Question 1

Exhibit 2A-7  
-Exhibit 2A-7 shows the relationship between X and Y. The slope of the relationship is

Accepted Answer

A) positive, and the slope increases with Y. 
B) positive, and the slope decreases with Y. 
C) equal to -1. 
D) negative, and the slope increases with Y. 
E) negative, and the slope decreases with Y. 
A) positive, and the slope increases with Y. 
B) positive, and the slope decreases with Y. 
C) equal to -1. 
D) negative, and the slope increases with Y. 
E) negative, and the slope decreases with Y.

Question 2

Exhibit 2A-5
  
-Refer to Exhibit 2A-5. Which of the following would best explain the shift from line 1 to line 2?

Accepted Answer

A) An increase in X 
B) A decline in Y 
C) A decrease in X 
D) A change in a third variable, Z, which affects the relationship between Y and X 
E) An increase in the slope 
A) An increase in X 
B) A decline in Y 
C) A decrease in X 
D) A change in a third variable, Z, which affects the relationship between Y and X 
E) An increase in the slope

Question 3

Explain how new models or theories are developed in economics.

Accepted Answer

First, a hypothesis based on this new mo

Question 4

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 5

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 6

Exhibit 2A-3  
-In Exhibit 2A-3, the curve shows

Accepted Answer

A) a constant relationship. 
B) a direct relationship. 
C) a straight-line relationship. 
D) an inverse relationship. 
E) normative economics. 
A) a constant relationship. 
B) a direct relationship. 
C) a straight-line relationship. 
D) an inverse relationship. 
E) normative economics.

Question 7

Explain how economic models are similar to and different from models used in other sciences. What are the consequences of these differences?

Accepted Answer

Acceptable answers will mention that eco

Question 8

Exhibit 2A-4  
-Refer to Exhibit 2A-4. Which of the following statements is true?

Accepted Answer

A) The slope at point B is greater than the slope at point A. 
B) The slope at point A is less than the slope at point B. 
C) The slope at point A is greater than the slope at point B. 
D) The slope at point B is the same as the slope at point A. 
E) The slope at point A is negative, whereas the slope at point B is positive. 
A) The slope at point B is greater than the slope at point A. 
B) The slope at point A is less than the slope at point B. 
C) The slope at point A is greater than the slope at point B. 
D) The slope at point B is the same as the slope at point A. 
E) The slope at point A is negative, whereas the slope at point B is positive.

Question 9

Exhibit 2A-4  
-The curve in Exhibit 2A-4 represents a(n)

Accepted Answer

A) negative slope. 
B) slope that is constant and positive. 
C) slope that is not constant and positive. 
D) inverse relationship. 
E) slope that is constant. 
A) negative slope. 
B) slope that is constant and positive. 
C) slope that is not constant and positive. 
D) inverse relationship. 
E) slope that is constant.

Question 10

Exhibit 2A-1  
-According to Exhibit 2A-1, in 2008 the

Accepted Answer

A) inflation rate was close to 5 percent, and the unemployment rate was about 7 percent. 
B) unemployment rate and the inflation rate were equal. 
C) inflation rate was close to 6 percent, and the unemployment rate was above 2 percent. 
D) inflation rate was close to 2 percent, and the unemployment rate was close to 6 percent. 
E) inflation rate was above 10 percent, and the unemployment rate was close to 2 percent. 
A) inflation rate was close to 5 percent, and the unemployment rate was about 7 percent. 
B) unemployment rate and the inflation rate were equal. 
C) inflation rate was close to 6 percent, and the unemployment rate was above 2 percent. 
D) inflation rate was close to 2 percent, and the unemployment rate was close to 6 percent. 
E) inflation rate was above 10 percent, and the unemployment rate was close to 2 percent.

Question 11

A positive relationship represents a situation where an increase in one variable is associated with an increase in the other variable. Draw three graphs that represent a positive relationship.

Accepted Answer

The answer of A positive relationship represents a situation where...

