Question 1

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 2

Economists hold many positions advising the president and Congress including

Accepted Answer

A)  being a member of the Council of Economic Advisers.
B)  helping to enforce antitrust laws at the Department of Justice.
C)  conducting research at the Congressional Budget Office.
D)  All of these are possible positions that economists hold.E) B) and C)
F) A) and B)

Question 3

In the circular-flow diagram, households and firms are the decision makers.

Accepted Answer

A) True 
 B)False

Question 4

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

Question 5

Figure 2-17 
-Refer to Figure 2-17. The curves shown are

Accepted Answer

A)  supply curves.
B)  demand curves.
C)  preference curves.
D)  income-consumption curves.E) None of the above
F) A) and B)

Question 6

The production possibilities frontier is used to illustrate some basic economic ideas, including

Accepted Answer

A)  scarcity.
B)  opportunity cost.
C)  economic growth.
D)  All of the above are correct.E) B) and D)
F) None of the above

Question 7

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 8

Figure 2-13 
-Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Accepted Answer

A)  G, H
B)  F, I, L
C)  F, G, H, I, L
D)  J, KE) All of the above
F) B) and D)

Question 9

Figure 2-9
Panel (a) 
Panel (b)   
-Refer to Figure 2-9, Panel (a) . Production at point K is

Accepted Answer

A)  possible and efficient.
B)  possible but inefficient.
C)  impossible but efficient.
D)  impossible and inefficient.E) A) and B)
F) B) and C)

Question 10

Figure 2-20
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Accepted Answer

A)  positive
B)  negative
C)  inverse
D)  normativeE) B) and D)
F) B) and C)

Question 11

Identify each of the following topics as being part of microeconomics or macroeconomics:
a.the impact of a change in consumer income on the purchase of luxury automobiles
b.the effect of a change in the price of Coke on the purchase of Pepsi
c.the impact of a war in the Middle East on the rate of inflation in the United States
d.factors influencing the rate of economic growth
e.factors influencing the demand for tractors
f. the impact of tax policy on national saving
g. the effect of pollution taxes on the U.S. copper industry
h. the degree of competition in the cable television industry
i. the effect of a balanced-budget amendment on economic stability
j. the impact of deregulation on the savings and loan industry

Accepted Answer

a, b, e, g, h, and j...

Question 12

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-17 
-Refer to Figure 2-17. The movement from point B to point C is a(n)

Accepted Answer

A)  shift of the demand curve.
B)  movement along the demand curve.
C)  indication that the price of grapes has changed.
D)  indication that the costs incurred by firms that produce grapes have changed.E) All of the above
F) C) and D)

Question 14

A macroeconomist - as opposed to a microeconomist - might study the effect of

Accepted Answer

A)  changes in the money supply on the inflation rate.
B)  an increase in the gas tax on fuel consumption.
C)  a technological advance on the natural gas industry.
D)  a hurricane on prices in the orange industry.E) All of the above
F) A) and B)

Question 15

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 16

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 17

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Accepted Answer

A)  economists have not yet convinced the general public that the policies are undesirable.
B)  economists engage in positive analysis, not normative analysis.
C)  economists have values that are different from the values of most non-economists.
D)  economists' theories are not easily confirmed or refuted in laboratory analysis.E) None of the above
F) A) and B)

Question 18

Economists believe that production possibilities frontiers are often bowed because

Accepted Answer

A)  trade-offs inevitably create unemployment.
B)  resources are not completely adaptable.
C)  opportunity costs are constant.
D)  of improvements in technology.E) A) and B)
F) A) and C)

Question 19

Figure 2-8 
-Refer to Figure 2-8. For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,

Accepted Answer

A)  remains constant.
B)  increases.
C)  decreases.
D)  This answer cannot be determined from the graph.E) C) and D)
F) B) and C)

Question 20

When economists make positive statements, they are

Accepted Answer

A)  speaking as scientists.
B)  speaking as policy advisers.
C)  making claims about how the world should be.
D)  revealing that they are very conservative in their views of how the world works.E) A) and D)
F) A) and C)

Exam 2: Thinking Like an Economist

Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Correct Answer
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Correct Answer
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a, b, e, g, h, and j...
View Answer

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

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

Correct Answer
verified

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Correct Answer
verified

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Correct Answer
verified

Economists believe that production possibilities frontiers are often bowed because

Correct Answer
verified

A macroeconomist - as opposed to a microeconomist - might study the effect of

Correct Answer
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Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . Production at point K is

Correct Answer
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Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is a(n)

Correct Answer
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Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

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

Correct Answer
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When economists make positive statements, they are

Correct Answer
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Figure 2-8 -Refer to Figure 2-8. For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,

Correct Answer
verified

Figure 2-17 -Refer to Figure 2-17. The curves shown are

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

In the circular-flow diagram, households and firms are the decision makers.

Correct Answer
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Economists hold many positions advising the president and Congress including

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

Correct Answer
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The production possibilities frontier is used to illustrate some basic economic ideas, including

Correct Answer
verified

Exam 2: Thinking Like an Economist

Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Correct AnswerverifiedShow Answer

Correct Answerverifieda, b, e, g, h, and j...View AnswerShow Answer

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

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

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers are often bowed because

Correct AnswerverifiedShow Answer

A macroeconomist - as opposed to a microeconomist - might study the effect of

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . Production at point K is

Correct AnswerverifiedShow Answer

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is a(n)

Correct AnswerverifiedShow Answer

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When economists make positive statements, they are

Correct AnswerverifiedShow Answer

Figure 2-8 -Refer to Figure 2-8. For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,

Correct AnswerverifiedShow Answer

Figure 2-17 -Refer to Figure 2-17. The curves shown are

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

In the circular-flow diagram, households and firms are the decision makers.

Correct AnswerverifiedShow Answer

Economists hold many positions advising the president and Congress including

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The production possibilities frontier is used to illustrate some basic economic ideas, including

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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a, b, e, g, h, and j...
View Answer

Correct Answer
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