FINAL EXAM

What is the final step of the scientific method?

• evaluating the hypothesis
• analyzing the information
• conducting the experiment
• organizing individual data

A ________ is a visual representation of the relationship between two given sets of data.

• method
• graph
• curve
• model

Part of the rational-behavior model theory is that

• people usually don't think rationally about the long-term consequences of their actions.
• people act upon their own interest, without taking into account the well-being of others.
• most decisions people make involve choices about a little more or less of something.
• markets do better than anyone else at coordinating exchanges between buyers and sellers.

The famous economist who came up with the invisible hand theory is

• Steven Landsburg
• Steven D. Levitt
• Henry Hazlitt
• Adam Smith

People’s wants are unlimited. This fact means that which of the following is always present?

• scarcity
• shortages
• costs of production
• marginal utility

What are the factors of production?

• goods and services
• risk and opportunity
• land, labor, and capital
• wages, salaries, and profits

Ocean waves can be used to generate energy. Ocean waves are considered which type of resource?

• capital
• perpetual
• nonrenewable
• renewable

What is the best title for the list below? • innovator • strategist • risk taker

• Capitalist
• Investor
• Entrepreneur
• Laborer

Which scenario best illustrates the law of diminishing marginal utility?

• A car breaks down more often as it gets older
• Someone who doesn't listen to music does not care about getting a new CD.
• A collector of china figurines is eager to get a new one.
• A new toy is less exciting to a child with many toys than to a child with just a few.

The three fundamental economic questions are what to produce, ______________, and for whom.

• why
• when
• how
• where