A.   objective descriptions of the way things are.

B.   value judgments.

C.   if-then statements.

D.   positive analysis.

A.   would be an example of a positive statement.

B.   would be an example of a normative statement.

C.   would be an example of a microeconomic statement.

D.   would be a statement of mercantilist economic philosophy.

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

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

C.   is always equal to zero.

D.   cannot be defined.

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

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

C.   A good economic model is complex.

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

A.   how to run a business successfully.

B.   how to make money in the stock market.

C.   personal finance.

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.   direct.

B.   constant.

C.   inverse.

D.   nonlinear.

A.   themselves worse off.

B.   choices.

C.   subjective judgments.

D.   money.

A.   macroeconomics

B.   labor economics

C.   microeconomics

D.   environmental economics

A.   only responds to rewards that involve money.

B.   never makes a mistake in his life.

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

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

A.   command and control

B.   mixed economic system

C.   dictatorship

D.   market 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 effects of fiscal policy on the economy

B.   Gross Domestic Product

C.   the price of apples

D.   a nation's unemployment rate

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

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

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

D.   make better decisions concerning your education

E.   make decisions in financing your home.

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

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

C.   decisions made by individual consumers and firms.

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

A.   psychiatry

B.   psychology

C.   economics

D.   sociology

A.   Alan Greenspan.

B.   Adam Smith.

C.   Milton Friedman.

D.   Thorstein Veblen.

A.   respond predictably to a given incentive.

B.   respond irrationally to any incentive.

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

D.   not respond to any incentive.

A.   intrinsic values.

B.   premiums.

C.   incentives.

D.     

E.   gifts.

A.   positive, positive

B.     

C.   negative, positive

D.   positive, negative

E.   negative, negative