ECO 2023 || All Correct.

Economics correct answers the social science that studies the choices that individuals, businesses, governments, and societies make as they cope with scarcity and the incentives that influence and reconcile those choices Microeconomics correct answers the study of choices that individuals and businesses make, the way these choices interact in markets, and the influence of governments Macroeconomics correct answers the study of the performance of the national economy and the global economy How do choices end up determining what, how, and for whom goods and services get produced? correct answers How can choices made in the pursuit of self-interest also promote the social interest? correct answers Positive Statements correct answers statements about what is, can be tested to see if it is true or false Normative Statements correct answers statements about what ought to be, matters of opinion Economic models correct answers a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand, economists use them to advance their science and unscramble cause and effect (ex: natural experiment, statistical investigation, economic experiment) main policy tool for these three is the comparison of marginal cost and marginal benefit Production Possibilities Frontier (PPF) correct answers the boundary between those combinations of goods and services that can be produced and those that cannot Opportunity Cost correct answers the highest-valued alternative foregone, a ratio equaling the decrease in production of one good divided by the increase in production of the other Quantity Demanded correct answers the amount that consumers plan to buy during a given time period at a particular price Law of Demand correct answers the higher the price of a good, the smaller the quantity demanded other things remaining the same; because of substitution and income effects Demand Curve correct answers shows the negatively sloped relationship between the quantity demanded of a good and its price Factors that Change Demand correct answers 1. Price of Related Goods 2. Expected Future Prices