Question 1

Who among the following individuals majored in economics as a college student?

Accepted Answer

A)  Arnold Schwartzenegger, governor of California
B)  Ronald Reagan, president of the United States
C)  Tiger Woods, golfer
D)  All of the above are correct.E) None of the above
F) C) and D)

Question 2

The slope of a straight line is calculated by

Accepted Answer

A)  rise divided by run.
B)  run divided by rise.
C)  rise minus run.
D)  rise plus run.E) A) and B)
F) A) and C)

Question 3

If government regulations designed to protect wetlands removed very productive farmland from production,the production possibilities would shift inward.

Accepted Answer

A) True 
 B)False

Question 4

Unemployment would cause an economy to

Accepted Answer

A)  produce inside its production possibilities frontier.
B)  produce on its production possibilities frontier.
C)  produce outside its production possibilities frontier.
D)  experience an inward shift of its production possibilities frontier.E) A) and B)
F) A) and C)

Question 5

A circular-flow diagram is a visual model of how an economy is organized.

Accepted Answer

A) True 
 B)False

Question 6

The circular-flow diagram is a

Accepted Answer

A)  visual model of how the economy is organized.
B)  visual model of the relationships among money, prices, and businesses.
C)  model that shows the effects of government on the economy.
D)  mathematical model of how the economy works.E) A) and B)
F) None of the above

Question 7

Which of the following statements is correct about the extent of disagreement among economists?

Accepted Answer

A)  There is a great deal of agreement among economists on virtually every economic issue.
B)  There is a great deal of agreement among economists on many important economic issues.
C)  All disagreements among economists are attributable to differences in their values.
D)  All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories.E) B) and C)
F) All of the above

Question 8

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Accepted Answer

A)  the effects of rent control on the availability of housing in New York City
B)  the economic impact of tornadoes on cities and towns in Oklahoma
C)  how tariffs on shoes affects the shoe industry
D)  the effect on the economy of changes in the nation's unemployment rateE) A) and B)
F) A) and C)

Question 9

A normative statement describes how the world

Accepted Answer

A)  was in the past.
B)  is in the present.
C)  will be in the future.
D)  ought to be.E) None of the above
F) A) and B)

Question 10

Figure 2-9
 
-Refer to Figure 2-9.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 longer he can go without sleep.
D)  The relationship between cups of coffee per day and time without sleep is too unpredictable to consider.E) A) and C)
F) A) and B)

Question 11

While the scientific method is applicable to studying natural sciences,it is not useful in studying an economic system.

Accepted Answer

A) True 
 B)False

Question 12

Suppose the variable y is measured along the vertical axis on a graph.When the value of y changes,the curve will

Accepted Answer

A)  rotate.
B)  shift.
C)  become irrelevant.
D)  None of the above is correct.E) None of the above
F) A) and B)

Question 13

A person who has fallen for the broken window fallacy might make which of the following claims?

Accepted Answer

A)  To break a window is to ask for seven years of bad luck.
B)  Scientific thinking would never advance if it were not for the inadvertent breaking down of old ways of thinking.
C)  Any activity which entails an unintended consequence is not worth pursuing.
D)  The construction boom in the Gulf Coast states following the catastrophic Hurricane Katrina of 2005 proves that hurricanes eventually increase incomes in affected regions.E) B) and D)
F) A) and D)

Question 14

Which is the best statement about the roles of economists?

Accepted Answer

A)  Economists are best viewed as policymakers.
B)  Economists are best viewed as scientists.
C)  In trying to explain the world, economists are policymakers; in trying to improve the world, they are scientists.
D)  In trying to explain the world, economists are scientists; in trying to improve the world, they are policymakers.E) B) and C)
F) All of the above

Question 15

An economic theory about international trade that is based on the assumption that there are only two countries and two goods

Accepted Answer

A)  can be useful in helping economists understand the complex world of international trade involving many countries and many goods.
B)  is useless, since the real world has many countries trading many goods.
C)  can be useful only in situations involving two countries and two goods.
D)  can be useful in the classroom, but is useless in the real world.E) All of the above
F) C) and D)

Question 16

Identify each of the following topics as being part of microeconomics or macroeconomics:
a.the impact of a change in consumer income on the purchase of luxury automobiles
b.the effect of a change in the price of Coke on the purchase of Pepsi
c.the impact of a war in the Middle East on the rate of inflation in the United States
d.factors influencing the rate of economic growth
e.factors influencing the demand for tractors
f.the impact of tax policy on national saving
g.the effect of pollution taxes on the U.S.copper industry
h.the degree of competition in the cable television industry
i.the effect of a balanced-budget amendment on economic stability
j.the impact of deregulation on the savings and loan industry

Accepted Answer

a,b,e,g,h,and j are ...

