Exam 1: The Nature of Economics

Behavorial economics deals with

All of the following are examples of macroeconomic problems EXCEPT

A five-cent deposit on beer bottles

A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of

Modern economists are increasingly using microeconomic analysis in macroeconomics because

If an increase in one variable causes a decrease in another variable, this is

Which of the following statements is FALSE?

An incentive is a

Jose is rational if he

Economics is a study of

Which of the following is a statement with positive economic analysis?

Individual decision making by consumers and producers is the focus of

Economists assume that people are motivated by

Charitable donations to the Red Cross

When we say that an individual behaves according to "rational self-interest," we mean that this individual

In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals

When two variables have an inverse relationship, the slope is

When a U.S. Senator tells a campaign crowd that "High inflation rates are a much more serious economic problem than high unemployment rates," it is an example of

Positive statements can contain

Macroeconomics is best defined by which of the following statements?