Question 1

Who would be more likely to study the inflation rate in the United States,a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 2

For economists,conducting experiments is often difficult and sometimes impossible.

Accepted Answer

A) True 
 B)False

Question 3

Economists acting as scientists make positive statements,while economists acting as policy advisers make normative statements.

Accepted Answer

A) True 
 B)False

Question 4

Figure 2-14 
-Refer to Figure 2-14.Points A,B,and D represent feasible outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 5

Figure 2-15
Relationship between Price and Cups of Coffee 
-Refer to Figure 2-15.Which of the following could result in a movement from point B to point Z?

Accepted Answer

A)   a change in the price of coffee
B)   a change in the number of cups of coffee demanded
C)   a change in income
D)   More than one of the above is correct.E) None of the above
F) C) and D)

Question 6

When economists make positive statements,they are

Accepted Answer

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

Question 7

Table 2-3
Production Possibilities for Libraryland
 
-Refer to Table 2-3.Which of the following statements is correct?

Accepted Answer

A)   The opportunity cost of an additional 100 books is constant at 50 magazines.
B)   The opportunity cost of an additional 100 books is constant at 100 magazines.
C)   Libraryland's production possibilities frontier is a straight,downward-sloping line.
D)   The opportunity cost of an additional 100 books increases as more books are produced.E) All of the above
F) B) and C)

Question 8

In the circular-flow diagram,firms produce goods and services using the factors of production.

Accepted Answer

A) True 
 B)False

Question 9

In building economic models,economists often omit

Accepted Answer

A)   assumptions.
B)   theories.
C)   details.
D)   equations.E) A) and C)
F) A) and D)

Question 10

Economic models are most often composed of diagrams and equations.

Accepted Answer

A) True 
 B)False

Question 11

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Accepted Answer

A) True 
 B)False

Question 12

Figure 2-8

-Refer to Figure 2-8,Panel (a) .The movement from point M to point K could be caused by

Accepted Answer

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

Question 13

Figure 2-14 
-Refer to Figure 2-14.Points B and C represent infeasible outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 14

Erma and Wayne are both economists.Erma thinks that taxing consumption,rather than income,would result in higher household saving because income that is saved would not be taxed.Wayne does not think that household saving would respond much to a change in the tax laws.In this example,Erma and Wayne

Accepted Answer

A)   have different normative views about tax policy.
B)   disagree about the validity of a positive theory.
C)   must both be incorrect because economists always agree on policy issues.
D)   None of the above is correct.E) All of the above
F) A) and D)

Question 15

The x-coordinate of an ordered pair specifies the

Accepted Answer

A)   diagonal location of the point.
B)   vertical location of the point.
C)   horizontal location of the point.
D)   quadrant location in which the point is located.E) B) and C)
F) A) and B)

Question 16

Economists at the Department of Justice

Accepted Answer

A)   track the behavior of the nation's money supply.
B)   advise Congress on economic matters.
C)   help enforce the nation's antitrust laws.
D)   prepare the federal budget.E) C) and D)
F) B) and C)

Question 17

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 D)
F) A) and B)

Question 18

Figure 2-1 
-Refer to Figure 2-1.Which arrow represents the flow of goods and services?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and B)
F) B) and D)

Question 19

Figure 2-15
Relationship between Price and Cups of Coffee 
-Refer to Figure 2-15.A movement from point A to point B is called

Accepted Answer

A)   a shift in demand.
B)   a movement along the demand curve.
C)   a shift in supply.
D)   a movement along the supply curve.E) C) and D)
F) A) and B)

Question 20

Figure 2-4 
-Refer to Figure 2-4.Suppose this economy is producing at point W.Which of the following statements would best explain this situation?

Accepted Answer

A)   The economy lacks the resources to produce at a more desirable point.
B)   The economy's available technology prevents it from producing at a more desirable point.
C)   There is widespread unemployment in the economy.
D)   Any of the above statements would be a legitimate explanation for this situation.E) A) and B)
F) A) and C)

Exam 2: Thinking Like an Economist

Figure 2-8 -Refer to Figure 2-8,Panel (a) .The movement from point M to point K could be caused by

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Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.Which of the following could result in a movement from point B to point Z?

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Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.A movement from point A to point B is called

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Figure 2-14 -Refer to Figure 2-14.Points B and C represent infeasible outcomes for this economy.

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Table 2-3 Production Possibilities for Libraryland -Refer to Table 2-3.Which of the following statements is correct?

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When economists make positive statements,they are

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Erma and Wayne are both economists.Erma thinks that taxing consumption,rather than income,would result in higher household saving because income that is saved would not be taxed.Wayne does not think that household saving would respond much to a change in the tax laws.In this example,Erma and Wayne

Correct AnswerverifiedShow Answer

Economic models are most often composed of diagrams and equations.

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The x-coordinate of an ordered pair specifies the

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In the circular-flow diagram,firms produce goods and services using the factors of production.

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Economists at the Department of Justice

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Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of goods and services?

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Economists acting as scientists make positive statements,while economists acting as policy advisers make normative statements.

Correct AnswerverifiedShow Answer

Who would be more likely to study the inflation rate in the United States,a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

In building economic models,economists often omit

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"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

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For economists,conducting experiments is often difficult and sometimes impossible.

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Figure 2-14 -Refer to Figure 2-14.Points A,B,and D represent feasible outcomes for this economy.

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

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Figure 2-4 -Refer to Figure 2-4.Suppose this economy is producing at point W.Which of the following statements would best explain this situation?

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