economics 251
Question 1
5 out of 5 points
The statement, "John buys more of good X as his income increases, Ceteris paribus," means:
Selected Answer:
Correct the price of this good is being allowed to change.
Answers:
John 's income is being held constant.
John 's purchases of good X are being held constant.
John 's income and purchases of this good are being held constant.
Correct the price of this good is being allowed to change.
Question 2
5 out of 5 points
Economists use models to:
Selected Answer:
Correct do all of these.
Answers:
abstract from the complexities of the world. understand economic behavior. explain and help predict human behavior.
Correct do all of these.
Question 3
5 out of 5 points
A normative economic statement:
Selected Answer:
Correct is a statement of what ought to be, not what is.
Answers:
is a model used to collect data. is a statement of fact.
Correct is a statement of what ought to be, not what is. indicates what will occur if certain assumptions are true.
Question 4
5 out of 5 points
Normative economics deals with ____ and positive economics deals with ____.
Selected Answer:
Correct what should be; what is
Answers:
Correct what should be; what is fiction; fact microeconomics; macroeconomics negative aspects; positive aspects changing circumstances; same circumstances
Question 5
5 out of 5 points
Economists believe that scarcity forces everyone to:
Selected Answer:
Correct make choices.
Answers:
satisfy all their wants. abandon consumer sovereignty. lie about their wants. create unlimited resources.
Correct make choices.
Question 6
5 out of 5 points
Which of the following is the best definition of economics?
Selected Answer:
Correct Economics is the study of how society chooses to allocate its scarce resources.
Answers:
Economics is the study of how to manage corporations to generate the greatest return on shareholder investment.
Economics is the study of how to manage city
5 out of 5 points
The statement, "John buys more of good X as his income increases, Ceteris paribus," means:
Selected Answer:
Correct the price of this good is being allowed to change.
Answers:
John 's income is being held constant.
John 's purchases of good X are being held constant.
John 's income and purchases of this good are being held constant.
Correct the price of this good is being allowed to change.
Question 2
5 out of 5 points
Economists use models to:
Selected Answer:
Correct do all of these.
Answers:
abstract from the complexities of the world. understand economic behavior. explain and help predict human behavior.
Correct do all of these.
Question 3
5 out of 5 points
A normative economic statement:
Selected Answer:
Correct is a statement of what ought to be, not what is.
Answers:
is a model used to collect data. is a statement of fact.
Correct is a statement of what ought to be, not what is. indicates what will occur if certain assumptions are true.
Question 4
5 out of 5 points
Normative economics deals with ____ and positive economics deals with ____.
Selected Answer:
Correct what should be; what is
Answers:
Correct what should be; what is fiction; fact microeconomics; macroeconomics negative aspects; positive aspects changing circumstances; same circumstances
Question 5
5 out of 5 points
Economists believe that scarcity forces everyone to:
Selected Answer:
Correct make choices.
Answers:
satisfy all their wants. abandon consumer sovereignty. lie about their wants. create unlimited resources.
Correct make choices.
Question 6
5 out of 5 points
Which of the following is the best definition of economics?
Selected Answer:
Correct Economics is the study of how society chooses to allocate its scarce resources.
Answers:
Economics is the study of how to manage corporations to generate the greatest return on shareholder investment.
Economics is the study of how to manage city