil.
b.speculation bnis bnlikely bnto bndrive bnup bnoil bnprices.
c.oil bnproducers bnare bnlikely bnto bnbecome bnmore bngreedy bnin bnthe bnfuture.
d.actually, bnthe bnCase bnsuggests bnthat bnoil bnextraction bnis bnlikely bnto bnbecome bnless bncostly bnand
bnthe bnfuture. bn- bnanswers--a.we bnwill bnhave bnto bngive bnup bnmore bnand bnmore bnvaluable
bnalternatives bnto bnextract bnoil
The bnopportunity bncost bnof bnsomething bnis:
Select bnone:
a.greater bnduring bnperiods bnof bnrising bnprices.
b.equal bnto bnthe bnmoney bncost.
c.less bnduring bnperiods bnof bnfalling bnprices.
d.what bnis bngiven bnup bnto bnacquire bnit. bn- bnanswers--d.what bnis bngiven bnup bnto bnacquire bnit.
The bnBEST bnexample bnof bnmaking bna bnchoice bnat bnthe bnmargin bnis:
Select bnone:
a.buying bna bnnew bncar.
b.quitting bnyour bnjob.
c.a bncoffee bndrinker bndrinking bnanother bncup bnof bncoffee.
d.attending bncollege. bn- bnanswers--c.a bncoffee bndrinker bndrinking bnanother bncup bnof bncoffee
The bnstudy bnof bna bnsingle bnfirm bnand bnhow bnit bndetermines bnprices bnwould bnfall bnunder:
Select bnone:
a.macroeconomics.
b.microeconomics.
c.the bnstudy bnof bninflation.
d.normative bneconomics. bn- bnanswers--b.microeconomics
Each bnof bnthe bnfollowing bnstatements bnabout bnthe bnuse bnof bnmodels bnin bnthe bnstudy bnof
bneconomics bnis bntrue bnEXCEPT:
, Select bnone:
a.models bnfit bnthe bnobserved bnfacts bnexactly.
b.models bnare bnsometimes bnrevised bnin bnlight bnof bnnew bnresearch bnfindings.
c.models bnare bneasier bnto bnmanipulate bnthan bnthe bnreality bnthey bnrepresent.
d.models bncontain bnthe bnessential bnfeatures bnof bnthe bneconomic bnbehavior bnbeing bnstudied. bn-
bnanswers--a.models bnfit bnthe bnobserved bnfacts bnexactly
Suppose bnyou bnobserve bnthat bnthe bnsun bnsets bnevery bnevening bnafter bnthe bnsix bno'clock bnbusiness
bnreport. bnIf bnyou bnconclude bnthat bnthe bnsix bno'clock bnbusiness bnreport bnmakes bnthe bnsun bnset,
bnyou bnare bnguilty bnof bnthe bnfallacy bnof:
Select bnone:
a.division.
b.composition.
c.false bncause.
d.science. bn- bnanswers--c.false bncause
An bnexample bnof bna bnnormative bnstatement bnis:
Select bnone:
a.The bnrate bnof bnunemployment bnis bn4 bnpercent.
b.A bnhigh bnrate bnof bneconomic bngrowth bncreates bnmore bnjobs bnfor bnthe bncountry.
c.The bnfederal bngovernment bnspends bnhalf bnof bnits bnbudget bnon bnnational bndefense.
d.Everyone bnin bnthe bncountry bnneeds bnto bnbe bncovered bnby bnnational bnhealth bninsurance. bn-
bnanswers--d.Everyone bnin bnthe bncountry bnneeds bnto bnbe bncovered bnby bnnational bnhealth
bninsurance
Resources bnfrom bnnature bnthat bncan bnbe bnused bnto bnto bnproduce bnother bngoods bnand bnservices
bnare bncalled:
Select bnone:
a.money.
b.natural bnresources.
c.labor.
According bnto bnthe bntextbook, bneconomics bnis bna:
Select bnone:
a.social bnscience.
b.study bnof bnbusiness bndecisions, bnnot bnsocial bndecisions.
c.part bnof bnoperations bnand bnmanagement bnscience.
d.part bnof bnhumanities. bn- bnanswers--a.social bnscience
A/an bn_______ bndoes bnnot bnpose bnthe bnproblem bnof bnscarcity; bnone bnuse bnof bnthe bngood bnis
bnnot bnan bnalternative bnto bnanother bnuse.
