Subject:

1
6
2
7
3
8
4
9
5
10
11
12
13
14
15
16
17
18
19
20

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

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

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

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

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

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

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

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

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

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

11. _____is a quantity existing a particular time.
 Stock variable

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

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

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

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

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

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

18. A fall in the price of coats.

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

20. An increase in the manufacturing techniques.