Question 1

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Accepted Answer

A) True 
 B)False

Question 2

"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Accepted Answer

A)   Harry Truman
B)   George Bernard Shaw
C)   John Maynard Keynes
D)   Ronald ReaganE) A) and B)
F) B) and D)

Question 3

In building economic models,economists often omit

Accepted Answer

A)   assumptions.
B)   theories.
C)   details.
D)   equations.E) B) and C)
F) A) and B)

Question 4

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

Accepted Answer

A)   The discount rate is the interest rate the Federal Reserve charges banks to borrow funds.
B)   The US income tax rate increases with the amount of income earned.
C)   The government should increase the tax on gasoline.
D)   The US unemployment rate increased to 10 percent in 2009.E) A) and C)
F) B) and D)

Question 5

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) C) and D)
F) B) and D)

Question 6

Economists at which of the following offices help formulate spending plans and regulatory policies?

Accepted Answer

A)   Office of Management and Budget
B)   Department of the Treasury
C)   Congressional Budget Office
D)   The Federal ReserveE) A) and C)
F) A) and B)

Question 7

When two variables have a negative correlation and the x-variable decreases,

Accepted Answer

A)   the y-variable increases.
B)   the y-variable decreases.
C)   the y-variable stays the same.
D)   the x-variable can never be positive.E) B) and C)
F) A) and D)

Question 8

Figure 2-4
 
-Refer to Figure 2-4.Efficient production is represented by which point(s) ?

Accepted Answer

A)   Y, Z
B)   W, Y, Z
C)   V, Y, Z
D)   VE) All of the above
F) A) and B)

Question 9

Economists face an obstacle that many other scientists do not face.What is that obstacle?

Accepted Answer

A)   It is often difficult to formulate theories in economics.
B)   It is often difficult and sometimes impossible to perform experiments in economics.
C)   Economics cannot be addressed objectively; it must be addressed subjectively.
D)   The scientific method cannot be applied to the study of economics.E) None of the above
F) A) and C)

Question 10

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Accepted Answer

A) True 
 B)False

Question 11

The prairie dog has always been considered a problem for American cattle ranchers.They dig holes that cattle and horses can step in,and they eat grass necessary for cattle.Recently,ranchers have discovered that there is a demand for prairie dogs as pets.In some areas,prairie dogs can sell for as high as $150 each.Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle.
Draw a rancher's production possibilities frontier showing increasing opportunity cost of cattle production in terms of prairie dog production.Using a separate graph for each situation,show what would happen to the initial production possibilities frontier in each of the following situations:
a.The outcome is efficient,with ranchers choosing to produce equal numbers of cattle and prairie dogs.
b.As a protest against the government introducing the gray wolf back into the wild in their state,ranchers decide to withhold 25 percent of the available grassland for grazing.
c.The price of prairie dogs increases to $200 each,so ranchers decide to allot additional land for prairie dogs.
d.The government grants new leases to ranchers,giving them 10,000 new acres of grassland each for grazing.
e.A drought destroys most of the available grass for grazing of cattle,but not for prairie dogs since they also eat plant roots.

Accepted Answer

The answer of The prairie dog has always been considered...

Question 12

Figure 2-15
Relationship between Price and Cups of Coffee
 
-Refer to Figure 2-15.Which of the following could result in a movement from point A to point B?

Accepted Answer

A)   a change in income
B)   a change in preferences
C)   a change in the price of coffee
D)   a change in the price of teaE) A) and B)
F) A) and C)

Question 13

Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Accepted Answer

A)   the Department of Labor
B)   the Department of the Treasury
C)   the Congressional Budget Office
D)   the Council of Economic AdvisersE) C) and D)
F) B) and D)

Question 14

In a certain economy,toys and greeting cards are produced,and the economy currently operates on its production possibilities frontier.Which of the following events would allow the economy to produce more toys and more greeting cards,relative to the quantities of those goods that are being produced now?

