Question 1

In constructing models, economists must:

Accepted Answer

A)  employ simplifying assumptions 
B)  include as much detail as possible 
C)  use very complex mathematical equations 
D)  use very large datasets 
A)  employ simplifying assumptions 
B)  include as much detail as possible 
C)  use very complex mathematical equations 
D)  use very large datasets

Question 2

Economic analysis can generate different outputs as:

Accepted Answer

A)  All of the above 
B)  There is a great deal of valid data that can enable a number of conclusions 
C)  Differing opinions exists on the validity of certain parameters chosen 
D)  Different variables are taken into consideration in the model 
A)  All of the above 
B)  There is a great deal of valid data that can enable a number of conclusions 
C)  Differing opinions exists on the validity of certain parameters chosen 
D)  Different variables are taken into consideration in the model

Question 3

What is a controlled experiment and why do economists make little use of them?

Accepted Answer

A controlled experiment is one where the

Question 4

Because it is difficult for economists to use experiments to generate economic data, they:

Accepted Answer

A)  do without them 
B)  use whatever data the world gives them 
C)  make up the data 
D)  ask policymakers to conduct experiments for them 
A)  do without them 
B)  use whatever data the world gives them 
C)  make up the data 
D)  ask policymakers to conduct experiments for them

Question 5

When economists are trying to explain the world they are acting as scientists and when they are trying to improve it, they are policymakers.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the most accurate statement about production possibilities?

Accepted Answer

A)  an economy can produce only on the production possibilities frontier 
B)  an economy can produce at any point inside or outside a production possibilities frontier 
C)  an economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier 
D)  an economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier 
A)  an economy can produce only on the production possibilities frontier 
B)  an economy can produce at any point inside or outside a production possibilities frontier 
C)  an economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier 
D)  an economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier

Question 7

The foundation stones from which economic models are built are:

Accepted Answer

A)  economic policies 
B)  the legal system 
C)  assumptions 
D)  statistical forecasts 
A)  economic policies 
B)  the legal system 
C)  assumptions 
D)  statistical forecasts

Exam 2: Thinking Like an Economist

In constructing models, economists must:

Economic analysis can generate different outputs as:

What is a controlled experiment and why do economists make little use of them?

Because it is difficult for economists to use experiments to generate economic data, they:

When economists are trying to explain the world they are acting as scientists and when they are trying to improve it, they are policymakers.

Which of the following is the most accurate statement about production possibilities?

The foundation stones from which economic models are built are:

Ten Lessons From Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand and Government Policies

Consumers, Producers and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Business Strategy

Competition Policy

Monopolistic Competition

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Trade-Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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