A.   positive analysis.

B.   value judgments.

C.   objective descriptions of the way things are.

D.   if-then statements.

A.   would be a statement of mercantilist economic philosophy.

B.   would be an example of a microeconomic statement.

C.   would be an example of a positive statement.

D.   would be an example of a normative statement.

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

B.   is always equal to zero.

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

D.   cannot be defined.

A.   A good economic model is complex.

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

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

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

A.   personal finance.

B.   the allocation of scarce resources.

C.   how to run a business successfully.

D.   how to make money in the stock market.

A.   foreign policy economic issues.

B.   aggregate measures of the economy.

C.   individual decision making.

D.   federal budget details.

A.   nonlinear.

B.   constant.

C.   direct.

D.   inverse.

A.   subjective judgments.

B.   money.

C.   themselves worse off.

D.   choices.

A.   macroeconomics

B.   environmental economics

C.   labor economics

D.   microeconomics

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

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

C.   only responds to rewards that involve money.

D.   never makes a mistake in his life.

A.   mixed economic system

B.   command and control

C.   market system

D.   dictatorship

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

B.   Economists empirically test their models.

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

D.   Economic models are not used to forecast.

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

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

E.   make decisions in financing your home.

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

B.   decisions made by individual consumers and firms.

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

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

A.   economics

B.   sociology

C.   psychiatry

D.   psychology

A.   Milton Friedman.

B.   Adam Smith.

C.   Thorstein Veblen.

D.   Alan Greenspan.

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

B.   respond predictably to a given incentive.

C.   respond irrationally to any incentive.

D.   not respond to any incentive.

A.     

B.   intrinsic values.

C.   gifts.

D.   incentives.

E.   premiums.

A.   positive, positive

B.     

C.   negative, positive

D.   negative, negative

E.   positive, negative