question
The art in scientific thinking -- whether in chemistry, economics, or biology -- is what?
answer
Deciding which assumptions to make.
question
Why are production possibilities frontiers usually bowed outward?
answer
Because resources are specialized; that is, some are better at producing particular goods rather than other goods.
question
Circular- flow diagram:
answer
A visual model of the economy that shows how dollars flow through markets among households and firms.
question
Production Possibilities Frontier:
answer
A graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology.
question
Microeconomics:
answer
The study of how households and firms make decisions and how they interact in markets.
question
Macroeconomics:
answer
The study of economy-wide phenomena, including inflation, unemployment, and economic growth.
question
Positive Statements:
answer
Claims that attempt to describe the world as it is.
question
Normative Statements:
answer
Claims that attempt to prescribe how the world should be.
question
Why do economists disagree?
answer
Because of differences in scientific judgment and values.
question
Who designs tax policy?
answer
Economists as the Department of Treasury.
question
Who analyzes data on workers and those looking for work to help formulate labor-market policies?
answer
Economists at the Department of Labor.
question
Who helps enforce the nation's antitrust laws?
answer
Economists at the Department of Justice.
question
Who formulates spending plans and regulatory policies?
answer
Economics at the Office of Management and Budget.
question
Economists advice is always 100% followed.
answer
False
question
Most economists agree that a ceiling on rents reduces the quantity and quality of housing available.
answer
True
question
How many variables does the Coordinate System graph?
answer
Two variables.
question
What is the formula for slope?
answer
"Rise over run"
question
The movement from point B to point C could have been caused by...
I-price
I
I .A
I
I .C .B
I
——————————— grapes
a.) inflation.
b.) a change in income.
c.) a change in cost of producing grapes.
I-price
I
I .A
I
I .C .B
I
——————————— grapes
a.) inflation.
b.) a change in income.
c.) a change in cost of producing grapes.
answer
b.)
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