Select bnone:
a.free bngood
b.scarce bngood
c.economic bngood
d.monetary bngood bn- bnanswers--a.free bngood
Water bnis bnconsidered bna bnscarce bngood bnrather bnthan bna bnfree bngood bnbecause:
Select bnone:
a.it bnhas bnalternative bnuses.
b.it bndoes bnnot bnhave bnalternative bnuses.
c.scarce bngoods bnare bnless bnexpensive bnthan bnfree bngoods.
d.free bngoods bnare bnmore bnexpensive bnthan bnscarce bngoods. bn- bnanswers--a.it bnhas bnalternative
bnuses
The bnCase bnin bnPoint bnon bnthe bnoil bnextraction bnsuggests bnthat bnone bnreason bnoil bnmay bnbecome
bnmore bncostly bnis bnthat:
Select bnone:
,a.we bnwill bnhave bnto bngive bnup bnmore bnand bnmore bnvaluable bnalternatives bnto bnextract bnoil.
b.speculation bnis bnlikely bnto bndrive bnup bnoil bnprices.
c.oil bnproducers bnare bnlikely bnto bnbecome bnmore bngreedy bnin bnthe bnfuture.
d.actually, bnthe bnCase bnsuggests bnthat bnoil bnextraction bnis bnlikely bnto bnbecome bnless bncostly bnand
bnthe bnfuture. bn- bnanswers--a.we bnwill bnhave bnto bngive bnup bnmore bnand bnmore bnvaluable
bnalternatives bnto bnextract bnoil
The bnopportunity bncost bnof bnsomething bnis:
Select bnone:
a.greater bnduring bnperiods bnof bnrising bnprices.
b.equal bnto bnthe bnmoney bncost.
c.less bnduring bnperiods bnof bnfalling bnprices.
d.what bnis bngiven bnup bnto bnacquire bnit. bn- bnanswers--d.what bnis bngiven bnup bnto bnacquire bnit.
The bnBEST bnexample bnof bnmaking bna bnchoice bnat bnthe bnmargin bnis:
Select bnone:
a.buying bna bnnew bncar.
b.quitting bnyour bnjob.
c.a bncoffee bndrinker bndrinking bnanother bncup bnof bncoffee.
d.attending bncollege. bn- bnanswers--c.a bncoffee bndrinker bndrinking bnanother bncup bnof bncoffee
The bnstudy bnof bna bnsingle bnfirm bnand bnhow bnit bndetermines bnprices bnwould bnfall bnunder:
Select bnone:
a.macroeconomics.
b.microeconomics.
c.the bnstudy bnof bninflation.
d.normative bneconomics. bn- bnanswers--b.microeconomics
Each bnof bnthe bnfollowing bnstatements bnabout bnthe bnuse bnof bnmodels bnin bnthe bnstudy bnof
bneconomics bnis bntrue bnEXCEPT:
, Select bnone:
a.models bnfit bnthe bnobserved bnfacts bnexactly.
b.models bnare bnsometimes bnrevised bnin bnlight bnof bnnew bnresearch bnfindings.
c.models bnare bneasier bnto bnmanipulate bnthan bnthe bnreality bnthey bnrepresent.
d.models bncontain bnthe bnessential bnfeatures bnof bnthe bneconomic bnbehavior bnbeing bnstudied. bn-
bnanswers--a.models bnfit bnthe bnobserved bnfacts bnexactly
Suppose bnyou bnobserve bnthat bnthe bnsun bnsets bnevery bnevening bnafter bnthe bnsix bno'clock bnbusiness
bnreport. bnIf bnyou bnconclude bnthat bnthe bnsix bno'clock bnbusiness bnreport bnmakes bnthe bnsun bnset,
bnyou bnare bnguilty bnof bnthe bnfallacy bnof:
Select bnone:
a.division.
b.composition.
c.false bncause.
d.science. bn- bnanswers--c.false bncause
An bnexample bnof bna bnnormative bnstatement bnis:
Select bnone:
a.The bnrate bnof bnunemployment bnis bn4 bnpercent.
b.A bnhigh bnrate bnof bneconomic bngrowth bncreates bnmore bnjobs bnfor bnthe bncountry.
c.The bnfederal bngovernment bnspends bnhalf bnof bnits bnbudget bnon bnnational bndefense.
d.Everyone bnin bnthe bncountry bnneeds bnto bnbe bncovered bnby bnnational bnhealth bninsurance. bn-
bnanswers--d.Everyone bnin bnthe bncountry bnneeds bnto bnbe bncovered bnby bnnational bnhealth
bninsurance
Resources bnfrom bnnature bnthat bncan bnbe bnused bnto bnto bnproduce bnother bngoods bnand bnservices
bnare bncalled:
Select bnone:
a.money.
b.natural bnresources.
c.labor.
