Micro/Macro: The effect of the internet on the pricing of used cars

physical plants, machinery, and equipment used to produce other goods

Problem identification -> Model development -> Testing a theory

is one that offers opinion as to the way the world should be

Positive/Normative: It is immoral for the government to kill people

Positive/Normative: If taxes were lowered, government revenues would actually increase

Micro/Macro: The effect of the internet on the pricing of used cars

physical plants, machinery, and equipment used to produce other goods

is the creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products. It is not a separate source but rather is a special type of the resource.

Positive/Normative: It is immoral for the government to redistribute money from one person to another.

is the study of matters affecting the entire economy. There, ____________ are more likely to create models that analyze the policy decisions of government and central banks, as well as how these decisions affect growth, inflation, and unemployment.

One assumption that must be satisfied for a theory to be test legitimately is the _______ assumption.

"All other things remain unchanged" is a key simplifying assumption that must be satisfied for a theory to be tested legitimately. This assumption allows concentration on the relationship between key variables without unnecessary complication of the model.

is the study of how individuals and firms make decisions and how they interact in markets. Therefore, ___________ are more likely to create models that analyze the decisions firms (such as pricing) and consumers (such as shopping choices), as well as how government policies affect those decisions.

A wheat farmer in Nebraska takes a risk and starts a new farm on land that was previously thought unfit growing wheat. If his new farm succeeds because of the farmer's new growing technique, the farmer will earn a substantial profit. Because it represents a person's creative input to production, the innovation of using a new farming technique is an...

A corn farmer in Montana uses knowledge gathered from the agricultural training program at the local university to improve his ability to produce corn. Because it represents a human input to production, education and training are examples of investment in..

True

False

is the study of how individuals and firms make decisions and how they interact in markets. Therefore, ___________ are more likely to create models that analyze the decisions firms (such as pricing) and consumers (such as shopping choices), as well as how government policies affect those decisions.

is the condition in which human wants are forever greater than available supply of time, goods, and resources. ______ of a particular thing means there is not enough of that item to satisfy everyone who wants it.

is the creative ability of individuals to seek profits by taking risks and combining resources to produce innovative products. It is not a separate source but rather is a special type of the resource.

"All other things remain unchanged" is a key simplifying assumption that must be satisfied for a theory to be tested legitimately. This assumption allows concentration on the relationship between key variables without unnecessary complication of the model.

is a shorthand expression for any resource provided by nature

is the mental and physical capacity of workers to produce goods and services. This resource is measured by the number of workers as well as the skills and quality of workers.

is one that offers opinion as to the way the world should be

Micro/Macro: The government's optimal spending level

True

False