Question 1

According to economist John Maynard Keynes,a great economist must also be a(n)

Accepted Answer

A)   mathematician.
B)   historian.
C)   philosopher.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 2

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Accepted Answer

A)   100 pounds of coffee
B)   200 pounds of coffee
C)   300 pounds of coffee
D)   400 pounds of coffeeE) C) and D)
F) B) and D)

Question 3

Factors of production are

Accepted Answer

A)   the mathematical calculations firms make in determining their optimal production levels.
B)   social and political conditions that affect production.
C)   the physical relationships between economic inputs and outputs.
D)   inputs into the production process.E) C) and D)
F) A) and B)

Question 4

In the circular-flow diagram,households and firms are the decision makers.

Accepted Answer

A) True 
 B)False

Question 5

Economic models

Accepted Answer

A)   are constructed to mirror reality as closely as possible,and in this respect economic models are no different from other scientific models.
B)   are constructed to mirror reality as closely as possible,and in this respect economic models are very different from other scientific models.
C)   are simplifications of reality,and in this respect economic models are no different from other scientific models.
D)   are simplifications of reality,and in this respect economic models are very different from other scientific models.E) A) and B)
F) B) and C)

Question 6

Which of the following is correct?

Accepted Answer

A)   A horizontal line has an infinite slope,and a vertical line has a zero slope.
B)   A horizontal line has a slope of 1,and a vertical line has a slope of -1.
C)   A horizontal line has a zero slope,and a vertical line has an infinite slope.
D)   A horizontal line has a slope of -1,and a vertical line has a slope of 1.E) A) and B)
F) B) and C)

Question 7

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S.monetary policy.

Accepted Answer

A) True 
 B)False

Question 8

John Maynard Keynes believed the ideas of economists to be

Accepted Answer

A)   generally incorrect.
B)   powerful.
C)   academic and without practical application.
D)   rantings of madmen.E) A) and B)
F) A) and C)

Question 9

Alfonso has noticed that increases in unemployment insurance claims are associated with recessions,and therefore he advocates limits on unemployment insurance so as to prevent recessions.Mary has noticed that most drug addicts once attended schools,and therefore she advocates getting rid of schools so as to prevent drug addiction.

Accepted Answer

A)   The reasoning of both Alfonso and Mary suffers from the omitted variable problem.
B)   The reasoning of both Alfonso and Mary suffers from the reverse causality problem.
C)   Alfonso's reasoning suffers from the reverse causality problem,and Mary's reasoning suffers from the omitted variable problem.
D)   Mary's reasoning suffers from the reverse causality problem,and Alfonso's reasoning suffers from the omitted variable problem.E) All of the above
F) A) and C)

Question 10

Duties of the Council of Economic Advisers include

Accepted Answer

A)   advising the president and writing the annual Economic Report of the President.
B)   implementing the president's tax policies.
C)   tracking the behavior of the nation's money supply.
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 11

The slope of a line is equal to

Accepted Answer

A)   rise divided by run.
B)   run divided by rise.
C)   rise minus run.
D)   rise plus run.E) None of the above
F) A) and B)

Question 12

Economists speaking like scientists make

Accepted Answer

A)   positive statements.
B)   prescriptive statements.
C)   claims about how the world should be.
D)   More than one of the above is correct.E) None of the above
F) A) and B)

Question 13

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Accepted Answer

A) True 
 B)False

Question 14

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-3 
-Refer to Figure 2-3.Inefficient production is represented by which point(s) ?

Accepted Answer

A)   J,L
B)   J,L,M
C)   K,N
D)   ME) All of the above
F) C) and D)

Question 16

Figure 2-1 
-The three main factors of production,or categories of inputs,used by firms to produce goods and services are

Accepted Answer

land,labor...

Question 17

Two variables that have a positive correlation move in the same direction.

Accepted Answer

A) True 
 B)False

Question 18

When economists make

Accepted Answer

A)   positive statements,they are speaking not as policy advisers but as scientists.
B)   positive statements,they are speaking not as scientists but as forecasters.
C)   normative statements,they are speaking not as policy advisers but as scientists.
D)   normative statements,they are speaking not as policy advisers but as model-builders.E) A) and B)
F) None of the above

Question 19

When an economy is operating at a point on its production possibilities frontier,then

Accepted Answer

A)   consumers are content with the mix of goods and services that is being produced.
B)   there is no way to produce more of one good without producing less of the other.
C)   equal amounts of the two goods are being produced.
D)   All of the above are correct.E) All of the above
F) A) and D)

Question 20

A model can be accurately described as a

Accepted Answer

A)   theoretical abstraction with very little value.
B)   device that is useful only to the people who created it.
C)   realistic and carefully constructed theory.
D)   simplification of reality.E) All of the above
F) A) and B)

Exam 2: Thinking Like an Economist

A model can be accurately described as a

Correct Answer
verified

According to economist John Maynard Keynes,a great economist must also be a(n)

Correct Answer
verified

When an economy is operating at a point on its production possibilities frontier,then

Correct Answer
verified

Which of the following is correct?

Correct Answer
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The slope of a line is equal to

Correct Answer
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Correct Answer
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Duties of the Council of Economic Advisers include

Correct Answer
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Figure 2-3 -Refer to Figure 2-3.Inefficient production is represented by which point(s) ?

Correct Answer
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Figure 2-1 -The three main factors of production,or categories of inputs,used by firms to produce goods and services are

Correct Answer
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land,labor...
View Answer

Economists speaking like scientists make

Correct Answer
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Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Correct Answer
verified

Factors of production are

Correct Answer
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The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S.monetary policy.

Correct Answer
verified

In the circular-flow diagram,households and firms are the decision makers.

Correct Answer
verified

Economic models

Correct Answer
verified

When economists make

Correct Answer
verified

Two variables that have a positive correlation move in the same direction.

Correct Answer
verified

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Correct Answer
verified

John Maynard Keynes believed the ideas of economists to be

Correct Answer
verified

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Correct Answer
verified

Exam 2: Thinking Like an Economist

A model can be accurately described as a

Correct AnswerverifiedShow Answer

According to economist John Maynard Keynes,a great economist must also be a(n)

Correct AnswerverifiedShow Answer

When an economy is operating at a point on its production possibilities frontier,then

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

The slope of a line is equal to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Duties of the Council of Economic Advisers include

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Figure 2-3 -Refer to Figure 2-3.Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

Figure 2-1 -The three main factors of production,or categories of inputs,used by firms to produce goods and services are

Correct Answerverifiedland,labor...View AnswerShow Answer

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Correct AnswerverifiedShow Answer

Factors of production are

Correct AnswerverifiedShow Answer

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S.monetary policy.

Correct AnswerverifiedShow Answer

In the circular-flow diagram,households and firms are the decision makers.

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

When economists make

Correct AnswerverifiedShow Answer

Two variables that have a positive correlation move in the same direction.

Correct AnswerverifiedShow Answer

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Correct AnswerverifiedShow Answer

John Maynard Keynes believed the ideas of economists to be

Correct AnswerverifiedShow Answer

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Correct AnswerverifiedShow Answer

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land,labor...
View Answer

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