Question 1

The statement "people have unlimited wants," implies that people:

Accepted Answer

A)   always want more goods/services than they can purchase with their incomes.
B)   always have a desire to hold liquid money.
C)   always strive to be the best they can be.
D)   generally desire for goods and services which they can afford out of their income.
E)   try to earn more and more money as their experience at work increases.F) A) and B)
G) All of the above

Question 2

Economics is probably best defined as the study of unintended consequences.

Accepted Answer

A) True 
 B)False

Question 3

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Accepted Answer

A) True 
 B)False

Question 4

The statement, "All Americans should be entitled to public health care," made by a politician would be considered a:

Accepted Answer

A)   positive statement.
B)   macroeconomic statement.
C)   microeconomic statement.
D)   normative statement.
E)   model.F) None of the above
G) B) and E)

Question 5

Which of the following statements is true of resources?

Accepted Answer

A)   Capital resources include unskilled labor.
B)   Natural resources are produced by nature and are available at a zero price.
C)   Labor includes the skills and training that people acquire to use in production.
D)   Technological know-how is an example of a natural resource.
E)   Stocks and bonds are referred to as capital.F) B) and D)
G) B) and E)

Question 6

When a presidential candidate with a Ph.D. in economics makes a statement about what should be done to balance the budget, he or she is making a:

Accepted Answer

A)   normative statement.
B)   positive statement.
C)   microeconomic statement.
D)   statement that is objective.
E)   statement of fact.F) B) and C)
G) All of the above

Question 7

Only poor countries have to make choices because of limited resources.

Accepted Answer

A) True 
 B)False

Question 8

"If a tax cut is good for me, it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is considered a macroeconomic question?

Accepted Answer

A)   How can one particular firm maximize profits?
B)   How does a family allocate income among various available goods and services?
C)   How can economic policy fight inflation?
D)   What factors determine the wage rate in a certain industry?
E)   What is the impact of competition on the profits of a business?F) C) and D)
G) A) and D)

Question 10

Which of the following is a free good?

Accepted Answer

A)   Toll free roads
B)   Purified water
C)   Flora and fauna at a national park
D)   Air
E)   Congested roadsF) A) and B)
G) A) and C)

Exam 1: Economics: the World Around You

Which of the following statements is true of resources?

Correct Answer
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Which of the following is considered a macroeconomic question?

Correct Answer
verified

When a presidential candidate with a Ph.D. in economics makes a statement about what should be done to balance the budget, he or she is making a:

Correct Answer
verified

Only poor countries have to make choices because of limited resources.

Correct Answer
verified

The statement "people have unlimited wants," implies that people:

Correct Answer
verified

The statement, "All Americans should be entitled to public health care," made by a politician would be considered a:

Correct Answer
verified

"If a tax cut is good for me, it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Correct Answer
verified

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Correct Answer
verified

Which of the following is a free good?

Correct Answer
verified

Economics is probably best defined as the study of unintended consequences.

Correct Answer
verified

Exam 1: Economics: the World Around You

Which of the following statements is true of resources?

Correct AnswerverifiedShow Answer

Which of the following is considered a macroeconomic question?

Correct AnswerverifiedShow Answer

When a presidential candidate with a Ph.D. in economics makes a statement about what should be done to balance the budget, he or she is making a:

Correct AnswerverifiedShow Answer

Only poor countries have to make choices because of limited resources.

Correct AnswerverifiedShow Answer

The statement "people have unlimited wants," implies that people:

Correct AnswerverifiedShow Answer

The statement, "All Americans should be entitled to public health care," made by a politician would be considered a:

Correct AnswerverifiedShow Answer

"If a tax cut is good for me, it must be good for the whole economy." This statement is an example of the pitfall called the fallacy of composition.

Correct AnswerverifiedShow Answer

Producers use the money received from selling their goods and services in the market to pay for the resource services.

Correct AnswerverifiedShow Answer

Which of the following is a free good?

Correct AnswerverifiedShow Answer

Economics is probably best defined as the study of unintended consequences.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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