Exam 1: The Nature of Economics

Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?

Which of the following ways to recruit soldiers utilizes incentives?

High gasoline prices give people all of the following incentives EXCEPT

A possible rational reason why older people, on average, show less interest in learning how to use new technologies is because

By using the ceteris paribus assumption in conjunction with a model, economists can

Which of the following is a normative statement?

Positive statements contain mostly

Economics may be referred to as a(n) ________ science, meaning that data is looked at to see whether assertions are correct.

The value of a model is determined by

All of the following are aspects of macroeconomics EXCEPT

Which of the following best describes how economists test the empirical predictions of economic models?

In constructing models, economists

Economic analysis is a tool that

In order to study how changing price affects consumer decisions, we must assume all other factors, such as income and the prices of other goods are constant. This assumption is best know as

When studying individuals' economic behavior, economists assume that

Economics is a social science that involves the study of how individuals

Rational behavior for an economist means that individuals

Which of the following is a positive economic statement?

Which of the following is an example of a positive economic statement?

To test their theories, economists usually have to