Introduction: Sample Quiz

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1. Today most economists use definitions of economics that stress:

exchange and production.
choice and scarcity.
unintended consequences.
supply and demand.

2. The term "invisible hand" was first used by:

Adam Smith to describe unintended consequences of self-interest.
Alfred Marshall in his definition of economics.
Thomas Malthus to explain why prosperity for all was impossible.
Karl Popper in describing how scientific statements could be separated from nonscientific ones.

3. Which of the following people behaves in a way that best fits the usual assumption about economic behavior?

John acts randomly with no pattern at all.
Jan imitates whatever Karen does.
Carl considers only how his actions affect the good of mankind.
Adam wants to know how he benefits before he acts.

4. The key feature of a scientific theory, according to the text, is that:

its theories are testable against the real world.
it be concerned with the world of nature.
it have unintended consequences in its predictions.
it must be possible to prove the theory to be true.

5. Which of the following is a normative statement?

Indianapolis is the capital of Indiana.
Indianapolis is the capital of Illinois.
Driving in freezing rain is very dangerous.
School should be canceled when there is freezing rain.

6. For which of the following is Thomas Malthus famous?

The definition of "science"
The definitions of positive and normative economics
His utopian novel, Prosperity for All
His view that population growth doomed humanity to misery

7. When economists say that we live in a world of scarcity, they mean that:

people are often irrational and make poor decisions
products are in short supply so that people must wait in line to get them.
people want more than what can be produced.
people have not taken advantage of the benefits that they can get from specialization and exchange.

8. People who construct plans for utopias get rid of economics because they get rid of scarcity. They do this either by assuming that production is very great, or that people:

love one another.
have no intelligence.
have very limited wants.
are concerned only with their relative standing (status) in the group.

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Copyright Robert Schenk