Tutorial Trivia Questions
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ANSWER ALL QUESTION
- 1.
- A.
A. Scarcity implies that choices have to be made; when people make choices they incur costs.
- B.
B. When people make choices, they incur costs, which creates scarcity.
- C.
C. Because people incur costs, they will make choices, which leads to scarcity.
- D.
d. Scarcity implies that costs will be made and choices regretted.
- 2.Deciding at the margin is __________ an all-or-nothing decision.
- A.
A. consistent with
- B.
B. inconsistent with
- C.
C. the same as making
- D.
D. conditioned upon making
- 3.Economists use the ceteris paribus assumption in order to
- A.
A. make their analyses easier for them to conduct.
- B.
b. designate what they believe is the correct relationship between two variables.
- C.
c. explain why people sometimes consume more of a good when its price rises.
- D.
D. explain why those things that come first do not necessarily cause those things that come later.
- 4.The economist says, “The data show that interest rates rose soon after the budget deficit increased in size. This proves that a rising budget deficit causes higher interest rates.” This economist should
- A.
A. be believed, because the evidence supports what he says.
- B.
B. not be believed, because he has committed the fallacy of composition.
- C.
C. not be believed, because he has assumed that association is causation, and this is not necessarily true.
- D.
D. not be believed, because while he says the data support his contention, he hasn’t cited the source of the data.
- 5.
- A.
A. We should raise the minimum wage in order to provide a decent wage for more people.
- B.
B. Consumers bought fewer cars when the relative price of cars increased.
- C.
c. The budget deficit has been declining in recent years.
- D.
d. b and c
- 6.“If you hadn’t gone to dinner with your friends, you would have stayed home and “surfed” the Internet.” It follows that
- A.
a. surfing the Internet is the opportunity cost of having dinner with your friends.
- B.
B. the price of having dinner with your friends is more than the price you would have had to pay to surf the Internet.
- C.
C. the opportunity cost of having dinner with your friends is lower than the opportunity cost of surfing the Internet.
- D.
D. it is less costly to surf the Internet than to have dinner with your friends.
- 7.A three-word synonym for the term ceteris paribus is
- A.
a. “nothing else changes.”
- B.
B. “in my opinion.”
- C.
C. “it is proved.”
- D.
D. “under this assumption.”
- 8.There is no such thing as a free lunch is a saying that expresses the idea that
- A.
A. opportunity costs are incurred whenever a choice is made.
- B.
B. association is not necessarily causation.
- C.
C. the fallacy of composition is responsible for many errors in economic thinking.
- D.
D. food is very expensive these days because of inflation.
- 9.The study of an economy’s price level is explicitly a part of
- A.
A. macroeconomics.
- B.
B. microeconomics.
- C.
c. positive economics.
- D.
D. normative economics.
- 10.Which statement is correct?
- A.
A. Economic theories cannot be tested.
- B.
B. Economic theories do not need to be tested.
- C.
C. Economic theories are abstractions from reality.
- D.
D. Economic theories are always true in the real world.
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