ECON 201Chapter 1-A – Flashcards
Unlock all answers in this set
Unlock answersquestion
The impact of the national debt on the economy's unemployment is an example of
answer
Macroeconomics analysis
question
One of your classmates, Sally, is a hardworking student, serious about her classes, and conscientious about her grades. Sally is also involved, however, in volunteer activities and an extracurricular sport. Is Sally displaying rational behavior?
answer
Yes, she is using her time allocated among school, studying, sports and volunteer work in a manner she deems best.
question
"We ought to do more for the education of our children." Statements using words like "ought" or "should" are:
answer
Normative statements
question
Each country has a unique economic system to allocate its scarce resources. However, the economic system of most of the world's nations are a combination of the _____ _____ system and the _____ system
answer
Central planning; Price
question
What is the relationship between wants and resources?
answer
Resources are used to produce things that satisfy people's wants.
question
Decisions must frequently be made by individuals, organizations, and even nations. Facilitating better decision-making is a fundamental goal of economics. The analytical framework advocated by economists that enables on to make informed decisions is called
answer
The economic way of thinking
question
Which of the following is a true statement about self-interest as used in the study of economics?
answer
Any action can be based on self-interest if the person has some reason for the action.
question
The three fundamental economic questions that a nation addresses in order to allocate society's scarce resources include all of the following except:
answer
Why will the item be produce?
question
The economic way of thinking will
answer
Allow you to make better decisions.
question
A politician states "taxes should be raised to provide more spending on school lunch programs." This is
answer
A normative economic statement.
question
Which of the following statements is true?
answer
Economics is a science since the study of economics uses models and theories that are subject to empirical testing.
question
Economics is
answer
The study of how limited resources are allocated to satisfy unlimited wants.
question
An economic model is developed from a set of assumptions about consumer behavior and predicts that people will buy less of a good the higher the price of the good. Empirical testing of this model would involve
answer
The collection of data to evaluate the usefulness of the model
