Exam 1: Introduction: What Is Economics?

Microeconomics is best described as the study of

In the final two decades of the twentieth century, average per capita global income

Richard runs a pizza delivery restaurant. List the three basic types of decisions studied in economics and give an example from Richard's restaurant.

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s). -According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle. The increase in sales due to this subsidy is an example of which element of the economic way of thinking?

To determine an appropriate congestion tax, an economist has to assume that people respond to incentives.

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

A variable measures

There is a positive relationship between two variables if

Macroeconomics involves the study of the decision-making of individual firms or individuals.

Recall the Application about unwanted commercial e-mail, or spam, to answer the following question(s). -According to the Application, the economic approach to spam is to

After the implementation of the congestion tax in London, traffic volume was reduced and travel time for cars and buses was cut in half. This is an example of

Congestion taxes tend to cause an increase in traffic volume during rush hours.

Economics is the study of

List and briefly describe the five factors of production.

Positive economic analysis answers what question?

Figure 1A.2 -Refer to Figure 1A.2. The slope of the curve

Economics is best defined as the study of

Ceteris paribus means "Let the buyer beware."

Which of the following is a microeconomic question?

Who is associated with the following summary of the economic way of thinking: "The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions."