ECN 211 CH 1

Functions are often described as cause and effect in economics. In an economics function, if the variable is on the right-hand side and is doing the explaining, it represents a(n)________?

Cause

In order to calculate an economic equation to understand its economic implications, what must one remember to do?

Follow the correct order of operations.

If a data line on a graph has a slope of zero it means there...

Is a constant relationship between X and Y.

The variable on the_____ side is what is being explained ("the effect").

Left Hand

If an economist is trying to predict the outcome from particular causes and effects, what is the best tool(s) for her to use in order to test out her economic model?

Mathematical Functions

What will we never do in a world of scarcity?

Meet all of society's wants.

Which assumptions reflect permanent universal conditions?

More output satisfies more wants & The world has limited productive resources.

If Kendrick decides to watch t.v. instead of go to the gym, the ________ is a missed workout.

Opportunity cost

Financial capital, like money, is simply a tool. Once financial capital is converted to economic capital (invested), it produces a resource that is...

Productive

The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is..

Productive.

On the_______side is what's doing the explaining ("the causes").

Right Hand

What can be assumed if a model can accurately predict outcomes?

The assumptions of the model are generally accurate.

For an economist or mathematician, a variable is..

The name given to a quantity that can assume a range of values.

Identify the microeconomic topic(s) among the following.

The price that a farmer asks for her watermelons

If a data line on a graph slopes upward as it goes to the right, it is depicting that..

The relationship between the variables on the axes is direct.

In the case of an negative relationship between two variables, all else remaining constant...

The vaule of the two variables will move in opposite directions from each other.

What combination of model characteristics are frequently used in the most effective models?

Useful and simple.

Land, or natural resources, include(s) the fertility of the land, minerals below it, and________?

Wind & Sun

Given that spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict household spending with a model y=b+mx, where

X repersents income earned

Given that spending for a certain household will always include a base amount of $1000/month, and that additional spending is equal to half of any income earned, we can predict household spending with a model y=b+mx, where

Y represents spending

The circular flow diagram demonstrates...

a direct relationship with groups and the economy.

Because of our limited money, time, and effort, we are best off when we allocate those things..

by constantly assessing the opportunity costs of our choices.

What is one way to express economic theory?

mathematical equations

Once a model of reality is constructed around certain assumptions, it can be tested to determine its value in...

predicting outcomes.

Society gains advantages through trade because of its ability to...

refine tasks associated with production & specialize resources to the uses where opportunity cost is minimized