Question 1

To argue that economics is a partisan policy tool means that

Accepted Answer

A)  economics is being used without political considerations. 
B)  part of the policy is based on economic analysis. 
C)  economics is not always used objectively. 
D)  economics is used objectively. 
E)  economic analysis is always misleading.

Question 2

An economic variable is any economic measure that

Accepted Answer

A)  has different values because of researchers' different perspectives. 
B)  has no market value. 
C)  has a fixed value over time. 
D)  has no effect on the economy. 
E)  can vary over a range of values.

Question 3

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 1990 through 2015.
 $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Matm } \
\text { Fuel Price }
\end{array} & \begin{array} { c } 
\text { Overall } \
\text { Price Leval }
\end{array} \
\hline 1990 & 101.1 & 130.7 \
\hline 1995 & 99.9 & 152.4 \
\hline 2000 & 129.3 & 172.2 \
\hline 2005 & 195.8 & 195.3 \
\hline 2010 & 239.7 & 218.1 \
\hline 2015 & 212.3 & 237 . \
\hline
\end{array}$$ (A) Plat a dearman of the relatre price of motar fuel far the $1990 - 2015$ period.
(B) Eoglain what has beenhappering to the relative price of motar fuel aver this period

Accepted Answer

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

Question 4

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.
 (A) "Increasing the tax rate an alcaholic beverages is amethad of reducing taffic accidents."․"
(B) "If the goverment wrishes to reduce taffic accitents, it aught to raise the tar an alcoholic beverages."
(C) "The goverment should not raise the tar an alcoholic beverages for lowr-incame Hririkers."

Accepted Answer

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

Question 5

Economic models

Accepted Answer

A)  are different from the phenomena they attempt to explain. 
B)  are new phenomena because they are by-products of experimental economics. 
C)  are not complicated because the behavior they describe is not complicated. 
D)  are complicated because human behavior is complicated. 
E)  would not be needed if controlled experiments were used more often.

Question 6

Economics was originally called

Accepted Answer

A)  political engineering. 
B)  political economy. 
C)  economic physics. 
D)  social engineering. 
E)  social physics.

Question 7

Consider a straight line with a slope of +1 that intersects the origin. It dissects the positive X-Y quadrant. Select any point on the line. What must be true about the distance between the origin and the X coordinate and between the origin and the Y coordinate?

Accepted Answer

The answer of Consider a straight line with a slope...

Question 8

A two-dimensional diagram can be represented by the

Accepted Answer

A)  depth of this page. 
B)  length of this page. 
C)  surface of this page. 
D)  volume of a book. 
E)  width of this page.

Question 9

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 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.

Question 11

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. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Meals Served at } \
\text { Small Restaurants }
\end{array} & \begin{array} { c } 
\text { Meals Served at } \
\text { Large Restaurants }
\end{array} & \text { Nunber of Cooks } \
\hline 0 & 0 & 0 \
\hline 10 & 15 & 1 \
\hline 15 & 23 & 2 \
\hline 19 & 29 & 3 \
\hline
\end{array}$$ (A) Show the relatinghip between codks and meals served by Iraphing twa curves with cooks an the harizantal azis and the number of meals an the vertical ayis. How do the slopes of the curves change as mare couks are emplayed?
(B) Is the change in the mumber of cooks a shift in the curve ar amcvement along the curve?
(C) Is the change in the size of the restaurant a shift in the curve or a mavement along the curve?

Accepted Answer

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

Question 12

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.

Question 13

Which of the following is considered a macroeconomic question?

Accepted Answer

A)  How to reduce costs in the healthcare industry? 
B)  What is the impact of competition on the profits of Apple, the maker of iPhones? 
C)  How can economic policy increase a nation's gross domestic product? 
D)  How does a family allocate income among different types of goods and services? 
E)  What factors determine the wage rate in the steel industry?

Question 14

Macroeconomics is concerned primarily with

Accepted Answer

A)  the economy as a whole. 
B)  the operation of a particular firm. 
C)  individual consumer behavior. 
D)  the labor market. 
E)  a detailed examination of how price and output decisions are made in specific markets.

Question 15

Economics is mainly concerned with financial issues.

Accepted Answer

A) True 
 B)False

Question 16

If two variables are correlated, then it must be true that one of the variables causes the other.

Accepted Answer

A) True 
 B)False

Question 17

Karl Marx argued that capitalism would eventually collapse and give rise to a new economic system, which is called

Accepted Answer

A)  a political system. 
B)  socialism. 
C)  a market system. 
D)  a laissez faire system. 
E)  a mixed economy.

Question 18

All microeconomic issues are normative in nature.

Accepted Answer

A) True 
 B)False

Question 19

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.

Question 20

Those who support a laissez faire system

Accepted Answer

A)  believe in the working of socialism. 
B)  argue for a market economy. 
C)  support government intervention. 
D)  argue for a command economy. 
E)  argue for a mixed economy.

Exam 2: Observing and Explaining the Economy

To argue that economics is a partisan policy tool means that

An economic variable is any economic measure that

Economic models

Economics was originally called

Consider a straight line with a slope of +1 that intersects the origin. It dissects the positive X-Y quadrant. Select any point on the line. What must be true about the distance between the origin and the X coordinate and between the origin and the Y coordinate?

A two-dimensional diagram can be represented by the

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

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

Which of the following is considered a macroeconomic question?

Macroeconomics is concerned primarily with

Economics is mainly concerned with financial issues.

If two variables are correlated, then it must be true that one of the variables causes the other.

Karl Marx argued that capitalism would eventually collapse and give rise to a new economic system, which is called

All microeconomic issues are normative in nature.

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

Those who support a laissez faire system