1. The Scope and Method of Economics Appendix: How to Read and Understand Graphs Prepared by: Fernando Quijano and Yvonn Quijano

12. The Scope of Economics Employment by Individual Businesses & Industries Jobs in the steel industry Number of employees in a firm Distribution of Income and Wealth Wages in the auto industry Minimum wages Executive salaries Poverty Price of Individual Goods and Services Price of medical care Price of gasoline Food prices Apartment rents Production/Output in Individual Industries and Businesses How much steel How many offices How many cars Microeconomics Employment and Unemployment in the Economy Total number of jobs Unemployment rate National Income Total wages and salaries Total corporate profits Aggregate Price Level Consumer prices Producer Prices Rate of Inflation National Production/Output Total Industrial Output Gross Domestic Product Growth of Output Macroeconomics Employment Income Prices Production Examples of microeconomic and macroeconomic concerns

23. Review Terms and Concepts ceteris paribus descriptive economics economic growth economic theory economics efficiency efficient market empirical economics equity fallacy of composition Industrial Revolution macroeconomics microeconomics model normative economics ockham’s razor opportunity cost positive economics post hoc, ergo propter hoc stability sunk costs variable

30. Appendix: How to Read and Understand Graphs A downward-sloping line describes a negative relationship between X and Y. An upward-sloping line describes a positive relationship between X and Y.

31. Appendix: How to Read and Understand Graphs

32. Appendix: How to Read and Understand Graphs

33. Appendix: How to Read and Understand Graphs Cartesian coordinate system graph negative relationship origin positive relationship slope time series graph X-axis Y-axis Y-intercept