Question 1

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

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   talks about the evidence.
C)   makes normative statements.
D)   makes a claim about how the world is.

Question 2

All scientific models,including economic models,simplify reality in order to improve our understanding of it.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-2  Consider the production possibilities curve for a country that can produce cars,corn (in bushels),or a combination of the two.
-Refer to Figure 2-2.Which point(s)on the graph show unemployment of resources?

Accepted Answer

The answer of Figure 2-2  Consider the production possibilities...

Question 4

In constructing models,economists

Accepted Answer

A)   leave out equations,since equations and models tend to contradict one another.
B)   ignore the long run,since models are useful only for short-run analysis.
C)   sometimes make assumptions that are contrary to features of the real world.
D)   try to include every feature of the economy.

Question 5

In the ordered pair (20,100) ,20 is the

Accepted Answer

A)   x-coordinate.
B)   y-coordinate.
C)   scatterplot.
D)   slope.

Question 6

John Maynard Keynes referred to economics as an easy subject,

Accepted Answer

A)   at which very few excel.
B)   but not as easy as philosophy or the pure sciences.
C)   which very few can enjoy.
D)   which deals primarily with common sense.

Question 7

The opportunity cost of something is what you give up to get it.

Accepted Answer

A) True 
 B)False

Question 8

The field of economics is traditionally divided into two broad subfields,

Accepted Answer

A)   national economics and international economics.
B)   consumer economics and producer economics.
C)   private sector economics and public sector economics.
D)   microeconomics and macroeconomics.

Question 9

A production possibilities frontier can shift outward if

Accepted Answer

A)   government increases the amount of money in the economy.
B)   there is a technological improvement.
C)   resources are shifted from the production of one good to the production of the other good.
D)   the economy abandons inefficient production methods in favor of efficient production methods.

Question 10

Figure 2-16
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service 
-Refer to Figure 2-16.Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A)   There is a positive correlation between the frequency of service and the number of passengers.
B)   When there are 5 stops per hour,there are approximately 200 passengers.
C)   More stops per hour is associated with more passengers per hour.
D)   No other factors besides the frequency of service affect the number of passengers.

Question 11

Which of the following is an example of a positive,as opposed to normative,statement?

Accepted Answer

A)   Income tax rates should not have been cut as they were a few years ago.
B)   The quantity of money has grown too slowly in recent years.
C)   When the quantity of money grows rapidly,inflation is a predictable consequence.
D)   All of the above are positive statements.

Question 12

Figure 2-8

-Refer to Figure 2-8,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Accepted Answer

A)   unemployment.
B)   an improvement in donut production technology.
C)   an improvement in coffee production technology.
D)   an improvement in both donut and coffee production technology.

Question 13

Suppose an economy produces two goods,food and machines.This economy always operates on its production possibilities frontier.Last year,it produced 1000 units of food and 47 machines.This year,it is producing 1050 units of food and 52 machines.Which of the following events could not explain the increase in output?

Accepted Answer

A)   a reduction in unemployment
B)   an increase in available labor
C)   an improvement in technology
D)   Any of these events could explain the increase in output.

Question 14

A positive economic statement such as "Pollution taxes decrease the quantity of pollution generated by firms"

Accepted Answer

A)   would likely be made by an economist acting as a policy advisor.
B)   would require values and data in order to be evaluated.
C)   would require data but not values in order to be evaluated.
D)   could not be evaluated by economists acting as scientists.

Question 15

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.

Question 16

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.

Question 17

Figure 2-2 
-Refer to Figure 2-2.Carla regularly buys fruits and vegetables at a grocery store.Roberto regularly pays a lawn-care company to mow his lawn.If the flow of fruits and vegetables from the grocery store to Carla is represented by an arrow from Box C to Box B of this circular-flow diagram,then the money paid by Roberto to the lawn-care company is represented by an arrow

Accepted Answer

A)   from Box A to Box D.
B)   from Box B to Box C.
C)   from Box C to Box B.
D)   from Box D to Box A.

