Exam 2: Observing and Explaining the Economy

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

An economic model is a tool used to help us understand the real world.

When economists do disagree,the disagreement usually pertains to

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

Which of the following is a normative statement?

The figure below shows the relationship of the quantity demanded for coffee beans to the price of coffee beans at a local coffee shop. (A)If the price of coffee increases from $6 per pound to $10 per pound,by how much will the quantity demanded for coffee change? (B)Explain how your answer in part (A)relies on the ceteris paribus assumption.

In order to determine a causation between a change in the price of iPads and the amount of iPads purchased by customers,an economist must show that

To argue that economics is a partisan policy tool means that

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

A positive statement is necessarily a subjective statement.

Economists develop new models only when new economic data become available.

Which of the following is considered a macroeconomic question?

What problems would arise if economists did not make ceteris paribus assumptions when making predictions?

Economics

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

It has been documented that beer consumption rises when the unemployment rate rises.To conclude that this correlation means that increased unemployment causes increased beer consumption is to mistake correlation for causality.

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

Economics requires more of a mixture of verbal and quantitative skills than other sciences.

In modern market economies,the role of government is small.

Economics is mainly concerned with financial issues.