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