A.   objective descriptions of the way things are.

B.   value judgments.

C.   if-then statements.

D.   positive analysis.

A.   would be an example of a microeconomic statement.

B.   would be an example of a positive statement.

C.   would be an example of a normative statement.

D.   would be a statement of mercantilist economic philosophy.

A.   changes from one point to the next on that line.

B.   is always equal to zero.

C.   is the same at all points along that line.

D.   cannot be defined.

A.   Economic models are designed to explain what people need.

B.   Every model is based on a set of assumptions.

C.   A good model does not rely on any assumptions.

D.   A good economic model is complex.

A.   how to run a business successfully.

B.   the allocation of scarce resources.

C.   personal finance.

D.   how to make money in the stock market.

A.   foreign policy economic issues.

B.   individual decision making.

C.   federal budget details.

D.   aggregate measures of the economy.

A.   nonlinear.

B.   inverse.

C.   constant.

D.   direct.

A.   choices.

B.   subjective judgments.

C.   themselves worse off.

D.   money.

A.   environmental economics

B.   labor economics

C.   macroeconomics

D.   microeconomics

A.   only responds to rewards that involve money.

B.   never makes a mistake in his life.

C.   does not intentionally make decisions that would leave him worse off.

D.   always uses a model or mathematical formula to help him make a decision.

A.   dictatorship

B.   command and control

C.   mixed economic system

D.   market system

A.   An economic model should capture only the essential relationships that are sufficient to analyze the particular problem being studied.

B.   Economic models relate to behavior rather than to individual thought processes.

C.   Economists empirically test their models.

D.   Economic models are not used to forecast.

A.   the effects of fiscal policy on the economy

B.   a nation's unemployment rate

C.   the price of apples

D.   Gross Domestic Product

A.   make better decisions concerning your education

B.   make better decisions concerning your education and make decisions in financing your home.

C.   Make better decisions concerning your education, make decisions in financing your home, and decide whether the U.S. government should encourage or discourage immigration.

D.   make decisions in financing your home.

E.   decide whether the U.S. government should encourage or discourage immigration.

A.   how small changes in the money supply can have far-reaching effects.

B.   decisions made by individual consumers and firms.

C.   how small changes in the unemployment rate can have far-reaching effects.

D.   the changes in economic theory brought about by real-world events.

A.   psychology

B.   sociology

C.   psychiatry

D.   economics

A.   Adam Smith.

B.   Milton Friedman.

C.   Alan Greenspan.

D.   Thorstein Veblen.

A.   respond irrationally to any incentive.

B.   respond predictably to a given incentive.

C.   not respond to any incentive.

D.   respond to a given incentive in a random manner.

A.   intrinsic values.

B.   incentives.

C.   gifts.

D.   premiums.

E.     

A.   negative, positive

B.     

C.   negative, negative

D.   positive, positive

E.   positive, negative