Question 1

Use the following Figure to answer the question : Figure 2-5:  
-Refer to Figure 2-5. Inefficient production is represented by which points) ?

Accepted Answer

A)   A, B
B)   C
C)   C, D
D)   DE) A) and B)
F) B) and D)

Question 2

Use the following Figure to answer the question : Figure 2-4 : 
-Refer to Figure 2-4. Efficient production is represented by which points) ?

Accepted Answer

A)   Q, R, U
B)   R, T, U
C)   R, U
D)   S, TE) C) and D)
F) B) and C)

Question 3

Use the following Figure to answer the question : Figure 2-19 :
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service 
-Refer to Figure 2-19. A policymaker observes this graph and concludes that increasing the frequency of commuter rail service is a certain way to get more commuters to choose the commuter rail instead of driving their own cars. You warn the policymaker about making a reverse causality mistake with which of the following statements?

Accepted Answer

A)   Higher gas prices are causing more people to choose the commuter rail over driving.
B)   The service frequency was increased in response to an increase in the number of passengers per hour.
C)   There is a positive relationship between frequency of stops and number of passengers.
D)   None of the above is correct.E) B) and C)
F) C) and D)

Question 4

Use the following Table  to answer the question : Table 2-5

-Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

Accepted Answer

A)   bowed outward indicating increasing opportunity costs.
B)   bowed outward indicating decreasing opportunity costs.
C)   a straight line indicating constant opportunity costs.
D)   bowed inward indicating increasing opportunity costs.E) A) and B)
F) All of the above

Question 5

Economists regard events from the past as

Accepted Answer

A)   irrelevant, since history is unlikely to repeat itself.
B)   of limited interest, since those events seldom provide any useful economic data.
C)   interesting but not particularly valuable, since those events cannot be used to evaluate present-day economic theories.
D)   interesting and valuable, since those events are capable of helping us to understand the past, the present, and the future.E) B) and C)
F) A) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is are)  correct?

Accepted Answer

A)   Relative to some other scientists, economists find it more difficult to conduct experiments.
B)   Theory and observation are important in economics as well as in other sciences.
C)   To obtain data, economists often rely upon the natural experiments offered by history.
D)   All of the above are correct.E) None of the above
F) A) and D)

Question 8

The ordered pair that represents the origin on a graph is

Accepted Answer

A)   1, 1) .
B)   0, 0) .
C)   -1, -1) .
D)   ∞, ∞) .E) C) and D)
F) B) and C)

Question 9

An economic outcome is said to be efficient if the economy is

Accepted Answer

A)   using all of the scarce resources it has available.
B)   conserving on resources, rather than using all available resources.
C)   getting all it can get from the scarce resources it has available.
D)   able to produce more than what is currently being produced without additional resources.E) None of the above
F) A) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)   Universal health care would be good for U.S. citizens.
B)   An increase in the cigarette tax would cause a decrease in the number of smokers.
C)   A decrease in the minimum wage would decrease unemployment.
D)   A law requiring the federal government to balance its budget would increase economic growth.E) A) and D)
F) B) and C)

Question 12

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Accepted Answer

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

Question 13

When an economy is operating inside its production possibilities frontier, we know that

Accepted Answer

A)   there are unused resources or inefficiencies in the economy.
B)   all of the economy's resources are fully employed.
C)   economic growth would have to occur in order for the economy to move to a point on the frontier.
D)   in order to produce more of one good, the economy would have to give up some of the other good.E) A) and B)
F) A) and C)

Question 14

The slope of a fairly flat 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 B)
F) A) and C)

Question 15

Which of the following is the best explanation for why President Harry Truman once said that he wanted to find a one-armed economist?

Accepted Answer

A)   President Truman received input from so many economists that he only wanted one view from each.
B)   President Truman thought economists should analyze policies but not make or enforce them.
C)   Economists understand that most policy decisions involve trade-offs so they are likely to present multiple views of policies.
D)   A one-armed economist would conduct only positive analysis and no normative analysis.E) B) and D)
F) B) and C)

Question 16

Alfonso has noticed that increases in unemployment insurance claims are associated with recessions, and therefore he advocates limits on unemployment insurance so as to prevent recessions. Mary has noticed that most drug addicts once attended schools, and therefore she advocates getting rid of schools so as to prevent drug addiction.

