Question 1

Which of the following statements is correct about the roles of economists?

Accepted Answer

A)  Economists are best viewed as policy advisers.
B)  Economists are best viewed as scientists.
C)  In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists.
D)  In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers.E) A) and B)
F) None of the above

Question 2

Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?

Accepted Answer

A)  This month, the economy reduced the unemployment of its resources.
B)  This month, the economy experienced an improvement in technology.
C)  This month, the economy experienced an increase in resources
D)  All of the above are correct.E) B) and C)
F) B) and D)

Question 3

Figure 2-17​ 
-Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Accepted Answer

A) True 
 B)False

Question 4

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Accepted Answer

A)  is asked to explain the cause of an economic event.
B)  is asked to recommend a policy to improve economic outcomes.
C)  is asked as a policy adviser.
D)  does not have enough information to respond.E) All of the above
F) None of the above

Question 5

When economists make normative statements, they are

Accepted Answer

A)  speaking as scientists.
B)  speaking as policy advisers.
C)  making claims about how the world is.
D)  revealing that they are very liberal in their views of how the world works.E) None of the above
F) B) and C)

Question 6

Economists speaking like policy advisers make

Accepted Answer

A)  positive statements.
B)  descriptive statements.
C)  claims about how the world is.
D)  claims about how the world should be.E) A) and B)
F) A) and C)

Question 7

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Accepted Answer

A) True 
 B)False

Question 8

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)  Home experienced increased unemployment.
B)  Home experienced a decline in pear-producing technology.
C)  Home experienced an improvement in cellular phone-making technology.
D)  Home experienced a reduction in resources.E) A) and B)
F) B) and D)

Question 9

The field of economics is traditionally divided into two broad subfields,

Accepted Answer

A)  national economics and international economics.
B)  consumer economics and producer economics.
C)  private sector economics and public sector economics.
D)  microeconomics and macroeconomics.E) C) and D)
F) A) and B)

Question 10

Which of the following statements about models is correct?

Accepted Answer

A)  The more details a model includes, the better the model.
B)  Models assume away irrelevant details.
C)  Models cannot be used to explain how the economy functions.
D)  Models cannot be used to make predictions.E) B) and C)
F) A) and C)

Question 11

Table 2-6 
-Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

Accepted Answer

The answer of Table 2-6 
-Refer to Table 2-6. Consider...

Question 12

Since economists cannot use natural experiments offered by history, they must use carefully constructed laboratory experiments instead.

Accepted Answer

A) True 
 B)False

Question 13

Positive statements are descriptive, while normative statements are prescriptive.

Accepted Answer

A) True 
 B)False

Question 14

The slope of a line that passes through the points (20, 30)  and (40, 14)  is

Accepted Answer

A)  -5/4.
B)  -4/5.
C)  4/5.
D)  5/4.E) A) and B)
F) A) and D)

Question 15

Historical episodes are not valuable to economists.

Accepted Answer

A) True 
 B)False

Question 16

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

Accepted Answer

A) True 
 B)False

Question 17

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Accepted Answer

A)  Gerance experienced a reduction in unemployment.
B)  Gerance experienced an improvement in car-making technology.
C)  Gerance acquired more resources.
D)  Any of these events could explain the change.E) A) and B)
F) A) and C)

Question 18

Economists usually have to make do with whatever data the world happens to give them.

Accepted Answer

A) True 
 B)False

Question 19

Figure 2-5 
-Refer to Figure 2-5. Inefficient production is represented by which point(s) ?

Accepted Answer

A)  A, B
B)  C
C)  C, D
D)  DE) B) and C)
F) A) and B)

Question 20

Figure 2-3 
-Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Accepted Answer

goods and ...

Exam 2: Thinking Like an Economist

Historical episodes are not valuable to economists.

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Figure 2-5 -Refer to Figure 2-5. Inefficient production is represented by which point(s) ?

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Which of the following statements is correct about the roles of economists?

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When economists make normative statements, they are

Correct AnswerverifiedShow Answer

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Correct AnswerverifiedShow Answer

Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

Correct AnswerverifiedShow Answer

Since economists cannot use natural experiments offered by history, they must use carefully constructed laboratory experiments instead.

Correct AnswerverifiedShow Answer

Positive statements are descriptive, while normative statements are prescriptive.

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Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points (20, 30) and (40, 14) is

Correct AnswerverifiedShow Answer

Economists usually have to make do with whatever data the world happens to give them.

Correct AnswerverifiedShow Answer

Figure 2-17​ -Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Correct AnswerverifiedShow Answer

Economists speaking like policy advisers make

Correct AnswerverifiedShow Answer

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

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Figure 2-3 -Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Correct Answerverifiedgoods and ...View AnswerShow Answer

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

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When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

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The field of economics is traditionally divided into two broad subfields,

Correct AnswerverifiedShow Answer

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

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Which of the following statements about models is correct?

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Figure 2-17 -Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Correct Answer
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goods and ...
View Answer

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