Exam 1: Introduction

In the Soviet Union,which boasted about giving every worker a job,some workers were given the task of digging holes and filling them again.What function of microeconomic analysis did this policy address?

If actual experience supports two competing theories,then both theories are proven to be true.

Microeconomic models are used to

The testing of economic models facilitates

Which of the following is an example of a normative statement?

Which of the following can be analyzed using microeconomic models?

Normative analysis offers decision makers the most valuable information when choosing among alternatives.

Describe in words the anatomy of an economic model.

Which of the following is NOT considered an ingredient to an economic model?

Which of the following situations represents a trade-off?

The price of a good is

Which of the following is a fundamental topic addressed by microeconomics?

Which of the following is an example of a normative statement?

Economists make simplifying assumptions to

Economic models are most often tested

A country produces cars and books.All of its resources are currently being employed in the production of these two goods.If this country increases the production of cars,what will happen with the quantity produced of books?

A good economic model has

The maximizing behavior of individuals and firms determines society's three main allocation decisions:

Microeconomics studies the allocation of

Firms do NOT use microeconomic models to