Exam 1: Introduction: What Is Economics

Microeconomics is the study of aggregate behavior in the economy.

Economic models explore decision making by individuals, firms and other organizations.

Jerome has a "C" average in his philosophy course and a "B" average in his economics course. He decides to study an extra hour for his philosophy exam. This is an example of

If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is

All of the following are considered natural resources EXCEPT

Explain three ways we can use microeconomic analysis.

Prior to the financial crisis and recession which began in 2007, credit for mortgages was ________, creating a ________.

Which of the following is an example of a normative question?

Economists assume that individuals make informed decisions and act in their own self-interest.

Deciding how a society's products are distributed among its citizens answers the economic question of

Would an economist consider clean air a scarce resource? Explain.

One example of a microeconomic question is, "Should unemployment benefits be increased?"

Recall the Application about housing prices in Cuba to answer the following question(s). -According to the Application, recent reforms in Cuba have relied less on the free market in determining prices in the housing market.

In the past few centuries, choices have led to a substantial decline in the standards of living around the globe.

When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?

Resources are all of the following EXCEPT

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 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). -When the government converted the highway from 4 lanes into 6 lanes, they claimed the capacity had increased by 50 percent. When the government switched the highway back from 6 lanes to 4 lanes, they claimed the capacity had been decreased by 33 percent. Had the government used the midpoint method, the percentage increase would have been ________ percent and the percentage decrease would have been ________ percent.

Ceteris paribus means "Let the buyer beware."

Figure 1A.2 -Refer to Figure 1A.2. The slope between points a and c is