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Questions and Answers
According to the text, what is the essence of science in economics?
According to the text, what is the essence of science in economics?
- The development and testing of theories about how the world works (correct)
- The simplification of the complex world
- The conducting of experiments
- The use of theory and observation
According to the text, why do economists face challenges in conducting experiments?
According to the text, why do economists face challenges in conducting experiments?
- Economists do not use theory and observation like other scientists
- Economists do not use the scientific method
- Economists do not pay attention to natural experiments offered by history
- Conducting experiments is often difficult and sometimes impossible in economics (correct)
According to the text, what role do assumptions play in economics?
According to the text, what role do assumptions play in economics?
- Assumptions are only used to study long-run effects
- Assumptions can simplify the complex world and make it easier to understand (correct)
- Assumptions are only used to study short-run effects
- Assumptions are not important in economic thinking
According to the text, what is the art in scientific thinking in economics?
According to the text, what is the art in scientific thinking in economics?
According to the text, why do economists use different assumptions?
According to the text, why do economists use different assumptions?
According to the text, what do economists pay close attention to?
According to the text, what do economists pay close attention to?
According to the text, what is the role of economists in addressing their subject?
According to the text, what is the role of economists in addressing their subject?
Which of the following is an example of a positive statement in economics?
Which of the following is an example of a positive statement in economics?
Which of the following is an example of a normative statement in economics?
Which of the following is an example of a normative statement in economics?
What percentage of economists agree that a ceiling on rents reduces the quantity and quality of housing available?
What percentage of economists agree that a ceiling on rents reduces the quantity and quality of housing available?
What percentage of economists agree that tariffs and import quotas usually reduce general economic welfare?
What percentage of economists agree that tariffs and import quotas usually reduce general economic welfare?
What percentage of economists agree that flexible and floating exchange rates offer an effective international monetary arrangement?
What percentage of economists agree that flexible and floating exchange rates offer an effective international monetary arrangement?
What percentage of economists agree that fiscal policy has a significant stimulative impact on a less than fully employed economy?
What percentage of economists agree that fiscal policy has a significant stimulative impact on a less than fully employed economy?
What percentage of economists agree that economic growth in developed countries like the United States leads to greater levels of well-being?
What percentage of economists agree that economic growth in developed countries like the United States leads to greater levels of well-being?
Which of the following is a purpose of graphs?
Which of the following is a purpose of graphs?
What is the coordinate system used to display two variables on a single graph called?
What is the coordinate system used to display two variables on a single graph called?
When two variables move in opposite directions, the curve on a graph is
When two variables move in opposite directions, the curve on a graph is
What is the ratio of the vertical distance covered to the horizontal distance covered called?
What is the ratio of the vertical distance covered to the horizontal distance covered called?
In the given graph, what is the slope of the demand curve between the points (21 novels, $6) and (13 novels, $8)?
In the given graph, what is the slope of the demand curve between the points (21 novels, $6) and (13 novels, $8)?
What does a fairly flat upward-sloping line indicate?
What does a fairly flat upward-sloping line indicate?
What does a steep upward-sloping line indicate?
What does a steep upward-sloping line indicate?
What does a downward sloping line indicate?
What does a downward sloping line indicate?
What is the slope of a horizontal line?
What is the slope of a horizontal line?
Which of the following best describes the circular flow diagram?
Which of the following best describes the circular flow diagram?
What does the production possibilities frontier represent?
What does the production possibilities frontier represent?
Which of the following is an example of an inefficient level of production?
Which of the following is an example of an inefficient level of production?
What does the slope of the production possibilities frontier represent?
What does the slope of the production possibilities frontier represent?
What is the opportunity cost of producing 1 unit of agricultural goods in terms of manufactured goods?
What is the opportunity cost of producing 1 unit of agricultural goods in terms of manufactured goods?
What is the opportunity cost of producing 1 unit of manufactured goods in terms of agricultural goods?
What is the opportunity cost of producing 1 unit of manufactured goods in terms of agricultural goods?
What does technological advancement lead to?
What does technological advancement lead to?
Positive statements are ______ statements dealing with matter of fact or they question about how things actually are.
Positive statements are ______ statements dealing with matter of fact or they question about how things actually are.
Normative statements are ______ or value judgment.
Normative statements are ______ or value judgment.
Economists may have different ______ - Different normative views about what policy should try to accomplish.
Economists may have different ______ - Different normative views about what policy should try to accomplish.
A ceiling on rents reduces the quantity and quality of ______ available.
A ceiling on rents reduces the quantity and quality of ______ available.
Tariffs and import quotas usually reduce general economic ______.
Tariffs and import quotas usually reduce general economic ______.
Flexible and floating exchange rates offer an effective international ______ arrangement.
Flexible and floating exchange rates offer an effective international ______ arrangement.
Economic growth in developed countries like the United States leads to greater levels of ______.
Economic growth in developed countries like the United States leads to greater levels of ______.
According to the text, what is the essence of science in economics?
According to the text, what is the essence of science in economics?
According to the text, what do economists pay close attention to?
According to the text, what do economists pay close attention to?
According to the text, why do economists use different assumptions?
According to the text, why do economists use different assumptions?
What does a fairly flat upward-sloping line indicate?
What does a fairly flat upward-sloping line indicate?
What does a steep upward-sloping line indicate?
What does a steep upward-sloping line indicate?
What does a downward sloping line indicate?
What does a downward sloping line indicate?
Which of the following best describes the circular flow diagram?
Which of the following best describes the circular flow diagram?
