ECON 102 Study Guide - Quiz Guide: Microeconomics, Sunk Costs, Macroeconomics
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ECON 102 Full Course Notes
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Economics is a __________ science. physical resource profit-driven. Economics is the study of how people make choices. Studying the output level of an industry would be a concern of _______________. Correct answer a microeconomist neither a microeconomist nor a macroeconomist both a microeconomist and a macroeconomist. The level of output of an industry is a microeconomics issue. College graduates typically have higher earnings than non-graduates. Economic models are based on facts and not assumptions about the relationship between variables. Economic models eliminate details that are irrelevant to expose the aspects of the relationship that are important to the problem posed. Economic models provide a simplified abstraction of reality useful for examining specific aspects of behavior. Economic models are not useful if they oversimplify important aspects of the relationship that is being considered. Economic models are used to simplify reality and to focus on the important relationship. A cost that has already been incurred is a(n) incurred cost. avoidable cost.
