Question 1

Figure 2-1 
-Refer to Figure 2-1.What do the rectangles represent in the figure?

Accepted Answer

The answer of Figure 2-1 
-Refer to Figure 2-1.What do...

Question 2

The 1990 amendment to the Clean Air Act

Accepted Answer

A)   banned all forms of pollution.
B)   implemented tradable allowances for acid rain.
C)   created a research council on asthma.
D)   made global warming a national priority.E) All of the above
F) A) and D)

Question 3

Figure 2-4 
-Refer to Figure 2-4.Which of the following could be an omitted variable in the graph?

Accepted Answer

A)   the price of snowblowers
B)   a change in consumers' incomes
C)   a change in the seasons
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 4

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases,the y-variable decreases.
B)   when the x-variable decreases,the y-variable increases.
C)   when the x-variable increases,the y-variable increases.
D)   More than one of the above is correct.E) A) and B)
F) A) and C)

Question 5

Economic models are built with

Accepted Answer

A)   recommendations concerning public policies.
B)   facts about the legal system.
C)   assumptions.
D)   statistical forecasts.E) A) and D)
F) B) and C)

Question 6

Figure 2-17
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-17.Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years.Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes.Who is correct?

Accepted Answer

A)   Senator Smith is correct.
B)   Senator Jones is correct.
C)   It is difficult to say which senator might be correct due to the reverse causality problem.
D)   It is difficult to say which senator might be correct due to omitted variable bias.E) A) and B)
F) A) and C)

Question 7

Economists at the U.S.Department of the Treasury help design U.S.coins and paper money.

Accepted Answer

A) True 
 B)False

Question 8

An example of a price that changes only infrequently is the price of

Accepted Answer

A)   stocks on the New York Stock Exchange.
B)   crude oil.
C)   residential real estate.
D)   magazines sold at newsstands.E) C) and D)
F) A) and B)

Question 9

Instead of conducting laboratory experiments to generate data to test their theories,economists often

Accepted Answer

A)   ask winners of the Nobel Prize in Economics to evaluate their theories.
B)   argue that data is impossible to collect in economics.
C)   gather data from historical episodes of economic change.
D)   assume that data would support their theories.E) None of the above
F) C) and D)

Question 10

Economists at the Department of the Treasury

Accepted Answer

A)   design U.S.currency and coins.
B)   provide Congress with the annual budget.
C)   enforce the U.S.antitrust laws.
D)   provide advice on tax policy to the President.E) B) and D)
F) A) and B)

Question 11

Macroeconomics is the study of

Accepted Answer

A)   individual decision makers.
B)   international trade.
C)   economy-wide phenomena.
D)   markets for large products.E) C) and D)
F) A) and C)

Question 12

Figure 2-12 
-Refer to Figure 2-12.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Accepted Answer

A)   D,H
B)   B,C
C)   F,G
D)   A,BE) A) and B)
F) C) and D)

Question 13

Suppose a nation is currently producing at a point inside its production possibilities frontier.We know that

Accepted Answer

A)   the nation is producing beyond its capacity,so inflation will occur.
B)   the nation is not using all available resources or is using inferior technology or both.
C)   the nation is producing an efficient combination of goods.
D)   there will be a large opportunity cost if the nation tries to increase production of any good.E) A) and B)
F) All of the above

Question 14

There is only one explanation for why economists give conflicting advice on policy issues,and it is that they have different values about what policy should try to accomplish.

Accepted Answer

A) True 
 B)False

Question 15

The slope of a line passing through the points (12,8) and (16,5) is

Accepted Answer

A)   -3/4.
B)   3/4.
C)   -4/3.
D)   4/3.E) A) and D)
F) A) and C)

Question 16

For economists,historical episodes

Accepted Answer

A)   are not worthy of study because they offer few insights into current economic events and problems.
B)   are not worthy of study because laboratory experiments provide more reliable data.
C)   are worthy of study because economists rely entirely on observation,rather than on theory.
D)   are worthy of study because they serve as valuable substitutes for laboratory experiments.E) A) and D)
F) A) and C)

Question 17

Microeconomics and macroeconomics are closely intertwined.

Accepted Answer

A) True 
 B)False

Question 18

A certain production possibilities frontier shows production possibilities for two goods,jewelry and clothing.Which of the following concepts cannot be illustrated by this model?

