Question 1

A theory is an abstraction used often by economists to

Accepted Answer

A)  describe a problem. 
B)  keep all assumptions in their proper places. 
C)  explain why things work the way they do. 
D)  describe a hierarchical ordering of facts. 
E)  arrange variables into a graphical format. 
A)  describe a problem. 
B)  keep all assumptions in their proper places. 
C)  explain why things work the way they do. 
D)  describe a hierarchical ordering of facts. 
E)  arrange variables into a graphical format.

Question 2

If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units,the slope of the function is

Accepted Answer

A) 5. 
B) −.5. 
C) −2. 
D) −72. 
A) 5. 
B) −.5. 
C) −2. 
D) −72.

Question 3

A small increase in productivity growth can have a huge impact on a country's standard of living.

Accepted Answer

A) True 
 B)False

Question 4

Externalities affect only the buyer and seller involved in an exchange.

Accepted Answer

A) True 
 B)False

Question 5

Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.

Accepted Answer

A) True 
 B)False

Question 6

Is it possible to express an economic model in words without diagrams?

Accepted Answer

A)  No, models can only be stated in diagrams. 
B)  No, the very definition of model requires mathematical form. 
C)  Yes, some of the simplest models are verbal statements. 
D)  Yes, although the best models always use diagrams. 
E)  Uncertain, economic theory has not answered this question yet. 
A)  No, models can only be stated in diagrams. 
B)  No, the very definition of model requires mathematical form. 
C)  Yes, some of the simplest models are verbal statements. 
D)  Yes, although the best models always use diagrams. 
E)  Uncertain, economic theory has not answered this question yet.

Question 7

Abstraction can be thought of as

Accepted Answer

A)  ignoring reality in order to build theory. 
B)  omitting unimportant details in order to understand complex phenomena. 
C)  creating absurdity in order to explain simplicity. 
D)  assuming complexity when simplicity will do. 
E)  stylizing reality rather than analyzing cause and effect. 
A)  ignoring reality in order to build theory. 
B)  omitting unimportant details in order to understand complex phenomena. 
C)  creating absurdity in order to explain simplicity. 
D)  assuming complexity when simplicity will do. 
E)  stylizing reality rather than analyzing cause and effect.

A theory is an abstraction used often by economists to

If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units,the slope of the function is

A small increase in productivity growth can have a huge impact on a country's standard of living.

Externalities affect only the buyer and seller involved in an exchange.

Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.

Is it possible to express an economic model in words without diagrams?

Abstraction can be thought of as

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters

Exam 1: What Is Economics?

A theory is an abstraction used often by economists to

If movement along a graph causes the value on the vertical axis to rise by 5 units and the value on the horizontal axis to fall by 10 units,the slope of the function is

A small increase in productivity growth can have a huge impact on a country's standard of living.

Externalities affect only the buyer and seller involved in an exchange.

Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.

Is it possible to express an economic model in words without diagrams?

Abstraction can be thought of as

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters