Exam 2: Observing and Explaining the Economy

When people survey economists' beliefs, they find

"Inflation is a more serious problem than unemployment." This statement is an example of

The relative price of gasoline has increased since 2000 because we have paid more dollars for each gallon of gasoline.

A newspaper editorial explaining what should be done to reduce the budget deficit is an example of

Economics is the only science concerned with politically controversial subjects.

Causation

Economic analysis

Considering the role government plays, what term best describes the U.S. economy? Why?

There is total agreement in economics among economists and policymakers.

What is the difference between microeconomics and macroeconomics?

A positive statement is necessarily a subjective statement.

For policy decisions to be useful,

Because economists have varying moral beliefs and different views of the world,

Whether to have more or less government involvement in the overall economy is essentially a

Exhibit 2-1 -Exhibit 2-1 shows movements of two variables, X and Y, from 1980 through 1991. From this diagram the most one can conclude is that

Explain why it is more difficult to determine causality in economics than in other sciences such as physics, chemistry, and biology.

Which of the following is considered a macroeconomic question?

"Inflation is currently 4 percent in the United States." This statement is an example of

A good explanation for why people believe economists always disagree is that

To see whether the price of gasoline has risen compared to the prices of other goods and services, one would calculate