Question 1

Which of the following is not held constant when looking at an individual's demand curve?

Accepted Answer

A)   income
B)   price
C)   preferences
D)   the availability of alternative goodsE) A) and D)
F) None of the above

Question 2

In the circular-flow diagram,

Accepted Answer

A)   factors of production flow from government to firms.
B)   goods and services flow from households to firms.
C)   income paid to the factors of production flows from firms to households.
D)   spending on goods and services flows from firms to households.E) All of the above
F) A) and B)

Question 3

Positive statements are not

Accepted Answer

A)   descriptive.
B)   prescriptive.
C)   claims about how the world is.
D)   made by economists speaking as scientists.E) A) and B)
F) All of the above

Question 4

In the markets for goods and services in the circular-flow diagram,households are buyers and firms are sellers.

Accepted Answer

A) True 
 B)False

Question 5

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) A) and C)
F) B) and C)

Question 6

When economists make normative statements,they are

Accepted Answer

A)   speaking as scientists.
B)   speaking as policy advisers.
C)   making claims about how the world is.
D)   revealing that they are very liberal in their views of how the world works.E) C) and D)
F) A) and C)

Question 7

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) B) and D)
F) A) and B)

Question 8

Figure 2-2 
-Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

Accepted Answer

A)   Box B
B)   Box C
C)   Box D
D)   Any one of the other boxes (B,C,or 
D)  could represent households.E) A) and B)
F) None of the above

Question 9

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following combinations of cookies and coffee is not currently attainable but would be attainable if there was an improvement in overall production technology?

Accepted Answer

A)   800 dozen cookies and 150 pounds of coffee
B)   700 dozen cookies and 400 pounds of coffee
C)   500 dozen cookies and 850 pounds of coffee
D)   300 dozen cookies and 900 pounds of coffeeE) A) and B)
F) None of the above

Question 10

The scientific method is the dispassionate development and testing of theories about how the world works.

Accepted Answer

A) True 
 B)False

Question 11

Figure 2-3 
-Refer to Figure 2-3.This economy has the ability to produce at which point(s) ?

Accepted Answer

A)   J,K,M,N
B)   K,M,N
C)   K,N
D)   ME) A) and D)
F) C) and D)

Question 12

Economic models are most often composed of diagrams and equations.

Accepted Answer

A) True 
 B)False

Question 13

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 14

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Accepted Answer

A) True 
 B)False

Question 15

Indiadesh is a country that produces two goods,textiles and computers.Last year,Indiadesh produced 500 textiles and 1300 computers.This year it produced 450 textiles and 1100 computers.Given no further information,which of the following events could explain this change?

Accepted Answer

A)   Indiadesh decreased unemployment.
B)   Indiadesh experienced an improvement in textile-making technology.
C)   Indiadesh experienced an improvement in computer-making technology.
D)   Indiadesh experienced a reduction in resources.E) A) and B)
F) None of the above

Question 16

Economists speaking like policy advisers make

Accepted Answer

A)   positive statements.
B)   descriptive statements.
C)   claims about how the world is.
D)   claims about how the world should be.E) A) and B)
F) C) and D)

Question 17

The slope of a steep upward-sloping line will be a

Accepted Answer

A)   small positive number.
B)   large positive number.
C)   small negative number.
D)   large negative number.E) B) and C)
F) A) and C)

Question 18

Economists who are primarily responsible for advising Congress on economic matters work in which agency?

Accepted Answer

A)   the Federal Reserve
B)   the Congressional Budget Office
C)   the Department of the Treasury
D)   the Department of CommerceE) B) and C)
F) A) and D)

Question 19

The President receives economic policy advice from economists at each of the following except

Accepted Answer

A)   the Council of Economic Advisors.
B)   the Department of the Treasury.
C)   the Congressional Budget office.
D)   the Department of Labor.E) A) and B)
F) A) and C)

Question 20

For economists,substitutes for laboratory experiments often come in the form of

Accepted Answer

A)   natural experiments offered by history.
B)   untested theories.
C)   "rules of thumb" and other such conveniences.
D)   reliance upon the wisdom of elders in the economics profession.E) A) and B)
F) All of the above

Exam 2: Thinking Like an Economist

The President receives economic policy advice from economists at each of the following except

Correct Answer
verified

When economists make normative statements,they are

Correct Answer
verified

The scientific method is the dispassionate development and testing of theories about how the world works.

Correct Answer
verified

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct Answer
verified

Which of the following is not held constant when looking at an individual's demand curve?

Correct Answer
verified

Economists who are primarily responsible for advising Congress on economic matters work in which agency?

Correct Answer
verified

The slope of a steep upward-sloping line will be a

Correct Answer
verified

Economists speaking like policy advisers make

Correct Answer
verified

In the markets for goods and services in the circular-flow diagram,households are buyers and firms are sellers.

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3.This economy has the ability to produce at which point(s) ?

Correct Answer
verified

Figure 2-2 -Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

Correct Answer
verified

Positive statements are not

Correct Answer
verified

The slope of a line is equal to

Correct Answer
verified

Economic models are most often composed of diagrams and equations.

Correct Answer
verified

For economists,substitutes for laboratory experiments often come in the form of

Correct Answer
verified

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Correct Answer
verified

Correct Answer
verified

Indiadesh is a country that produces two goods,textiles and computers.Last year,Indiadesh produced 500 textiles and 1300 computers.This year it produced 450 textiles and 1100 computers.Given no further information,which of the following events could explain this change?

Correct Answer
verified

In the circular-flow diagram,

Correct Answer
verified

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following combinations of cookies and coffee is not currently attainable but would be attainable if there was an improvement in overall production technology?

Correct Answer
verified

Exam 2: Thinking Like an Economist

The President receives economic policy advice from economists at each of the following except

Correct AnswerverifiedShow Answer

When economists make normative statements,they are

Correct AnswerverifiedShow Answer

The scientific method is the dispassionate development and testing of theories about how the world works.

Correct AnswerverifiedShow Answer

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct AnswerverifiedShow Answer

Which of the following is not held constant when looking at an individual's demand curve?

Correct AnswerverifiedShow Answer

Economists who are primarily responsible for advising Congress on economic matters work in which agency?

Correct AnswerverifiedShow Answer

The slope of a steep upward-sloping line will be a

Correct AnswerverifiedShow Answer

Economists speaking like policy advisers make

Correct AnswerverifiedShow Answer

In the markets for goods and services in the circular-flow diagram,households are buyers and firms are sellers.

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3.This economy has the ability to produce at which point(s) ?

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

Correct AnswerverifiedShow Answer

Positive statements are not

Correct AnswerverifiedShow Answer

The slope of a line is equal to

Correct AnswerverifiedShow Answer

Economic models are most often composed of diagrams and equations.

Correct AnswerverifiedShow Answer

For economists,substitutes for laboratory experiments often come in the form of

Correct AnswerverifiedShow Answer

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Indiadesh is a country that produces two goods,textiles and computers.Last year,Indiadesh produced 500 textiles and 1300 computers.This year it produced 450 textiles and 1100 computers.Given no further information,which of the following events could explain this change?

Correct AnswerverifiedShow Answer

In the circular-flow diagram,

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following combinations of cookies and coffee is not currently attainable but would be attainable if there was an improvement in overall production technology?

Correct AnswerverifiedShow Answer

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