Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-4 
-Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Accepted Answer

A)   R
B)   S
C)   T
D)   UE) B) and C)
F) All of the above

Question 3

Figure 2-3 
-Refer to Figure 2-3. What do the rectangles represent in the figure?

Accepted Answer

The answer of Figure 2-3 
-Refer to Figure 2-3. What...

Question 4

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

One way to characterize the difference between positive statements and normative statements is as follows:

Accepted Answer

A)   Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future.
B)   Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be.
C)   Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation.
D)   Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements.E) C) and D)
F) A) and B)

Question 7

Figure 2-23 
-Refer to Figure 2-23. Points B and C represent infeasible outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 8

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Accepted Answer

A)   Collect and analyze data.
B)   Go to a laboratory and generate data to test the theory.
C)   Publish the theory without testing it.
D)   Consult with other economists to see they agree with the theory.E) B) and D)
F) B) and C)

Question 9

What type of statement is a descriptive statement about how the world is?

Accepted Answer

The answer of What type of statement is a descriptive...

Question 10

Figure 2-6 
-Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

Accepted Answer

A)   0 blankets and 360 pillows.
B)   200 blankets and 240 pillows.
C)   320 blankets and 120 pillows.
D)   360 blankets and 0 pillows.E) B) and C)
F) None of the above

Question 11

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

Accepted Answer

A) True 
 B)False

Question 12

Figure 2-10
Panel a)  Panel b) 
  
-Refer to Figure 2-10, Panel a) . The movement from point W to point Y could be caused by

Accepted Answer

A)   economic growth.
B)   unemployment.
C)   an improvement in efficiency.
D)   an advance in production technology.E) A) and B)
F) A) and D)

Question 13

The x-coordinate of an ordered pair specifies the

Accepted Answer

A)   diagonal location of the point.
B)   vertical location of the point.
C)   horizontal location of the point.
D)   quadrant location in which the point is located.E) A) and B)
F) All of the above

Question 14

The outer loop of the circular-flow diagram represents the flows of dollars in the economy. Which of the following does not appear on the outer loop?

Accepted Answer

A)   wages
B)   income
C)   capital
D)   rentE) A) and B)
F) None of the above

Question 15

The slope of a steep upward-sloping line will be a

Accepted Answer

A)   small positive number.
B)   large positive number.
C)   small negative number.
D)   large negative number.E) A) and C)
F) B) and C)

Question 16

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 B)
F) None of the above

Question 17

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Accepted Answer

A) True 
 B)False

Question 18

In conducting their research, economists often substitute historical events and historical episodes for

Accepted Answer

A)   theories and observations.
B)   laboratory experiments.
C)   models.
D)   assumptions.E) A) and C)
F) A) and D)

Question 19

In the ordered pair 5, 3) , 3 is the

Accepted Answer

A)   horizontal location of the point.
B)   the slope.
C)   the x-coordinate.
D)   the y-coordinate.E) A) and B)
F) A) and C)

Question 20

Figure 2-23 
-Refer to Figure 2-23. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

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

Correct AnswerverifiedShow Answer

What type of statement is a descriptive statement about how the world is?

Correct AnswerverifiedShow Answer

In conducting their research, economists often substitute historical events and historical episodes for

Correct AnswerverifiedShow Answer

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct AnswerverifiedShow Answer

One way to characterize the difference between positive statements and normative statements is as follows:

Correct AnswerverifiedShow Answer

The slope of a steep upward-sloping line will be a

Correct AnswerverifiedShow Answer

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

Correct AnswerverifiedShow Answer

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Correct AnswerverifiedShow Answer

In the ordered pair 5, 3) , 3 is the

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. What do the rectangles represent in the figure?

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Figure 2-23 -Refer to Figure 2-23. Points B and C represent infeasible outcomes for this economy.

Correct AnswerverifiedShow Answer

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Correct AnswerverifiedShow Answer

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) . The movement from point W to point Y could be caused by

Correct AnswerverifiedShow Answer

The outer loop of the circular-flow diagram represents the flows of dollars in the economy. Which of the following does not appear on the outer loop?

Correct AnswerverifiedShow Answer

The x-coordinate of an ordered pair specifies the

Correct AnswerverifiedShow Answer

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