Question 1

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 2

There is only one explanation for why economists give conflicting advice on policy issues, and it is that they have different values about what policy should try to accomplish.

Accepted Answer

A) True 
 B)False

Question 3

Economists regard events from the past as

Accepted Answer

A)  irrelevant, since history is unlikely to repeat itself.
B)  of limited interest, since those events seldom provide any useful economic data.
C)  interesting but not particularly valuable, since those events cannot be used to evaluate present-day economic theories.
D)  interesting and valuable, since those events are capable of helping us to understand the past, the present, and the future.E) C) and D)
F) B) and D)

Question 4

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) None of the above
F) All of the above

Question 5

Figure 2-7 
-Refer to Figure 2-7. Point K represents an outcome in which

Accepted Answer

A)  production is inefficient.
B)  some of the economy's resources are unemployed.
C)  the economy is using all of its resources to produce hammers.
D)  the economy is using all of its nails to produce hammers.E) A) and B)
F) A) and C)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Table 2-3
Production Possibilities for Libraryland
   Bouks  Naparines 40003002002003501004500500\begin{array} { | c | c } \hline 	ext { Bouks } & 	ext { Naparines } \\hline 400 & 0 \\hline 300 & 200 \\hline 200 & 350 \\hline 100 & 450 \\hline 0 & 500 \\hline\end{array} Bouks 4003002001000​ Naparines 0200350450500​​ 
-Refer to Table 2-3. What is the opportunity cost to Libraryland of increasing the production of books from 200 to 300?

Accepted Answer

A)  100 magazines
B)  150 magazines
C)  200 magazines
D)  350 magazines E) A) and D)
F) A) and C)

Question 8

In the circular-flow diagram, factors of production are the goods and services produced by firms.

Accepted Answer

A) True 
 B)False

Question 9

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

Accepted Answer

A) True 
 B)False

Question 10

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Accepted Answer

A)  teaching economics to people who have never before studied economics.
B)  advancing their political agendas.
C)  developing models when the scientific method cannot be used.
D)  focusing their thinking.E) A) and B)
F) A) and C)

Question 11

Which of the following is not correct?

Accepted Answer

A)  Evaluating statements about how the world should be involves values as well as facts.
B)  Positive statements can, in principle, be confirmed or refuted by examining evidence.
C)  Normative statements can be judged using data alone.
D)  Deciding what is good or bad policy is not just a matter of science.E) A) and B)
F) A) and C)

Question 12

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 13

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often difficult and sometimes impossible to

Accepted Answer

A)  make use of theory and observation.
B)  rely upon the scientific method.
C)  conduct laboratory experiments.
D)  find articles or books that were written before 1900.E) A) and B)
F) A) and D)

Question 14

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) All of the above

Question 15

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Accepted Answer

A)  amount of the other good that must be given up.
B)  market price of the additional amount produced.
C)  amount of resources that must be devoted to its production.
D)  number of dollars that must be spent to produce it.E) A) and B)
F) A) and C)

Question 16

With respect to how economists study the economy, which of the following statements is most accurate?

Accepted Answer

A)  Economists study the past, but they do not try to predict the future.
B)  Economists use "rules of thumb" to predict the future.
C)  Economists devise theories, collect data, and analyze the data to test the theories.
D)  Economists use controlled experiments in much the same way that biologists and physicists do.E) B) and C)
F) All of the above

Question 17

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Accepted Answer

A) True 
 B)False

Question 18

When two variables move in the same direction, the curve relating them is

Accepted Answer

A)  upward sloping, and we say the variables are positively related.
B)  upward sloping, and we say the variables are negatively related.
C)  downward sloping, and we say the variables are positively related.
D)  downward sloping, and we say the variables are negatively related.E) A) and B)
F) A) and D)

Question 19

A demand curve shows the relationship

Accepted Answer

A)  between income and quantity demanded.
B)  between price and income.
C)  between price and quantity demanded.
D)  among income, price, and quantity demanded.E) B) and D)
F) B) and C)

Question 20

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Figure 2-7 -Refer to Figure 2-7. Point K represents an outcome in which

Correct Answer
verified

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

A demand curve shows the relationship

Correct Answer
verified

There is only one explanation for why economists give conflicting advice on policy issues, and it is that they have different values about what policy should try to accomplish.

Correct Answer
verified

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often difficult and sometimes impossible to

Correct Answer
verified

Economists regard events from the past as

Correct Answer
verified

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

Correct Answer
verified

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Correct Answer
verified

When two variables move in the same direction, the curve relating them is

Correct Answer
verified

In the circular-flow diagram, factors of production are the goods and services produced by firms.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Correct Answer
verified

With respect to how economists study the economy, which of the following statements is most accurate?

Correct Answer
verified

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Figure 2-7 -Refer to Figure 2-7. Point K represents an outcome in which

Correct AnswerverifiedShow Answer

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

A demand curve shows the relationship

Correct AnswerverifiedShow Answer

There is only one explanation for why economists give conflicting advice on policy issues, and it is that they have different values about what policy should try to accomplish.

Correct AnswerverifiedShow Answer

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often difficult and sometimes impossible to

Correct AnswerverifiedShow Answer

Economists regard events from the past as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Correct AnswerverifiedShow Answer

When two variables move in the same direction, the curve relating them is

Correct AnswerverifiedShow Answer

In the circular-flow diagram, factors of production are the goods and services produced by firms.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Correct AnswerverifiedShow Answer

With respect to how economists study the economy, which of the following statements is most accurate?

Correct AnswerverifiedShow Answer

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

Correct AnswerverifiedShow Answer

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