Question 1

When two variables move in the same direction,the curve relating them is downward sloping,and we say the variables are negatively related.

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-6 
-Refer to Figure 2-6.This economy has the ability to produce at which point(s) ?

Accepted Answer

A)   A,B
B)   A,B,D
C)   A,B,C,F,G
D)   C,F,GE) B) and C)
F) B) and D)

Question 3

Albert Einstein once made the following observation about science:

Accepted Answer

A)   "The whole of science is nothing more than the refinement of everyday thinking."
B)   "The whole of science is nothing more than an interesting intellectual exercise."
C)   "In order to understand science,one must rely solely on abstraction."
D)   "In order to understand science,one must transcend everyday thinking."E) C) and D)
F) B) and C)

Question 4

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Accepted Answer

A)   the effects of rent control on the availability of housing in New York City
B)   the economic impact of tornadoes on cities and towns in Oklahoma
C)   how tariffs on shoes affects the shoe industry
D)   the effect on the economy of changes in the nation's unemployment rateE) A) and C)
F) B) and C)

Question 5

A circular-flow model and production possibilities frontier are similar in that

Accepted Answer

A)   neither allows economic analysis to occur.
B)   neither can be represented visually on a graph.
C)   both make use of assumptions.
D)   both make use of complex equations to arrive at solutions.E) B) and D)
F) A) and C)

Question 6

Which of the following statements is (are) correct?

Accepted Answer

A)   Relative to some other scientists,economists find it more difficult to conduct experiments.
B)   Theory and observation are important in economics as well as in other sciences.
C)   To obtain data,economists often rely upon the natural experiments offered by history.
D)   All of the above are correct.E) All of the above
F) None of the above

Question 7

In the circular-flow diagram,the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Accepted Answer

A) True 
 B)False

Question 8

The circular-flow diagram

Accepted Answer

A)   is an economic model.
B)   incorporates two types of decision makers: households and firms.
C)   represents the flows of inputs,outputs,and dollars.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 9

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Accepted Answer

A)   similar opinions about the validity of economic theories
B)   significant differences in education
C)   differences in personal values
D)   a reliance on normative statement for research theoriesE) B) and D)
F) A) and B)

Question 10

Points inside the production possibilities frontier represent inefficient levels of production.

Accepted Answer

A) True 
 B)False

Question 11

Because it is difficult for economists to use experiments to generate data,they generally must

Accepted Answer

A)   do without data.
B)   substitute assumptions for data when data are unavailable.
C)   rely upon hypothetical data that were previously concocted by other economists.
D)   use whatever data the world gives them.E) None of the above
F) A) and B)

Question 12

Economists view normative statements as

Accepted Answer

A)   prescriptive,making a claim about how the world ought to be.
B)   descriptive,making a claim about how the world is.
C)   statements about the normal condition of the world.
D)   pessimistic,putting the worst possible interpretation on things.E) A) and D)
F) B) and C)

Question 13

The Council of Economic Advisers

Accepted Answer

A)   was created in 1776 and consists of three members and a staff of several dozen economists.
B)   was created in 1776 and consists of thirty members and a staff of a dozen economists.
C)   was created in 1946 and consists of three members and a staff of several dozen economists.
D)   was created in 1946 and consists of thirty members and a staff of a dozen economists.E) A) and C)
F) B) and C)

Question 14

Positive statements are descriptive,while normative statements are prescriptive.

Accepted Answer

A) True 
 B)False

Question 15

Economists believe that production possibilities frontiers rarely have a bowed shape.

Accepted Answer

A) True 
 B)False

Question 16

One thing economists do to help them understand how the real world works is

Accepted Answer

A)   make assumptions.
B)   ignore the past.
C)   try to capture every aspect of the real world in the models they construct.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 17

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) None of the above
F) All of the above

Question 18

Figure 2-12 
-Refer to Figure 2-12.Which of the following combinations of points are both efficient and attainable for this economy?

Accepted Answer

A)   B,C
B)   A,D,H
C)   A,B,C,D,H
D)   F,GE) C) and D)
F) A) and B)

Question 19

Figure 2-7 
-Refer to Figure 2-7.Inefficient production is represented by which point(s) ?

Accepted Answer

A)   K,M
B)   L
C)   L,M
D)   ME) B) and C)
F) B) and D)

Question 20

Suppose an economy produces two goods,food and machines.This economy always operates on its production possibilities frontier.Last year,it produced 1000 units of food and 47 machines.This year,it is producing 1050 units of food and 52 machines.Which of the following events could not explain the increase in output?

Accepted Answer

A)   a reduction in unemployment
B)   an increase in available labor
C)   an improvement in technology
D)   Any of these events could explain the increase in output.E) B) and C)
F) A) and B)

Exam 2: Thinking Like an Economist

Because it is difficult for economists to use experiments to generate data,they generally must

Correct Answer
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Economists view normative statements as

Correct Answer
verified

Correct Answer
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Albert Einstein once made the following observation about science:

Correct Answer
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When two variables move in the same direction,the curve relating them is downward sloping,and we say the variables are negatively related.

Correct Answer
verified

Which of the following is correct?

Correct Answer
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Figure 2-6 -Refer to Figure 2-6.This economy has the ability to produce at which point(s) ?

Correct Answer
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Positive statements are descriptive,while normative statements are prescriptive.

Correct Answer
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Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Correct Answer
verified

Which of the following statements is (are) correct?

Correct Answer
verified

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Correct Answer
verified

Points inside the production possibilities frontier represent inefficient levels of production.

Correct Answer
verified

The circular-flow diagram

Correct Answer
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One thing economists do to help them understand how the real world works is

Correct Answer
verified

In the circular-flow diagram,the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Correct Answer
verified

A circular-flow model and production possibilities frontier are similar in that

Correct Answer
verified

Economists believe that production possibilities frontiers rarely have a bowed shape.

Correct Answer
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Figure 2-12 -Refer to Figure 2-12.Which of the following combinations of points are both efficient and attainable for this economy?

Correct Answer
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Figure 2-7 -Refer to Figure 2-7.Inefficient production is represented by which point(s) ?

Correct Answer
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The Council of Economic Advisers

Correct Answer
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Exam 2: Thinking Like an Economist

Because it is difficult for economists to use experiments to generate data,they generally must

Correct AnswerverifiedShow Answer

Economists view normative statements as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Albert Einstein once made the following observation about science:

Correct AnswerverifiedShow Answer

When two variables move in the same direction,the curve relating them is downward sloping,and we say the variables are negatively related.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6.This economy has the ability to produce at which point(s) ?

Correct AnswerverifiedShow Answer

Positive statements are descriptive,while normative statements are prescriptive.

Correct AnswerverifiedShow Answer

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Correct AnswerverifiedShow Answer

Which of the following statements is (are) correct?

Correct AnswerverifiedShow Answer

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Correct AnswerverifiedShow Answer

Points inside the production possibilities frontier represent inefficient levels of production.

Correct AnswerverifiedShow Answer

The circular-flow diagram

Correct AnswerverifiedShow Answer

One thing economists do to help them understand how the real world works is

Correct AnswerverifiedShow Answer

In the circular-flow diagram,the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Correct AnswerverifiedShow Answer

A circular-flow model and production possibilities frontier are similar in that

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers rarely have a bowed shape.

Correct AnswerverifiedShow Answer

Figure 2-12 -Refer to Figure 2-12.Which of the following combinations of points are both efficient and attainable for this economy?

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7.Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

The Council of Economic Advisers

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