Hi This Chisty Looking for English Things

Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1)

The study of economics arises due to

1)

_______

A)

resources.

B)

scarcity.

C)

greed.

D)

money.

2)

Economists assume that individuals

2)

_______

A)

behave in unpredictable ways.

B)

are rational and respond to incentives.

C)

prefer to live in a society that values fairness above all else.

D)

will never take actions to help others.

3)

Your roommate, Serafina, a psychology major, said, "The problem with economics is that it assumes that consumers and firms always make the correct decision. But we know that everyone's human, and we all make mistakes." Do you agree with her comment?

3)

_______

A)

I disagree with her. If we cannot assume that decisions are correct, then we will not be able to examine the moral implications of these decisions.

B)

Yes, I agree with her. Economic theory should allow for irrational behavior so that we can have more reliable predictions.

C)

I disagree with her. Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave rationally, meaning they make the best decisions given their knowledge of the costs and benefits.

D)

Yes, I agree with her. One cannot make predictions about economic behavior because in reality people make incorrect choices in many situations.

4)

What does the term "marginal" mean in economics?

4)

_______

A)

trivial

B)

an additional or extra

C)

secondary

D)

the edge of a market

E)

illegal

5)

Which of the following statements is false?

5)

_______

A)

Economics is a social science that studies the tradeoffs we are forced to make because of scarcity.

B)

Anytime you have to decide which action to take you are facing an economic...