Question 1 3 / 3 pts A friend mentions that he wants to learn more about recessions and how the unemployment level is affected. Which course would you recommend for him? Microeconomics, because microeconomists study how individual decision-making units behave. Macroeconomics, because macroeconomists study aggregate economic behavior. Economic history, because it covers the development of the modern economy. Public economics, because it covers how government can affect economic behavior.

Aggregate measures are Macroeconomics issues. Question 2 3 / 3 pts A normative statement evaluates

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Definition of normative statement. Question 3 3 / 3 pts Economists use the device of ceteris paribus in order to abstract from reality and focus on the two variables of interest. include all variables that may affect a given outcome. make their models better fit reality. take into account the variables that affect the outcome of a model. Ceteris paribus allows economists to focus on the variables of interest and ignore other objects that may affect an outcome. Question 4 3 / 3 pts A movie production company is considering making a sequel to one of their most popular films of 2009. In their decision, should they consider the cost of the original film or just the sequel?

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They should consider the cost of both films because the revenues from the sequel will cover part of the original cost. They should consider the cost of both films because the cost of the sequel will likely be less than the cost of the original film. The cost of the original film is sunk. The cost of the sequel must be covered by the revenue from the sequel in order for the production company to be willing to make the sequel. Question 5 3 / 3 pts Suppose that Noah is very good at typing and Emma is better at filing. However, Noah is assigned to a filing task while Emma is assigned to a typing task. An economist would say that this is a(n. _____________ allocation.

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