Exam 1: The Nature of Economics

Macroeconomics is concerned with

A macroeconomist would study

If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to

Normative economic statements

In economics, all the items that people would consume if they had unlimited income are known as

Which of the following statements is FALSE?

Ceteris paribus means

A fundamental aspect of economics is to

Macroeconomics is concerned with studying the

Macroeconomics would be concerned with

Economic analysis is a tool that

Self-interest

Economists assume that people are motivated by

The intersection of the x axis and the y axis is called the

What is the type of economic system that relies on one central authority to make economic decisions?

Which of the following describes that people cannot examine every possible choice available to them but instead use simple rules of thumb to sort among the alternatives that happen to occur to them?

One reason why economists often use models in their analysis is that

-In the above graphs, an inverse relationship is shown by

Which of the following is a characteristic or focus of economics?

The term or phrase most likely to indicate a normative statement is