Question 12 pts
An example of a positive statement is:
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Everyone in the country needs to be covered by national health insurance. |
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an increase in investment spending tends to reduce unemployment.. |
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The rate of unemployment should be 4 percent. |
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A high rate of economic growth is good for the country. |
Question 22 pts
The scientific method is more difficult for economists than, say, chemists, because:
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economic conditions may change quickly and unexpectedly. |
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all of the above. |
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controlled laboratory conditions are more problematic in economics. |
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it is difficult to hold other factors that may affect the variables being studied constant in economics. |
Question 32 pts
Economists concerned about economy-wide trends in the unemployment of labor, the rate of inflation, and the level of economic production are studying:
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macroeconomics. |
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the “trees” of economic behavior, rather than the “forest.” |
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specific units or parts of the economy. |
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microeconomics. |
Question 42 pts
The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.
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false |
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true |
Question 52 pts
Positive statements can be tested for being true but they can’t be proven false.
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true |
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false |
Question 62 pts
A feature that distinguishes economists’ approach to making choices is (are):
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assuming individuals make choices to maximize objectives. |
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emphasizing that choices are made at the margin. |
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assigning opportunity costs a major role in their analyses of choices. |
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all of the above. |
Question 72 pts
When we are forced to make choices we are facing the concept of:
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free goods. |
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the margin. |
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ceteris paribus. |
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scarcity. |
Question 82 pts
Define positive and normative statements and give four examples of each.
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Question 92 pts
The Case in Point on the oil extraction suggests that one reason oil may become more costly is that :
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oil producers are likely to become more greedy in the future. |
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actually, the Case suggests that oil extraction is likely to become less costly and the future. |
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we will have to give up more and more valuable alternatives to extract oil. |
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speculation is likely to drive up oil prices. |
Question 102 pts
The concept of the margin deals with:
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making incremental choices. |
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