A.   if-then statements.

B.   objective descriptions of the way things are.

C.   value judgments.

D.   positive analysis.

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.   cannot be defined.

B.   is always equal to zero.

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

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

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.   how to run a business successfully.

C.   the allocation of scarce resources.

D.   how to make money in the stock market.

A.   aggregate measures of the economy.

B.   individual decision making.

C.   federal budget details.

D.   foreign policy economic issues.

A.   constant.

B.   direct.

C.   inverse.

D.   nonlinear.

A.   money.

B.   themselves worse off.

C.   subjective judgments.

D.   choices.

A.   macroeconomics

B.   environmental economics

C.   microeconomics

D.   labor economics

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

B.   never makes a mistake in his life.

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

D.   only responds to rewards that involve money.

A.   mixed economic system

B.   command and control

C.   market system

D.   dictatorship

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

B.   Economists empirically test their models.

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

D.   Economic models are not used to forecast.

A.   the price of apples

B.   Gross Domestic Product

C.   a nation's unemployment rate

D.   the effects of fiscal policy on the economy

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

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

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

B.   decisions made by individual consumers and firms.

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

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

A.   psychology

B.   economics

C.   psychiatry

D.   sociology

A.   Alan Greenspan.

B.   Milton Friedman.

C.   Adam Smith.

D.   Thorstein Veblen.

A.   respond irrationally to any incentive.

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

C.   respond predictably to a given incentive.

D.   not respond to any incentive.

A.   gifts.

B.   premiums.

C.   incentives.

D.     

E.   intrinsic values.

A.   negative, negative

B.   negative, positive

C.   positive, positive

D.   positive, negative

E.