Question

PLEASE ANSWER ALL THE MULTIPLE CHOICE QUESTIONS BELOW

1) Do economists analyze people's thought processes or do they look at what people actually do?

A. Macroeconomists focus on thought processes while microeconomics focus on actions

B. An economist's focus is about half and half between actions and thought processes

C. Economists focus on what people do, not their thought processes

2)The price that we observe in the market is

A. the money price

B. a substitute

C. the law of demand

3)Economists develop models to

A. make their arguments more realistic

B.justify the assumptions they make about people's behavior

C. help us understand economic phenomena in the real world

4)Which of the following is a determinant of consumer demand?

A.cost of units used to produce the product

B. number of firms that produce the product

C. consumer's expectation of the future relative price of a product

5)Other things being equal, the relationship between price and quantity supplied is

A.negative

B. non-existent

C. positive

Answer 1

1)	C. Economists focus on what people do, not their thought processes
2)	A. the money price
3)	C. help us understand economic phenomena in the real world
	The basic use of economic models is to help us understand economic problems
	such as unemployment and inflation. Economic models are based on real life
	situations and make complex problems look straightforward.
4)	C. consumer's expectation of the future relative price of a product
	The other two options are a determinant of market supply.
5)	C. positive
	As price increases, the quantity supplied increases.
	As price decreases, the quantity supplied decreases.
	Therefore, the relationship between price and quantity supplied is
	positive.