Question 1

Normative statements are

Accepted Answer

A)   prescriptive, whereas positive statements are descriptive.
B)   descriptive, whereas positive statements are prescriptive.
C)   backward-looking, whereas positive statements are forward-looking.
D)   forward-looking, whereas positive statements are backward-looking.E) A) and D)
F) All of the above

Question 2

Two variables that have a positive correlation move in the same direction.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Accepted Answer

A)   the effect of an increase in the alcohol tax on the market for beer
B)   the effect of foreign competition on the domestic auto industry
C)   the effect of a price war in the airline industry
D)   the effect of an increase in the minimum wage on an economy's overall rate of unemploymentE) B) and C)
F) None of the above

Question 4

President Truman once said he wanted to find a one-armed economist because when he asked his economists for advice, they always answered, "On the one hand, ... On the other hand, ..." Truman's observation that economists' advice is not always straightforward

Accepted Answer

A)   is rooted in the principle that people face tradeoffs.
B)   indicates that economists recognize that there are opportunity costs associated with policy decisions.
C)   confirms that economists are not suited to be presidential advisers.
D)   More than one of the above is correct.E) None of the above
F) A) and B)

Question 5

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Accepted Answer

The answer of When economists are trying to explain the...

Question 6

"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 7

Economists sometimes give conflicting advice because

Accepted Answer

A)   graduate students in economics are encouraged to argue with each other.
B)   economists have different values and scientific judgment.
C)   economists acting as scientists do not like to agree with economists acting as policy advisers.
D)   economics is more of a belief system than a science.E) All of the above
F) B) and C)

Question 8

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Accepted Answer

A) True 
 B)False

Question 9

Positive statements are not

Accepted Answer

A)   descriptive.
B)   prescriptive.
C)   claims about how the world is.
D)   made by economists speaking as scientists.E) C) and D)
F) B) and D)

Question 10

The scientific method is applicable to studying

Accepted Answer

A)   natural sciences, but not social sciences.
B)   social sciences, but not natural sciences.
C)   both natural sciences and social sciences.
D)   None of the above is correct.E) None of the above
F) All of the above

Question 11

The slope of a line that passes through the points (20, 30)  and (40, 14)  is

Accepted Answer

A)   -4/5.
B)   4/5.
C)   5/4.
D)   -5/4.E) All of the above
F) A) and B)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A circular-flow diagram is a visual model of the economy.

Accepted Answer

A) True 
 B)False

Question 14

An economy's production of two goods is efficient if

Accepted Answer

A)   all members of society consume equal portions of the goods.
B)   the goods are produced using only some of society's available resources.
C)   it is impossible to produce more of one good without producing less of the other.
D)   the opportunity cost of producing more of one good is zero.E) All of the above
F) None of the above

Question 15

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 16

The y-coordinate is the

Accepted Answer

A)   first number of an ordered pair and represents the point's horizontal location.
B)   second number of an ordered pair and represents the point's horizontal location.
C)   first number of an ordered pair and represents the point's vertical location.
D)   second number of an ordered pair and represents the point's vertical location.E) A) and C)
F) A) and B)

Question 17

In principle, we can

Accepted Answer

A)   ignore positive statements when choosing among various public policy alternatives.
B)   ignore normative statements when choosing among various public policy alternatives.
C)   confirm or refute positive statements by examining evidence.
D)   confirm or refute normative statements by examining evidence.E) A) and B)
F) A) and C)

Question 18

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

Question 19

Which of the following statements is correct?

Accepted Answer

A)   Economists almost always find it easy to conduct experiments in order to test their theories.
B)   Economics is not a true science because economists are not usually allowed to conduct experiments to test their theories.
C)   Economics is a social science rather than a true science because it cannot employ the scientific method.
D)   Economists are usually not able to conduct experiments, so they must rely on natural experiments offered by history.E) C) and D)
F) None of the above

Question 20

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

Accepted Answer

flow of in...

Exam 2: Thinking Like an Economist

The y-coordinate is the

Correct AnswerverifiedShow Answer

Economists sometimes give conflicting advice because

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

In principle, we can

Correct AnswerverifiedShow Answer

President Truman once said he wanted to find a one-armed economist because when he asked his economists for advice, they always answered, "On the one hand, ... On the other hand, ..." Truman's observation that economists' advice is not always straightforward

Correct AnswerverifiedShow Answer

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Correct AnswerverifiedShow Answer

Normative statements are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Two variables that have a positive correlation move in the same direction.

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points (20, 30) and (40, 14) is

Correct AnswerverifiedShow Answer

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

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

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

Correct Answerverifiedflow of in...View AnswerShow Answer

The scientific method is applicable to studying

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

An economy's production of two goods is efficient if

Correct AnswerverifiedShow Answer

Positive statements are not

Correct AnswerverifiedShow Answer

A circular-flow diagram is a visual model of the economy.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
flow of in...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified