Exam 1: The Nature of Economics

Sara looks into her closet and discovers a pair of like-new shoes she no longer wears because they give her blisters.From the economist's perspective,was Sara behaving rationally when she bought those shoes?

Which of the following is NOT a characteristic or focus of microeconomics?

A simplified representation of the real world that is used to explain economic phenomena is a(n)

-In the above graphs a direct relationship is shown by

Microeconomics is defined as that part of economic analysis that

Ceteris paribus means

Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?

Positive economic analysis is supposed to be

Which of the following is NOT a positive statement?

High gasoline prices give people all of the following incentives EXCEPT

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

Macroeconomics might study which of the following?

The hypothesis that people are nearly,but not fully rational,cannot possibly fully examine every available choice,and utilize simple rules of thumb in making decisions is known as the

Charitable donations to the Red Cross

When two variables have an inverse relationship,the slope is

Assumptions in models tend to make

In economics,________ are limited but ________ are unlimited.

Given a linear curve,the value on the y-axis changes from 100 to 120 when the value on the x-axis changes from 20 to 10,then the slope of that curve is

It is assumed in economics that people make decisions based upon

Which of the following is a positive statement?