A.   value judgments.

B.   objective descriptions of the way things are.

C.   if-then statements.

D.   positive analysis.

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

B.   cannot be defined.

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

D.   is always equal to zero.

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.   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.   federal budget details.

D.   aggregate measures of the economy.

A.   inverse.

B.   constant.

C.   direct.

D.   nonlinear.

A.   subjective judgments.

B.   choices.

C.   themselves worse off.

D.   money.

A.   labor economics

B.   environmental economics

C.   macroeconomics

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.   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 relate to behavior rather than to individual thought processes.

B.   Economic models are not used to forecast.

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

D.   Economists empirically test their models.

A.   Gross Domestic Product

B.   the price of apples

C.   the effects of fiscal policy on the economy

D.   a nation's unemployment rate

A.   make better decisions concerning your education

B.   make decisions in financing your home.

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 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.   decisions made by individual consumers and firms.

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

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

A.   sociology

B.   psychology

C.   psychiatry

D.   economics

A.   Alan Greenspan.

B.   Milton Friedman.

C.   Adam Smith.

D.   Thorstein Veblen.

A.   respond irrationally to any incentive.

B.   respond predictably to a given incentive.

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

D.   not respond to any incentive.

A.   incentives.

B.   intrinsic values.

C.     

D.   gifts.

E.   premiums.

A.   positive, negative

B.     

C.   positive, positive

D.   negative, positive

E.   negative, negative