MACRO ECONOMICS CHAPTER
1 EXAM QUESTIONS AND
ANSWERS
The prevalence of Alzheimer's dementia is very high among residents living in nursing
homes. A student concludes that it is likely that living in a nursing home causes
Alzheimer's dementia. What is the flaw in this student's reasoning? - Answer-The
student is drawing false conclusion. He is making the error of reverse casualty
______ is a problem that occurs when someone concludes that a change in variable X
caused a change in variable Y when, I'm fact, it is the change in variable Y that caused
the change in X - Answer-Reverse casualty
__ goods and services are those bought by businesses to be used to increase efficiency
or enhance production. - Answer-capital
What is the name given to the development of a new good? - Answer-invention
The United States economy is best classified as a - Answer-Mixed economy
Which of the following is a positive economic statement - Answer-If minimum wage
rates rise, then unemployment will rise.
Which of the following is not a possible opportunity cost of attending college - Answer-
the cost of housing
Economic decisions are made at every level in society. When we try to decide which
production method to use among several alternatives, which of the following key
economic questions are we trying to answer? - Answer-How do we produce the
products?
The resources provided by nature and used to produce goods and services are also
known as - Answer-natural resources
Macroeconomics can be used to understand all of the topics listed below, except -
Answer-how a consumer decides between the purchase of two different cars
1 EXAM QUESTIONS AND
ANSWERS
The prevalence of Alzheimer's dementia is very high among residents living in nursing
homes. A student concludes that it is likely that living in a nursing home causes
Alzheimer's dementia. What is the flaw in this student's reasoning? - Answer-The
student is drawing false conclusion. He is making the error of reverse casualty
______ is a problem that occurs when someone concludes that a change in variable X
caused a change in variable Y when, I'm fact, it is the change in variable Y that caused
the change in X - Answer-Reverse casualty
__ goods and services are those bought by businesses to be used to increase efficiency
or enhance production. - Answer-capital
What is the name given to the development of a new good? - Answer-invention
The United States economy is best classified as a - Answer-Mixed economy
Which of the following is a positive economic statement - Answer-If minimum wage
rates rise, then unemployment will rise.
Which of the following is not a possible opportunity cost of attending college - Answer-
the cost of housing
Economic decisions are made at every level in society. When we try to decide which
production method to use among several alternatives, which of the following key
economic questions are we trying to answer? - Answer-How do we produce the
products?
The resources provided by nature and used to produce goods and services are also
known as - Answer-natural resources
Macroeconomics can be used to understand all of the topics listed below, except -
Answer-how a consumer decides between the purchase of two different cars
