ECO211 Chapter 1 Quiz

This is an example of a negative incentive for students to attend class.

The government should increase spending during times of economic recession.

They make decisions based on their own self-interest.

<p>Microeconomics focuses on individual decision makers within the economy.</p> Signup and view all the answers

<p>The allocation of scarce resources to satisfy unlimited wants.</p> Signup and view all the answers

<p>How to produce items, what to produce, for whom items are produced.</p> Signup and view all the answers

<p>Simplify reality to predict outcomes.</p> Signup and view all the answers

<p>A firm evaluates how much to reduce the price of its product in an effort to influence sales and boost its profits.</p> Signup and view all the answers

<p>Behavior of the economy as a whole.</p> Signup and view all the answers

<p>A positive statement is a statement of fact and a normative statement involves value judgments.</p> Signup and view all the answers

<p>The rate of unemployment of young African Americans exceeds that of white Americans.</p> Signup and view all the answers

<p>Choices are affected by both positive and negative incentives.</p> Signup and view all the answers

<p>Self-interest is consistent with many goals that people pursue, including betterment of others.</p> Signup and view all the answers

<p>Model.</p> Signup and view all the answers

<p>Form a theory or model.</p> Signup and view all the answers

<p>The advertising strategy of a particular company.</p> Signup and view all the answers

<p>To study how people make choices with limited resources.</p> Signup and view all the answers

<p>To predict the choices people make.</p> Signup and view all the answers

<p>Yes, as long as Sara didn't intentionally purchase blister-causing shoes.</p> Signup and view all the answers

<p>Using a simple rule of thumb to choose among a subset of easiest-to-evaluate options.</p> Signup and view all the answers

<p>An increase in the price of beef.</p> Signup and view all the answers

<p>People do not intentionally make decisions that would leave them worse off.</p> Signup and view all the answers

<p>Consumers deciding to buy more fish and less beef because of concerns about a healthier diet.</p> Signup and view all the answers

<p>Inverse.</p> Signup and view all the answers

<p>The economy's unemployment level.</p> Signup and view all the answers

<p>The assumption that people do not intentionally make decisions that would leave them worse off.</p> Signup and view all the answers

<p>You constructed a model that made a prediction, and the prediction was refuted.</p> Signup and view all the answers

<p>The causes of domestic unemployment.</p> Signup and view all the answers

<p>Value judgments.</p> Signup and view all the answers

<p>All Americans should have access to health care.</p> Signup and view all the answers

<p>Items of value that are used to make other things that satisfy people's wants.</p> Signup and view all the answers

<p>Buyers and sellers together.</p> Signup and view all the answers

<p>Economic models are based on pure fact and no assumptions.</p> Signup and view all the answers

<p>No individual should have less than $20,000 income in the United States in 2010.</p> Signup and view all the answers

<p>The same at all points along that line.</p> Signup and view all the answers

<p>The effects of a lower income tax on the nation's total production of goods and services.</p> Signup and view all the answers

<p>Rational self-interest.</p> Signup and view all the answers

<p>Lower wages increase employment and reduce the unemployment rate, a reduction in the size of the budget deficit will reduce interest rates, and slower money growth reduces inflation.</p> Signup and view all the answers

<p>A simplified representation of the real world.</p> Signup and view all the answers

<p>Men and women should earn the same salary if they perform the same job.</p> Signup and view all the answers

<p>Whether it helps to explain or predict real-world phenomena.</p> Signup and view all the answers

<p>Direct.</p> Signup and view all the answers

<p>Teenage unemployment is too high.</p> Signup and view all the answers

<p>Rationally.</p> Signup and view all the answers

<p>Self-interest.</p> Signup and view all the answers

<p>One in every five children in the United States is living in poverty.</p> Signup and view all the answers

<p>Microeconomists.</p> Signup and view all the answers

<p>The inflation rate, total output for an economy, and the unemployment rate.</p> Signup and view all the answers

<p>They contain value judgments.</p> Signup and view all the answers