Answer the following questions as required.

1.In what sense is economics like a science?

2.How is unemployment dependent on value judgment?

3.Adam Smith was an advocate of a. mercantilism. b. a nation maximizing its stock of gold. c. unrestricted or free trade. d. the "visible hand" of public interest.

4.A business cycle is the: a. period of time in which expansion and contraction of economic activity are equal. b. period of time in which there are three phases: peak, depression, and expansion. c....

5.Which of the following careers could result from majoring in economics? a. Management b. Banking c. Government d. All of the above

6.In economics, why is money not considered as capital?

7.Which of the following is the best definition of economics? a. Economics is the study of how to manage corporations to generate the greatest return on shareholder investment.

8.What is the glue that holds the economies together?

9.What is the reason for the difference in the price of a hardcover book and a softcover book?

10.According to most economists, reducing automobile emissions to zero would be: a. optimal b. beneficial c. inefficient d. impossible

11.Define equity and efficiency. How can we balance between them?

12.Explain and discuss the relationship between saving, investment, and net capital outflow.

13.Which of the following best define Economics as a study? a. How society manages its scarce resources. b. How to run a business most profitably? c. How to predict inflation, unemployment, and stock.

14.What are the downfalls of using laboratory experiments to study economics?

15.What are the appropriate methods to reduce the principal-agent problems?

16.Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure inv...

17.Lower tax rates encourage more work and more saving. Is this a positive or normative statement? Explain.

18.In a recession, what are two macroeconomic variables that decline?

19.You pay a hairdresser for a haircut. What components of GDP (if any) would this transaction affect? Explain.

20.Is a family's decision about how much income to save related to microeconomics or macroeconomics?

21.Evaluate the following statement from the perspective of equality and efficiency: "Everyone in society should be guaranteed the best healthcare possible."

22.What adverse effect might be caused by tax incentives to increase saving?

23.In what sense is economics like a science? Define microeconomics and macroeconomics.

24.What policies could the government pursue to increase economic mobility within a generation?

25.Discuss the following statement from the standpoints of equality and efficiency. When workers are laid off, they should be able to collect unemployment benefits until they find a new job.

26.Define consumer surplus and producer surplus. What is meant by economic efficiency, and how does it relate to the gains of consumers and producers?

27.Describe the Effective Margin scenario.

28.Describe the cobweb model for engineering market.

29.Explain the difference between macroeconomics and micro economics.

30.Explain the difference between market value of equity and enterprise value.