Exam 1: Introduction: What Is Economics

Economists will always reach the same conclusion in their positive analyses.

Money is an example of a scarce factor of production.

If one variable falls as the other variable falls,the two variables are positively related.

A key assumption of most economic analysis is that people act rationally and in their own self-interest.

An arrangement that allows buyers and sellers to exchange things is called

Figure 1.1 -Refer to Figure 1.1.The relationship between hours worked and income,as shown by the graph in Figure 1.1 is

Studies that look into the effects of state education spending cuts on the poverty rates of minorities use

Most modern economic analysis is positive in nature,but many issues also involve questions with normative economics.

When economists construct economic models,

Economics tells us what to choose given the trade-offs.

What is an economic view of traffic congestion?

Recall the Application about the government of Mexico City repainting highway lane lines to transform a 4-lane highway into a 6-lane highway to answer the following question(s). -If a variable increases from 100 to 150,then using the average value approach its percentage growth is

A single variable can be illustrated as

Which of the following is an example of scarcity?

The factors of production include

Which of the following did NOT directly cause the worldwide recession in 2007-2008?

"By how much should the Fed increase the money supply to get the economy out of a recession?" is

Microeconomic analysis can be used to

The Latin phrase ceteris paribus means that when a relationship between two variables is being studied,

Positive economics questions "What ought to be?" while normative economics predicts the consequences of alternative actions,answering the questions "What is?" or "What will be?"