A.   objective descriptions of the way things are.

B.   positive analysis.

C.   value judgments.

D.   if-then statements.

A.   would be a statement of mercantilist economic philosophy.

B.   would be an example of a microeconomic statement.

C.   would be an example of a positive statement.

D.   would be an example of a normative statement.

A.   cannot be defined.

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

C.   is always equal to zero.

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

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

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

C.   A good economic model is complex.

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

A.   personal finance.

B.   the allocation of scarce resources.

C.   how to make money in the stock market.

D.   how to run a business successfully.

A.   individual decision making.

B.   foreign policy economic issues.

C.   aggregate measures of the economy.

D.   federal budget details.

A.   direct.

B.   nonlinear.

C.   constant.

D.   inverse.

A.   money.

B.   themselves worse off.

C.   subjective judgments.

D.   choices.

A.   labor economics

B.   macroeconomics

C.   microeconomics

D.   environmental economics

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.   mixed economic system

B.   dictatorship

C.   market system

D.   command and control

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.   Economic models are not used to forecast.

D.   Economists empirically test their models.

A.   a nation's unemployment rate

B.   the effects of fiscal policy on the economy

C.   Gross Domestic Product

D.   the price of apples

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

B.   make decisions in financing your home.

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

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 better decisions concerning your education

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.   economics

B.   sociology

C.   psychology

D.   psychiatry

A.   Milton Friedman.

B.   Thorstein Veblen.

C.   Alan Greenspan.

D.   Adam Smith.

A.   not respond to any incentive.

B.   respond irrationally to any incentive.

C.   respond predictably to a given incentive.

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

A.   intrinsic values.

B.     

C.   gifts.

D.   incentives.

E.   premiums.

A.   positive, positive

B.     

C.   negative, positive

D.   positive, negative

E.   negative, negative