ECON 1580 UPDATED ACTUAL
Questions and CORRECT Answers
According to the textbook, economics is a: - CORRECT ANSWER - social science.
A/an _______ does not pose the problem of scarcity; one use of the good is not an alternative to
another use. - CORRECT ANSWER - free good
Water is considered a scarce good rather than a free good because: - CORRECT
ANSWER - it has alternative uses.
The Case in Point on the oil extraction suggests that one reason oil may become more costly is
that: - CORRECT ANSWER - we will have to give up more and more valuable
alternatives to extract oil.
The opportunity cost of something is: - CORRECT ANSWER - The value of the next best
alternative is forgone when a choice is made.
The BEST example of making a choice at the margin is: - CORRECT ANSWER - a coffee
drinker drinking another cup of coffee.
The study of a single firm and how it determines prices would fall under: - CORRECT
ANSWER - microeconomics.
Each of the following statements about the use of models in the study of economics is true
EXCEPT: - CORRECT ANSWER - models fit the observed facts exactly.
Suppose you observe that the sun sets every evening after the six o'clock business report. If you
conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of: -
CORRECT ANSWER - false cause.
Questions and CORRECT Answers
According to the textbook, economics is a: - CORRECT ANSWER - social science.
A/an _______ does not pose the problem of scarcity; one use of the good is not an alternative to
another use. - CORRECT ANSWER - free good
Water is considered a scarce good rather than a free good because: - CORRECT
ANSWER - it has alternative uses.
The Case in Point on the oil extraction suggests that one reason oil may become more costly is
that: - CORRECT ANSWER - we will have to give up more and more valuable
alternatives to extract oil.
The opportunity cost of something is: - CORRECT ANSWER - The value of the next best
alternative is forgone when a choice is made.
The BEST example of making a choice at the margin is: - CORRECT ANSWER - a coffee
drinker drinking another cup of coffee.
The study of a single firm and how it determines prices would fall under: - CORRECT
ANSWER - microeconomics.
Each of the following statements about the use of models in the study of economics is true
EXCEPT: - CORRECT ANSWER - models fit the observed facts exactly.
Suppose you observe that the sun sets every evening after the six o'clock business report. If you
conclude that the six o'clock business report makes the sun set, you are guilty of the fallacy of: -
CORRECT ANSWER - false cause.
