Question 1

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

Accepted Answer

The U.S. economy is a mixed ec

Question 2

Which of the following is not an economic issue?

Accepted Answer

A)  Why is college tuition so high? 
B)  Why has health-care spending increased faster than the rest of the economy? 
C)  How can one earn $1 million without doing anything? 
D)  How can one reduce the currently high levels of unemployment in Europe? 
E)  Why are there so many brands of bottled water? 
A)  Why is college tuition so high? 
B)  Why has health-care spending increased faster than the rest of the economy? 
C)  How can one earn $1 million without doing anything? 
D)  How can one reduce the currently high levels of unemployment in Europe? 
E)  Why are there so many brands of bottled water?

Question 3

Macroeconomics deals with large industries such as the health-care industry.

Accepted Answer

A) True 
 B)False

Question 4

Positive economics

Accepted Answer

A)  will usually indicate which economic policy is best. 
B)  is concerned with what ought to be. 
C)  is the same as normative economics. 
D)  is strictly quantitative and so has little to say to those with philosophical goals to achieve in policymaking. 
E)  produces verifiable statements. 
A)  will usually indicate which economic policy is best. 
B)  is concerned with what ought to be. 
C)  is the same as normative economics. 
D)  is strictly quantitative and so has little to say to those with philosophical goals to achieve in policymaking. 
E)  produces verifiable statements.

Question 5

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 6

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 7

A mixed system is an economy with only private industries.

Accepted Answer

A) True 
 B)False

Question 8

Interpret the following data on the relative price of cellphones and answer the following questions.
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of All } \
\text { Gands }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Bmrirtphanes }
\end{array} \
\hline 2015 & 100 & 100 \
\hline 2016 & 103 & 101 \
\hline 2017 & 105 & 102 \
\hline 2018 & 107 & 103 \
\hline
\end{array}$$ (A) Calculate the relative price of smartphanes far each year.
(B) Plot the relative price of smartphanes.
(C) What can you 5ay abaut how the price of 5martphanes varied in camparisan to the price of all guads between 2015 and 2018 ?

Accepted Answer

(A) The relative price of 5mathane 5 for

Question 9

Exhibit 2A-5
   True/False
-Refer to Exhibit 2A-5. The movement from C to B is called a

Accepted Answer

A)  change in dimension. 
B)  shift in the relationship between X and Y. 
C)  movement along the curve. 
D)  parallel change. 
E)  constant. 
A)  change in dimension. 
B)  shift in the relationship between X and Y. 
C)  movement along the curve. 
D)  parallel change. 
E)  constant.

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

Which of the following is not an economic issue?

Macroeconomics deals with large industries such as the health-care industry.

Positive economics

Which of the following statements is true?

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

A mixed system is an economy with only private industries.

Exhibit 2A-5 True/False -Refer to Exhibit 2A-5. The movement from C to B is called a

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

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

Capital and Financial Markets

Economic Growth Around the World

International Trade

International Finance

Filters

Exam 2: Observing and Explaining the Economy

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

Which of the following is not an economic issue?

Macroeconomics deals with large industries such as the health-care industry.

Positive economics

Which of the following statements is true?

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

A mixed system is an economy with only private industries.

Exhibit 2A-5 True/False -Refer to Exhibit 2A-5. The movement from C to B is called a

The Central Idea

The Supply and Demand Model

Subtleties of the Supply and Demand Model

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

Capital and Financial Markets

Economic Growth Around the World

International Trade

International Finance

Filters