Question 1

In the ordered pair (10,30),10 is the y-coordinate and 30 is the z-coordinate.

Accepted Answer

A) True 
 B)False

Question 2

Instead of conducting laboratory experiments to generate data to test their theories,economists often

Accepted Answer

A)   ask winners of the Nobel Prize in Economics to evaluate their theories.
B)   argue that data is impossible to collect in economics.
C)   gather data from historical episodes of economic change.
D)   assume that data would support their theories.E) A) and B)
F) B) and C)

Question 3

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

Question 4

The scientific method is

Accepted Answer

A)   the use of modern technology to understand the way the world works.
B)   the use of controlled laboratory experiments to understand the way the world works.
C)   the dispassionate development and testing of theories about how the world works.
D)   the search for evidence to support preconceived theories about how the world works.E) C) and D)
F) None of the above

Question 5

The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

Accepted Answer

A)   Wages
B)   Land
C)   Capital
D)   Goods and services soldE) B) and D)
F) A) and C)

Question 6

Economic models are most often composed of diagrams and equations.

Accepted Answer

A) True 
 B)False

Question 7

When economists are trying to explain the world,they are

Accepted Answer

A)   scientists.
B)   policy advisers.
C)   in the realm of microeconomics rather than macroeconomics.
D)   in the realm of normative economics rather than positive economics.E) All of the above
F) C) and D)

Question 8

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) C) and D)

Question 9

Figure 2-17
Relationship Between Years of Education and Annual Income
 
-Refer to Figure 2-17.According to the graph,the correlation between years of education and annual income is

Accepted Answer

A)   positive
B)   negative
C)   inverse
D)   normativeE) B) and C)
F) All of the above

Question 10

Historical episodes are not valuable to economists.

Accepted Answer

A) True 
 B)False

Question 11

A statement describing how the world should be

Accepted Answer

A)   is a normative statement.
B)   is a positive statement.
C)   would only be made by an economist speaking as a scientist.
D)   would only be made by an economist employed by the government.E) A) and B)
F) A) and C)

Question 12

Policies such as rent control and trade barriers persist

Accepted Answer

A)   because economists are about evenly divided as to the merits of those policies.
B)   because almost all economists agree that those policies have no discernible economic effects.
C)   because almost all economists agree that those policies are desirable.
D)   despite the fact that almost all economists agree that those policies are undesirable.E) A) and C)
F) A) and B)

Question 13

Figure 2-11
 
-Refer to Figure 2-11.Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Accepted Answer

A)   a decrease in unemployment
B)   a technological advance in the consumer goods industries
C)   a general technological advance
D)   an increase in the availability of capital-producing resourcesE) B) and D)
F) B) and C)

Question 14

If new government regulations designed to protect wetlands remove very productive farmland from production,then the production possibilities frontier will shift inward.

Accepted Answer

A) True 
 B)False

Question 15

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) C) and D)
F) All of the above

Question 16

If a major union goes on strike,then the country would be operating inside its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 17

Figure 2-4
 
-Refer to Figure 2-4.This economy cannot currently produce 30 notepads and 45 lamps because

Accepted Answer

A)   some of its resources are unemployed.
B)   inefficiencies exist in this economy's production process.
C)   given its current technology, it does not have the resources to produce that level of output.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 18

In surveys of professional economists,fourteen propositions were endorsed by an overwhelming majority of respondents.

Accepted Answer

A) True 
 B)False

Question 19

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Accepted Answer

A) True 
 B)False

Question 20

Figure 2-8

-Refer to Figure 2-8,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

Accepted Answer

A)   the tradeoff between the production of donuts and coffee changes
B)   the opportunity cost of a cup of coffee is higher at all levels of coffee production
C)   production of 4 donuts and 2 cups of coffee becomes possible
D)   production of 1 donut and 4 cups of coffee becomes efficientE) None of the above
F) All of the above

Exam 2: Thinking Like an Economist.

A statement describing how the world should be

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In surveys of professional economists,fourteen propositions were endorsed by an overwhelming majority of respondents.

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Figure 2-4 -Refer to Figure 2-4.This economy cannot currently produce 30 notepads and 45 lamps because

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Historical episodes are not valuable to economists.

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In the ordered pair (10,30),10 is the y-coordinate and 30 is the z-coordinate.

Correct AnswerverifiedShow Answer

Instead of conducting laboratory experiments to generate data to test their theories,economists often

Correct AnswerverifiedShow Answer

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

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Figure 2-8 -Refer to Figure 2-8,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

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Policies such as rent control and trade barriers persist

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The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Correct AnswerverifiedShow Answer

The scientific method is

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Figure 2-17 Relationship Between Years of Education and Annual Income -Refer to Figure 2-17.According to the graph,the correlation between years of education and annual income is

Correct AnswerverifiedShow Answer

Figure 2-11 -Refer to Figure 2-11.Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

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The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

Correct AnswerverifiedShow Answer

When economists make normative statements,they are

Correct AnswerverifiedShow Answer

If a major union goes on strike,then the country would be operating inside its production possibilities frontier.

Correct AnswerverifiedShow Answer

Economic models are most often composed of diagrams and equations.

Correct AnswerverifiedShow Answer

If new government regulations designed to protect wetlands remove very productive farmland from production,then the production possibilities frontier will shift inward.

Correct AnswerverifiedShow Answer

When economists are trying to explain the world,they are

Correct AnswerverifiedShow Answer

Economists view normative statements as

Correct AnswerverifiedShow Answer

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