Question 1
What is meant by normative statement?
A.
A value judgement about what ought to happen. B.
Economists make assumptions in order to build an economic model. C.
A tool for deciding how to best allocate scarce resources amongst competing uses. D.
Economic modelling is often concerned with what may happen, not only what has happened.
Question 2
What is meant by ceteris paribus?
A.
A value judgement about what ought to happen. B.
Economics is not exact; outcomes have multiple possibilities and depend on many variables. C.
A statement that can be tested against evidence. D.
When all other factors are held constant.
Question 3
What is meant by opportunity cost?
A.
Economic modelling is often concerned with what may happen, not only what has happened. B.
The next best alternative forgone when a choice is made. C.
When all other factors are held constant. D.
Economics is not exact; outcomes have multiple possibilities and depend on many variables.
Question 4
Questioning assumptions in a model mainly helps:
A.
Avoid diagrams B.
Build evaluation in essays C.
Gain definition marks only D.
Calculate elasticities
Question 5
What is meant by future outcomes?
A.
Economics is not exact; outcomes have multiple possibilities and depend on many variables. B.
The next best alternative forgone when a choice is made. C.
A statement that can be tested against evidence. D.
Economic modelling is often concerned with what may happen, not only what has happened.
Question 6
What is meant by positive statement?
A.
Limited resources must be allocated among competing wants in society. B.
A statement that can be tested against evidence. C.
The next best alternative forgone when a choice is made. D.
Economists make assumptions in order to build an economic model.
Question 7
What is meant by social science?
A.
A value judgement about what ought to happen. B.
Economics is not exact; outcomes have multiple possibilities and depend on many variables. C.
A simplified way to look at the impact of a change in a factor on the economy. D.
Limited resources must be allocated among competing wants in society.
Question 8
What is meant by scarce resources?
A.
A value judgement about what ought to happen. B.
Economic modelling is often concerned with what may happen, not only what has happened. C.
Limited resources must be allocated among competing wants in society. D.
A statement that can be tested against evidence.
Question 9
Economics is best described as:
A.
Only about government B.
Only about money C.
An exact natural science D.
A social science studying resource allocation
Question 10
Ceteris paribus means:
A.
Only price changes B.
Government intervenes C.
All other factors held constant D.
All factors change
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