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