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PRINCIPLES OF MICROECONOMICS 9TH EDITION CASE, FAIR & OSTER - TEST BANK
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PRINCIPLES OF MICROECONOMICS 9TH EDITION CASE, FAIR & OSTER - TEST BANK

PRINCIPLES OF MICROECONOMICS 9TH EDITION CASE, FAIR & OSTER - TEST BANK   Instant Download - Complete Test Bank With Answers     Sample Questions Are Posted Below   www.testbanksuccess.com34) If you observe that Kelly Clarkson won American Idol 3 years before Carrie Underwoodwon, and you conclude that Kelly Clarkson winning caused Carrie Underwood to …

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PRINCIPLES OF MICROECONOMICS 9TH EDITION CASE, FAIR & OSTER – TEST BANK

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

www.testbanksuccess.com34) If you observe that Kelly Clarkson won American Idol 3 years before Carrie Underwood
won, and you conclude that Kelly Clarkson winning caused Carrie Underwood to win 3
years later, you would be guilty of an error called the
A) fallacy of inductive reasoning.
B) fallacy of ceteris paribus.
C) fallacy of composition.
D) post hoc, ergo prompter hoc fallacy.
Answer: D
Diff: 2
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
35) Two variables are said to be correlated if
A) one variable changes when the other variable changes.
B) the first variable changes when the second variable does not change.
C) the first variable does not change when the second variable changes.
D) the variables share no relation with each other.
Answer: A
Diff: 2
Topic: The Method of Economics
Skill: Definition
36) The belief that what is true for a part is necessarily true for the whole describes the
A) fallacy of composition.
B) post hoc, ergo prompter hoc fallacy.
C) fallacy of division.
D) fallacy of inductive reasoning.
Answer: A
Diff: 2
Topic: The Method of Economics
Skill: Definition
37) Empirical economics refers to the
A) exclusion of irrelevant data when analyzing a model.
B) collection and use of data to test economic theories.
C) model of economics used prior to the Industrial Revolution.
D) belief that what is true for a part is necessarily true for the whole.
Answer: B
Diff: 2
Topic: The Method of Economics
Skill: Definition
www.testbanksuccess.com38) A change in economic output is potentially efficient if the value of the resulting gains
the value of the resulting losses.
A) exceeds
B) is less than
C) is equal to
D) is unrelated to
Answer: A
Diff: 3
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
39) An efficient economy is an economy that produces what demand and does so at
the possible cost.
A) consumers; highest
B) consumers; least
C) the government; highest
D) the government; least
Answer: B
Diff: 2
Topic: The Method of Economics
Skill: Definition
40) An efficient market is characterized by the fact that profit opportunities are
A) guaranteed to everyone.
B) eliminated almost instantaneously.
C) only provided to government–subsidized producers.
D) available only to the most efficient producers.
Answer: B
Diff: 1
Topic: The Method of Economics
Skill: Fact
41) The four criteria that are frequently used in judging the outcome of economic policy are
efficiency, stability, economic growth, and
A) equity.
B) equality.
C) profitability.
D) resolution.
Answer: A
Diff: 1
Topic: The Method of Economics
Skill: Fact
www.testbanksuccess.com42) You have noticed that there is an increase in the number of homeless people in your city and
at the same time you observe that there are a number of vacant apartments. You believe that
if landlords were required to rent their apartments for less than they are currently charging,
the government could reduce the number of homeless people . This policy recommendation
would be motivated by concerns over
A) economic growth.
B) stability.
C) profitability.
D) equity.
Answer: D
Diff: 3
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
43) Many economists argue that items such as food and clothing should be exempt from sales
tax because low–income people spend a greater percentage of their income on these goods
than do high–income individuals. This argument is motivated by concerns over
A) economic stability.
B) economic growth.
C) equity.
D) efficiency.
Answer: C
Diff: 3
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
44) The statement “people should pollute as little as possible“ is an example of a
A) positive statement.
B) normative statement.
C) factual statement.
D) non–judgmental statement.
Answer: B
Diff: 2
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
45) The statement “the unemployment rate is 5.1%“ is an example of a
A) positive statement.
B) value judgement.
C) normative statement.
D) non–verifiable statement.
Answer: A
Diff: 2
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
www.testbanksuccess.com2 True/False
1) Positive economics questions “What ought to be?“ Normative economics predicts the
consequences of alternative actions, answering the questions “What is?” or “What will be?“
Answer: FALSE
Diff: 2
Topic: The Method of Economics
Skill: Definition
2) Normative economics questions “What ought to be?“ Positive economics predicts the
consequences of alternative actions, answering the questions “What is?” or “What will be?“
Answer: TRUE
Diff: 2
Topic: The Method of Economics
Skill: Definition
3) An efficient economy is one that produces what the government demands and does so at the
least possible cost.
Answer: FALSE
Diff: 2
Topic: The Method of Economics
Skill: Definition
4) “Post hoc, ergo prompter hoc“ literally translated means, “all else equal.“
Answer: FALSE
Diff: 2
Topic: The Method of Economics
Skill: Definition
5) Normative economics seeks to understand behavior, but not make judgments.
Answer: FALSE
Diff: 2
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
6) Stability implies a steady rate of economic growth regardless of the inflation rate.
Answer: FALSE
Diff: 2
Topic: The Method of Economics
Skill: Conceptual
AACSB: Reflective Thinking
7) The compilation of data to describe phenomena and facts is known as empirical economics.
Answer: FALSE
Diff: 2
Topic: The Method of Economics
Skill: Definition
www.testbanksuccess.com1.4 Appendix: How to Read and Understand Graphs
1 Multiple Choice
Refer to the information provided in Figure 1.1 below to answer the questions that follow.
Figure 1.1

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