Econ exam 1

  1. The definition of economics states that it is the study of how______ ?
    agents choose to allocate scarce resources and the impact of those choices on society.
  2. The statement that the United States has a lower unemployment rate than Spain is a ___ since it describes what people ___ ]
    positive statement, actually do
  3. The statement that the United States should legalize same – sex marriage is a ____ since it describes what people ____
    normative statement , ought to do
  4. The ethical implications of a hotly debated government policy would best be considered a​ ____ since it deals with a subjective issue ____
    normative​ question, based on personal preferences
  5. Microeconomics studies ___ ; while Macroeconomics studies the ____
    a small piece of the overall economy, economy as a whole.
  6. Policy decisions made by the government are analyzed by
    both microeconomics and macroeconomics.
  7. A policy such as taxes on cigarettes would be studies under _____ since it deals with ____
    microeconomics, a small part if the overall economy
  8. The three principles of economics include
    optimization, equilibrium, and empiricism
  9. people weigh costs and benefits when making a decision
  10. no one would benefit from changing his or her behavior
  11. Empiricism
    economists use data to analyze what is happening in the world
  12. Economics differs from these other social sciences because it also addresses these three key​ concepts:
    Optimization, equilibrium, and empiricism
Card Set
Econ exam 1
exam 1