Download Introduction: Chap 1-3

Twenty Questions
Subject:
Twenty Questions
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1. Who make choices in the
economy?

Consumers, businesses, government
2. _____is the social science that studies how
people use scarce resources to satisfy their
unlimited wants.

Economics
3. A _____ is a simplified version of the reality that
facilitates the understanding of complex economic
problems.

A model
4. What is the term for all things
being equal?

Ceteris paribus
5. _____ are statements about the general direction
of events from the fulfillment of certain conditions.

Predictions
6. What assigns future values to certain economic
variables on the basis of known relations?

Economic forecasting
7. What is the term for statements of facts
expressed in a testable or verifiable manner?

Positive economics
8. _____are value judgments or statements of
opinion about what “ought to be.”

Normative economics
9. What variables that can be
explained within a model?

Endogenous variables
10. What variables that are determined
by factors outside a model?

Exogenous variables
11. _____is a quantity existing a
particular time.

Stock variable
12. _____is the measure of a change in a
variable per unit of time.

Flow variable
13. What helps us to understand how the economy
functions and enables us to resolve real-world
problems?

Economic theory
14. _____a course of action designed to
achieve some specific economic objective?

Economic policy
15. _____is also known as price theory deals with
the behavior of individual economic units.

Microeconomics
16. _____is also known as income and employment
theory deals with the behavior of economic groups

Macroeconomics
17. What illustrates the economic
problem of scarcity?

Production possibilities curve or PPC
18. A fall in the price of coats.
19. An increase in the labour force resulting
from a more liberal immigration policy.
20. An increase in the
manufacturing techniques.