Introduction: What is Economics?

Which definition fits this picture.

• The science of choice, exploring the choices made by individuals and organizations

• The study of how many human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political realities of the society.

• The study of choices when there is scarcity

• The study of how to get people to do things they are not wild about and not to do things they are wild about.

• All of them

When there is a ____________ in jobs, society sees a higher percentage of unemployment.

What does this picture represent?

Choose all the factors of production

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Which is a positive analysis.

• Paying people who aren't working, even though they could work, is wrong and unfair.

• Programs like welfare reduce the incentive for people to work.

Which statement is a normative analysis?

• We should raise the price of milk so farmers make money.

• Milk rose 51 cents at Walmart, but the farmers did not make money because of inflation.

Which one of these is not an economic model.

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Under the condition of perfect competition, an increase of demand of a commodity leads to an increase of price, given that the quantity of the supplied commodity remains constant or ________ _________.

An example of _______________ is when you add one apple to a bushel.

Studying Texas' unemployment is microeconomics. Studying the European Union is ______________________.