Econ exam 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.
The statement that the United States has a lower unemployment rate than Spain is a ___ since it describes what people ___ ]

positive statement, actually do
The statement that the United States should legalize same – sex marriage is a ____ since it describes what people ____

normative statement , ought to do
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
Microeconomics studies ___ ; while Macroeconomics studies the ____

a small piece of the overall economy, economy as a whole.
Policy decisions made by the government are analyzed by

both microeconomics and macroeconomics.
A policy such as taxes on cigarettes would be studies under _____ since it deals with ____

microeconomics, a small part if the overall economy
The three principles of economics include

optimization, equilibrium, and empiricism
people weigh costs and benefits when making a decision

Optimization
no one would benefit from changing his or her behavior

Equilibrium
Empiricism

economists use data to analyze what is happening in the world
Economics differs from these other social sciences because it also addresses these three key concepts:

Optimization, equilibrium, and empiricism

Author

dwrght16

328305

Card Set

Econ exam 1

Description

exam 1

Updated

2017-02-10T06:00:33Z

Show Answers