Eco #1 Test

Which of the following al can overcome the problem of scarcity?
None of the above : scarcity is prevalent in all societies
which of the following is the best example of a renewable resource
which of the following would be clasified as a capitol resource
a catapilar bulldozer
the most fundamental concepts underlying the discipline of economies are
scarcity and choice
the branch of economies that focuses on economywide variables like inflation and unemployment is called
which of the following lists the steps to building a model in the correct order
identify the problem, develop a model, collect data and test the model
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an economic model is useful only if it
yields accurate predictions
an economic theory claims that a rise in gasoline prices will cause gasoline purchases to fall, certain paribus. the phrase “ceteris paribus” means that
other relevant factors like consumer incomes must be held constant
next year will see a rising economy if there is snow on the ground in boston on christmas day. this statement is an example of
the association versus causation error in reasoning
which of the following is the best example of a normative economic statement
the federal gov should reduce its budget surplus
the three basic categories of resources are land labor and
which of the following is the best example of a nonrenewable roesource
fossil fuels
which of the following is the best example of an activity that would be undertaken by an entrepreneur
starting a new business
economics by definition studies how people
make choices in the face of scarcity
which of the following is the best example of a microeconomic topic
the reason of increase in the price of soft drinks
when building a model economist must
provide a complete description of reality
in order to test a theory, an economist must determine if
data are consistent with the theorys predictions
a student observes that sales of cardboard boxes rise immediatley prior to economic expansions. if the student concludes that greater box sales cause economic expansion then the student has,
confused association and causation
what type of economic analysis is limited to testable verifiable statements?
positive economics
we should rais the minimum wage in order to help low-income families . this statement is an example of
a normative statement
suppose the economy is producing 200,000 bushels of food and 50,000 skeins cloth. what is the opportunity cost of producing an additional 100,000 bushels of food.
20,000 skeins of cloth
which of the following production levels is unattainable with the economys existing resources and technologies
300,000 bushels or food and 40,000 skeins of lcoth
suppose the economy is producing 200,000 bushels of food and 30,000 skeins of cloth according to the graph
the economy is not usiing its resources to its capacity
which fundamental economic question is mos closely related to the issues of income distribution and poverty
the for whom to produce question
the oppurtunity cost of an economic descicion is
the best alternative that was sacrificed
according to marginal analysis you should spend more time studying economics if the extra benefit from an additional hour of study
outwweihs the extra costg
all points on the production possibilites curve are
as production of a good increases, oppurtunity cost tend to rise because
there will be more inefficiency
which of the following could cause an outward shift of the production possibilites curve
a technological advance
investment refers to the process of accumulating
capitol goods
a movement along the demand curve for automibiles is cause by a change in
the price of automobiles
which of the following would cause a decrease in the demand for 35mm film
the introduction of new digital cameras that dont use film
according to the law of supply, there is a direct relationship between quantity supplied of a good and the
price of the good
which of the following would increase the wuantity supplied of books but have no impact on the supply of books
an increase in the price of books
which of the following would increase the supply of movie video rentals
new video rental stores are opened in the community
if the price of tea is below its equilibrium level, then
there is a shortage of tea
the use of a price system tends to eliminate
shortages and supluses
a fall in the price of a good causes an increase in its
quantity demanded
according to the law of demand, when will higher corn prices reduce the quantity demanded of corn
when nonproce determinates like income and the number of buyers, are held constant
which of the following will cause a decrease in the demand for gasoline
a decrease in prices for public transportation
bus travel and pawn shop services are common examples of
inferior goods
if the cost of lumber increases , what will likely happen in the market for new houses?
the supply of houses will decrease
in accordance with the law of supply both individual and market supply curves are drawn
upward sloping
which of the following would decrease the supply of airline travel
higher fuel costs