Microeconomics Chapter 1 Terms – Flashcards

It always rains about an hour after you finish washing your car. Concluding that washing your car caused it to rain is an example of the

You own the Star Wars six DVD set. The opportunity cost of watching these DVDs for the second time

An economist wants to understand the relationship between minimum wages and the level of teen age unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers. The statement, "the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers," is an example of

Which field of economics deals primarily with the problems faced by low-income countries?

You have decided that you want to attend a costume party as Ironman. You estimate that it will cost $40 to assemble your costume. After spending $40 on the costume, you realize that the additional piece you need will cost you $25 more. The marginal cost of completing the costume is

If you can buy 9 DVDs for $126 or you could buy 10 DVDs for $130, then the marginal cost of the 10th DVD is

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as a

An economist wants to understand the relationship between minimum wages and the level of teen age unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers. The statement that a !% increase in the minimum wage causes a 0.2% increase in teenage unemployment is an example of

Statistics tells us that ice cream sales increase during the summer months. It is also the case that reported burglaries increase during the same period. We can conclude, therefore that increased ice cream sales cause an increase in burglaries. The conclusion of this statment

A formal statement of theory, usually a mathematical statement of a presumed relationship between two or more variables, is called a _______. A ________ can change over time or across observations.

The importance of the ceteris paribus assumption when using models is that

T/F: Resources are unlimited in a wealthy society.

indicate whether the following statement is an example of a macroeconomic concern or a microeconomic concern. The Federal Reserve announces it is increasing the discount rate in an attempt to slow the rate of inflation. This is an example of a ________ concern

Which of the following statements uses the concept of equity to argue against the legalization of casino gambling?

Determine whether each of the following is covered by micro or macro economics Number of employees in the steel industry changes in the aggregate price level (inflation) The price of gasoline The unemployment rate

Indicate whether the following statements are examples of positive economic analysis or normative economic analysis: The inheritance tax should be replaced because it is unfair Allowing Chile to join NAFTA would cause wine prices in the US to drop The first priorities of the new regime in the Republic of South Sudan should be to rebuild schools and highways and to provide basic health care

The principle that irrelevant detail should not be included in a model is known as

Which of the following is NOT an opportunity cost of attending college? The income you could have earned if you didn't attend college The tuition you pay The alternative uses of the time you spend studying The cost of the food that you consume while you are attending college

Rent control laws are imposed when city officials believe landlords have been exploiting tenants. Which of the following criteria are they using to guide their actions? stability growth equity efficiency

Definition of economics

An efficient economy is an economy

An economist wants to understand the relationship between minimum wages and the level of teen age unemployment. The economist collects data on the values of the minimum wage and the levels of teenage unemployment over time. The economist concludes that 1% increase in minimum wage causes a 0.2% increase in teenage unemployment. From this information he concludes that the minimum wage is harmful to teenagers and should be reduced or eliminated to increase employment among teenagers. The collection and use of the data on minimum wage and teenage unemployment over time is an example of

The fundamental difference between microeconomics and macroeconomics is that micro analyzes the decisions made by _____________, while macro deals primarily with ________.

I have lived in a house on the Mississippi River for many years and have never seen a flood. Therefore, there is no reason for anyone to buy flood insurance. This statement is an example of

The reason that opportunity costs arise is that

The field of economics that deals primarily with the factors that determine wage rates, employment, and unemployment is called:

The four criteria that are frequently used in judging the outcome of economic policy are

If you own a building and you decide to use that building to open a book store,

An efficient market is a market

Positive economics is an approach to economics that

Health insurance should be provided to every citizen in a wealthy nation such as the US. This statement is best described as

Economists use the phrase "ceteris paribus" to express the assumption

If information is less costly and more easily available, then usually this

On the Forbes 2013 list of the World's Billionaires, Mexico's Carlos Slim Helu ranks at the top with a net worth of US $73 billion. Does this "richest man in the world" face scarcity, or does scarcity only affect those with more limited incomes and lower net worth?