A well-tested economic theory is often called:
a. a hypothesis.
b. a prototype.
c. a principle.
d. an anomaly.
The term "ceteris paribus" means:
a. that if event A precedes event B, A has caused B.
b. that economics deals with facts, not values.
c. other things equal.
d. prosperity inevitably follows recession.
For economists, the word "utility" means:
a. versatility and flexibility.
b. rationality.
c. pleasure and satisfaction.
d. purposefulness.
According to economists, economic self-interest:
a. is a reality that underlies economic behavior.
b. has the same meaning as selfishness.
c. is more characteristic of men than of women.
d. is usually self-defeating.
The assertion that "There is no free lunch" means that:
a. there are always tradeoffs between economic goals.
b. all production involves the use of scarce resources and thus the sacrifice of alternative goods.
c. marginal analysis is not used in economic reasoning.
d. choices need not be made if behavior is rational.
When constructing a typical production possibilities curve, economists assume:
a. economic resources are underutilized
b. resources are equally productive in many alternative uses
c. all available resources are fully employed
d. production technology is allowed to vary
a. a hypothesis.
b. a prototype.
c. a principle.
d. an anomaly.
The term "ceteris paribus" means:
a. that if event A precedes event B, A has caused B.
b. that economics deals with facts, not values.
c. other things equal.
d. prosperity inevitably follows recession.
For economists, the word "utility" means:
a. versatility and flexibility.
b. rationality.
c. pleasure and satisfaction.
d. purposefulness.
According to economists, economic self-interest:
a. is a reality that underlies economic behavior.
b. has the same meaning as selfishness.
c. is more characteristic of men than of women.
d. is usually self-defeating.
The assertion that "There is no free lunch" means that:
a. there are always tradeoffs between economic goals.
b. all production involves the use of scarce resources and thus the sacrifice of alternative goods.
c. marginal analysis is not used in economic reasoning.
d. choices need not be made if behavior is rational.
When constructing a typical production possibilities curve, economists assume:
a. economic resources are underutilized
b. resources are equally productive in many alternative uses
c. all available resources are fully employed
d. production technology is allowed to vary