A.   objective descriptions of the way things are.

B.   if-then statements.

C.   value judgments.

D.   positive analysis.

A.   would be an example of a microeconomic statement.

B.   would be a statement of mercantilist economic philosophy.

C.   would be an example of a positive statement.

D.   would be an example of a normative statement.

A.   cannot be defined.

B.   is always equal to zero.

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

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

A.   A good economic model is complex.

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

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

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

A.   how to make money in the stock market.

B.   how to run a business successfully.

C.   the allocation of scarce resources.

D.   personal finance.

A.   individual decision making.

B.   foreign policy economic issues.

C.   federal budget details.

D.   aggregate measures of the economy.

A.   direct.

B.   inverse.

C.   nonlinear.

D.   constant.

A.   subjective judgments.

B.   themselves worse off.

C.   money.

D.   choices.

A.   environmental economics

B.   labor economics

C.   microeconomics

D.   macroeconomics

A.   only responds to rewards that involve money.

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

C.   never makes a mistake in his life.

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

A.   mixed economic system

B.   market system

C.   dictatorship

D.   command and control

A.   Economic models are not used to forecast.

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

C.   Economists empirically test their models.

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

A.   Gross Domestic Product

B.   a nation's unemployment rate

C.   the price of apples

D.   the effects of fiscal policy on the economy

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

B.   make better decisions concerning your education

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

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

B.   decisions made by individual consumers and firms.

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

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

A.   sociology

B.   psychiatry

C.   economics

D.   psychology

A.   Alan Greenspan.

B.   Thorstein Veblen.

C.   Adam Smith.

D.   Milton Friedman.

A.   respond predictably to a given incentive.

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

C.   not respond to any incentive.

D.   respond irrationally to any incentive.

A.   incentives.

B.     

C.   gifts.

D.   intrinsic values.

E.   premiums.

A.   negative, positive

B.   positive, negative

C.   positive, positive

D.     

E.   negative, negative