Ch.1 - ECON 201

The branch of economics that examines the functioning of individual industries and the behavior of individual decision-making units is

• positive economics.

• normative economics.

• macroeconomics.

• microeconomics.

Studying how Joshua allocates his time between school and video games is an example of

• macroeconomics.

• microeconomics.

• industrial organization.

• descriptive economics.

Better insurance benefits increase the incentive of some individuals to work. This statement is best described as

• a positive statement.

• an example of the ceteris paribus assumption

• a normative statement.

• a comparative economics statement.

The government should extend the duration of unemployment benefits to those workers who lost their jobs due to outsourcing. This statement is best described as

• an example of marginalism.

• an example of the fallacy of composition.

• a normative statement.

• a positive statement.

A measure that can change from observation to observation is known as a(n)

• empirical measure.

• model.

• causality.

• variable.

A formal statement of a theory is known as a(n)

• model.

• positive statement.

• empirical measure.

• causal statement.

Resources are unlimited in a wealthy society.

• True

• False

The value of the best alternative foregone is the opportunity cost of making a decision.

• True

• False

The rate of economic growth is a topic of microeconomics

• True

• False

Positive economics seeks to understand behavior, but not make judgments.

• True

• False