VI. Thinking in Terms of Unintended Effects A. When things turn out differently from what you intended, your actions have had effects. B. Economists think in terms of both unintended effects and effects. VIL. Thinking in Terms of the Small and the Big A. studies the behavior and choices of relatively small economic units, such as an individual or a single business firm. B. studies behavior and choices as they relate to the entire economy. VIII. Thinking in Terms of Theories A. Economists build to answer economic questions that do not have obvious (easy) answers. B. A theory is a(n) of how something works, designed to answer a question that has no obvious answer. C. A theory should be judged by how well it predicts. If theories predict well, then accept them. If theories predict poorly, then do not accept them