Question 1

The scientific method can be applied to the study of economics.

Accepted Answer

A) True 
 B)False

Question 2

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 3

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels) , or a combination of the two.
-Refer to Figure 2-14. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources?

Accepted Answer

A)   Q, R, U, and V
B)   S and X
C)   T and W
D)   None of the above is correct.E) B) and C)
F) A) and B)

Question 4

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) A) and B)
F) All of the above

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

A)   Unemployed labor is put to work producing jam and bread.
B)   The economy puts its idle capital to work producing jam and bread.
C)   The economy experiences economic growth.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 7

Figure 2-22 
-Refer to Figure 2-22. What is the x-coordinate of point R?

Accepted Answer

The answer of Figure 2-22 
-Refer to Figure 2-22. What...

Question 8

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

Accepted Answer

A)   When the minimum wage is increased, unemployment is a predictable consequence.
B)   The income tax rate should be increased to offset the budget deficit.
C)   Increasing government spending is the best way to help the economy move out of a recession.
D)   More than one of the above are positive statements.E) A) and C)
F) A) and B)

Question 9

A duty of economists at the Department of Labor is to

Accepted Answer

A)   analyze data on workers.
B)   schedule federal holidays.
C)   enforce the nation's antitrust laws.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 10

Economists try to address their subject with a scientist's objectivity.

Accepted Answer

A) True 
 B)False

Question 11

The art in scientific thinking is

Accepted Answer

A)   finding the right problem to study.
B)   deciding which assumptions to make.
C)   the ability to make an abstract subject easy to understand.
D)   not something in which economists have to be skilled.E) B) and C)
F) None of the above

Question 12

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Accepted Answer

A)   0 washers.
B)   20 washers.
C)   40 washers.
D)   None of the above; the economy cannot move from point D to point C.E) A) and D)
F) None of the above

Question 13

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Accepted Answer

A)   An economist must also be a mathematician, historian, statesman, and philosopher in some degree.
B)   An economist must understand symbols and speak in words.
C)   An economist must be purposeful and disinterested in a simultaneous mood.
D)   An economist must understand environmental science, regulation, and political science.E) None of the above
F) A) and D)

Question 14

Economists speaking like scientists make

Accepted Answer

A)   positive statements.
B)   prescriptive statements.
C)   claims about how the world should be.
D)   More than one of the above is correct.E) C) and D)
F) A) and B)

Question 15

You know an economist has crossed the line from scientist to policy adviser when he or she

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   talks about the evidence.
C)   makes normative statements.
D)   makes a claim about how the world is.E) B) and C)
F) None of the above

Question 16

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Accepted Answer

The answer of Is the following a positive or normative...

Question 17

Table 2-5 
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following statements is correct?

Accepted Answer

A)   The opportunity cost of a bushel of corn does not depend on how many bushels of wheat are being produced.
B)   The opportunity cost of a bushel of corn increases as more corn is produced.
C)   The opportunity cost of a bushel of corn decreases as more corn is produced.
D)   The opportunity cost of a bushel of wheat decreases as more wheat is produced.E) All of the above
F) A) and B)

Question 18

The President receives economic policy advice from economists at each of the following except

Accepted Answer

A)   the Council of Economic Advisors.
B)   the Department of the Treasury.
C)   the Congressional Budget office.
D)   the Department of Labor.E) B) and C)
F) A) and D)

Question 19

The decision of which assumptions to make is

Accepted Answer

A)   an easy decision for an economist, but a difficult decision for a physicist or a chemist.
B)   not a particularly important decision for an economist.
C)   usually regarded as an art in scientific thinking.
D)   usually regarded as the easiest part of the scientific method.E) A) and B)
F) A) and D)

Question 20

The scientific method is

Accepted Answer

A)   the use of modern technology to understand the way the world works.
B)   the use of controlled laboratory experiments to understand the way the world works.
C)   the dispassionate development and testing of theories about how the world works.
D)   the search for evidence to support preconceived theories about how the world works.E) None of the above
F) B) and C)

Exam 2: Thinking Like an Economist

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

Correct Answer
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The President receives economic policy advice from economists at each of the following except

Correct Answer
verified

A duty of economists at the Department of Labor is to

Correct Answer
verified

Figure 2-22 -Refer to Figure 2-22. What is the x-coordinate of point R?

Correct Answer
verified

The decision of which assumptions to make is

Correct Answer
verified

Economists try to address their subject with a scientist's objectivity.

Correct Answer
verified

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

Correct Answer
verified

The scientific method can be applied to the study of economics.

Correct Answer
verified

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following statements is correct?

Correct Answer
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The scientific method is

Correct Answer
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Economists speaking like scientists make

Correct Answer
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Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Correct Answer
verified

The art in scientific thinking is

Correct Answer
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Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Correct Answer
verified

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Correct Answer
verified

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Correct Answer
verified

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

Correct Answer
verified

You know an economist has crossed the line from scientist to policy adviser when he or she

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Exam 2: Thinking Like an Economist

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

Correct AnswerverifiedShow Answer

The President receives economic policy advice from economists at each of the following except

Correct AnswerverifiedShow Answer

A duty of economists at the Department of Labor is to

Correct AnswerverifiedShow Answer

Figure 2-22 -Refer to Figure 2-22. What is the x-coordinate of point R?

Correct AnswerverifiedShow Answer

The decision of which assumptions to make is

Correct AnswerverifiedShow Answer

Economists try to address their subject with a scientist's objectivity.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The scientific method can be applied to the study of economics.

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

The scientific method is

Correct AnswerverifiedShow Answer

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Correct AnswerverifiedShow Answer

The art in scientific thinking is

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Correct AnswerverifiedShow Answer

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

You know an economist has crossed the line from scientist to policy adviser when he or she

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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