NR 326 Midterm
What is economics - answer The study of human behavior, a social science
Logical fallacies – answer Ceteris paribus - this is true if everything else stays constant
Post hoc - if event A happens before event B, it doesn't necessarily mean one(A)
caused the other
Correlation vs Causation - two variables are correlated if one variable changes when
the other variable changes, this doesn't mean one change caused the other
Positive vs normative statements - answer Positive economists ask questions like how
does the world work?
Normative economists make statements like we should raise the minimum wage so that
the poor will live better lives
What is scarcity - answer Limited resources with unlimited demand, forces us to choose
What is rational self-interest - answer People weigh pros & cons of their actions in terms
of how it affects the people & things they care about. Individuals choose rationally to
yield for themselves the largest net advantage.
What is the economic way of thinking - answerThe economic way of thinking
emphasizes rational decision-making, trade-offs, opportunity costs, marginal analysis,
and the role of incentives in a world of scarce resources
What is the difference between environmental/natural resource economics and
ecological economics - answerEnv Economic: applies mainstream economic principles
to environmental and natural resource issues
Eco Economic: Social impact
What is the expanded circular flow diagram - answerIt's an economic model that shows
the interactions between different sectors of the economy, illustrating how money,
goods, services, and resources flow through the economy.
What is demand - answerNegative relationship between "price" and "quantity
demanded"
What is the difference between demand and quantity demand - answerDemand refers
to the overall relationship between the price of a good or service and the quantity that
consumers are willing and able to buy at various prices.
It changes based on factors other than price such as income or change in preferences
What is economics - answer The study of human behavior, a social science
Logical fallacies – answer Ceteris paribus - this is true if everything else stays constant
Post hoc - if event A happens before event B, it doesn't necessarily mean one(A)
caused the other
Correlation vs Causation - two variables are correlated if one variable changes when
the other variable changes, this doesn't mean one change caused the other
Positive vs normative statements - answer Positive economists ask questions like how
does the world work?
Normative economists make statements like we should raise the minimum wage so that
the poor will live better lives
What is scarcity - answer Limited resources with unlimited demand, forces us to choose
What is rational self-interest - answer People weigh pros & cons of their actions in terms
of how it affects the people & things they care about. Individuals choose rationally to
yield for themselves the largest net advantage.
What is the economic way of thinking - answerThe economic way of thinking
emphasizes rational decision-making, trade-offs, opportunity costs, marginal analysis,
and the role of incentives in a world of scarce resources
What is the difference between environmental/natural resource economics and
ecological economics - answerEnv Economic: applies mainstream economic principles
to environmental and natural resource issues
Eco Economic: Social impact
What is the expanded circular flow diagram - answerIt's an economic model that shows
the interactions between different sectors of the economy, illustrating how money,
goods, services, and resources flow through the economy.
What is demand - answerNegative relationship between "price" and "quantity
demanded"
What is the difference between demand and quantity demand - answerDemand refers
to the overall relationship between the price of a good or service and the quantity that
consumers are willing and able to buy at various prices.
It changes based on factors other than price such as income or change in preferences
