Twenty Questions

1. Twenty Questions Subject:

2. Twenty Questions

3. 1. Who make choices in the economy? • Consumers, businesses, government

4. 2. _____is the social science that studies how people use scarce resources to satisfy their unlimited wants. • Economics

5. 3. A _____ is a simplified version of the reality that facilitates the understanding of complex economic problems. • A model

6. 4. What is the term for all things being equal? • Ceteris paribus

7. 5. _____ are statements about the general direction of events from the fulfillment of certain conditions. • Predictions

8. 6. What assigns future values to certain economic variables on the basis of known relations? • Economic forecasting

9. 7. What is the term for statements of facts expressed in a testable or verifiable manner? • Positive economics

10. 8. _____are value judgments or statements of opinion about what “ought to be.” • Normative economics

11. 9. What variables that can be explained within a model? • Endogenous variables

12. 10. What variables that are determined by factors outside a model? • Exogenous variables

13. 11. _____is a quantity existing a particular time. • Stock variable

14. 12. _____is the measure of a change in a variable per unit of time. • Flow variable

15. 13. What helps us to understand how the economy functions and enables us to resolve real-world problems? • Economic theory

16. 14. _____a course of action designed to achieve some specific economic objective? • Economic policy

17. 15. _____is also known as price theory deals with the behavior of individual economic units. • Microeconomics

18. 16. _____is also known as income and employment theory deals with the behavior of economic groups • Macroeconomics

19. 17. What illustrates the economic problem of scarcity? • Production possibilities curve or PPC

20. 18. A fall in the price of coats.

21. 19. An increase in the labour force resulting from a more liberal immigration policy.

22. 20. An increase in the manufacturing techniques.