Exam 1: The Nature of Economics

The United States is best known as a

One topic of study for a microeconomist would be the

The term ceteris paribus means

Which of the following is NOT normative economic statement?

An economic theory is also known as an economic

Behavioral economics is an approach to the study of consumer behavior

Economics

In economics, ________ are limited but ________ are unlimited.

Which of the following is a true statement about the economic assumption of rationality?

Normative economics is

What is meant by the term "incentives," and why are they important?

The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the

Professor's economics students are constructing models for how gasoline prices change. Maria's model has very realistic assumptions and is quite complex. Anna's model is less complicated and less realistic. Maria's model correctly predicts gas price increases 5% of the time. Anna's model predicts correctly 15% of the time. On the basis of usefulness or "goodness," Professor will give which student's model the higher grade and why?

Which of the following is a normative economic statement?

The rationality assumption says that

Some pet owners are using an "invisible fence" to keep their animals from straying. Every time the animal steps over the edge of the property, it gets a mild shock. A social scientist would call the shock

"If the United States enters a war in the Middle East, the economy will go into a recession" is an example of

Ceteris paribus means

"All Americans should have access to health care" is an example of

Which expression below matches most closely the way economists go about testing their models?