Graphs serve two purposes: – Visually express ideas that might be less clear if described with ______ or words
Graphs serve two purposes: – Visually express ideas that might be less clear if described with ______ or words
The coordinate system – Display two variables on a single graph (ex: price and quantity) – Ordered pairs of points x-coordinate – Horizontal location y-coordinate – Vertical ______
The coordinate system – Display two variables on a single graph (ex: price and quantity) – Ordered pairs of points x-coordinate – Horizontal location y-coordinate – Vertical ______
Negatively related variables – The two variables move in ______ direction – Downward sloping ______
Negatively related variables – The two variables move in ______ direction – Downward sloping ______
Positively related variables – The two variables move in the ______ direction – Upward sloping ______
Positively related variables – The two variables move in the ______ direction – Upward sloping ______
Calculating Slope: – Ratio of the vertical distance covered – To the horizontal distance ______ Δ (delta) → change in a variable Δ y → change in y Δ x → change in ______
Calculating Slope: – Ratio of the vertical distance covered – To the horizontal distance ______ Δ (delta) → change in a variable Δ y → change in y Δ x → change in ______
To calculate the slope of the demand curve, we can look at the changes in the x- and y-coordinates as we move from the point (21 novels, $6) to the point (13 novels, $8). The slope of the line is the ratio of the change in the y-coordinate (–2) to the change in the x-coordinate (+8), which equals ______
To calculate the slope of the demand curve, we can look at the changes in the x- and y-coordinates as we move from the point (21 novels, $6) to the point (13 novels, $8). The slope of the line is the ratio of the change in the y-coordinate (–2) to the change in the x-coordinate (+8), which equals ______
Types of Slope – Fairly flat upward-sloping line Slope is a small positive ______ – Steep upward-sloping line Slope is a large positive ______ – Downward sloping line Slope is a ______ number – Horizontal line: slope is ______ – Vertical line: infinite ______
Types of Slope – Fairly flat upward-sloping line Slope is a small positive ______ – Steep upward-sloping line Slope is a large positive ______ – Downward sloping line Slope is a ______ number – Horizontal line: slope is ______ – Vertical line: infinite ______
According to the text, what role do assumptions play in economics? ______
According to the text, what role do assumptions play in economics? ______
What does the production possibilities frontier ______?
What does the production possibilities frontier ______?
According to the circular flow diagram, households are ______ and firms are ______.
According to the circular flow diagram, households are ______ and firms are ______.
According to the circular flow diagram, households are ______ and firms are ______.
According to the circular flow diagram, households are ______ and firms are ______.
According to the circular flow diagram, households are ______ and firms are ______.
According to the circular flow diagram, households are ______ and firms are ______.
The ______ of the production possibilities frontier measures the opportunity cost of manufactured goods in terms of agricultural goods. This opportunity cost varies, depending on how much of the two goods the economy is producing.
The ______ of the production possibilities frontier measures the opportunity cost of manufactured goods in terms of agricultural goods. This opportunity cost varies, depending on how much of the two goods the economy is producing.
The economy can produce any combination on or inside the frontier. Inefficient levels of production: Points inside the production possibilities frontier. Ex: Point X (the resources may get wasted, left idle or misallocated) Efficient levels of production: The economy is getting all it can from the scarce resources available Points on the production possibilities frontier. Ex: Point A, B and C Unattainable levels of production: Points outside the frontier are not feasible given the economy’s resources. Ex: Point Y
The economy can produce any combination on or inside the frontier. Inefficient levels of production: Points inside the production possibilities frontier. Ex: Point X (the resources may get wasted, left idle or misallocated) Efficient levels of production: The economy is getting all it can from the scarce resources available Points on the production possibilities frontier. Ex: Point A, B and C Unattainable levels of production: Points outside the frontier are not feasible given the economy’s resources. Ex: Point Y
What is the opportunity cost of producing 1 unit of manufactured goods in terms of agricultural goods?
What is the opportunity cost of producing 1 unit of manufactured goods in terms of agricultural goods?
Technological advancement…… – Leads the production possibilities frontier to shift ______.
Technological advancement…… – Leads the production possibilities frontier to shift ______.
To produce 1 unit of agricultural goods: 25 units of agricultural goods = 20 units of manufactured goods 25 units of agricultural goods /25 = 20 units of manufactured goods /25 1 units of agricultural good = 4/5 units of manufactured goods Opportunity cost in terms of manufactured goods To produce 1 unit of manufactured goods: 20 units of manufactured goods = 25 units of agricultural goods 20 units of manufactured goods /20 = 25 units of agricultural goods /20 1 units of manufactured good = ______ units of agricultural goods
To produce 1 unit of agricultural goods: 25 units of agricultural goods = 20 units of manufactured goods 25 units of agricultural goods /25 = 20 units of manufactured goods /25 1 units of agricultural good = 4/5 units of manufactured goods Opportunity cost in terms of manufactured goods To produce 1 unit of manufactured goods: 20 units of manufactured goods = 25 units of agricultural goods 20 units of manufactured goods /20 = 25 units of agricultural goods /20 1 units of manufactured good = ______ units of agricultural goods
Opportunity cost in terms of agricultural goods To produce 1 unit of agricultural goods: 25 units of agricultural goods = 20 units of manufactured goods 25 units of agricultural goods /25 = ______ units of manufactured goods /25 1 units of agricultural good = 4/5 units of manufactured goods
Opportunity cost in terms of agricultural goods To produce 1 unit of agricultural goods: 25 units of agricultural goods = 20 units of manufactured goods 25 units of agricultural goods /25 = ______ units of manufactured goods /25 1 units of agricultural good = 4/5 units of manufactured goods
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