Understanding Economics A Contemporary Perspective 8th Edition by Mark Lovewell Test bank

 
E. determine whether two variables are directly or inversely related
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #31
Topic: 01-04 Economic Models
Type: Definition
 
 
32.Suppose an economist says "Ceteris paribus, the lower the price of the breakfast cereal, Wheaties, the larger the amount of Wheaties purchased." This statement indicates that: 
 


A. the quantity of Wheaties purchased determines the price of Wheaties
 
B. all factors other than the price of Wheaties (for example, consumer preferences and incomes) are assumed to be constant
 
C. economists can conduct controlled laboratory experiments
 
D. one cannot generalize about the relationship between the price of Wheaties and quantity purchased
 
E. the price and quantity demanded of Wheaties are directly related
 
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #32
Topic: 01-04 Economic Models
Type: Application
 
 
33.A positive statement is one that: 
 


A. outlines a direct relationship between two variables
 
B. outlines an inverse relationship between two variables
 
C. is subjective and is, therefore, based upon a value judgement
 
D. is necessarily true
 
E. is objective and is, therefore, based upon facts
 
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #33
Topic: 01-04 Economic Models
Type: Definition
 
 
34.Which of the following is a positive statement? 
 


A. The humidity is too high today.
 
B. It is too hot to jog today.
 
C. The temperature is 22°C.
 
D. I enjoy summer evenings when it cools off.
 
E. I dislike humid nights.
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #34
Topic: 01-04 Economic Models
Type: Application
 
 
35.Normative statements are concerned with: 
 


A. facts and theories
 
B. what ought to be
 
C. what is
 
D. rational choice involving costs and benefits
 
E. what can never be
 
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #35
Topic: 01-04 Economic Models
Type: Definition
 
 
36.Which of the following is a normative statement? 
 


A. The temperature is high today.
 
B. The humidity is high today.
 
C. It is too hot to play tennis today.
 
D. It will cool off later this evening.
 
E. I think it will be hot today.
 
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 01-01 Describe the economic problem-the problem of having unlimited wants; but limited resources-that underlies the definition of economics
Lovewell - Chapter 01 #36
Topic: 01-04 Economic Models
Type: Application
 
 
37.A product has utility if it: 
 


A. takes more and more resources to produce successive units of it
 
B. can be produced in unlimited quantities
 
C. satisfies consumer wants
 
D. is useful
 
E. is available in only limited quantities
 
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 01-02 Explain how economists specify economic choice; including the production choices an entire economy faces; as demonstrated by the production possibilities model