Question 1

Whenever statements embodying values are made, we enter the realm of

Accepted Answer

A)  positive economics. 
B)  normative economics. 
C)  microeconomics. 
D)  macroeconomics. 
A)  positive economics. 
B)  normative economics. 
C)  microeconomics. 
D)  macroeconomics.

Question 2

Self-interest relates to

Accepted Answer

A)  only monetary objectives. 
B)  both monetary and nonmonetary objectives. 
C)  the ceteris paribus assumption. 
D)  normative economic analysis and not positive economic analysis. 
A)  only monetary objectives. 
B)  both monetary and nonmonetary objectives. 
C)  the ceteris paribus assumption. 
D)  normative economic analysis and not positive economic analysis.

Question 3

According to economic theory, how do people make decisions?

Accepted Answer

A)  They make decisions in the same manner as their parents did. 
B)  They make decisions by looking at what others have done in the same situation and then doing the opposite. 
C)  They make decisions by looking at what others have done in the same situation and then doing the same. 
D)  They make decisions based on their own self-interest. 
A)  They make decisions in the same manner as their parents did. 
B)  They make decisions by looking at what others have done in the same situation and then doing the opposite. 
C)  They make decisions by looking at what others have done in the same situation and then doing the same. 
D)  They make decisions based on their own self-interest.

Question 4

To be useful, a model must

Accepted Answer

A)  predict accurately all of the time. 
B)  predict more accurately than other models that have been developed. 
C)  have assumptions that have been verified by empirical testing. 
D)  explain and predict the behavior of every individual. 
A)  predict accurately all of the time. 
B)  predict more accurately than other models that have been developed. 
C)  have assumptions that have been verified by empirical testing. 
D)  explain and predict the behavior of every individual.

Question 5

Economics is the study of how people make

Accepted Answer

A)  judgments. 
B)  investments. 
C)  money. 
D)  choices. 
A)  judgments. 
B)  investments. 
C)  money. 
D)  choices.

Question 6

Which of the following statements is true?

Accepted Answer

A)  No economic model captures every detail that affects a problem. 
B)  Economic models always make accurate predictions about behaviors. 
C)  Economic models must fully reflect reality. 
D)  Economic models use economists' opinions with no use of data. 
A)  No economic model captures every detail that affects a problem. 
B)  Economic models always make accurate predictions about behaviors. 
C)  Economic models must fully reflect reality. 
D)  Economic models use economists' opinions with no use of data.

Question 7

When the text refers to rational self-interest, it means

Accepted Answer

A)  your looking out for what is best for you as an individual. 
B)  your focus on your own contributions to society. 
C)  behavior that makes society better off. 
D)  behavior that helps your employer earn higher profits. 
A)  your looking out for what is best for you as an individual. 
B)  your focus on your own contributions to society. 
C)  behavior that makes society better off. 
D)  behavior that helps your employer earn higher profits.

Whenever statements embodying values are made, we enter the realm of

Self-interest relates to

According to economic theory, how do people make decisions?

To be useful, a model must

Economics is the study of how people make

Which of the following statements is true?

When the text refers to rational self-interest, it means

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 1: The Nature of Economics

Whenever statements embodying values are made, we enter the realm of

Self-interest relates to

According to economic theory, how do people make decisions?

To be useful, a model must

Economics is the study of how people make

Which of the following statements is true?

When the text refers to rational self-interest, it means

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, Banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Demand and Supply Elasticity

Consumer Choice

Rents, Profits, and the Financial Environment of Business

The Firm: Cost and Output Determination

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Regulation and Antitrust Policy in a Globalized Economy

The Labor Market: Demand, Supply and Outsourcing

Unions and Labor Market Monopoly Power

Income, Poverty, and Health Care

Environmental Economics

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters