Most economists consider a theory a good one if it predicts well.
a. True
b. False
QUESTION 2An economic model will produce poor predictions if it includes unrealistic assumptions.
a. True
b. False
QUESTION 3In macroeconomics, we analyze
a. all of the following
b. the overall performance of the economy as a whole
c. arrangements through which specific products are exchanged
d. influences on the decision making of particular households
e. the factors that affect the decisions of individual firms
QUESTION 4The economic behavior of individual decision makers and the determination of price and output in specific markets are both studied in
a. microeconomics
b. macroeconomics
c. positive economics
d. normative economics
e. disequilibrium economics
QUESTION 5Macroeconomics is the study of
a. the behavior of large firms in the marketplace
b. the economic behavior of individual decision makers
c. the behavior of the economy as a whole
d. how to use the fewest natural resources to produce goods and services
e. government's role as a stabilizing influence on the economy
QUESTION 6Microeconomics is the study of
a. marginal or inferior products
b. the economic behavior of individual decision makers
c. the behavior of the economy as a whole
d. how to use the fewest natural resources to produce goods and services
e. government's role as a producer in the economy
QUESTION 7The behavior of the entertainment industry in Detroit is a microeconomic topic.
a. True
b. False
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