A.   positive analysis.

B.   if-then statements.

C.   objective descriptions of the way things are.

D.   value judgments.

A.   would be an example of a microeconomic statement.

B.   would be an example of a normative statement.

C.   would be a statement of mercantilist economic philosophy.

D.   would be an example of a positive statement.

A.   cannot be defined.

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

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

D.   is always equal to zero.

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

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

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

D.   A good economic model is complex.

A.   how to make money in the stock market.

B.   personal finance.

C.   how to run a business successfully.

D.   the allocation of scarce resources.

A.   federal budget details.

B.   individual decision making.

C.   aggregate measures of the economy.

D.   foreign policy economic issues.

A.   inverse.

B.   direct.

C.   nonlinear.

D.   constant.

A.   money.

B.   subjective judgments.

C.   choices.

D.   themselves worse off.

A.   environmental economics

B.   macroeconomics

C.   labor economics

D.   microeconomics

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

B.   only responds to rewards that involve money.

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

D.   never makes a mistake in his life.

A.   command and control

B.   mixed economic system

C.   dictatorship

D.   market system

A.   Economists empirically test their models.

B.   Economic models are not used to forecast.

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

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

A.   the effects of fiscal policy on the economy

B.   the price of apples

C.   a nation's unemployment rate

D.   Gross Domestic Product

A.   make decisions in financing your home.

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

C.   make better decisions concerning your education

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

E.   Make better decisions concerning your education, make decisions in financing your home, and 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.   sociology

B.   economics

C.   psychology

D.   psychiatry

A.   Milton Friedman.

B.   Thorstein Veblen.

C.   Alan Greenspan.

D.   Adam Smith.

A.   not respond to any incentive.

B.   respond predictably to a given incentive.

C.   respond irrationally to any incentive.

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

A.     

B.   gifts.

C.   intrinsic values.

D.   premiums.

E.   incentives.

A.     

B.   negative, negative

C.   positive, positive

D.   negative, positive

E.   positive, negative