A.   if-then statements.

B.   objective descriptions of the way things are.

C.   positive analysis.

D.   value judgments.

A.   would be an example of a normative statement.

B.   would be an example of a microeconomic statement.

C.   would be an example of a positive statement.

D.   would be a statement of mercantilist economic philosophy.

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

B.   is always equal to zero.

C.   cannot be defined.

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

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

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

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

D.   A good economic model is complex.

A.   personal finance.

B.   how to make money in the stock market.

C.   how to run a business successfully.

D.   the allocation of scarce resources.

A.   individual decision making.

B.   foreign policy economic issues.

C.   federal budget details.

D.   aggregate measures of the economy.

A.   direct.

B.   constant.

C.   inverse.

D.   nonlinear.

A.   subjective judgments.

B.   money.

C.   themselves worse off.

D.   choices.

A.   microeconomics

B.   environmental economics

C.   macroeconomics

D.   labor economics

A.   only responds to rewards that involve money.

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

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

D.   never makes a mistake in his life.

A.   dictatorship

B.   market system

C.   mixed economic system

D.   command and control

A.   Economic models are not used to forecast.

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

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

D.   Economists empirically test their models.

A.   a nation's unemployment rate

B.   the price of apples

C.   the effects of fiscal policy on the economy

D.   Gross Domestic Product

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

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

C.   make better decisions concerning your education

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

E.   make decisions in financing your home.

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

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

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

D.   decisions made by individual consumers and firms.

A.   psychiatry

B.   economics

C.   sociology

D.   psychology

A.   Alan Greenspan.

B.   Thorstein Veblen.

C.   Milton Friedman.

D.   Adam Smith.

A.   not respond to any incentive.

B.   respond irrationally to any incentive.

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

D.   respond predictably to a given incentive.

A.   incentives.

B.   premiums.

C.   intrinsic values.

D.     

E.   gifts.

A.   positive, positive

B.   negative, positive

C.     

D.   positive, negative

E.   negative, negative