1. The economic system problems are answered predominantly through price mechanisms and modified through government invention.

a) Mixed system.

b) Market system.

c) Traditional system.

d) Command system.

2. In economics, positive statements.

a) is only about facts that economists are certain are true.

b) Tell what policy the government must follow.

c) Depend on value judgments.

d) In principle, can be tested to determine if they are true or false.

3. Which of the following is a normative statement?

a) The price of gasoline fell last month.

b) Portable computers are more expensive than desktop computers

c) On average, economics majors have higher starting salaries than management majors.

d) The government should provide universal health care.

4. When the economy producers' fireworks for sale at the 25 of December, it most directly answers the question.

a) What goods and services are produced?

b) Opportunity cost.

c) For whom are goods and services produced.

d) Hoe are goods and services produced.

5. Which of the following is a microeconomics issue?

a) Hoe does a pharmaceutical company determine the price of a drug?

b) What effects does a government rate?

c) Is inflation harmful?

d) Why is the unemployment rate falling?

6. The system works under the principle that the interest of society should prevail over that of the individual.

a) Traditional system.

b) Market system.

c) Mixed system.

d) Command system.

7. Economic models are:

a) Simplified versions of economic theories.

b) All of the other options are true.

c) Created by making assumptions.

d) Usually composed of diagrams and equations.

8. All of the following are characteristics of the circular flow model of the economy, except:

a) The model has two markets.

b) The model includes two sectors: firm and households.

c) The model describes two circular flows: one for inputs and one for outputs.

d) The two flows described by the model move in opposite directions.

9. Known as a price theory.

a) Macroeconomics.

b) Normative.

c) Positive.

d) Microeconomics.

10. The economic problem that refers to the nature of goods and services the economy should produce:

a) What to produce?

b) How to produce?

c) How much to produce?

d) For whom to produce?