Y12 Micro Chapter 1 Last Lesson Quiz

Economics is considered a science by some because

• it is concerned with the behaviour of people and organisations

• its hypotheses can be tested in a laboratory

• it makes use of mathematics

• its hypotheses can be tested against observations from the real world

Which one of the following phrases is not normally a feature of a normative statement?

• It will result in…

• The government ought to….

• The government should…

• The government must…

A positive statement

• is one that is true

• is one that can be tested

• is one based on an opinion

• cannot be refuted by looking at the evidence

A normative statement is

• verifiable by facts

• objective

• based on an opinion

• based on real world data

Which one of the following is not a value judgement?

• The price of gas is excessive

• Health care is too important to be left to the market

• Climate change threatens the planet

• Inequality of income is undesirable

‘a natural level of unemployment is a price worth paying to get inflation down’ is an example of

• a theory

• a hypothesis

• a positive statement

• a value judgement

Which one of the following is not considered to be one of the three central questions in economics?

• What to produce?

• When to produce?

• How to produce?

• For whom to produce?

The factor of production, land, includes

• trawlers

• dams

• meadows

• roads

Labour is a factor of production because

• its value to an economy can be improved

• its productivity affects productive efficiency

• it is a resource which can contribute to output

• its cost can be reduced

The reward for risk taking is known as

• wages

• profit

• interest

• rent