ECON 2101 HW (CH 1-
3 + 7) (18 questions
and answers)
Which of the following statements best describes the study of economics?
-Economics studies how the Federal Reserve handles fluctuation in business
cycles.
-Economics studies how individuals and groups manage scarce resources.
-Economics studies how people maximize returns in the stock market.
-Economics studies how governments determine appropriate tax rates. -
answer Economics studies how individuals and groups manage scarce
resources.
Individuals are required to make choices because of:
-Economics
-Wants
-Rational behavior
-Scarcity - answer Scarcity
Think about the definition of scarcity that you learned in this chapter. Identify
three examples of scarcity people face every day.
-Limited sources for travel
-Few friends
-Limited income for family cars
, -Inadequate education
-Not enough time to do everything they want - answer -Limited sources for
travel
-Limited income for family cars
-Not enough time to do everything they want
Determine whether each of the following statements is positive or normative.
(Remember that a positive statement isn't necessarily correct; it just makes
a factual claim rather than a moral judgment.)
a.) People who pay their bills on time are less likely than others to get into
debt:
b.) Hard work is a virtue:
c.) Everyone should pay his or her bills on time:
d.) China has a bigger population than any other country in the world:
e.) China's One-Child Policy (which limits families to one child each) helped to
spur the country's rapid economic growth:
f.) Lower taxes are good for the country: - answer
positive,normative,normative,positive,positive,normative
-Cultures around the world use food to convey social values. This is a
_____________ statement.
-Food is the best way to understand the social values of a culture. This is a
_______________ statement. - answer positive,normative
Physical capital is:
-the factories and machinery used to produce other goods and services. -the
talents, training, and education of workers.
-the financial resources available for investment.
3 + 7) (18 questions
and answers)
Which of the following statements best describes the study of economics?
-Economics studies how the Federal Reserve handles fluctuation in business
cycles.
-Economics studies how individuals and groups manage scarce resources.
-Economics studies how people maximize returns in the stock market.
-Economics studies how governments determine appropriate tax rates. -
answer Economics studies how individuals and groups manage scarce
resources.
Individuals are required to make choices because of:
-Economics
-Wants
-Rational behavior
-Scarcity - answer Scarcity
Think about the definition of scarcity that you learned in this chapter. Identify
three examples of scarcity people face every day.
-Limited sources for travel
-Few friends
-Limited income for family cars
, -Inadequate education
-Not enough time to do everything they want - answer -Limited sources for
travel
-Limited income for family cars
-Not enough time to do everything they want
Determine whether each of the following statements is positive or normative.
(Remember that a positive statement isn't necessarily correct; it just makes
a factual claim rather than a moral judgment.)
a.) People who pay their bills on time are less likely than others to get into
debt:
b.) Hard work is a virtue:
c.) Everyone should pay his or her bills on time:
d.) China has a bigger population than any other country in the world:
e.) China's One-Child Policy (which limits families to one child each) helped to
spur the country's rapid economic growth:
f.) Lower taxes are good for the country: - answer
positive,normative,normative,positive,positive,normative
-Cultures around the world use food to convey social values. This is a
_____________ statement.
-Food is the best way to understand the social values of a culture. This is a
_______________ statement. - answer positive,normative
Physical capital is:
-the factories and machinery used to produce other goods and services. -the
talents, training, and education of workers.
-the financial resources available for investment.
