Mr.Scorcia Economics Unit 1 Multiple choice quiz.

Which answer best describes the definiton of economics?

• Study of how individual people & firms behave when making money decisions to maximize satisfaction/profit.

• How businesses and people make decisions about available resources.

• 4 economic resources

• Conditional statements

Microeconomics is:

• An already disproven theory, hypothesis, or model that is still believed by many because it seems to make sense at first glance.

  eg. "the leafs will not win the cup this year."

• Describing when economics is

• The study of how individual people & firms behave when mkaing money decions to maximize satisfaction/profit.

• Study of the economy as a whole including:

  • - Inflation

  • - Unenployment

  • - GDP

  • - Government Role.

[BLANK] is the study of the economy as a whole like: Inflation, Unenployment, GPD, and government role.

• Macroeconomics

• Microeconomics

• Fallacy

• Normatic (policy) economics.

Land, Labour, Capital & entrepeneurship/techonology are all examples of?

• The 3 big questions

• The 4 economic resources

• Positive (analytical) economics

• Conditional statements

What are positive analytics?

• Positive Statements

• Are "Facts" & direct observaion of the world

• Desribe how things currently are or how they were.

  eg. iPhone sales are up 20% higher than this quater

• Things that are true for one person but not for the economy

[BLANK] describes how things currently are or how they were.

eg. iPhone sales are up 20% higher than this quater.

• Law of diminishing returns

• Utility

• Fallacy of compositions

• Descriptive analystics

What are the 2 types of positive (analytical) economics?

• Descriptive & Conditional

• Consumer & Capital goods

• 3 Basic economic questions

• Positive 1 & 2

Conditional statements are:

• The measures used to compare the happiness choices bring

• How to calculate how happy each possible option will make you

• Product and servies that directly satisfy humans wants/needs.

• Forecasted based on economic behaviour analysis. They can be refuted/supported by looking at the facts.

  eg. If x then y will follow

"If x then Y will follow" is an example of?

• The definiton of economics.

• Conditonal statements

• Post Hoc fallacy

• Fallacy of composition

"iPhone sales are up 20% higher than this quater" is an example of

• The law of diminishing returns.

• 1 of the 3 basic economic questions

• Descriptive analytics

• The law of increasing relative costs