A.   if-then statements.

B.   value judgments.

C.   objective descriptions of the way things are.

D.   positive analysis.

A.   would be a statement of mercantilist economic philosophy.

B.   would be an example of a normative statement.

C.   would be an example of a positive statement.

D.   would be an example of a microeconomic statement.

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

B.   is always equal to zero.

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

D.   cannot be defined.

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

B.   A good economic model is complex.

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

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

A.   the allocation of scarce resources.

B.   how to run a business successfully.

C.   how to make money in the stock market.

D.   personal finance.

A.   aggregate measures of the economy.

B.   individual decision making.

C.   foreign policy economic issues.

D.   federal budget details.

A.   nonlinear.

B.   inverse.

C.   constant.

D.   direct.

A.   themselves worse off.

B.   money.

C.   subjective judgments.

D.   choices.

A.   microeconomics

B.   macroeconomics

C.   labor economics

D.   environmental economics

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

B.   only responds to rewards that involve money.

C.   never makes a mistake in his life.

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

A.   dictatorship

B.   market system

C.   command and control

D.   mixed economic system

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.   Gross Domestic Product

C.   the price of apples

D.   the effects of fiscal policy on the economy

A.   make better decisions concerning your education

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

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

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

E.   make decisions in financing your home.

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

B.   decisions made by individual consumers and firms.

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

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

A.   economics

B.   sociology

C.   psychology

D.   psychiatry

A.   Milton Friedman.

B.   Adam Smith.

C.   Alan Greenspan.

D.   Thorstein Veblen.

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

B.   not respond to any incentive.

C.   respond irrationally to any incentive.

D.   respond predictably to a given incentive.

A.   intrinsic values.

B.     

C.   premiums.

D.   incentives.

E.   gifts.

A.   positive, positive

B.   negative, positive

C.     

D.   positive, negative

E.   negative, negative