Economics: Review for Chapter One Study Guide Test.
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Course
EECF
Institution
EECF
Economics: Review for Chapter One Study Guide Test.
List three reasons why economics is considered a science. - CORRECT ANSWER 1) Observation - Science always begins with observation. The economist observes how and why choices are made.
2) Prediction - Scientists use their observations as a ...
Economics: Review for Chapter One
Study Guide Test.
List three reasons why economics is considered a science. - CORRECT ANSWER 1) Observation - Science
always begins with observation. The economist observes how and why choices are made.
2) Prediction - Scientists use their observations as a basis to predict future cause-and-effect
relationships. Economists observe trends of the economy and use those observations to predict the
future choices of households, business firms, and governments.
3) Control - Scientists often go one step further by attempting to control future events through altering
important variables. Some economists attempt to control the economy by manipulating key variable
involved in economic choices.
According to Scripture, what guides all of the choices that we make? - CORRECT ANSWER Scripture tells
us that our choices are driven by what we love. If we love God, the pattern of our choices will
demonstrate that. If we love ourselves, our choices will prove that as well.
Why do unlimited wants and scarcity necessitate choice? - CORRECT ANSWER To properly answer this
question, we must define our terms. The principle of unlimited wants states that mankind has an infinite
number of desires. Scarcity, on the other hands, means that, although we may have unlimited wants, we
only have a limited amount of resources. Because of this, we are forced to choose what we want most,
for we cannot have it all.
From which language did the word economics originate, and what was its original meaning? - CORRECT
ANSWER Economics originates from the greek words oikos and nomos. Okies means "house" and nomos
means "management of".
What English word that is used in Scripture comes from the same origin as the word economics? -
CORRECT ANSWER Stewardship.
What process discussed in the chapter is an application of the stewardship principle? Explain. - CORRECT
ANSWER Recycling. Recycling is an example of the stewardship principle because it converts nuisance
goods (which are useless in their current state) to economic goods.
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