Which of the following statements about microeconomics and macroeconomics is not true ?

A. the study of very large industries is a topic within macroeconomics
B. macroeconomics is concerned with economy-wide phenomena
C. microeconomics is a building block for macroeconomics
D. microeconomics and macroeconomics cannot be entirely separated

In which of the following cases is the assumption most reasonable ?

A. to address the impact to taxes on income distribution an economist assumes that everyone earns the same income.
B. to address the impact of money growth on inflation, an economist assumes that money is strictly coins.
C. to model the benefits of trade. an economist assumes that there are two people and two goods
D. to estimate the speed at which a beach ball falls, a physicist assumes that if falls in a vacuum.

Which of the following is most likely to produce scientific evidence about a theory ?

A. a lawyer employed by renault addressing the impact of air bags on passenger safety.
B. an economist permanently employed at a leading university analyzing the impact of bank regulations on lending to small businesses
C. an economist employed by the trades union congress doing research on the impact of trade policy on workers’ wages
D. a radio talk show host collecting data from listeners on how capital markets respond to taxation

Which of the following is not a factor of production ?

A. labor
B. land
C. money
D. capital

The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?

A. p = z
B. p = mc + z
C. p = mc
D. p = mc – z

The scientific method requires that ?

A. the scientist be objective
B. the scientific use precision equipment.
C. only correct theories are tested
D. only theories are tested.

Which of the following statements regarding the circular-flow diagram is true ?

A. if susan works for bae systems and receives a salary payment, the transaction takes place in the market for good and services.
B. if bae systems sells a military aircraft, the transaction takes place in the market for factors for production
C. none of these
D. the factors of production are owned by households

Economic models are ?

A. usually made of wood and plastic
B. built with assumptions.
C. useless if they are simple.
D. created to duplicate reality.

Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?

A. restrict; promote
B. restrict; restrict
C. promote; promote
D. promote; restrict

Economists use the term regulatory capture to mean a situation where the private sector firms being regulated ?

A. persuade the regulator to operate in the industry’s interests
B. persuade the regulator to act in the firms interests.
C. bribe the regulator.
D. persuade the government to change the regulatory regime.