Question

1. Which of the following statements  best describes the study of economics? Economics studies how

   		to organize production so that scarcity does not occur.
   		businesses reach decisions.
   		firms make profits.
   		we make choices in the face of scarcity.

2 points   

QUESTION 2

1. Which of the following is a positive statement?

   		Parking tickets on campus impose an excessive fee.
   		University bookstore prices are too high.
   		A recession leads to higher enrollments at universities.
   		An increase in college tuition is not fair to students.

2 points   

QUESTION 3

1. Which of the following statements is a normative statement?

   		Pepsi is less expensive than Coke this week.
   		Unemployment this month has increased by less than 0.5 percentage point..
   		Inflation has been at an all time low this year.
   		The minimum wage should be increased to $8.50 per hour.

Answer 1

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