Extra Credit

Question 1

Economics is?

Answer 1

The study of rational choice under conditions of scarcity

Question 2

Opportunity cost is?

Answer 2

The best alternative that you give up when you make a choice

Question 3

Scarcity is?

Answer 3

An imbalance between what people want and what is freely available

Question 4

What are two examples of something that is scarce?

Answer 4

Air, space

Question 5

What is an example of something that is not scarce?

Answer 5

Garbage

Question 6

What is rational choice?

Answer 6

Means people making calculated, self-interested choices after weighing the cost and benefits of those choices.

Question 7

A rational agent choose the action that is..?

Answer 7

Most self-satisfying

Question 8

Do all choices come with a cost?

Answer 8

Yes

Question 9

Opportunity cost?

Answer 9

The next best alternative to that you gave up to make the choice you did

Question 10

Is economics about money?

Answer 10

No

Question 11

Can economics predict things?

Answer 11

Yes

Question 12

What is something that can be represented in an economic model?

Answer 12

War

Question 13

How do economist use the scientific method?

Answer 13

By asking questions, producing explanations, and forming hypotheses

Question 14

What fields do economist operate in?

Answer 14

Business, government, and academia

Question 15

What questions do economist ask?

Answer 15

What to produce? How to produce? Who will get it?

Question 16

After creating a hypothesis what do economist do?

Answer 16

Test it by collecting data

Question 17

If the data an economist gathers matches the predictions of the hypothesis then?

Answer 17

The economist have explained a condition in the real world.

Question 18

What do economist in business do?

Answer 18

Help make forecasts about when to launch new products.

Question 19

What do government economist do?

Answer 19

Collect data, conduct research

Question 20

What do academic economist do?

Answer 20

Teach, conduct research, and publish findings

Question 21

What question does positive economics seek to answer?

Answer 21

How will the world work

Question 22

What question does normative economics ask?

Answer 22

How should the world work

Question 23

What type of economics is predictive?

Answer 23

Positive economics

Question 24

What type of economics is judgmental?

Answer 24

Normative economics

Question 25

Microeconomics

Answer 25

The study of the decisions-making process of individuals

Question 26

Macroeconomics

Answer 26

The study of aggregate decision making

Question 27

Players in the economy?

Answer 27

Households, businesses, government, and foreign trade

Question 28

Nominal variables

Answer 28

Measured in terms of actual dollars

Question 29

Real variables

Answer 29

Measured in terms of physical goods and services

Question 30

Example of a question microeconomics ask

Answer 30

If wages rise, will households supply more or less labor?

Question 31

Example of a question macroeconomics ask

Answer 31

What happens to employment when overall productivity increases?

Question 32

Which type of economics examines the actions of the federal reserve?

Answer 32

Macro

Question 33

How does micro and macro analyze households?

Answer 33

Micro - Individual purchasing decisions Macro - Aggregate consumption savings

Question 34

How does Micro and Macro analyze businesses?

Answer 34

Micro - ratio of labor to capitol Macro - Businesses spending

Question 35

How does Micro and Macro analyze government?

Answer 35

Micro - tax rates influence individuals purchasing decisions Macro - Stimulates or deters economy

Question 36

How does Micro and Macro analyze net imports?

Answer 36

Micro - N/A Macro - foreign demand influences production

Question 37

Scatter diagram

Answer 37

A collection of points on a graph showing the observed relationship between two variables

Question 38

Direct relationship

Answer 38

Indicates that the two variables move in the same direction

Question 39

Positive slope on a scatter diagram

Answer 39

Indicates a direct relationship between the variables

Question 40

How many dimensions is a graph?

Answer 40

A graph is two dimensional

Question 41

What is an example of a graph?

Answer 41

Pie chart, bar graph

Question 42

How many variables does a graph usually represent?

Answer 42

Two variables

Question 43

What is consumption?

Answer 43

The amount of money that a household spends on goods and services

Question 44

What is income?

Answer 44

The money that a household takes in from work and other sources

Question 45

General relationship

Answer 45

The relationship between points on a graph

Question 46

X-axis

Answer 46

Horizontal axis on a graph

Question 47

Y-axis

Answer 47

Vertical axis on a graph

Question 48

How many axis's are on a graph?

Answer 48

Two

Question 49

Linear relationship

Answer 49

A relationship between two variables that creates a straight line when graphed

Question 50

Formula for a linear relationship

Answer 50

Y = a + b(x)

Question 51

Rise over run

Answer 51

The change in the y axis variable divided by the change in the x axis variable

Question 52

Demand curve

Answer 52

The relationship between the price of a good and the quantity a consumer wants to buy at each price

Question 53

Do the increments of numbers have to be the same on each axis in a graph?

Answer 53

No, because they represent different things

Question 54

What is the formula for any straight line?

Answer 54

y = a + b(x)

Question 55

When writing out the location of a point on a graph i.e. (#,#) does the x or y axis come first?

Answer 55

A-axis

Question 56

Do demand curves have formulas?

Answer 56

Yes

Question 57

In the linear line formula what does B represent?

Answer 57

The slope of the line

Question 58

In the linear line formula what does Y represent?

Answer 58

A variable that is being measured on the Y axis

Question 59

In the linear line formula what does the letter X represent?

Answer 59

The variable that is being measured on the X axis

Question 60

What does Delta (triangle symbol) represent in economics?

Answer 60

Change or change in