Exam 1: Introducing the Economic Way of Thinking

Microeconomics only looks at the behavior of one consumer or one firm in a market,while macroeconomics looks at the behavior of an entire industry or group of consumers.

An economics textbook is an example of:

An economic forecast:

An analysis of IBM's pricing decisions would be classified as a macroeconomic study.

Scarcity:

An economic theory claims that a rise in gasoline prices will cause gasoline purchases to fall,Ceteris paribus.The phrase "Ceteris paribus" means that:

A model (or theory):

A model is defined as a:

What is an economic theory or model? What constitutes a "good" economic theory or model?

Ceteris paribus means:

Natural resources are:

Economic models are of limited use since they cannot be tested empirically with actual data.

A normative economic statement is:

Capital resources include money and other financial assets.

Which of the following is not a factor of production?

A positive economic statement must be verifiable.

An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently.In order to develop a model,the professor should take which steps?

Economists use ____ economic analysis to understand an individual market.They then use ____ economic analysis to guide future national economic policy.

Complete the following analogy: A criminal is to a police artist's sketch as the economy is to:

The branch of economics that focuses on economywide variables like inflation and unemployment is called: