Question 1

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Accepted Answer

A)   120 pillows.
B)   120 blankets.
C)   120 blankets and 120 pillows.
D)   200 blankets.E) A) and B)
F) None of the above

Question 3

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Accepted Answer

A)   have no questions but hundreds of answers.
B)   have 100 questions and 3,000 answers.
C)   have 1,000 questions but no answers.
D)   never produce a winner.E) None of the above
F) B) and C)

Question 4

The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative.

Accepted Answer

A) True 
 B)False

Question 5

The design of tax policy is one of the responsibilities of economists who work at the

Accepted Answer

A)   Council of Economic Advisers.
B)   Federal Reserve.
C)   Department of the Treasury.
D)   Congressional Budget Office.E) B) and C)
F) A) and D)

Question 6

The field of economics is traditionally divided into two broad subfields,A: The Economist as Scientist

Accepted Answer

A)   national economics and international economics.
B)   consumer economics and producer economics.
C)   private sector economics and public sector economics.
D)   microeconomics and macroeconomics.E) B) and D)
F) A) and D)

Question 7

Economists at which administrative department help design tax policy?

Accepted Answer

Department...

Question 8

Figure 2-3 
-What you must give up to get something else is called the

Accepted Answer

The answer of Figure 2-3 
-What you must give up...

Question 9

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. If this economy devotes all of its available resources to producing apples, then it will produce

Accepted Answer

A)   0 bushels of apples and 200 sweaters.
B)   80 bushels of apples and 160 sweaters
C)   180 bushels of apples and 200 sweaters.
D)   180 bushels of apples and 0 sweaters.E) A) and B)
F) B) and C)

Question 10

Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?

Accepted Answer

A)   the Department of Labor
B)   the Department of the Treasury
C)   the Congressional Budget Office
D)   the Council of Economic AdvisersE) C) and D)
F) B) and D)

Question 11

The Council of Economic Advisers

Accepted Answer

A)   was created in 1776 and consists of three members and a staff of several dozen economists.
B)   was created in 1776 and consists of thirty members and a staff of a dozen economists.
C)   was created in 1946 and consists of three members and a staff of several dozen economists.
D)   was created in 1946 and consists of thirty members and a staff of a dozen economists.E) B) and C)
F) A) and B)

Question 12

Economists usually have to make do with whatever data the world happens to give them.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-21 
-Refer to Figure 2-21. 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 B)
F) A) and C)

Question 14

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Points on the production possibilities frontier represent efficient levels of production.

Accepted Answer

A) True 
 B)False

Question 17

The Council of Economic Advisers

Accepted Answer

A)   was created in 1946.
B)   advises the president of the United States on economic policy matters.
C)   writes the annual Economic Report of the President.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 18

Figure 2-6 
-Refer to Figure 2-6. A movement from point H to point K could be caused by

Accepted Answer

A)   unemployment.
B)   a decrease in society's preference for pillows.
C)   fewer resources available for production of pillows.
D)   All of the above are correct.E) C) and D)
F) A) and C)

Question 19

Which of the following is not correct?

Accepted Answer

A)   When developing economic theories, graphs offer a way to visually express ideas that might be less clear if described with equations or words.
B)   Graphs are one way of expressing the relationships among variables.
C)   When studying the relationship between two economic variables, graphs allow economists to draw indisputable conclusions about causes and effects.
D)   When analyzing economic data, graphs provide a powerful way of finding and interpreting patterns.E) A) and C)
F) B) and D)

Question 20

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct Answer
verified

Points on the production possibilities frontier represent efficient levels of production.

Correct Answer
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Figure 2-21 -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

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

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. If this economy devotes all of its available resources to producing apples, then it will produce

Correct Answer
verified

Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?

Correct Answer
verified

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct Answer
verified

Which of the following is not correct?

Correct Answer
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Figure 2-6 -Refer to Figure 2-6. A movement from point H to point K could be caused by

Correct Answer
verified

Figure 2-3 -What you must give up to get something else is called the

Correct Answer
verified

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Correct Answer
verified

The field of economics is traditionally divided into two broad subfields,A: The Economist as Scientist

Correct Answer
verified

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Correct Answer
verified

The design of tax policy is one of the responsibilities of economists who work at the

Correct Answer
verified

The Council of Economic Advisers

Correct Answer
verified

Economists at which administrative department help design tax policy?

Correct Answer
verified
Department...
View Answer

The Council of Economic Advisers

Correct Answer
verified

Economists usually have to make do with whatever data the world happens to give them.

Correct Answer
verified

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Correct Answer
verified

The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct AnswerverifiedShow Answer

Points on the production possibilities frontier represent efficient levels of production.

Correct AnswerverifiedShow Answer

Figure 2-21 -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Correct AnswerverifiedShow Answer

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

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. If this economy devotes all of its available resources to producing apples, then it will produce

Correct AnswerverifiedShow Answer

Some, but not all, government economists are employed within the administrative branch of government. Which of the following government agencies employs economists outside of the administrative branch?

Correct AnswerverifiedShow Answer

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6. A movement from point H to point K could be caused by

Correct AnswerverifiedShow Answer

Figure 2-3 -What you must give up to get something else is called the

Correct AnswerverifiedShow Answer

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Correct AnswerverifiedShow Answer

The field of economics is traditionally divided into two broad subfields,A: The Economist as Scientist

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Correct AnswerverifiedShow Answer

The design of tax policy is one of the responsibilities of economists who work at the

Correct AnswerverifiedShow Answer

The Council of Economic Advisers

Correct AnswerverifiedShow Answer

Economists at which administrative department help design tax policy?

Correct AnswerverifiedDepartment...View AnswerShow Answer

The Council of Economic Advisers

Correct AnswerverifiedShow Answer

Economists usually have to make do with whatever data the world happens to give them.

Correct AnswerverifiedShow Answer

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Correct AnswerverifiedShow Answer

The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Department...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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