Exam 1: Introduction: What Is Economics

The slope of a curve measures

In the final two decades of the twentieth century, per capita income in sub-Saharan Africa

Microeconomics is best described as the study of

Figure 1A.2 -Refer to Figure 1A.2. If this consumer rents 60 DVDs, how many movie tickets will she purchase?

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?"

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."

Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.

Which of the following is a question answered with normative economic reasoning?

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

Which of the following is a microeconomic question?

Economics is the study of

An economic model is a

Recall the Application about the increase in purchases of hybrid vehicles to answer the following question(s). -According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2 emissions is measured in tons) describes the economic concept of

In the 1980s and 1990s, average per capita income increased by a greater percentage in sub-Saharan Africa than it did in the rest of the world.

A trade-off refers to

A small, one-unit change in value is called a marginal change.

The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?

If you work 4 extra hours, and the slope of the curve showing the relationship between your income and work hours is 8, your income will increase by

The study of the choices made by individual households, firms, and government is called

Explain three ways we can use macroeconomic analysis.