Question 12

Exhibit 2A-8   
-The slope of the relationship between X and Y is positive in Exhibit 2A-8.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Causation

Accepted Answer

A) occurs when there is no correlation between variables. 
B) occurs when two variables are correlated. 
C) means one event brings about another event. 
D) means one event is observed to occur along with another. 
E) means one event occurs subsequently to another event. 
A) occurs when there is no correlation between variables. 
B) occurs when two variables are correlated. 
C) means one event brings about another event. 
D) means one event is observed to occur along with another. 
E) means one event occurs subsequently to another event.

Question 15

In modern market economies, the role government is small.

Accepted Answer

A) True 
 B)False

Question 16

When economists explain the relationship between the price of hotdogs and the number that consumers will buy, the ceteris paribus assumption implies that

Accepted Answer

A) the price of hotdogs is constant. 
B) the quantity of hotdogs purchased is constant. 
C) both the price and quantity of hotdogs purchased are constant. 
D) factors other than the price and quantity of hotdogs purchased are constant. 
E) everything in the world does not change. 
A) the price of hotdogs is constant. 
B) the quantity of hotdogs purchased is constant. 
C) both the price and quantity of hotdogs purchased are constant. 
D) factors other than the price and quantity of hotdogs purchased are constant. 
E) everything in the world does not change.

Question 17

To determine causality in many sciences such as physics, researchers

Accepted Answer

A) check for correlation. 
B) use scatter diagrams. 
C) perform controlled experiments. 
D) plot the variables against time or location. 
E) use only a small amount of data. 
A) check for correlation. 
B) use scatter diagrams. 
C) perform controlled experiments. 
D) plot the variables against time or location. 
E) use only a small amount of data.

Question 18

Studying economics will provide you with tools that are

Accepted Answer

A) mainly useful for understanding business issues. 
B) useless in real-world situations. 
C) mainly useful for financial analysis. 
D) not useful for studying issues such as crime, discrimination, and who has the right to sue. 
E) useful for studying issues such as monetary policy, discrimination, and who has the right to sue. 
A) mainly useful for understanding business issues. 
B) useless in real-world situations. 
C) mainly useful for financial analysis. 
D) not useful for studying issues such as crime, discrimination, and who has the right to sue. 
E) useful for studying issues such as monetary policy, discrimination, and who has the right to sue.

Question 19

Exhibit 2A-4  
-Refer to Exhibit 2A-4. The slope of the relationship between X and Y is

Accepted Answer

A) positive. 
B) negative. 
C) zero. 
D) infinity. 
E) less than -1. 
A) positive. 
B) negative. 
C) zero. 
D) infinity. 
E) less than -1.

Question 20

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

Accepted Answer

A) economics is not a science. 
B) this is the impression economists want the public to have of them. 
C) with so many economists, it is always possible to find an economist with a different viewpoint. 
D) economics is an inexact science. 
E) economists are trained to argue with others. 
A) economics is not a science. 
B) this is the impression economists want the public to have of them. 
C) with so many economists, it is always possible to find an economist with a different viewpoint. 
D) economics is an inexact science. 
E) economists are trained to argue with others.

Exam 2: Observing and Explaining the Economy

Exhibit 2A-7 -Exhibit 2A-7 shows the relationship between X and Y. The slope of the relationship is

Exhibit 2A-5 -Refer to Exhibit 2A-5. Which of the following would best explain the shift from line 1 to line 2?

Explain how new models or theories are developed in economics.

Which of the following statements is true?

Economics

Exhibit 2A-3 -In Exhibit 2A-3, the curve shows

Explain how economic models are similar to and different from models used in other sciences. What are the consequences of these differences?

Exhibit 2A-4 -Refer to Exhibit 2A-4. Which of the following statements is true?

Exhibit 2A-4 -The curve in Exhibit 2A-4 represents a(n)

Exhibit 2A-1 -According to Exhibit 2A-1, in 2008 the

A positive relationship represents a situation where an increase in one variable is associated with an increase in the other variable. Draw three graphs that represent a positive relationship.

Exhibit 2A-8 -The slope of the relationship between X and Y is positive in Exhibit 2A-8.

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

Causation

In modern market economies, the role government is small.

When economists explain the relationship between the price of hotdogs and the number that consumers will buy, the ceteris paribus assumption implies that

To determine causality in many sciences such as physics, researchers

Studying economics will provide you with tools that are

Exhibit 2A-4 -Refer to Exhibit 2A-4. The slope of the relationship between X and Y is

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

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