chapter 1 fill in blank

chapter 1 fill in blank - The economic perspective...

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The economic perspective recognizes that (resources, scarcity ) [a] require(s) choice and that choice has an opportunity (benefit, cost) [ b] . "There is no such thing as a free lunch" in economics because scarce resources have (unlimited, alternative ) [c] uses. P. 4 The economic perspective also assumes that people base choices on their self-interest and that they are (random, purposefu l) [a] It also is based on comparisons of the (extreme, marginal) [b] costs and benefits of an economic decision. P 4 and 5 Economics relies on the (model, scientific ) [a] method. Statements about economic behavior that enable the prediction of the likely effects of certain actions are economic (facts, theories ) [b] The most well-tested of these that have strong predictive accuracy are called economic (hypotheses, principles ) [c] or sometimes they are called (laws , actions) [d] . Simplified representations of economic behavior or how an economy works are called (policies, models ) [e] . p 5 and 6 The study of the total output of the economy or the general level of prices is the subject of (microeconomics, macroeconomics ) [a] , and the study of output in a particular industry or of a particular product is the study of (microeconomics , macroeconomics) [b] . p 6 The collection of specific units that are being added and treated as if they were one unit is an (assumption, aggregate ) [a] . p 6 Two different types of statements can be made about economic topics. A (positive , normative) [a] statement explains "what is" by offering a scientific proposition about economic behavior that is based on economic theory
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This note was uploaded on 09/10/2009 for the course ECO 2251 taught by Professor Kirkland during the Spring '09 term at Troy.

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chapter 1 fill in blank - The economic perspective...

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