Accepted Answer

A)   The economy experiences economic growth.
B)   There is a technological advance in the toy industry, but the greeting card industry experiences no such advance.
C)   There is a technological advance in the greeting card industry, but the toy industry experiences no such advance.
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 15

An assumption an economist might make while studying international trade is

Accepted Answer

A)   there are only two countries.
B)   countries only produce two goods.
C)   technology does not change.
D)   All of the above are possible assumptions.E) C) and D)
F) All of the above

Question 16

An ordered pair is

Accepted Answer

A)   the process of checking calculations twice before placing them on a graph.
B)   two numbers that can be represented by a single point on a graph.
C)   two numbers that are represented by two points on a graph.
D)   two points on a graph that are of equal distance from the origin.E) None of the above
F) B) and C)

Question 17

Table 2-3
Production Possibilities for Libraryland
 
-Refer to Table 2-3.Which of the following statements is correct?

Accepted Answer

A)   The opportunity cost of an additional 100 books is constant at 50 magazines.
B)   The opportunity cost of an additional 100 books is constant at 100 magazines.
C)   Libraryland's production possibilities frontier is a straight, downward-sloping line.
D)   The opportunity cost of an additional 100 books increases as more books are produced.E) All of the above
F) A) and C)

Question 18

A model can be accurately described as a

Accepted Answer

A)   theoretical abstraction with very little value.
B)   device that is useful only to the people who created it.
C)   realistic and carefully constructed theory.
D)   simplification of reality.E) None of the above
F) A) and D)

Question 19

Figure 2-15
Relationship between Price and Cups of Coffee
 
-Refer to Figure 2-15.In the ordered pair (4,6)

Accepted Answer

A)   the x-coordinate is 4 and the y-coordinate is 6.
B)   the x-coordinate is 6 and the y-coordinate is 4.
C)   the numbers tell the location of the origin.
D)   the 4 represents the price and the 6 represents the number of cups of coffee.E) A) and D)
F) B) and D)

Question 20

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) B) and C)
F) B) and D)

Exam 2: Thinking Like an Economist.

An ordered pair is

Correct Answer
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A model can be accurately described as a

Correct Answer
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Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.In the ordered pair (4,6)

Correct Answer
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Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Correct Answer
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"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Correct Answer
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Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.Which of the following could result in a movement from point A to point B?

Correct Answer
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Table 2-3 Production Possibilities for Libraryland -Refer to Table 2-3.Which of the following statements is correct?

Correct Answer
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When two variables have a negative correlation and the x-variable decreases,

Correct Answer
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Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s) ?

Correct Answer
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Economists face an obstacle that many other scientists do not face.What is that obstacle?

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

Correct Answer
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Which of the following is not correct?

Correct Answer
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An assumption an economist might make while studying international trade is

Correct Answer
verified

Economists at which of the following offices help formulate spending plans and regulatory policies?

Correct Answer
verified

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Correct Answer
verified

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

Correct Answer
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Correct Answer
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In building economic models,economists often omit

Correct Answer
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Correct Answer
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Exam 2: Thinking Like an Economist.

An ordered pair is

Correct AnswerverifiedShow Answer

A model can be accurately described as a

Correct AnswerverifiedShow Answer

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.In the ordered pair (4,6)

Correct AnswerverifiedShow Answer

Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Correct AnswerverifiedShow Answer

"If all economists were laid end to end,they would not reach a conclusion." Who made this whimsical observation?

Correct AnswerverifiedShow Answer

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.Which of the following could result in a movement from point A to point B?

Correct AnswerverifiedShow Answer

Table 2-3 Production Possibilities for Libraryland -Refer to Table 2-3.Which of the following statements is correct?

Correct AnswerverifiedShow Answer

When two variables have a negative correlation and the x-variable decreases,

Correct AnswerverifiedShow Answer

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

Economists face an obstacle that many other scientists do not face.What is that obstacle?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

An assumption an economist might make while studying international trade is

Correct AnswerverifiedShow Answer

Economists at which of the following offices help formulate spending plans and regulatory policies?

Correct AnswerverifiedShow Answer

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In building economic models,economists often omit

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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