Scarcity, Methodology, and Graphing

Question 1

What is scarcity?

Answer 1

imbalance between amount of something people want, and how much is freely available

Question 2

Economics is the study of what?

Answer 2

rational choice under conditions of scarcity

Question 3

Which of the following are scarce: air, space or trash?

Answer 3

air and space

Question 4

What is a rational choice?

Answer 4

a calculated, self-interested decision

Question 5

A person who makes a rational choice takes what into consideration?

Answer 5

cause/effect and consequences

Question 6

Opportunity cost is the best _____ forgone when a choice is made.

Answer 6

alternative

Question 7

What is an example of an opportunity cost of going to class?

Answer 7

sleeping late

Question 8

True or False: Every choice has an opportunity cost.

Answer 8

True

Question 9

True or False: Economics is about money.

Answer 9

False

Question 10

Economics revolves around how people make choices in times of ______?

Answer 10

scarcity

Question 11

Economics is considered a _____ science.

Answer 11

social

Question 12

What method does Economics use?

Answer 12

scientific method

Question 13

In the scientific method, how many GENERAL questions do economists ask?

Answer 13

three

Question 14

In the scientific method, how many SPECIFIC questions do economists ask?

Answer 14

two

Question 15

What is the second step economists do in the scientific method?

Answer 15

build a model

Question 16

What is the third step economists do in the scientific method?

Answer 16

develop and test hypotheses

Question 17

To employ the scientific method, you must _____ one variable and hold all others constant.

Answer 17

isolate

Question 18

What does ceteris paribus mean?

Answer 18

all other things held constant

Question 19

In what three areas do you find economists?

Answer 19

business, government, and academics

Question 20

What are the two typed of economic statements?

Answer 20

positive and normative

Question 21

Which type of statement is about economics as a predictive, descriptive science?

Answer 21

positive statement

Question 22

what type of statement is about making judgements or evaluations?

Answer 22

normative statement

Question 23

What are the two types of Economics?

Answer 23

Microeconomics and Macroeconomics

Question 24

Which type of economics is about the decision making process of individuals?

Answer 24

Microeconomics

Question 25

Which type of economics is about aggregate decision making?

Answer 25

Macroeconomics

Question 26

Microeconomics ignores money and looks at the economy as one big ______ system.

Answer 26

barter

Question 27

Micro and Macro economics both talk about consumption in a _______.

Answer 27

household/households

Question 28

In what player of the economy does microeconomics talk about ratio of labor to capital?

Answer 28

business

Question 29

In both types of economics, this player in the economy works mostly as a policy player.

Answer 29

government

Question 30

This economic player is not applicable to microeconomics.

Answer 30

foreign trade

Question 31

What are the two types of variables?

Answer 31

nominal and real

Question 32

what type of variable is measures in terms of money?

Answer 32

nominal variable

Question 33

What type of variable is measured in physical good and services?

Answer 33

real variable

Question 34

A cup of coffee is an example of a _____ variable.

Answer 34

real

Question 35

Which type of variable is harder to measure?

Answer 35

real variables

Question 36

Economists use _______ to represent the relationship between variables.

Answer 36

graphs

Question 37

How many variables can be represented in a graph?

Answer 37

two, sometimes three

Question 38

A collection of points on a graph showing the observed relationship between two variables, is what?

Answer 38

a scatter diagram

Question 39

Info arrayed in 2-dimensional space to represent 2 variables for each point, is what?

Answer 39

a scatter plot

Question 40

The x-axis is also known as the __________ axis.

Answer 40

horizontal

Question 41

The y-axis is also known as the _______ axis.

Answer 41

vertical

Question 42

X and Y are _______ related.

Answer 42

directly

Question 43

Economists do not notice specific relationships between data points. Instead, they study ______.

Answer 43

trends

Question 44

What is the intersection of the x-axis and y-axis called?

Answer 44

origin

Question 45

What is the formula for the demand curve?

Answer 45

y = a + bx

Question 46

Slope is rise over _____.

Answer 46

run

Question 47

Every straight line can be characterized by it's _____ and _______.

Answer 47

intercept and slope

Question 48

The _____ curve show relationship between price and quantity.

Answer 48

demand

Question 49

The demand curve is _______ sloping.

Answer 49

upward

Question 50

What intercept in the demand equation is the constant number?

Answer 50

vertical intercept