Accepted Answer

A)   the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing
B)   the tradeoff between production of jewelry and production of clothing
C)   the opportunity cost of clothing in terms of jewelry
D)   the effect of economic growth on production possibilities involving jewelry and clothingE) A) and D)
F) C) and D)

Question 19

In the past,environmentalists thought of economics as a method of maximizing profits.Presently,

Accepted Answer

A)   there is now realization that economics offers a framework for natural resource allocation.
B)   economists are helping to formulate the intellectual framework behind approaches to protecting endangered species,reducing pollution,and preventing climate change.
C)   economics informs environmental studies but economists still do not work for environmental advocacy groups.
D)   More than one of the above is correct.E) C) and D)
F) B) and C)

Question 20

For an economist,the idea of making assumptions is regarded generally as a

Accepted Answer

A)   bad idea,since doing so leads to the omission of important ideas and variables from economic models.
B)   bad idea,since doing so invariably leads to data-collection problems.
C)   good idea,since doing so helps to simplify the complex world and make it easier to understand.
D)   good idea,since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.E) A) and B)
F) All of the above

Exam 2: Thinking Like an Economist

Microeconomics and macroeconomics are closely intertwined.

Correct Answer
verified

For an economist,the idea of making assumptions is regarded generally as a

Correct Answer
verified

Macroeconomics is the study of

Correct Answer
verified

For economists,historical episodes

Correct Answer
verified

There is only one explanation for why economists give conflicting advice on policy issues,and it is that they have different values about what policy should try to accomplish.

Correct Answer
verified

The 1990 amendment to the Clean Air Act

Correct Answer
verified

Correct Answer
verified

The slope of a line passing through the points (12,8) and (16,5) is

Correct Answer
verified

When two variables have a negative correlation,

Correct Answer
verified

Figure 2-12 -Refer to Figure 2-12.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Correct Answer
verified

Economists at the U.S.Department of the Treasury help design U.S.coins and paper money.

Correct Answer
verified

Instead of conducting laboratory experiments to generate data to test their theories,economists often

Correct Answer
verified

Economic models are built with

Correct Answer
verified

Figure 2-1 -Refer to Figure 2-1.What do the rectangles represent in the figure?

Correct Answer
verified

In the past,environmentalists thought of economics as a method of maximizing profits.Presently,

Correct Answer
verified

Economists at the Department of the Treasury

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4.Which of the following could be an omitted variable in the graph?

Correct Answer
verified

An example of a price that changes only infrequently is the price of

Correct Answer
verified

Suppose a nation is currently producing at a point inside its production possibilities frontier.We know that

Correct Answer
verified

A certain production possibilities frontier shows production possibilities for two goods,jewelry and clothing.Which of the following concepts cannot be illustrated by this model?

Correct Answer
verified

Exam 2: Thinking Like an Economist

Microeconomics and macroeconomics are closely intertwined.

Correct AnswerverifiedShow Answer

For an economist,the idea of making assumptions is regarded generally as a

Correct AnswerverifiedShow Answer

Macroeconomics is the study of

Correct AnswerverifiedShow Answer

For economists,historical episodes

Correct AnswerverifiedShow Answer

There is only one explanation for why economists give conflicting advice on policy issues,and it is that they have different values about what policy should try to accomplish.

Correct AnswerverifiedShow Answer

The 1990 amendment to the Clean Air Act

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The slope of a line passing through the points (12,8) and (16,5) is

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

Correct AnswerverifiedShow Answer

Figure 2-12 -Refer to Figure 2-12.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Correct AnswerverifiedShow Answer

Economists at the U.S.Department of the Treasury help design U.S.coins and paper money.

Correct AnswerverifiedShow Answer

Instead of conducting laboratory experiments to generate data to test their theories,economists often

Correct AnswerverifiedShow Answer

Economic models are built with

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1.What do the rectangles represent in the figure?

Correct AnswerverifiedShow Answer

In the past,environmentalists thought of economics as a method of maximizing profits.Presently,

Correct AnswerverifiedShow Answer

Economists at the Department of the Treasury

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.Which of the following could be an omitted variable in the graph?

Correct AnswerverifiedShow Answer

An example of a price that changes only infrequently is the price of

Correct AnswerverifiedShow Answer

Suppose a nation is currently producing at a point inside its production possibilities frontier.We know that

Correct AnswerverifiedShow Answer

A certain production possibilities frontier shows production possibilities for two goods,jewelry and clothing.Which of the following concepts cannot be illustrated by this model?

Correct AnswerverifiedShow Answer

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