Question 18

Figure 2-5 
-Refer to Figure 2-5.If this economy devotes one-half of its available resources to the production of soccer balls and the other half to the production of sweaters,it could produce

Accepted Answer

A)   150 sweaters and 100 soccer balls.
B)   150 sweaters and 150 soccer balls.
C)   300 sweaters and 200 soccer balls.
D)   We would have to know the details of this economy's technology in order to determine this.

Question 19

Economists work both inside and outside the administrative branch of the U.S.government.

Accepted Answer

A) True 
 B)False

Question 20

Figure 2-13 
-Refer to Figure 2-13.Taking cause and effect into account,which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

Accepted Answer

A)   The less coffee a person drinks per day,the more time he can go without sleep.
B)   There is no relationship between how much coffee per day a person drinks and how long he can go without sleep.
C)   The more coffee a person drinks per day,the more time he can go without sleep.
D)   The more coffee a person drinks per day,the less time he can go without sleep.

Exam 2: Thinking Like an Economist

A positive economic statement such as "Pollution taxes decrease the quantity of pollution generated by firms"

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

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

Correct Answer
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In the ordered pair (20,100) ,20 is the

Correct Answer
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The field of economics is traditionally divided into two broad subfields,

Correct Answer
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Which of the following is an example of a positive,as opposed to normative,statement?

Correct Answer
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Economists work both inside and outside the administrative branch of the U.S.government.

Correct Answer
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Figure 2-2 Consider the production possibilities curve for a country that can produce cars,corn (in bushels),or a combination of the two. -Refer to Figure 2-2.Which point(s)on the graph show unemployment of resources?

Correct Answer
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The opportunity cost of something is what you give up to get it.

Correct Answer
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Economists view normative statements as

Correct Answer
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Figure 2-8 -Refer to Figure 2-8,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Correct Answer
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A production possibilities frontier can shift outward if

Correct Answer
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John Maynard Keynes referred to economics as an easy subject,

Correct Answer
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Figure 2-13 -Refer to Figure 2-13.Taking cause and effect into account,which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

Correct Answer
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Figure 2-5 -Refer to Figure 2-5.If this economy devotes one-half of its available resources to the production of soccer balls and the other half to the production of sweaters,it could produce

Correct Answer
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All scientific models,including economic models,simplify reality in order to improve our understanding of it.

Correct Answer
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In constructing models,economists

Correct Answer
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Exam 2: Thinking Like an Economist

A positive economic statement such as "Pollution taxes decrease the quantity of pollution generated by firms"

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the ordered pair (20,100) ,20 is the

Correct AnswerverifiedShow Answer

The field of economics is traditionally divided into two broad subfields,

Correct AnswerverifiedShow Answer

Which of the following is an example of a positive,as opposed to normative,statement?

Correct AnswerverifiedShow Answer

Economists work both inside and outside the administrative branch of the U.S.government.

Correct AnswerverifiedShow Answer

Figure 2-2 Consider the production possibilities curve for a country that can produce cars,corn (in bushels),or a combination of the two. -Refer to Figure 2-2.Which point(s)on the graph show unemployment of resources?

Correct AnswerverifiedShow Answer

The opportunity cost of something is what you give up to get it.

Correct AnswerverifiedShow Answer

Economists view normative statements as

Correct AnswerverifiedShow Answer

Figure 2-8 -Refer to Figure 2-8,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Correct AnswerverifiedShow Answer

A production possibilities frontier can shift outward if

Correct AnswerverifiedShow Answer

John Maynard Keynes referred to economics as an easy subject,

Correct AnswerverifiedShow Answer

Figure 2-13 -Refer to Figure 2-13.Taking cause and effect into account,which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5.If this economy devotes one-half of its available resources to the production of soccer balls and the other half to the production of sweaters,it could produce

Correct AnswerverifiedShow Answer

All scientific models,including economic models,simplify reality in order to improve our understanding of it.

Correct AnswerverifiedShow Answer

In constructing models,economists

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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