Question 1

An economic model is the same as a theory.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true?

Accepted Answer

A)  Normative economics deals with what is. 
B)  Normative economics expresses someone's opinion. 
C)  Positive economics is subjective. 
D)  Positive economics deals with what ought to be. 
E)  Normative economics tries to refrain from opinions. 
A)  Normative economics deals with what is. 
B)  Normative economics expresses someone's opinion. 
C)  Positive economics is subjective. 
D)  Positive economics deals with what ought to be. 
E)  Normative economics tries to refrain from opinions.

Question 3

Economic data always give an accurate picture of what affects consumers.

Accepted Answer

A) True 
 B)False

Question 4

The figure below shows the relationship of the quantity demanded for coffee beans to the price of coffee beans at a local coffee shop.

Accepted Answer

The answer of The figure below shows the relationship of...

Question 5

Ceteris paribus means

Accepted Answer

A)  that rational self-interest is being assumed. 
B)  "all variables are independent." 
C)  that no other assumptions are being made. 
D)  "other things being equal." 
E)  "all relationships are inverse." 
A)  that rational self-interest is being assumed. 
B)  "all variables are independent." 
C)  that no other assumptions are being made. 
D)  "other things being equal." 
E)  "all relationships are inverse."

Question 6

Economic models need to resemble, as much as possible, the phenomena being explained.

Accepted Answer

A) True 
 B)False

Question 7

Exhibit 2-3  
-In Exhibit 2-3, an example of a constant would be

Accepted Answer

A)  the quantity of coffee supplied. 
B)  the price that corresponds to any quantity of coffee supplied. 
C)  the price of coffee. 
D)  the slope of the line. 
E)  both the price and quantity of coffee. 
A)  the quantity of coffee supplied. 
B)  the price that corresponds to any quantity of coffee supplied. 
C)  the price of coffee. 
D)  the slope of the line. 
E)  both the price and quantity of coffee.

Question 8

Refer to the information in the following table:
   Using the numerical examples in the table, show that the relative price of cellphones can fall on occasions where the price of those goods could be rising, falling, or remaining unchanged.

Accepted Answer

The following table shows the prices of

Question 9

Exhibit 2-3  
-In Exhibit 2-3, an example of a variable would be the

Accepted Answer

A)  price of coffee. 
B)  intercept. 
C)  relationship that shows by how many units the supply of coffee will change for any unit change in the price of coffee. 
D)  slope of the line. 
E)  price at which the supply of coffee is zero. 
A)  price of coffee. 
B)  intercept. 
C)  relationship that shows by how many units the supply of coffee will change for any unit change in the price of coffee. 
D)  slope of the line. 
E)  price at which the supply of coffee is zero.

Question 10

A market economy in which the government plays some role is called

Accepted Answer

A)  capitalism. 
B)  socialism. 
C)  communism. 
D)  a laissez faire system. 
E)  a mixed economy. 
A)  capitalism. 
B)  socialism. 
C)  communism. 
D)  a laissez faire system. 
E)  a mixed economy.

Question 11

Economic models differ from those in the physical sciences because

Accepted Answer

A)  they are usually more difficult than models in the physical sciences. 
B)  economics has nothing to do with anything physical. 
C)  they are less difficult than those in the physical sciences. 
D)  they attempt to explain human behavior. 
E)  economics relies on controlled experiments. 
A)  they are usually more difficult than models in the physical sciences. 
B)  economics has nothing to do with anything physical. 
C)  they are less difficult than those in the physical sciences. 
D)  they attempt to explain human behavior. 
E)  economics relies on controlled experiments.

Question 12

Interpret the following data on the relative price of cellphones and answer the following questions.   (A) Calculate the relative price of cellphones for each year.
(B) Plot the relative price of cellphones.
(C) What can you say about how the price of cellphones varied in comparison to the price of all goods between 2005 and 2008 ?

Accepted Answer

(A) The relative price of cellphones for

Question 13

All of the following are what economists commonly do except

Accepted Answer

A)  describing economic events. 
B)  explaining why economic events occur. 
C)  making predictions for some economic events. 
D)  eliminating scarcity in resources. 
E)  making recommendations for economic policy. 
A)  describing economic events. 
B)  explaining why economic events occur. 
C)  making predictions for some economic events. 
D)  eliminating scarcity in resources. 
E)  making recommendations for economic policy.

Question 14

Economics

Accepted Answer

A)  can only be used objectively. 
B)  cannot be practiced as a science unless it uses controlled experiments. 
C)  is always practiced as a science. 
D)  is not always used objectively. 
E)  can never be used objectively. 
A)  can only be used objectively. 
B)  cannot be practiced as a science unless it uses controlled experiments. 
C)  is always practiced as a science. 
D)  is not always used objectively. 
E)  can never be used objectively.

