Question

1. the most common way in which economists model a problem is by

a. making sure as many details and facts are included.
b. avoiding assumptions as much as possible in order to avoid misrepresenting reality.
c. using case studies to analyze individual real - life examples of problems.
d. simplifying the model down to its basic relevant elements.

1. which policy is most likely to contribute to improved standards of living over time?

a. allowing individuals the freedom to circumvent laws due to personal objections to them
b. addressing teacher shortages by closing schools and busing students to other schools
c. reducing the years that drug patents are valid to speed up production of generic versions
d. adding after - school art and music programs to promote creativity

1. which question would be considered a normative question?

a. how many people participated in obstacle course racing last year?
b. should obstacle races be regulated to ensure the safety of participants?
c. when and where are the major obstacle races held?
d. how much does an entry for an obstacle course race cost?

1. which headline would be least likely to be studied in macroeconomics?

a. gm expands car sales in china
b. unemployment falls to a 7 - year low
c. the fed raises interest rates
d. economic growth rises slow and steady

1. when an economy uses the most efficient means of farming to grow as much corn as possible, this economy has achieved

a. neither production efficiency nor allocative efficiency.
b. allocative efficiency but not necessarily production efficiency.
c. production efficiency but not necessarily allocative efficiency.
d. production efficiency and allocative efficiency.

Explanation:

• Question 6: Economists simplify models to focus on key elements as too many details can complicate analysis.
• Question 7: Reducing drug - patent years can lower drug prices and increase access, improving living standards. Other options have negative impacts.
• Question 8: Normative questions involve value - judgments. "Should obstacle races be regulated" is a value - based question. Others are positive (factual) questions.
• Question 9: GM's car sales in China is a micro - economic topic about a single firm. Unemployment, Fed actions, and economic growth are macro - economic topics.
• Question 10: Using the most efficient means of farming to grow as much corn as possible is production efficiency. There is no information about allocative efficiency (producing what society wants most).

Answer:

1. D. simplifying the model down to its basic relevant elements.
2. C. reducing the years that drug patents are valid to speed up production of generic versions
3. B. Should obstacle races be regulated to ensure the safety of participants?
4. A. GM Expands Car Sales in China
5. C. production efficiency but not necessarily allocative efficiency.