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ECON 2106 > videos 1-5 > Flashcards

videos 1-5 Flashcards

Study Cards for Exam #1

1
Q

_______ is the study of rational choice under conditions of scarcity.

A

Economics

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2
Q

_______ _____ is the best alternative that you give up when you make
a choice.

A

Opportunity cost

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3
Q

_______ is an imbalance between what people want and what is freely available.

A

Scarcity

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4
Q

True or False:

Garbage is scarce.

A

False.

-Garbage is not scarce, because no one wants it.

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5
Q

People making calculated, self-interested
choices after weighing the costs and
benefits of those choices are making a _______ choice.

A

rational

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6
Q

True or False:

All choices come with a cost.

A

True

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7
Q

One must be willing to consider ____ and _______ when making a rational choice.

A

costs ; benefits

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8
Q

True or False:
Rather than staying in bed and sleeping, you chose to come to your Economics class
instead. The sleep was the opportunity cost of your choice.

A

True

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9
Q

Economics is not about _____.

A

money

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10
Q

Any time something is ______ we’ve got to figure out how to use it, how to share it, and how to parcel it out.

A

scarce

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11
Q

We say that an agent is rational if that agent considers _______ and _______.

A

cause ; effect

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12
Q

There is no such thing as “____” because there is always an opportunity cost.

A

free

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13
Q

Economics is called a social science, or a _______ science.

A

behavioral

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14
Q

In economics, what is the scientific method?

A

A method that asks questions, produces explanations (models), and forms hypotheses.

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15
Q

True or False:

Economists have integrated only in the field of business.

A

False.

-They are in the fields of business, government, and academia.

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16
Q

_______ economics is predictive, or descriptive.

A

Positive

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17
Q

_______ economics is judgmental, or evaluative.

A

Normative

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18
Q

True or False:
Economists do not need to explore all
possibilities in their efforts to establish
optimal economic conditions.

A

False.

They do need to explore all possibilities.

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19
Q

_____ ______ , _____ , and ____ _____ are variables that influence consumer spending.

A

Consumer income ; taxes ; stock market

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20
Q

After creating the _______,
economists must test it in the real
world by collecting data and comparing
it to the model.

A

hypothesis

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21
Q

True or False:

Economists are employed in every sector of the economy.

A

True

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22
Q

Positive or Normative?

The bank should not loan any more money to customers.

A

Normative

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23
Q

Positive or Normative?

The campaign caused an increase in sales.

A

Positive

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24
Q

If data matches the predictions of a model,
economists have explained a condition
in the ____ _____.

A

real world.

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25
Q

_________ is the study of the decision-making process of

individuals.

A

Microeconomics

26
Q

Macroeconomics is

A

the study of aggregate decision making.

27
Q

Nominal variables are

A

measured in terms of actual dollar values.

28
Q

____ _______ are measured in terms of physical goods and services.

A

Real variables

29
Q

True or False:

In both microeconomics and macroeconomics, there are actors (people making decisions).

A

True

30
Q

Net exports are not applicable in ________.

A

microeconomics.

31
Q

For households:

Individual purchasing decisions is ___________ and aggregate consumption/savings is _________.

A

microeconomics ; macroeconomics

32
Q

$1.50 for coffee cake and $3.00 for coffee equals a total of $4.50.
This is an example of

A

nominal variables.

33
Q

The total value of tires and oil are an example of

A

real variables.

34
Q

True or False:

It is easier to calculate nominal variables than real variables.

A

True

35
Q

_______, on the other hand, pretty much ignores money.

A

Microeconomics

36
Q

Microeconomics deals with

A

relatively small units in the economy.

37
Q

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

A

scatter diagram

38
Q

A direct relationship indicates

A

that the two variables move in the same direction.

39
Q

A _______ slope indicates a direct relationship between the variables.

A

positive

40
Q

A diagram of all observations is a

A

scatter diagram

41
Q

True or False:

If you fit a line in the diagram, you can observe the nature of the relationship.

A

True

42
Q

Variables A and B are directly related. Therefore, the line connecting A and B is ________ ________.

A

upward sloping.

43
Q

True or False:

Economists use graphs to represent only a few of their analysis.

A

False.

Use for a lot of their analysis.

44
Q

What kind of relationship is this?
When one variable increases, the other also
increases.

A

Direct relationship

45
Q

True or False:

A graph can have no scale (s).

A

False.

A graph must have a scale (s).

46
Q

Graphs usually represent relationships between two variables or in some cases relationships among _____variables.

A

three

47
Q

Each label on a graph must also be accompanied by a ____.

A

unit

48
Q

True or False.

On a graph, even if the units are the same, the scales for the two axes can differ.

A

True

49
Q

The algebraic formula for a straight line in a plane is

A

y = a + b (x)

50
Q

The formula for the slope of a line is the change in the y-axis variable divided by the change in the x-axis variable, called

A

rise over run

51
Q

A _______ _____ is the relationship between the price of a good and the
quantity a consumer wants to buy at each price.

A

demand curve

52
Q

A linear relationship is

A

a relationship between two

variables that is a straight line.

53
Q

True or False:

The ‘b’ in the formula for a straight line represents quantity.

A

False.

The ‘b’ represents the slope of the line.

54
Q

Variables X and Y are inversely related. Therefore, the line connecting X and Y is ________ _________.

A

downward sloping.

55
Q

The slope of a line between two points is found by the equation

A

Slope = Y_2 - Y_1 / X_2 - X_1

56
Q

The coordinates of point A are (20,20) and the coordinates of point B are (60, 100). The slope of the line between the two points is

A

The slope = 2.

57
Q

The mathematical slope of a less-steep line is _____ ____ the slope of a steeper line.

A

less than

58
Q

If a line is parallel to the vertical axis, then the slope of the line is

A

infinite.

59
Q

If a line is parallel to the horizontal axis, then the slope of the line is

A

zero.

60
Q

True or False:

Every straight line can be characterized by its intercept and its slope.

A

True

ECON 2106 (4 decks)

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