Question 15

Explain how new models or theories are developed in economics.

Accepted Answer

First, a hypothesis based on this new mo

Question 16

All of the following are examples of an economic variable except

Accepted Answer

A)  the amount of income tax that a household has to pay. 
B)  a person's income. 
C)  the price of gasoline. 
D)  an integer 24. 
E)  the number of unemployed people. 
A)  the amount of income tax that a household has to pay. 
B)  a person's income. 
C)  the price of gasoline. 
D)  an integer 24. 
E)  the number of unemployed people.

Question 17

Exhibit 2-2  
-If the quantity demanded of coffee increases when the price of coffee declines, then these two ____ are ____.

Accepted Answer

A)  variables; negatively related 
B)  constants; positively related 
C)  variables; positively related 
D)  constants; negatively related 
E)  variables; not related 
A)  variables; negatively related 
B)  constants; positively related 
C)  variables; positively related 
D)  constants; negatively related 
E)  variables; not related

Question 18

Experimental economics

Accepted Answer

A)  is the dominant method in economics. 
B)  does not exist. 
C)  uses laboratory experiments to analyze economic behavior. 
D)  is the method used when comparing the economic experience of other countries. 
E)  is the method used by the government to collect economic data. 
A)  is the dominant method in economics. 
B)  does not exist. 
C)  uses laboratory experiments to analyze economic behavior. 
D)  is the method used when comparing the economic experience of other countries. 
E)  is the method used by the government to collect economic data.

Question 19

The table shows the price of motor fuel (mainly gasoline) and the overall price level (the consumer price index) in five-year intervals over the period 1970 through 1990.

Accepted Answer

The answer of The table shows the price of motor...

Question 20

Economics is mainly concerned with financial issues.

Accepted Answer

A) True 
 B)False

An economic model is the same as a theory.

Which of the following statements is true?

Economic data always give an accurate picture of what affects consumers.

The figure below shows the relationship of the quantity demanded for coffee beans to the price of coffee beans at a local coffee shop.

Ceteris paribus means

Economic models need to resemble, as much as possible, the phenomena being explained.

Exhibit 2-3 -In Exhibit 2-3, an example of a constant would be

Refer to the information in the following table: Using the numerical examples in the table, show that the relative price of cellphones can fall on occasions where the price of those goods could be rising, falling, or remaining unchanged.

Exhibit 2-3 -In Exhibit 2-3, an example of a variable would be the

A market economy in which the government plays some role is called

Economic models differ from those in the physical sciences because

All of the following are what economists commonly do except

Economics

Explain how new models or theories are developed in economics.

All of the following are examples of an economic variable except

Exhibit 2-2 -If the quantity demanded of coffee increases when the price of coffee declines, then these two are .

Experimental economics

The table shows the price of motor fuel (mainly gasoline) and the overall price level (the consumer price index) in five-year intervals over the period 1970 through 1990.

Economics is mainly concerned with financial issues.

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Interaction of People in Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Reading, Understanding, and Creating Graphs

Consumer Theory With Indifference Curves

Producer Theory With Isoquants

Filters

Exam 2: Observing and Explaining the Economy

An economic model is the same as a theory.

Which of the following statements is true?

Economic data always give an accurate picture of what affects consumers.

The figure below shows the relationship of the quantity demanded for coffee beans to the price of coffee beans at a local coffee shop.

Ceteris paribus means

Economic models need to resemble, as much as possible, the phenomena being explained.

Exhibit 2-3 -In Exhibit 2-3, an example of a constant would be

Refer to the information in the following table: Using the numerical examples in the table, show that the relative price of cellphones can fall on occasions where the price of those goods could be rising, falling, or remaining unchanged.

Exhibit 2-3 -In Exhibit 2-3, an example of a variable would be the

A market economy in which the government plays some role is called

Economic models differ from those in the physical sciences because

All of the following are what economists commonly do except

Economics

Explain how new models or theories are developed in economics.

All of the following are examples of an economic variable except

Exhibit 2-2 -If the quantity demanded of coffee increases when the price of coffee declines, then these two ____ are ____.

Experimental economics

The table shows the price of motor fuel (mainly gasoline) and the overall price level (the consumer price index) in five-year intervals over the period 1970 through 1990.

Economics is mainly concerned with financial issues.

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Interaction of People in Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Reading, Understanding, and Creating Graphs

Consumer Theory With Indifference Curves

Producer Theory With Isoquants

Filters

Exhibit 2-2 -If the quantity demanded of coffee increases when the price of coffee declines, then these two are .