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Unformatted text preview: Sheet1 Page 1 TEST 1 Submitted by jlee8 on 5/19/2009 12:24:55 PM --------------------------------------------------------------------------------Points Awarded 46 Points Missed 4 Percentage 92% 1. Price controls on gasoline in the 1970s led to long gas lines at service stations. Analysis of the effects of the A. macroeconomics. B. microeconomics. C. either macroeconomics or microeconomics. Each would provide the exact same analysis. D. neither macroeconomics nor microeconomics. The price controls were a political decision so one should use Points Earned: 1/1 Correct Answer: B Your Response: B 2. A model is defined as a A. value judgment concerning facts. B. presentation of all relevant aspects of real world events. C. simplified representation of the way in which facts are related. D. data set adjusted for irrational action. Points Earned: 0/1 Correct Answer: C Your Response: A 3. The central question in economics is how to A. make the best use of scarce resources. B. use government planning agencies. C. induce people to want less. D. increase human knowledge. Points Earned: 1/1 Correct Answer: A Your Response: A 4. The ceteris paribus assumption is used in economics because A. it is too difficult to account for everything that might have an effect on behavior. B. it makes it easier to track the thought processes of people, which is necessary to develop good theories. C. people are self-interested and rational. D. the more complex a model is, the better it is. Points Earned: 1/1 Sheet1 Page 2 Correct Answer: A Your Response: A 5. "Every family in the United States should have an annual income of at least $10,000 in order to meet minimu A. a positive economics statement. B. a welfare statement. C. a normative economics statement. D. a definition of poverty. Points Earned: 0/1 Correct Answer: C Your Response: B 6. Which of the following is an example of a positive statement? A. If you drop a quarter off the top of the Sears Tower in Chicago, it will fall to the ground. B. The minimum wage should be raised to $7 and hour. C. There something should be done about it. D. People should learn to love each other. Points Earned: 1/1 Correct Answer: A Your Response: A 7. Which would be least consistent with the kind of rational decision-making assumed in economics? A. Alfred chooses love over money. B. Bernice acts on the basis of faulty information and, as a result, makes a mistake. C. Carlisle chooses the more costly of two ways to achieve a given end because he does not care about costs. D. Daphne contributes some of her income to charity. Points Earned: 1/1 Correct Answer: C Your Response: C 8. Scarcity limits the volume of goods that an economic system can produce, but does not limit the production o A. True B. False Points Earned: 1/1 Correct Answer: B Your Response: B 9. The opportunity cost of going to college might best be described as A. the money that must be paid in order to attend college....
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