Exam 1: The Nature of Economics

Some pet owners are using an "invisible fence" to keep their animals from straying. Every time the animal steps over the edge of the property, it gets a mild shock. A social scientist would call the shock

The study of the aggregate economic variables is

Self-interest relates to

Which of the following would likely be studied in a macroeconomics course?

Which of the following would most likely NOT be taught in a microeconomics course?

The author of the book An Inquiry into the Nature and Causes of the Wealth of Nations is

Consider the case of a teacher who tells students that those who miss more than three classes for any reason will automatically receive a lower grade.

Microeconomics examines the

One problem with constructing a perfectly complete realistic economic model is that

Jaime's father gives her a pen for her graduation from college, but Jaime wants a smartphone. This implies that

Macroeconomics is the study of

The economic way of thinking will help you

Models must

-In the above graphs a direct relationship is shown by

In economics, the concept that individuals are motivated by self-interest and respond predictably to opportunities for gain is known as

The threat of a large fine for failure to pay income taxes is an example of

Which of the following is always TRUE of rational behavior?

The study of how a particular firm might choose to maximize its profits would fall into what type of analysis?

What is economics and what does it try to explain?

Incentives are