ECO MIDTERM

Economist study _______; therefore the unifying feature of economics is a focus on _______

All human behavior Choice

Since the inputs used to produce goods are scarce , the total amount produced of most goods is _______ the amount that consumers would like to buy. To allocate the good produced to thebpeople who calue them the mkst, we use ______

Below The price mechanism

Policy decisions made by the government are analyzed by

both microeconomics and macroeconomics .

Which of the following would be considered a scarce resource for producers ?

Equipment and tools . Natural resources for production . High - skill labor . All of the above .

The scientific method uses __________ for setting forth predictions and _________ to support or deny them . It is more important for a model to be ________than________

Hypothesis Data Usable Accurate

A policy such as taxes on cigarettes would be studied under _________ since it deals with __________

Microeconomics A small part of the overall economy

A demand curve has a _______ slope due to the law of demand. The law of demand is based off a consumer's willingness to pay ______ as marginal units are consumed.

Negative Less

A supply curve has a ............... slope due to the Law of Supply . The Law of Supply states that supplies .............. as price increases .

Positive ; Increase

The Law of Demand states that as the price of a good increase, ceteris paribus, the ______ decreases. This can be shown graphically with ____________ demand curve or numerically in a table using a __________

Quantity demanded A downward - sloping Demand schedule

Holding all else equal , if the price of a digital camera rises , then we can expect

a decrease in the quantity demanded of digital cameras . .

Economics is divided into two broad fields of study : microeconomics and macroeconomics . Microeconomics studies while macroeconomics studies

a small piece of the overall economy ; the economy as a whole .

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 .

If people began to believe that SUVs were causing global warming , then the demand for the Toyota Rav4 SUV would

decrease ( shift left ) .

If people expect the price of SUVs to decrease in the future , then the demand for the Toyota Rav4 SUV would

decrease ( shift left ) .

If opportunity cost were to suddenly increase , total cost would

increase and net benefit would decrease .

The relationship that exists between these two variables can be described as

negatively related

When graphing the new total market supply and demand curves , these curves will be _____________ the individual countries ' demand curves , since these curves are derived by ____________

to the right of ; summing quantities at a given price .