HW Ch.

Which of the following is not an example of a causal​ claim?

It rains more often on days you wash your car.

How does microeconomics differ from​ macroeconomics?

Microeconomics is the study of how​ individuals, households,​ firms, and governments make​ choices, while macroeconomics is the study of the economy as a whole.

Clara visits the local bakery shop several times a week and knows the​ owner, Sam, very well. Her favorite​ cupcakes, chocolate​ cream, sell for ​$2 each at any bakery or coffee shop in town. Assuming Clara and all other buyers in the market believe they​ can't do​ better, $2 is likely the ___________________ price.

equilibrium

Suppose you are ready to check out and see two​ lines: Line A has three​ people, while Line B has five people. Assume people choose lines at random and have not yet had a chance to switch lines. The situation will move toward equilibrium if the

last person from the longer line switches to the shorter line

Assume that all eight shoppers are optimizing​ (i.e., they had a chance to switch​ lines) and the situation is in equilibrium. Given this​ information, you could infer that the behavior of the __________________is most informative.

last person in the five-person line

Now suppose there was some disruption in the market for​ flour, an ingredient in​ cupcakes, and Sam raised the price to ​$2.50​, while the coffee shop down the street only raised its price to $2.25. Given this​ information, Clara chooses to buy her favorite cupcake from the coffee shop down the​ street, which is the _________________ choice for her.

optimum

All of the following are examples of empiricism​ except: A. analyzing theories about optimization. B. analyzing theories about equilibrium. C. predicting human behavior. Your answer is correct. D. determining causation.

predicting human behavior.

Suppose your New Year resolution is to get back in shape. How would you evaluate your options and choose an optimal​ one?

Do a​ cost-benefit analysis to compare the alternatives.

Which of the following is true regarding the concept of​ causation?

It describes how one event can bring about change in another.

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.

Economics is all about making choices. The reason we have to choose one thing over another​ is:

economic resources are scarce.

Assume that all eight shoppers are optimizing​ (i.e., they had a chance to switch​ lines) and the situation is in equilibrium. Given this​ information, you could infer that the shorter line will move _______________ the longer line.

slower than

Economics, anthropology,​ psychology, sociology, and political science all study human behavior. Economics differs from these other social sciences because it also addresses these three key​ concepts: _________.

​Optimization, equilibrium, and empiricism.