Question 1

While the production possibilities frontier is a useful model,it cannot be used to illustrate economic growth.

Accepted Answer

A) True 
 B)False

Question 2

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) A) and B)
F) None of the above

Question 3

In the markets for the factors of production in the circular-flow diagram,

Accepted Answer

A)   households are sellers and firms are buyers.
B)   households are buyers and firms are sellers.
C)   households and firms are both buyers.
D)   households and firms are both sellers.E) A) and B)
F) A) and C)

Question 4

An economic model can accurately explain how the economy is organized because it is designed to include,to the extent possible,all features of the real world.

Accepted Answer

A) True 
 B)False

Question 5

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Accepted Answer

The answer of Is the following a positive or normative...

Question 6

The nation's antitrust laws are enforced by economists at the Department of

Accepted Answer

A)   Labor.
B)   Health and Human Services.
C)   Justice.
D)   Treasury.E) B) and C)
F) C) and D)

Question 7

Which of the following is not an example of a positive,as opposed to normative,statement?

Accepted Answer

A)   Higher gasoline prices will reduce gasoline consumption.
B)   Equality is more important than efficiency.
C)   Trade restrictions lower our standard of living.
D)   If a nation wants to avoid inflation,it will restrict the growth rate of the quantity of money.E) All of the above
F) B) and C)

Question 8

Figure 2-9

-Refer to Figure 2-9,Panel (a) .The opportunity cost of one computer is highest when the economy produces

Accepted Answer

A)   0 computers.
B)   6 computers.
C)   10 computers.
D)   12 computers.E) A) and D)
F) A) and B)

Question 9

Figure 2-9

-Refer to Figure 2-9,Panel (a) .The movement from point C to point B could be caused by

Accepted Answer

A)   economic growth.
B)   unemployment.
C)   an improvement in efficiency.
D)   an advance in production technology.E) A) and C)
F) B) and C)

Question 10

You know an economist has crossed the line from policy adviser to scientist when he or she

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   makes positive statements.
C)   talks about values.
D)   makes a claim about how the world should be.E) A) and B)
F) C) and D)

Question 11

The Congressional Budget Office,which is staffed by economists,provides Congress with independent evaluations of policy proposals.

Accepted Answer

A) True 
 B)False

Question 12

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) A) and C)

Question 13

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Accepted Answer

A) True 
 B)False

Question 14

In a certain economy,toys and greeting cards are produced,and the economy currently operates on its production possibilities frontier.Which of the following events would allow the economy to produce more toys and more greeting cards,relative to the quantities of those goods that are being produced now?

Accepted Answer

A)   The economy experiences economic growth.
B)   There is a technological advance in the toy industry,but the greeting card industry experiences no such advance.
C)   There is a technological advance in the greeting card industry,but the toy industry experiences no such advance.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 15

-Refer to Figure 2-3.Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Accepted Answer

movement a...

Question 16

Figure 2-5 
-Refer to Figure 2-5.If this economy moves from point A to point B,then which of the following statements is correct?

Accepted Answer

A)   This economy has moved from a point of inefficient production to a point of efficient production.
B)   This economy has experienced economic growth.
C)   This economy has experienced an increase in employment.
D)   None of the above is correct.E) All of the above
F) A) and B)

Question 17

"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Accepted Answer

A)   Harry Truman
B)   George Bernard Shaw
C)   John Maynard Keynes
D)   Ronald ReaganE) None of the above
F) B) and D)

Question 18

A duty of economists at the Department of Labor is to

Accepted Answer

A)   analyze data on workers.
B)   schedule federal holidays.
C)   enforce the nation's antitrust laws.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 19

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Accepted Answer

A)   the effect of foreign direct investment on economic growth
B)   the effect of a sales tax on the cigarette industry
C)   the effect of an investment tax credit on the economy's capital stock
D)   the effect of a war on government spendingE) A) and C)
F) A) and B)

Exam 2: Thinking Like an Economist

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Correct Answer
verified

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Correct Answer
verified

A duty of economists at the Department of Labor is to

Correct Answer
verified

An economic model can accurately explain how the economy is organized because it is designed to include,to the extent possible,all features of the real world.

Correct Answer
verified

Economists speaking like policy advisers make

Correct Answer
verified

Figure 2-9 -Refer to Figure 2-9,Panel (a) .The movement from point C to point B could be caused by

Correct Answer
verified

"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Correct Answer
verified

In the markets for the factors of production in the circular-flow diagram,

Correct Answer
verified

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Correct Answer
verified

The nation's antitrust laws are enforced by economists at the Department of

Correct Answer
verified

While the production possibilities frontier is a useful model,it cannot be used to illustrate economic growth.

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5.If this economy moves from point A to point B,then which of the following statements is correct?

Correct Answer
verified

You know an economist has crossed the line from policy adviser to scientist when he or she

Correct Answer
verified

Which of the following is not an example of a positive,as opposed to normative,statement?

Correct Answer
verified

When economists make normative statements,they are

Correct Answer
verified

The Congressional Budget Office,which is staffed by economists,provides Congress with independent evaluations of policy proposals.

Correct Answer
verified

Correct Answer
verified

-Refer to Figure 2-3.Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answer
verified
movement a...
View Answer

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Correct Answer
verified

Figure 2-9 -Refer to Figure 2-9,Panel (a) .The opportunity cost of one computer is highest when the economy produces

Correct Answer
verified

Exam 2: Thinking Like an Economist

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Correct AnswerverifiedShow Answer

A duty of economists at the Department of Labor is to

Correct AnswerverifiedShow Answer

An economic model can accurately explain how the economy is organized because it is designed to include,to the extent possible,all features of the real world.

Correct AnswerverifiedShow Answer

Economists speaking like policy advisers make

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9,Panel (a) .The movement from point C to point B could be caused by

Correct AnswerverifiedShow Answer

"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Correct AnswerverifiedShow Answer

In the markets for the factors of production in the circular-flow diagram,

Correct AnswerverifiedShow Answer

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Correct AnswerverifiedShow Answer

The nation's antitrust laws are enforced by economists at the Department of

Correct AnswerverifiedShow Answer

While the production possibilities frontier is a useful model,it cannot be used to illustrate economic growth.

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5.If this economy moves from point A to point B,then which of the following statements is correct?

Correct AnswerverifiedShow Answer

You know an economist has crossed the line from policy adviser to scientist when he or she

Correct AnswerverifiedShow Answer

Which of the following is not an example of a positive,as opposed to normative,statement?

Correct AnswerverifiedShow Answer

When economists make normative statements,they are

Correct AnswerverifiedShow Answer

The Congressional Budget Office,which is staffed by economists,provides Congress with independent evaluations of policy proposals.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

-Refer to Figure 2-3.Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answerverifiedmovement a...View AnswerShow Answer

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9,Panel (a) .The opportunity cost of one computer is highest when the economy produces

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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movement a...
View Answer

Correct Answer
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Correct Answer
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