economics ch 1 true or false

economics is the social science that studies how individuals, institutions and society make choices under conditions of scarcity
true

from the economic perspective there is no such thing as a free lunch
true

the economic perspective views individuals or institutions as making purposeful choices based on the marginal analysis of the costs and benefits of decisions
true

the scientific method involves the observation of real world data the formulation of hypothesis based on the data and the testing of those hypotheses to develop theories
true

well tested or widley accepted economic theory is often called an econimic priciple of law
true

the other things equal (ceteris paribus) is made to simplify the economic anlysis
true

macroeconomics analysis is concerned with the economic activity of specific firms or industries
false

the statement that the legal minimum wage should be raised to give working people a decent income is an example of a normative statement
true

a person using positive economics when the person makes value judgements about how the economy should work
false

the conflict between the unlimitied economic wants of individuals or societies and limited economic means and resources of individuals or societies gives rise to the economizing problem
true

the budget line shows all combinations of two products that the consumer can purchase given money income and the prices of the products
true

a consumer is unable to purchase any of the combinations which lie below or to the left of the consumers budget lines
false

the factors of production are land, labor, capital and entreneural abillity
true

from the economists perspective investment refers to money income
false

the economic rationale for the new law of increasing opprotunity costs is that economic resources are fully adaptable to alternative uses
false

optimal allocation is determined by assessing the marginal costs and benefits of the output from allocation of resources to production
true

economic growth means an increase in the production of goods and services and is shown by a movement of the production possibilities curve outward and to the right
true

the more capital goods an economy produces today the greater will be the total output of all goods it can produce in the future other things being equal
true