Accepted Answer

A)   The reasoning of both Alfonso and Mary suffers from the omitted variable problem.
B)   The reasoning of both Alfonso and Mary suffers from the reverse causality problem.
C)   Alfonso's reasoning suffers from the reverse causality problem, and Mary's reasoning suffers from the omitted variable problem.
D)   Mary's reasoning suffers from the reverse causality problem, and Alfonso's reasoning suffers from the omitted variable problem.E) A) and D)
F) A) and B)

Question 17

Because it is difficult for economists to use experiments to generate data, they generally must

Accepted Answer

A)   do without data.
B)   substitute assumptions for data when data are unavailable.
C)   rely upon hypothetical data that were previously concocted by other economists.
D)   use whatever data the world gives them.E) All of the above
F) None of the above

Question 18

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Accepted Answer

scientific...

Question 19

Positive statements can be evaluated using data alone, but normative statements cannot.

Accepted Answer

A) True 
 B)False

Question 20

Use the following Figure to answer the question Figure:2-3 
-Refer to Figure 2-3. Which of the following is an activity undertaken by the actors in rectangle 2?

Accepted Answer

A)   produce and sell goods and services
B)   hire and use factors of production
C)   own and sell factors of production
D)   exchange goods and services between firms and householdsE) All of the above
F) None of the above

Exam 2: Thinking Like an Economist

When an economy is operating inside its production possibilities frontier, we know that

Correct Answer
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Use the following Figure to answer the question : Figure 2-4 : -Refer to Figure 2-4. Efficient production is represented by which points) ?

Correct Answer
verified

Economists regard events from the past as

Correct Answer
verified

Positive statements can be evaluated using data alone, but normative statements cannot.

Correct Answer
verified

The ordered pair that represents the origin on a graph is

Correct Answer
verified

Because it is difficult for economists to use experiments to generate data, they generally must

Correct Answer
verified

Which of the following is the best explanation for why President Harry Truman once said that he wanted to find a one-armed economist?

Correct Answer
verified

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answer
verified
scientific...
View Answer

Correct Answer
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Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. Inefficient production is represented by which points) ?

Correct Answer
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Use the following Figure to answer the question Figure:2-3 -Refer to Figure 2-3. Which of the following is an activity undertaken by the actors in rectangle 2?

Correct Answer
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Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Correct Answer
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Use the following Table to answer the question : Table 2-5 -Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

Correct Answer
verified

Which of the following statements is are) correct?

Correct Answer
verified

The slope of a fairly flat upward-sloping line will be a

Correct Answer
verified

An economic outcome is said to be efficient if the economy is

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 2: Thinking Like an Economist

When an economy is operating inside its production possibilities frontier, we know that

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-4 : -Refer to Figure 2-4. Efficient production is represented by which points) ?

Correct AnswerverifiedShow Answer

Economists regard events from the past as

Correct AnswerverifiedShow Answer

Positive statements can be evaluated using data alone, but normative statements cannot.

Correct AnswerverifiedShow Answer

The ordered pair that represents the origin on a graph is

Correct AnswerverifiedShow Answer

Because it is difficult for economists to use experiments to generate data, they generally must

Correct AnswerverifiedShow Answer

Which of the following is the best explanation for why President Harry Truman once said that he wanted to find a one-armed economist?

Correct AnswerverifiedShow Answer

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answerverifiedscientific...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. Inefficient production is represented by which points) ?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question Figure:2-3 -Refer to Figure 2-3. Which of the following is an activity undertaken by the actors in rectangle 2?

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Correct AnswerverifiedShow Answer

Use the following Table to answer the question : Table 2-5 -Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

Correct AnswerverifiedShow Answer

Which of the following statements is are) correct?

Correct AnswerverifiedShow Answer

The slope of a fairly flat upward-sloping line will be a

Correct AnswerverifiedShow Answer

An economic outcome is said to be efficient if the economy is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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