Econ 102 Midterm 1 Questions and Answers Rated A+

Econ 102 Midterm 1 Questions and Answers Rated A+ which of the following best describes scarce resources? resources for which the quantity demanded exceeds the quantity that is freely available economics is primarily the study of ____________ how agents choose to allocate scarce resources and how these choices affect society which of the following is an example of a positive economic statement? higher interest rates will encourage more savings ________ is the study of how individuals, households, governments, and firms make choices and how those choices affect prices, the allocation of resources, and the well-being of other agents microeconomics which of the following correctly defines the term "equilibrium" ? It refers to a situation in which data are used to arrive at conclusions. It refers to a situation in which government intervention efficiently allocates scarce resources. It refers to a situation in which an optimizing decision is made by an individual economic agent. It refers to a situation in which all economic agents are simultaneously optimizing. it refers to a situation in which all economic agents are simultaneously optimizing empiricism is the analysis that uses ______ to test theories data which of the following statements is true of optimization? economic agents who optimize attempt to choose the best feasible option given the information that they have A consumer has $50 to spend. He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each. Which of the following combinations of the two goods will entirely exhaust his budget constraint? 3 magazines and 4 DVDs 2 magazines and 4 DVDs 6 magazines and 1 DVD 2 magazines and 2 DVDs 2 Magazines and 4 DVDs The best alternative use of a resource is referred to as its ________. opportunity cost John has to choose between two jobs: one that offers him $50 per hour and one that offers him $35 per hour. The opportunity cost of choosing the job that offers him $50 per hour is ________. $85 per hour $15 per hour $1.5 per hour $35 per hour $35 per hour Economic reasoning allows economic agents to make decisions ________. by comparing the costs and benefits of various situations Empiricism refers to using ________ to analyze the world. data Which of the following statements is true? Testing with data enables economists to distinguish between good models and bad models. Models that economists use are perfect replicas of reality. Models help economists explain the past but do not help predict the future. The scientific method used by economists is based on idealism and not empiricism. Testing with data enables economists to distinguish between good models and bad models Facts, measurements, or statistics that describe the world are referred to as ________. empiricism hypothesis data models data causation occurs when _______ a change in one variable is the reason for a change in another variable Data show that in 2012, the college enrollment in Lithasia increased. In the same year, the sale of hot dogs in Lithasia also increased. The relationship between college enrollment and the sale of hot dogs exhibits ________. a negative correlation a zero correlation a causal relationship a positive correlation a positive correlation ________ occurs when the direction of cause and effect is mixed up in a study. Reverse causality Limited information bias Adverse causality Omitted variable bias reverse causality To conduct a randomized experiment, researchers usually classify the participants into a ________. treatment group and a test group study group and a treatment group study group and a control group treatment group and a control group treatment group and control group Which of the following statements correctly indicates a property of good economic questions? A good economic question must always include arithmetic calculations and graphical solutions. A good economic question should always be easy to answer. A good economic question should always be positive and not normative. A good economic question addresses topics that are important to economic