A.   value judgments.

B.   positive analysis.

C.   if-then statements.

D.   objective descriptions of the way things are.

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.   cannot be defined.

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

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

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

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

D.   A good economic model is complex.

A.   the allocation of scarce resources.

B.   how to run a business successfully.

C.   personal finance.

D.   how to make money in the stock market.

A.   individual decision making.

B.   federal budget details.

C.   foreign policy economic issues.

D.   aggregate measures of the economy.

A.   nonlinear.

B.   constant.

C.   inverse.

D.   direct.

A.   choices.

B.   themselves worse off.

C.   subjective judgments.

D.   money.

A.   macroeconomics

B.   labor economics

C.   microeconomics

D.   environmental economics

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

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

C.   never makes a mistake in his life.

D.   only responds to rewards that involve money.

A.   mixed economic system

B.   market system

C.   dictatorship

D.   command and control

A.   Economic models are not used to forecast.

B.   Economists empirically test their models.

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

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

A.   a nation's unemployment rate

B.   the effects of fiscal policy on the economy

C.   the price of apples

D.   Gross Domestic Product

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

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

C.   make better decisions concerning your education

D.   make decisions in financing your home.

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

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

C.   decisions made by individual consumers and firms.

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

A.   psychology

B.   economics

C.   psychiatry

D.   sociology

A.   Alan Greenspan.

B.   Adam Smith.

C.   Milton Friedman.

D.   Thorstein Veblen.

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.   incentives.

B.     

C.   premiums.

D.   gifts.

E.   intrinsic values.

A.     

B.   negative, negative

C.   positive, positive

D.   positive, negative

E.   negative, positive