Chapter 1 homework
mixed
A ________ economy is an economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources.
usually about a casual relationship; tested before it can be accepted (or not rejected); a statement that may be either correct or incorrect about an economic variable
A hypothesis in an economic model is ______.
it is based on studying the actions of individuals; it applies the scientific method to the study of the interactions among individuals; it considers human behavior--particularly decision-making behavior
Economics is a social science because ________.
23.5%; 23/81; 0.21
What percentage of the marbles are blue? _____% (Enter your response as a percent rounded to one decimal place.) What fraction of the marbles are yellow? _____ (Express your answer as a fraction.) What fraction of the marbles are red? ______ (Enter your response as a decimal rounded to two decimal places.)
the policies are consistent with economic incentives
When the federal government crafts environmental policies that make it less expensive for firms to follow green initiatives, _____.
an omitted variable; reverse causality
When we graph the relationship between two variables, we often want to draw conclusions about whether changes in one variable are causing changes in the other variable. Doing so, however, can lead to incorrect conclusions. Reasons for drawing incorrect conclusions about cause and effect include _________.
B. y=55−4.6x
Which of the following shows a negative linear relationship? (assume values of x>0) A. y=55x B. y=55−4.6x C. y=−13+srt(x) D. y=−13+6.5x
86.36%; -35.42%; 186; 28.45%
_____%; _____%; _____; _____%
consumers, firms, and government
______ decide(s) what goods and services will be produced.
Economics
______ is the study of the choices people make to attain their goals, given their scarce resources.
buyers and sellers
A market is a group of ________ of a good or service and the institution or arrangement by which they come together to trade.
models have to be simplified to be useful; we cannot analyze an economic issue unless we reduce its complexity
Any model is based on making assumptions because ________.
3.2%
Economists often are interested in percentage change from one period to the next. The percentage rate of change of gross domestic product (GDP) is an important macroeconomic variable. If in 2010 GDP was $11,150 billion dollars, and GDP increased to $11,502 billion in 2011, what is the growth rate of the U.S. economy in 2011? _____% (Enter your response rounded to one decimal place.)
the fair distribution of economic benefits
Equity is ______.
how income is distributed
In the United States, who receives the goods and services produced depends largely on ________.
the study of the economy as a whole, including topics such as inflation, unemployment, and economic growth
Macroeconomics is _______.
how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices.
Microeconomics is the study of _____.
When we assume the managers at Microsoft have used all available information and have weighed all known benefits and costs, we are assuming rationality.
Microsoft charges a price of $599 for a copy of Windows 7. Is this pricing decision rational?
scarcity
One of the basic facts of life is that people must make choices as they try to attain their goals. This unavoidable fact comes from a reality an economist calls ________.
the highest valued alternative that must be given up to engage in an activity
Opportunity cost is _______.
centrally planned; market
Societies organize their economies in two main ways to answer the three questions of what, how, and who. A society can have a ________ economy in which the government decides how economic resources will be allocated. Or a society can have a ________ economy in which the decisions of households and firms interacting in markets allocate economic resources.
negative; positive; increasing
The diagram to the right illustrates a common economic relationship. Economists know this relationship as marginal cost (MC). The diagram illustrates the relationship between the change in total cost and quantity produced. There are three lines (A, B, and C) drawn tangent to the MC curve. At line A, the MC curve has a _____ slope. Where lines B and C touch the MC curve, the slope is _____ and _____.
ΔY; ΔX; shown in graph; $25
The slope of a curve is defined as the _____ divided by the _____. (Assume the Y values are on the vertical axis and the X values are on the horizontal axis). Suppose your business operates a machine at a cost of $150 per day whether it is used or not plus $25 for each hour it is used. Use the line drawing tool to draw the daily cost curve for this machine assuming an 8 hour day. Label the curve 'cost'. Carefully follow the instructions above, and only draw the required objects. The slope of the cost curve is $_____ per hour.
positive analysis; normative analysis; positive analysis
________ is concerned with what is, and _______ is concerned with what ought to be. Economics is about _________, which measures the costs and benefits of different courses of action.
productive efficiency; allocative efficiency
________ occurs when a good or service is produced at the lowest possible cost. ________ occurs when production is in accordance with consumer preferences.
shown on graph
1.) Use the line drawing tool to draw the equation Y=2+1.25X. Label your line 'A'. 2.) Use the line drawing tool to draw the equation Y=18−1.25X. Label your line 'B'. 3.) Use the point drawing tool to indicate the point where both equations are equal. Label this point 'Equilibrium'. Carefully follow the instructions above, and only draw the required objects.
marginal benefit equals marginal cost
Economists use the word marginal to mean an extra or additional benefit or cost of a decision. An optimal decision occurs when _______.
nonlinear; linear
In the diagram to the right, the curve labeled "S" is apparently _____, while the curve labeled "D" is apparently _____.
50%
The bar graph to the right illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is _____%. (Enter your response as an integer.)
negative
The diagram to the right illustrates a demand curve. As with all demand curves, this curve's slope is _____.
One, what goods and services will be produced? Two, how will the goods and services be produced? Three, who will receive the goods and services produced?
Trade-offs force society to make choices, particularly when answering the following three fundamental questions: _______.
many times in the past several decades, firms may have chosen between a production method in the United States that uses fewer workers and more machines and a production method in China that uses more workers and fewer machines.
Firms choose how to produce the goods and services they sell. In many cases, firms face a trade-off between using more workers or using more machines. For example, _______.
74; yes
In your economics class, you scored a 70 on the first quiz, a 82 on the second quiz, and an 70 on the third quiz. Your average quiz grade is _______. (Enter your response rounded to one decimal place.) On the fourth quiz, you scored an 79. Did the fourth quiz raise your average? ______
$1625
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). Total revenue is $_______. (Enter your response as an integer.)
$512,000
The diagram to the right illustrates a hypothetical demand curve representing the relationship between price (in dollars per unit) and quantity (in 1,000s of units per unit of time). The area of the triangle shown on the diagram is $________. (Enter your response as an integer.)
price (dollars per bushel) on the vertical axis and quantity (bushels per week) on the horizontal axis
The diagram to the right illustrates a very important relationship in economics between two variables: the price of a good and the quantity demanded of that good. The two variables in this diagram are: ________.
a time-series graph
The diagram to the right is an example of _____.
D3
The diagram to the right represents a demand curve for apples. The original demand curve is D1. If a factor other than price which affects demand changes, causing demand to decrease, the resultant demand curve is represented by _______.
-1.17
The diagram to the right shows a hypothetical demand curve for apples. The slope of this curve is _______. (Enter your response rounded to two decimal places. Include a minus sign if appropriate.)
70%
The pie chart illustrates hypothetical data for the market share for the United States automobile market. The percentage of the U.S. market that U.S. auto firms control is _____%. (Enter your response as an integer.)
