Question

Another name for economics can be the

art of banking.

study of striking it rich.

art of luck.

science of winning at gambling.

science of choices.

One way to distinguish positive from normative statements is to say that

positive statements are always true and normative statements are sometimes true.

normative statements can be proven to be true but positive statements can never be proven to be true.

positive statements deal with "what ought to be" while normative statements deal with "what is."

positive statements are upbeat while normative statements are downbeat.

positive statements deal with "what is" while normative statements deal with "what ought to be."

Microeconomics studies

households only.

small investment accounts.

how individual consumers or households interact with firms in markets.

small social and economic units.

firms only.

Macroeconomics differs from microeconomics in that

macroeconomics studies international trade.

macroeconomics looks at the national economy and microeconomics looks at individual parts of the national economy

macroeconomics focuses on the national level, microeconomics focuses on the individual level, and midieconomics focuses on the intermediate level.

microeconomics looks at overall unemployment, production, and inflation.

microeconomics is more relevant to current issues than macroeconomics.

Goods and services are

things and activities that consumers, but not firms, consider valuable.

inputs that are used in production.

typically produced by the government in capitalist countries.

all those things and activities that consumers, firms, and the government consider valuable.

considered to be temporary products.

The economist's assumption that consumers make choices in a way consistent with maximizing their satisfaction is called

self-absorption theory.

unfettered maximization.

the market behavior model.

psychological rationality.

rational self-interest.

The profit motive is important to a market-based economy because

the pursuit of profit builds character.

it leads to a powerful ruling class.

it supports the democratization of societies.

it provides retirement income for company owners and their employees.

profits create a powerful incentive for companies to meet consumer demand.

One of the primary functions of an economic system is to

provide social cohesion.

provide maximum wealth for those in power.

provide a mechanism for allocating goods and services.

provide a "safety net" for the unemployed.

promote income equality.

A market-based economic system allocates goods and services among demanders based on

reputation.

social class.

price.

political party affiliation.

tradition.

Supply is defined as the

amount of a good or service sellers actually sell in the marketplace.

quantity of a good or service that demanders are willing and able to purchase at various prices.

excess of what is produced over what is actually sold.

maximum quantity sellers are capable of bringing to the marketplace.

quantity of a good or service that sellers are willing and able to produce at various prices over a given period of time.

Demand is defined as the

quantity of a good or service consumers are willing but not able to purchase on any given day.

ideal amount consumers wish to purchase.

quantity of a good or service consumers are willing and able to purchase at various prices over a given time period.

level of intensity of desire for a particular good or service.

quantity of a good or service that consumers are willing and able to sell at various prices.

If you were deciding whether to study an extra hour by comparing the benefit (material learned) to the cost (doing something else) for that hour, you are using

non-rationality modeling.

economic modeling.

marginal analysis.

over-simplistic assumptions.

profitability analysis.

Which of the following is the best example of the use of marginal analysis?

A state university decides to raise tuition to cover rising costs.

A gambler places a bet on a game he thinks is a sure win.

A stock analyst discovers that the stock of a company he tracks is undervalued.

K-Mart signs a contract for a new clothing brand.

Wal-Mart estimates the cost of building a store in a new location and compares it to expected revenue generated.

Marginal cost is the

cost of consuming or producing an additional unit.

price of an item of marginal quality.

price of an item that has been discounted.

cost of placing an additional unit in inventory.

Testgen questions still do not copy to other applications.price of an excess good.