1. In the course of two hundred years economics has changed its focus from

A the study of purposeful human action to the study of wealth

B the study of wealth to the study of purposeful human action

2. From 1767 until the beginning of the twentieth century, which was the most popular name in English to describe what today we study as economics?

A economics

B political arithmetic

C political economy

3. Which name explicitly recognizes the importance of markets?

A catallactics

B plutology

C plutonomy

D praxeology

4. According to Professor Lionel Robbins, an economic problem would arise if there exist (choose one)

A limited means that can be applied to more than one end

B multiple ends that can be ranked in order of importance

C limited means that can be applied to more than one end and multiple ends that can be ranked in order of importance

5. In An Essay on the History of Civil Society(1767), Adam Ferguson famously wrote that "[e]very step and every movement of the multitude, even in what are termed enlightened ages, are made with equal blindness to the future; and nations stumble upon establishments, which are indeed the result of human action, but not the execution of any human design."

Here are four examples of what Ferguson would have called "establishments." Which are "the result of human action, but not the execution of any human design"?(Choose one or more.)

A the English language

B correctly shelved books in a public library

C the schedule of trains on the BART system

D the free market

E none of the above

6. Which statements below are TRUE? (Choose one or more.)

A Adam Smith's account of the division of labor in a pin factory is an example of the inductive method.

B David Ricardo's use of the concept of comparative advantage to explain international specialization is an example of the deductive method.

C Neither statement is true.

7. Which statements below are TRUE? (Choose one or more.)

A At the time that Adam Smith wrote The Wealth of Nations (1776) his views would have been regarded as heterodox.

B In the nineteenth century classical political economy was the ruling orthodoxy until the 1870s.

C Neither statement is true.

8. The division of economics into macroeconomics and microeconomics occurred as the consequence of the

A marginalist revolution of the 1870s

B Keynesian revolution of the 1930s and 1940s

C monetarist counter-revolution of the 1960s and 1970s

9. Which statement below is FALSE?

A Macroeconomics looks at topics like economic growth, money, and the business cycle.

B An analysis of how raising the California sales tax affects the price and output of restaurant meals is principally a topic in macroeconomics.

C Microeconomics looks at topics like consumer behavior and industrial organization.

12. Two goods would be fungible if

A a representative consumer regards them as perfect substitutes for each other

B a representative consumer regards them as complements

13. Which statement below is TRUE?

A Changes in endogenous variables are used to explain changes in exogenous variables.

B Changes in exogenous variables are used to explain changes in endogenous variables.

14. Some economic historians assert that the growth of population spurred economic development in medieval times. This explanation embodies the idea that

A economic development is exogenous and population growth is endogenous.

B population growth is exogenous and economic development is endogenous.

15. Which statement below is unambiguously a normative statement?

A Cutting income tax rates for high earners would discourage them from working and would reduce tax revenues.

B Cutting income tax rates for high earners would encourage them to work harder and would raise tax revenues.

C High earners deserve to keep more of what they earn.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Answer B the study of wealth to the study of purposeful human action Explanation Over the course of two hundred years economics has shift... View the full answer