5 Written questions
5 Matching questions
- Scientific thinking
- Property rights
- Private-property rights
- a Property rights that are exclusively held by an owner and protected against invasion by others. Private property can be transferred, sold, or mortgaged at the owner's discretion.
- b The branch of economics that focuses on how human behavior affects the conduct of affairs within narrowly defined units, such as individual households or business firms.
- c An opinion based on personal preferences and value judgments.
- d Developing a theory from basic principles and testing it against events in the real world. Good theories are consistent with and help explain real world events. Theories that are inconsistent with the real world are invalid and must be rejected.
- e The rights to use, control, and obtain the benefits from a good or service.
5 Multiple choice questions
- "other things constant" is used when the effect of one change is being described, recognizing that if other things changed, they also could affect the result. Economists often describe the effects of one change, knowing that in the real world, other things might change and also exert an effect.
- The indirect impact of an event or policy that may not be easily and immediately observable. In the area of policy, these effects are often both unintended and overlooked.
- Judgements about what ought to be in economic matters. They are views that cannot be proven false because they are based on value judgments.
- The scientific study of "what is" among economic relationships.
- Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated to those willing to give up the most "other things" in order to get it.
5 True/False questions
Transaction costs → The time, effort, and other resources needed to search out, negotiate and complete an exchange.
Macroeconomics → The branch of economics that focuses on how human behavior affects the conduct of affairs within narrowly defined units, such as individual households or business firms.
Resource → The act of selecting among alternatives.
Utility → Fundamental concept of economics that indicates that there is less of a good freely available from nature than people would like.
Fallacy of composition → erroneous view that what is true for the individual will always be true for the group.