ECO 202 Ch1

Caveat lector​ is:

A summary of the argument that one should be skeptical when gathering information.

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

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

In which of the following areas will taking an economics course help benefit you throughout your​ life?

A.It will help you analyze and predict human behavior in a variety of situations. B.It will instill the concept that what activity is given up by a decision plays an important role when making choices. C.It will give you the logic behind using​ cost-benefit analysis when evaluating decisions. ALL ARE CORRECT

How does microeconomics differ from​ macroeconomics? A.Macroeconomics is the study of how​ individuals, households,​ firms, and governments make​ choices, while microeconomics is the study of the economy as a whole. B.Microeconomics is the study of how​ individuals, households,​ firms, and governments make​ choices, while macroeconomics is the study of the economy as a whole. Your answer is correct. C.Macroeconomics is the study of how individuals and firms make​ choices, while microeconomics is the study of all state and local government policies. D.Microeconomics is the study of how individuals and firms make​ choices, while macroeconomics is the study of all state and local government policies.

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

Which of the following is not an item studied under macroeconomics​? A.Aggregate issues. B.The well minus being of agentsThe well−being of agents. C.The money supply. D.The unemployment rate.

B. The well−being of agents.

Which of the following statements about the role of communication in the process of critical thinking is​ false?

Communication can play a​ role, but more often than not its role is not important

Deciding what the issue​ is, becoming aware of your initial frame of​ reference, gathering​ information, and constructing a conclusion is called what?

Critical thinking

Which of the following is not an example of​ causation?

Driving without car insurance will lead to getting into an accident

Which of the following would not be considered one of the possible opportunity costs of a recent high school graduate backpacking across Europe for a year backpacking across Europe for a year. A.Starting college right away. B.Getting a full−time job. C. Joining the Peace Corps.. D.None of these would be considered an opportunity cost. E.All of these is a possible opportunity cost.

E - ALL OF THESE are possible opportunity costs.

Empiricism

Economist use data to analyze what is happening in the world.

The process of critical thinking often involves formal and informal writing. Why do critical thinkers use both types of​ writing?

Formal writing is used to communicate the results of​ one's critical thinking and to persuade others that one is right. Informal writing is primarily intended for oneselft or others with whom one is​ working, and is used to facilitate the critical thinking process itself.

Suppose that you are doing a macroeconomic research paper on whether to the Federal government should balance its budget in the coming year. Suppose further that in working on that paper you are frustrated by the inability to find statistics on government spending and economic growth in other countries. This frustration suggests you are having with what step of the critical thinking​ process?

Gathering relevant information to answer the quesiton

The process of critical thinking is useful in macroeconomics​ because:

Macroeconomics is focused on choosing effective policies.

Equilibrium

No one would benefit from changing his or her behavior

Optimization

People weigh costs and benefits when making a decision

Which are the Distinguishing features of Critical Thinking

Self Awareness, Problem Solving, Purposefulness, and Rational

The critical thinking step of coming to a​ conclusion:

Should include a consideration of the implications and consequences of your answer to the question at hand.

Critical thinking about macroeconomic issues requires that you do what before analyzing the particular issue at​ hand?

Take stock of any relevant macroeconomic​ information, theories, and conclusions that you already hold or believe.

What role do personal​ (or professional) values play in thinking critically about macroeconomic​ issues?

Their role depends on the nature of the macroeconomic issue being investigated. ​ However, one should be aware of any values that one holds that might be relevant to the macroeconomic issue.

Suppose there are three activities in which you could​ participate: 1. The opportunity cost of the first activity is missing 3 hours of work. 2. The opportunity cost of the second activity is missing a concert that you have tickets to. 3. The opportunity cost of the third activity is missing the afternoon nap that you take every day. Given this​ information, for which of these activities would you be able to compare opportunity​ costs?

You can compare all the activities after your translate all the missed activities into dollar amounts.

Free riding occurs because

people sometimes pursue their own private interests and don't contribute voluntarily to the public interest.

The concept of opportunity cost is a measure of

the value of the best alternative use of a resource