Question 1

In the ordered pair (19, 25) , 25 is the

Accepted Answer

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

Question 2

"Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement.

Accepted Answer

A) True 
 B)False

Question 3

The circular flow model is not used anymore because it fails to perfectly replicate real world situations.

Accepted Answer

A) True 
 B)False

Question 4

Figure 2-15
​
  ​
-Refer to Figure 2-15. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Accepted Answer

The answer of Figure 2-15
​
  ​
-Refer to Figure 2-15....

Question 5

Good assumptions simplify a problem without substantially affecting the answer.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is correct about the roles of economists?

Accepted Answer

A)  When economists are trying to explain the world, they are in the realm of microeconomics rather than macroeconomics.
B)  When economists are trying to improve the world, they are in the realm of positive economics rather than normative economics.
C)  Economists are best viewed as scientists.
D)  In trying to improve the world, economists are policy advisers.E) B) and D)
F) B) and C)

Question 7

Table 2-3
​
 
-Refer to Table 2-3. Which of the following combinations of corn and rice is not currently attainable but would be attainable if there was an improvement in overall production technology?

Accepted Answer

A)  2,000 bushels of corn and 300 bushels of rice
B)  1,500 bushels of corn and 900 bushels of rice
C)  1,250 bushels of corn and 1,700 bushels of rice
D)  500 bushels of corn and 1,700 bushels of riceE) None of the above
F) All of the above

Question 8

Economists at which of the following government 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 B)
F) B) and C)

Question 9

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Accepted Answer

A) True 
 B)False

Question 10

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other is constant.

Accepted Answer

A) True 
 B)False

Question 11

The institution that sets the nation's monetary policy is called the

Accepted Answer

The answer of The institution that sets the nation's monetary...

Question 12

Figure 2-3
 
-Refer to Figure 2-3. It is not possible for this economy to produce at point

Accepted Answer

A)  A.
B)  B.
C)  C.
D)  D.E) All of the above
F) B) and D)

Question 13

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Figure 2-12
​
  ​
​
​
​
​
-Refer to Figure 2-12. What does the arrow going from oval B to rectangle 2 represent in the figure?

Accepted Answer

The answer of Figure 2-12
​
  ​
​
​
​
​
-Refer to Figure 2-12....

Question 16

Different values are not a reason for disagreement among economists.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Inflation is more harmful to the economy than unemployment is.
B)  All Americans are entitled to quality health care.
C)  Reducing emissions reduces days missed from school due to asthma.
D)  Economic policies should focus on improving equality.E) A) and D)
F) None of the above

Question 18

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

Accepted Answer

A) True 
 B)False

Question 19

Economists use one standard set of assumptions to answer all economic questions.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 2: Thinking Like an Economist

Different values are not a reason for disagreement among economists.

Correct AnswerverifiedShow Answer

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Good assumptions simplify a problem without substantially affecting the answer.

Correct AnswerverifiedShow Answer

In the ordered pair (19, 25) , 25 is the

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

Economists use one standard set of assumptions to answer all economic questions.

Correct AnswerverifiedShow Answer

Figure 2-12 ​ ​ ​ ​ ​ ​ -Refer to Figure 2-12. What does the arrow going from oval B to rectangle 2 represent in the figure?

Correct AnswerverifiedShow Answer

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. It is not possible for this economy to produce at point

Correct AnswerverifiedShow Answer

The institution that sets the nation's monetary policy is called the

Correct AnswerverifiedShow Answer

"Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement.

Correct AnswerverifiedShow Answer

The circular flow model is not used anymore because it fails to perfectly replicate real world situations.

Correct AnswerverifiedShow Answer

Table 2-3 ​ -Refer to Table 2-3. Which of the following combinations of corn and rice is not currently attainable but would be attainable if there was an improvement in overall production technology?

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

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

Correct AnswerverifiedShow Answer

Figure 2-15 ​ ​ -Refer to Figure 2-15. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is correct about the roles of economists?

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other is constant.

Correct AnswerverifiedShow Answer

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Figure 2-12 -Refer to Figure 2-12. What does the arrow going from oval B to rectangle 2 represent in the figure?

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Table 2-3 -Refer to Table 2-3. Which of the following combinations of corn and rice is not currently attainable but would be attainable if there was an improvement in overall production technology?

Correct Answer
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Figure 2-15 -Refer to Figure 2-15. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

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