Cedarville University Essentials of Economics Quiz 1

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Cedarville University Essentials of Economics Quiz 1 All economic systems are equal in God's sight - ✔✔False Methodological individualism is an economic assumption that the causal factor of eco... nomic action is the individual responding to incentives - ✔✔True Plan coordination is the process of coordinating our plans to arrive at the party at the same time - ✔✔False In communism, the party decides how to allocate capital and make production decisions; there is no role for entrepreneurship - ✔✔True From a Christian perspective, the question of private property vs. communal property is more properly thought of not as an ownership issues, but as a stewardship issue - ✔✔True When we don't know which of only two possible outcomes are likely to happen, we characterize this as risk - ✔✔True When a member of the original National Football League wins the Super Bowl, the stock market is predicted to rise. This is an example of the post hoc fallacy - ✔✔True Microeconomics is the study of ______________________, while macroeconomics is the study of _________________ - ✔✔Individual and firm behavior, the economy as a whole According to Hazlitt, the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups - ✔✔True The broken window fallacy occurs when one fails to consider the alternative use of on any particular expenditure when evaluating any resource use. Which of the following is not an example of the broken window fallacy? - ✔✔Investment in private space exploration God endorses capitalism as the preferred economic system in the world, since it leads to the highest economic output - ✔✔False Methodological individualism is the method of aggregating individual preferences, which yields macroeconomics - ✔✔False When we have effective plan coordination, we will use capital and other resources wisely - ✔✔True Socialism, like capitalism, allows private property in consumer goods, but like communism, does not allow private ownership of the means of production - ✔✔True Biblical support for private property rights can be found in both the 8th and 10th commandments - ✔✔True When we don't have any basis to calculate the future probability of an event, we say that event is uncertain - ✔✔True The fallacy of composition occurs when someone assumes that because one event (A) precedes another (event B), then event A caused event B - ✔✔False The broken window fallacy occurs when one fails to consider the alternative use of on any particular expenditure when evaluating any resource use. Which of the following is not an example of the broken window fallacy? - ✔✔Magnetic Resonance Imager (MRI) Capitalism should be rejected as an economic system by Christians, since it promotes greed - ✔✔False If you agree with the assumption of methodological individualism, then you would say that society chooses wisely when we collectively through our government enacts good economic policies - ✔✔False Plan coordination is the process of firms copying other firm's production plans to achieve a similar level of output - ✔✔False A free market system (often called capitalism) is characterized by private ownership of the means of production (capital equipment) and freedom to exchange - ✔✔True Acts 2 proves that communal property is God's plan for the church today - ✔✔False When we don't know which of only two possible outcomes are likely to happen, we characterize this as uncertain - ✔✔False When a member of the original National Football League wins the Super Bowl, the stock market is predicted to rise. This is an example of the broken window fallacy - ✔✔False [Show More]

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