Question 1

Figure 2-5 
-Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce

Accepted Answer

A)   0 dryers and 100 washers.
B)   60 dryers and 50 washers.
C)   80 dryers and 0 washers.
D)   80 dryers and 50 washers.E) B) and C)
F) All of the above

Question 2

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 to be evaluated.
C)   would require data but not values to be evaluated.
D)   could not be evaluated by economists acting as scientists.E) A) and D)
F) A) and C)

Question 3

Figure 2-7 
-Refer to Figure 2-7. Efficient production is represented by which points) ?

Accepted Answer

A)   L, M
B)   L, M, N, P, Q
C)   N, O, P
D)   QE) A) and B)
F) A) and C)

Question 4

Production possibilities frontiers can be used to illustrate scarcity, trade-offs, opportunity cost, efficiency, unemployment, technological advances, and economic growth.

Accepted Answer

A) True 
 B)False

Question 5

The president of the United States receives tax policy advice from economists in the

Accepted Answer

A)   Federal Reserve.
B)   Department of Justice.
C)   Department of the Treasury.
D)   Congressional Budget Office.E) B) and C)
F) None of the above

Question 6

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

Accepted Answer

A) True 
 B)False

Question 7

The most common data for testing economic theories come from

Accepted Answer

A)   carefully controlled and conducted laboratory experiments.
B)   computer models of economies.
C)   historical episodes of economic change.
D)   centrally planned economies.E) B) and C)
F) A) and D)

Question 8

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Accepted Answer

The answer of Economists at which administrative department analyze data...

Question 9

Figure 2-21 
-Refer to Figure 2-21. Your friend John created the graph above to illustrate that snowstorms are caused by more snowblowers being sold. You inform him that his interpretation is incorrect due to

Accepted Answer

A)   omitted variable bias.
B)   reverse causality.
C)   slope mismatch.
D)   shifting versus moving along a curve.E) None of the above
F) All of the above

Question 10

A circular-flow diagram is a model that

Accepted Answer

A)   helps to explain how participants in the economy interact with one another.
B)   helps to explain how the economy is organized.
C)   incorporates all aspects of the real economy.
D)   Both a)  and b)  are correct.E) All of the above
F) B) and C)

Question 11

Economists speaking like policy advisers make

Accepted Answer

A)   claims about how the world is.
B)   descriptive statements.
C)   normative statements.
D)   More than one of the above is correct.E) B) and C)
F) None of the above

Question 12

Figure 2-2 
-Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Accepted Answer

A)   households are represented by Box A.
B)   firms are represented by Box C.
C)   firms are represented by Box A.
D)   firms are sellers in Box B.E) A) and B)
F) None of the above

Question 13

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Accepted Answer

A) True 
 B)False

Question 14

Figure 2-5 
-Refer to Figure 2-5. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

Accepted Answer

A)   The economy has insufficient 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) All of the above

Question 15

A production possibilities frontier shifts outward when

Accepted Answer

A)   the economy experiences economic growth.
B)   the desires of the economy's citizens change.
C)   at least one of the basic principles of economics is violated.
D)   opportunity costs are lessened.E) C) and D)
F) B) and C)

Question 16

Economists at the Department of the Treasury

Accepted Answer

A)   design U.S. currency and coins.
B)   provide Congress with the annual budget.
C)   enforce the U.S. antitrust laws.
D)   provide advice on tax policy to the President.E) All of the above
F) A) and D)

Question 17

John Maynard Keynes believed the ideas of economists to be

Accepted Answer

A)   generally incorrect.
B)   powerful.
C)   academic and without practical application.
D)   rantings of madmen.E) A) and C)
F) C) and D)

Question 18

Figure 2-19
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 2-19. A policymaker observes this graph and concludes that increasing the frequency of commuter rail service is a certain way to get more commuters to choose the commuter rail instead of driving their own cars. You warn the policymaker about making a reverse causality mistake with which of the following statements?

Accepted Answer

A)   Higher gas prices are causing more people to choose the commuter rail over driving.
B)   The service frequency was increased in response to an increase in the number of passengers per hour.
C)   There is a positive relationship between frequency of stops and number of passengers.
D)   None of the above is correct.E) A) and B)
F) None of the above

Question 19

The y-coordinate is the

Accepted Answer

A)   first number of an ordered pair and represents the point's horizontal location.
B)   second number of an ordered pair and represents the point's horizontal location.
C)   first number of an ordered pair and represents the point's vertical location.
D)   second number of an ordered pair and represents the point's vertical location.E) B) and D)
F) B) and C)

Question 20

For economists, substitutes for laboratory experiments often come in the form of

Accepted Answer

A)   natural experiments offered by history.
B)   untested theories.
C)   "rules of thumb" and other such conveniences.
D)   reliance upon the wisdom of elders in the economics profession.E) All of the above
F) None of the above

Exam 2: Thinking Like an Economist

Correct Answer
verified

Economists at the Department of the Treasury

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce

Correct Answer
verified

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

Correct Answer
verified

The president of the United States receives tax policy advice from economists in the

Correct Answer
verified

John Maynard Keynes believed the ideas of economists to be

Correct Answer
verified

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Correct Answer
verified

A production possibilities frontier shifts outward when

Correct Answer
verified

A circular-flow diagram is a model that

Correct Answer
verified

Economists speaking like policy advisers make

Correct Answer
verified

The y-coordinate is the

Correct Answer
verified

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

Correct Answer
verified

For economists, substitutes for laboratory experiments often come in the form of

Correct Answer
verified

Figure 2-2 -Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Correct Answer
verified

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Correct Answer
verified

Figure 2-21 -Refer to Figure 2-21. Your friend John created the graph above to illustrate that snowstorms are caused by more snowblowers being sold. You inform him that his interpretation is incorrect due to

Correct Answer
verified

The most common data for testing economic theories come from

Correct Answer
verified

Figure 2-7 -Refer to Figure 2-7. Efficient production is represented by which points) ?

Correct Answer
verified

Production possibilities frontiers can be used to illustrate scarcity, trade-offs, opportunity cost, efficiency, unemployment, technological advances, and economic growth.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Correct AnswerverifiedShow Answer

Economists at the Department of the Treasury

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The president of the United States receives tax policy advice from economists in the

Correct AnswerverifiedShow Answer

John Maynard Keynes believed the ideas of economists to be

Correct AnswerverifiedShow Answer

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Correct AnswerverifiedShow Answer

A production possibilities frontier shifts outward when

Correct AnswerverifiedShow Answer

A circular-flow diagram is a model that

Correct AnswerverifiedShow Answer

Economists speaking like policy advisers make

Correct AnswerverifiedShow Answer

The y-coordinate is the

Correct AnswerverifiedShow Answer

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. Suppose this economy is producing at point D. Which of the following statements would best explain this situation?

Correct AnswerverifiedShow Answer

For economists, substitutes for laboratory experiments often come in the form of

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Correct AnswerverifiedShow Answer

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Correct AnswerverifiedShow Answer

Figure 2-21 -Refer to Figure 2-21. Your friend John created the graph above to illustrate that snowstorms are caused by more snowblowers being sold. You inform him that his interpretation is incorrect due to

Correct AnswerverifiedShow Answer

The most common data for testing economic theories come from

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7. Efficient production is represented by which points) ?

Correct AnswerverifiedShow Answer

Production possibilities frontiers can be used to illustrate scarcity, trade-offs, opportunity cost, efficiency, unemployment, technological advances, and economic growth.

Correct AnswerverifiedShow 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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified