Professor Patrick Yanez
Study Questions – Chapter 1
These questions are to facilitate your discussion groups and/or tutoring sessions. Answers are listed at the end of this file. Since our class time is limited to introducing new topics, we do not have time to review these questions in class; please use your discussion group and/or tutoring session to review these questions.
1. For economists, the word "utility" means: A) versatility and flexibility. B) rationality. C) pleasure and satisfaction. D) purposefulness. 2. In economics, the pleasure, happiness, or satisfaction received from a product is called: A) marginal cost. B) rational outcome. C) status fulfillment. D) utility. 3. According to economists,
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C) contradicts the economic perspective. D) implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost. 15. Learning economics: A) is detrimental to good citizenship because economics emphasizes individualism. B) is helpful to employers, but not to workers and consumers. C) is important because economics is the science of earning money. D) helps students improve analytical skills that are in great demand in the workplace. 16. The study of economics: A) is similar to management, marketing, and finance since it emphasizes how to make money. B) is helpful to businesses, but not particularly helpful in making personal buying decisions. C) is mainly an academic, not a vocational subject. D) looks at the economy from the viewpoint of one's own pocketbook, not from the standpoint of society's interest. 17. An economic hypothesis: A) has the same meaning as an economic principal or economic law. B) is usually a normative statement. C) is a possible explanation of cause and effect. D) is a stronger generalization than an economic law. 18. Which of the following terms implies the least degree of confidence in an economic generalization? A) a hypothesis B) a theory C) a principle D) a law
19. Which of the following terms implies the greatest degree of confidence in an economic generalization? A) a hypothesis B) a theory C) a