*If, for some reason, average weather in a country becomes cooler, what happens to the ice-cream market in that country?

A- Both price and quantity exchanged in equilibrium decline

B- * Price declines, but quantity remains the same as the supply is not changed*

C- Supply declines as companies leave the market

D- ' Price increases, but quantity may increase or decrease

The scarcity principle implies that to have more of one thing usually means

A- increasing the need for another

B- behaving oneself

C- having less of another

D- fighting for it

Economists consider normative statements to be

A- ' economics of what ought to be**

B- statements which establish production goals for the economy

C- able to predict how people will behave

D-.' descriptive, making a claim about how the world is"

What economic principle dictates specialization, and eventually trade?

A-The principle of comparative advantage

B- The low hanging fruit principle

C- the principal of specialization

D- the principal of incentives

An example of a positive statement is

A- "''Minimum wages are too low"'''

B- The UAE should organize more tennis tournaments

C- The mean price of gasoline in 2005 was higher than in 1990

D- "'''Taxes are too high'