In economics, conducting experiments is often impractical. True or False?
True
100
What is also known as a visual model of the economy?
Circular Flow Diagram
100
What is the definition of microeconomics?
The study of how households and firms make decisions and how they interact in specific markets.
100
What does positive mean?
They make a claim about how the world is. Descriptive.
100
Why do economists sometimes offer conflicting advice to policymakers?
They disagree on alternative positive theories and many have different values and normative views about government policy.
200
Why do economists make assumptions?
Assumptions simply the complex world making it easier to understand
200
What unimportant aspect do economic models lack?
Realism (Specific Details)
200
What is macroeconomics?
It is the study of economy wide phenomena.
200
What does normative mean?
They are prescriptive. They make a claim about how the world should be.
200
Besides policymakers, who must economists convince that certain policies are beneficial or undesirable?
The public
300
What scientific steps does an economists take when confronting an issue.
They devise theories, collect data, and analyze the data.
300
What are the four main parts to the circular flow diagram?
Firms, Households, Markets for Factors of Productions, Markets for Goods and Services.
300
Can you understand macroeconomics developments without considering the associated microeconomic decisions?
Nah
300
Is this a positive or normative statment?
Congress ought to pass Law X.
Normative
300
Do implemented economic policies always have the intended outcome?
NO
400
Economists try to address their subject with a _____ objectivity.
Scientists
400
What is a PPF?
A graph that shows the various combinations of output that the economy can possibly produce given the available factors of production technology that firms use these to turn these factors into output.
400
Economics is studied on various_____.
Levels
400
Is this a positive or normative statment?
The apple fell on Keegan's face.
Positive.
400
What two factors create differences between economists?
Perception and reality.
500
Who watched the apple fall from the tree?
Isaac Newton
500
An outcome is said to be______ if the economy is getting all it can from the scarce resources it has available.
Efficient
500
The influence of the government budget deficit on economic growth is micro or macro?
Macroeconomics
500
Is this Positive or Normative?
The price of water should be $1.25 per 1,000 to give farmers a higher living standard and to save the family farm.
Normative
500
"If all economists were laid end to end they would not reach a______."
-George Bernard Shaw