Question 1

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

Question 2

Use the following Figure to answer the question : Figure 2-22 : 
-Refer to Figure 2-22. What are the coordinates of point C?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 3

Use the following Figure to answer the question : Figure 2-23 : 
-Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Accepted Answer

A) True 
 B)False

Question 4

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) None of the above
F) A) and D)

Question 5

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use an)

Accepted Answer

A)   pie chart.
B)   bar graph.
C)   time-series graph
D)   coordinate system.E) None of the above
F) A) and B)

Question 6

Two variables that have a positive correlation move in the same direction.

Accepted Answer

A) True 
 B)False

Question 7

A circular-flow model and production possibilities frontier are similar in that

Accepted Answer

A)   neither allows economic analysis to occur.
B)   neither can be represented visually on a graph.
C)   both make use of assumptions.
D)   both make use of complex equations to arrive at solutions.E) B) and C)
F) All of the above

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

In the circular-flow diagram, which of the following items does not flow from households to firms?

Accepted Answer

A)   revenue
B)   land, labor, and capital
C)   factors of production
D)   profitE) All of the above
F) A) and D)

Question 10

The goal of an economist who formulates new theories is to

Accepted Answer

A)   provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works.
B)   provoke stimulating debate in scientific journals.
C)   contribute to an understanding of how the world works.
D)   demonstrate that economists, like other scientists, can formulate testable theories.E) A) and C)
F) A) and B)

Question 11

Use the following Figure to answer the question 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.E) A) and B)
F) All of the above

Question 12

Which types of models are built with assumptions?

Accepted Answer

A)   economic models, but not models in other disciplines such as physics and biology
B)   economic models as well as models in other disciplines such as physics and biology
C)   models that are built for teaching purposes but not for research purposes
D)   bad modelsE) B) and C)
F) All of the above

Question 13

If a line passes through the points 20,5) and 10,10), then the slope of the line is 1/2.

Accepted Answer

A) True 
 B)False

Question 14

When a variable that is named on an axis of a graph changes, the curve shifts.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

Unemployment causes production levels to be inefficient.

Accepted Answer

A) True 
 B)False

Question 17

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases, the y-variable decreases.
B)   when the x-variable decreases, the y-variable increases.
C)   when the x-variable increases, the y-variable increases.
D)   More than one of the above is correct.E) B) and D)
F) C) and D)

Question 18

When an economist evaluates a positive statement, he or she is primarily

Accepted Answer

A)   examining evidence.
B)   acting as a scientist.
C)   concerned with verifying how the world is.
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 19

When economists disagree about whether a policy is fair, they are expressing a difference in

Accepted Answer

The answer of When economists disagree about whether a policy...

Question 20

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Accepted Answer

A)   spending.
B)   revenue.
C)   income.
D)   wages, rent, and profit.E) A) and C)
F) None of the above

Exam 2: Thinking Like an Economist

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Correct Answer
verified

The goal of an economist who formulates new theories is to

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A circular-flow model and production possibilities frontier are similar in that

Correct Answer
verified

Two variables that have a positive correlation move in the same direction.

Correct Answer
verified

When two variables have a negative correlation,

Correct Answer
verified

A demand curve shows the relationship

Correct Answer
verified

When economists disagree about whether a policy is fair, they are expressing a difference in

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What are the coordinates of point C?

Correct Answer
verified

Which types of models are built with assumptions?

Correct Answer
verified

In the circular-flow diagram, which of the following items does not flow from households to firms?

Correct Answer
verified

If a line passes through the points 20,5) and 10,10), then the slope of the line is 1/2.

Correct Answer
verified

When a variable that is named on an axis of a graph changes, the curve shifts.

Correct Answer
verified

Unemployment causes production levels to be inefficient.

Correct Answer
verified

The most common data for testing economic theories come from

Correct Answer
verified

When an economist evaluates a positive statement, he or she is primarily

Correct Answer
verified

Correct Answer
verified

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use an)

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Correct Answer
verified

Exam 2: Thinking Like an Economist

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Correct AnswerverifiedShow Answer

The goal of an economist who formulates new theories is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A circular-flow model and production possibilities frontier are similar in that

Correct AnswerverifiedShow Answer

Two variables that have a positive correlation move in the same direction.

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

Correct AnswerverifiedShow Answer

A demand curve shows the relationship

Correct AnswerverifiedShow Answer

When economists disagree about whether a policy is fair, they are expressing a difference in

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What are the coordinates of point C?

Correct AnswerverifiedShow Answer

Which types of models are built with assumptions?

Correct AnswerverifiedShow Answer

In the circular-flow diagram, which of the following items does not flow from households to firms?

Correct AnswerverifiedShow Answer

If a line passes through the points 20,5) and 10,10), then the slope of the line is 1/2.

Correct AnswerverifiedShow Answer

When a variable that is named on an axis of a graph changes, the curve shifts.

Correct AnswerverifiedShow Answer

Unemployment causes production levels to be inefficient.

Correct AnswerverifiedShow Answer

The most common data for testing economic theories come from

Correct AnswerverifiedShow Answer

When an economist evaluates a positive statement, he or she is primarily

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use an)

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Correct AnswerverifiedShow Answer

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