Question 17

Figure 2-7
 
-Refer to Figure 2-7.The shift of the production possibilities frontier from A to B can best be described as

Accepted Answer

A)  a downturn in the economy.
B)  economic growth.
C)  an enhancement of equity.
D)  an improvement in the allocation of resources.E) All of the above
F) None of the above

Question 18

Figure 2-9
 
-Refer to Figure 2-9.The graph shown is known as a

Accepted Answer

A)  time series.
B)  bar graph.
C)  scatterplot.
D)  pie chart.E) B) and D)
F) A) and C)

Question 19

The Federal Reserve

Accepted Answer

A)  designs tax policy.
B)  enforces the nation's antitrust laws.
C)  sets the nation's monetary policy.
D)  analyzes data on workers.E) A) and C)
F) All of the above

Question 20

Figure 2-1
 
-Refer to Figure 2-1.Which arrow shows the flow of income payments?

Accepted Answer

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

Exam 2: Thinking Like an Economist

The slope of a straight line is calculated by

Correct Answer
verified

Figure 2-9 -Refer to Figure 2-9.The graph shown is known as a

Correct Answer
verified

Which of the following statements is correct about the extent of disagreement among economists?

Correct Answer
verified

A person who has fallen for the broken window fallacy might make which of the following claims?

Correct Answer
verified

Correct Answer
verified
a,b,e,g,h,and j are ...
View Answer

Suppose the variable y is measured along the vertical axis on a graph.When the value of y changes,the curve will

Correct Answer
verified

Unemployment would cause an economy to

Correct Answer
verified

A circular-flow diagram is a visual model of how an economy is organized.

Correct Answer
verified

The circular-flow diagram is a

Correct Answer
verified

If government regulations designed to protect wetlands removed very productive farmland from production,the production possibilities would shift inward.

Correct Answer
verified

The Federal Reserve

Correct Answer
verified

An economic theory about international trade that is based on the assumption that there are only two countries and two goods

Correct Answer
verified

Figure 2-9 -Refer to Figure 2-9.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
verified

Figure 2-1 -Refer to Figure 2-1.Which arrow shows the flow of income payments?

Correct Answer
verified

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Correct Answer
verified

Who among the following individuals majored in economics as a college student?

Correct Answer
verified

Figure 2-7 -Refer to Figure 2-7.The shift of the production possibilities frontier from A to B can best be described as

Correct Answer
verified

While the scientific method is applicable to studying natural sciences,it is not useful in studying an economic system.

Correct Answer
verified

Which is the best statement about the roles of economists?

Correct Answer
verified

A normative statement describes how the world

Correct Answer
verified

Exam 2: Thinking Like an Economist

The slope of a straight line is calculated by

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9.The graph shown is known as a

Correct AnswerverifiedShow Answer

Which of the following statements is correct about the extent of disagreement among economists?

Correct AnswerverifiedShow Answer

A person who has fallen for the broken window fallacy might make which of the following claims?

Correct AnswerverifiedShow Answer

Correct Answerverifieda,b,e,g,h,and j are ...View AnswerShow Answer

Suppose the variable y is measured along the vertical axis on a graph.When the value of y changes,the curve will

Correct AnswerverifiedShow Answer

Unemployment would cause an economy to

Correct AnswerverifiedShow Answer

A circular-flow diagram is a visual model of how an economy is organized.

Correct AnswerverifiedShow Answer

The circular-flow diagram is a

Correct AnswerverifiedShow Answer

If government regulations designed to protect wetlands removed very productive farmland from production,the production possibilities would shift inward.

Correct AnswerverifiedShow Answer

The Federal Reserve

Correct AnswerverifiedShow Answer

An economic theory about international trade that is based on the assumption that there are only two countries and two goods

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9.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 2-1 -Refer to Figure 2-1.Which arrow shows the flow of income payments?

Correct AnswerverifiedShow Answer

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Correct AnswerverifiedShow Answer

Who among the following individuals majored in economics as a college student?

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7.The shift of the production possibilities frontier from A to B can best be described as

Correct AnswerverifiedShow Answer

While the scientific method is applicable to studying natural sciences,it is not useful in studying an economic system.

Correct AnswerverifiedShow Answer

Which is the best statement about the roles of economists?

Correct AnswerverifiedShow Answer

A normative statement describes how the world

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a,b,e,g,h,and j are ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified