Econ Final

Microeconomics is concerned with

a detailed examination of specific economic units that make up the economic system.

The basic purpose of the other-things-equal assumption is to

allow one to reason about the relationship between variables X and Y without the intrusion of variable Z

Economic theories

are generalizations based on hypotheses tested and supported with observed facts

A positive statement is one that

focuses on facts, descriptions, and theoretical relationships.

You should decide to go to a movie

if the marginal benefit of the movie exceeds its marginal cost.

When economists say that people act rationally in their self-interest, they mean that individuals

look for and pursue opportunities to increase their utility

The issues of inflation, unemployment, and business cycles are

major topics of macroeconomics

The Latin term "ceteris paribus" means

other things equal

Economics may best be defined as the

social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.

Macroeconomics can best be described as the

study of the large aggregates of the economy or the economy as a whole.

Which of the following most closely relates to the idea of opportunity costs?

trade-offs