Question 1

Explaining why the vehicle miles traveled per person have risen in recent years is one example of what economists do.

Accepted Answer

A) True 
 B)False

Question 2

The ceteris paribus assumption is always used whenever an economist analyzes the relationship of two variables.

Accepted Answer

A) True 
 B)False

Question 3

Economics has always been a good example of an experimental science.

Accepted Answer

A) True 
 B)False

Question 4

Exhibit 2A-8   
-Suppose the value of one variable rises while the value of another variable falls; then the slope of the relationship between the two variables is between 0 and 1.

Accepted Answer

A) True 
 B)False

Question 5

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 6

In his book Wealth of Nations, Adam Smith made a positive statement when he advocated about what the government should or should not do to affect an economy.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) it is impossible for there to be anything scientific about economics. 
B) they will disagree on abstract issues. 
C) there are many different types of economic theories. 
D) they will agree more often than not on principles when discussed at an abstract level, but they will disagree on whether to apply these principles in real-world circumstances. 
E) economics can never be a science. 
A) it is impossible for there to be anything scientific about economics. 
B) they will disagree on abstract issues. 
C) there are many different types of economic theories. 
D) they will agree more often than not on principles when discussed at an abstract level, but they will disagree on whether to apply these principles in real-world circumstances. 
E) economics can never be a science.

Question 8

Economics is mainly concerned with financial issues.

Accepted Answer

A) True 
 B)False

Question 9

Exhibit 2-3
  
-Exhibit 2-3 shows two variables that are

Accepted Answer

A) constant. 
B) positively related. 
C) negatively related. 
D) not related. 
E) both positively and negatively related. 
A) constant. 
B) positively related. 
C) negatively related. 
D) not related. 
E) both positively and negatively related.

Question 10

Explain the purpose of each of the following types of graphs:

Accepted Answer

The answer of Explain the purpose of each of the...

Question 11

Economic analysis

Accepted Answer

A) requires few verbal skills. 
B) requires both quantitative and analytical skills. 
C) is based solely on analytical models. 
D) has little use for a historical or philosophical background. 
E) has little use for mathematics. 
A) requires few verbal skills. 
B) requires both quantitative and analytical skills. 
C) is based solely on analytical models. 
D) has little use for a historical or philosophical background. 
E) has little use for mathematics.

Question 12

Refer to the table below. Analyze the data on the number of meals served at small and large restaurants. The number of meals served will vary with the number of cooks employed at the restaurant.

Accepted Answer

The answer of Refer to the table below. Analyze the...

Question 13

All microeconomic issues are normative in nature.

Accepted Answer

A) True 
 B)False

Question 14

Suppose an economic study shows that increasing the tax rate on alcoholic beverages will reduce the amount of traffic accidents. Which of the following statements can be valid based on the study because they are positive statements, and which cannot be valid because they are normative statements.

Accepted Answer

The answer of Suppose an economic study shows that increasing...

Question 15

Suppose you decide to build a model to explain why some companies earned more profits in the past year than others did.

Accepted Answer

The answer of Suppose you decide to build a model...

Question 16

An inverse relationship between two variables indicates a

Accepted Answer

A) causation. 
B) constant slope. 
C) positive slope. 
D) slope. 
A) causation. 
B) constant slope. 
C) positive slope. 
D) slope.

Question 17

Economics is a study that

Accepted Answer

A) is never relevant to people's lives. 
B) cannot be enjoyed if economic models fail to explain the real world. 
C) exists only to provide employment for economists. 
D) can be enjoyed independent of its relevance to society. 
E) can be enjoyed as long as its analysis is scientific. 
A) is never relevant to people's lives. 
B) cannot be enjoyed if economic models fail to explain the real world. 
C) exists only to provide employment for economists. 
D) can be enjoyed independent of its relevance to society. 
E) can be enjoyed as long as its analysis is scientific.

Question 18

Explain why economics requires historical and philosophical skills in addition to analytical skills.

Accepted Answer

Some questions involve a direc

Question 19

A mixed system is an economy with only private industries.

Accepted Answer

A) True 
 B)False

Question 20

Exhibit 2A-5
  
-Refer to Exhibit 2A-5. The movement from A to B is called a

Accepted Answer

A) change in dimension. 
B) shift in the curve. 
C) movement along the curve. 
D) change in the intercept. 
E) change in the slope. 
A) change in dimension. 
B) shift in the curve. 
C) movement along the curve. 
D) change in the intercept. 
E) change in the slope.

Exam 2: Observing and Explaining the Economy

Explaining why the vehicle miles traveled per person have risen in recent years is one example of what economists do.

The ceteris paribus assumption is always used whenever an economist analyzes the relationship of two variables.

Economics has always been a good example of an experimental science.

Exhibit 2A-8 -Suppose the value of one variable rises while the value of another variable falls; then the slope of the relationship between the two variables is between 0 and 1.

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

In his book Wealth of Nations, Adam Smith made a positive statement when he advocated about what the government should or should not do to affect an economy.

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

Economics is mainly concerned with financial issues.

Exhibit 2-3 -Exhibit 2-3 shows two variables that are

Explain the purpose of each of the following types of graphs:

Economic analysis

Refer to the table below. Analyze the data on the number of meals served at small and large restaurants. The number of meals served will vary with the number of cooks employed at the restaurant.

All microeconomic issues are normative in nature.

Suppose an economic study shows that increasing the tax rate on alcoholic beverages will reduce the amount of traffic accidents. Which of the following statements can be valid based on the study because they are positive statements, and which cannot be valid because they are normative statements.

Suppose you decide to build a model to explain why some companies earned more profits in the past year than others did.

An inverse relationship between two variables indicates a

Economics is a study that

Explain why economics requires historical and philosophical skills in addition to analytical skills.

A mixed system is an economy with only private industries.

Exhibit 2A-5 -Refer to Exhibit 2A-5. The movement from A to B is called a

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of 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

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

Filters