| abstraction aggregation conomics unlimited wants () vertical axis hypothesis horizontal axis deduction long run exogenous variable economic model economic policy economic theory ᒺ economic agents endogenous variable efficiency dependent variable induction , innovation Keynesianism correlation classical dichotomy macroeconomic model | macroeconomics mcroeconomics nominal variable independent variable - normative economics () scarce resources , , inverse relationship positive economics fallacy of composition origin ceteris paribus ceteris paribus assumption real variable () expectations consumption equity macroeconomic goals |
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13. Why do economists disagree?
14. What is the relationship between facts and theory?
15. What are some current examples of positive economic statements and normative economic statements?
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6. Copper is an example of:
a) physical capital;
b) a renewable natural resource;
c) non- renewable resource;
d) technology:
e) means of production:
7. Economics is the study of:
a) how to fully satisfy our unlimited wants;
b) how society manages its scarce resources;
c) how to reduce our wants until we are satisfied;
d) how to avoid having to make tradeoffs;
e) how society manages its unlimited resources.
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