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 positive statement.

B.   would be a statement of mercantilist economic philosophy.

C.   would be an example of a normative statement.

D.   would be an example of a microeconomic statement.

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

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

C.   cannot be defined.

D.   is always equal to zero.

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

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

C.   A good economic model is complex.

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

A.   personal finance.

B.   how to run a business successfully.

C.   how to make money in the stock market.

D.   the allocation of scarce resources.

A.   individual decision making.

B.   foreign policy economic issues.

C.   aggregate measures of the economy.

D.   federal budget details.

A.   constant.

B.   direct.

C.   inverse.

D.   nonlinear.

A.   subjective judgments.

B.   money.

C.   themselves worse off.

D.   choices.

A.   microeconomics

B.   macroeconomics

C.   labor economics

D.   environmental economics

A.   never makes a mistake in his life.

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

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

D.   only responds to rewards that involve money.

A.   market system

B.   command and control

C.   dictatorship

D.   mixed economic system

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

B.   Economic models are not used to forecast.

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.   the price of apples

B.   Gross Domestic Product

C.   the effects of fiscal policy on the economy

D.   a nation's unemployment rate

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 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 decisions in financing your home.

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

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

C.   decisions made by individual consumers and firms.

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

A.   psychiatry

B.   sociology

C.   economics

D.   psychology

A.   Thorstein Veblen.

B.   Adam Smith.

C.   Milton Friedman.

D.   Alan Greenspan.

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

B.   not respond to any incentive.

C.   respond predictably to a given incentive.

D.   respond irrationally to any incentive.

A.   premiums.

B.   intrinsic values.

C.     

D.   incentives.

E.   gifts.

A.   negative, positive

B.   negative, negative

C.     

D.   positive, negative

E.   positive, positive