Question 1

What is NOT a common characteristic of economic models

Accepted Answer

A)  They are often built using the tools of mathematics.
B)  They are useful to economists, but not to policymakers.
C)  They include only the important features of an economy.
D)  They are built using assumptions.E) C) and D)
F) All of the above

Question 2

How does a scientist make assumptions

Accepted Answer

A)  A scientist chooses the assumptions that best prove a desired result.
B)  A scientist chooses the assumptions randomly so as not to appear biased.
C)  A scientist chooses the assumptions that would be most widely accepted.
D)  A scientist chooses the assumptions that best capture the essential features of the problem.E) A) and C)
F) A) and B) D

Question 3

Which statement best describes the way economists study the economy

Accepted Answer

A)  Economists study the past, but do not try to predict the future.
B)  Economists use a probabilistic approach based on correlations between economic events.
C)  Economists devise theories, collect data, and then analyze the data to test the theories.
D)  Economists use controlled experiments much the same way a biologist or physicist does.E) A) and B)
F) A) and D)

Question 4

Figure 2-2
 
-Refer to Figure 2-2.What does the outer loop represent

Accepted Answer

A)  the flow of goods
B)  the flow of spending
C)  the flow of factors of production
D)  the flow of exportsE) B) and D)
F) None of the above

Question 5

Because it is difficult for economists to use experiments to generate data,what must they generally do

Accepted Answer

A)  do without data
B)  use whatever data the world gives them
C)  select a committee of economists to make up data for all economists to use
D)  use hypothetical, computer-generated dataE) C) and D)
F) A) and B)

Question 6

What is the point where both x and y are zero called

Accepted Answer

A)  the origin
B)  the null
C)  the zero coordinate
D)  the tangencyE) A) and D)
F) None of the above

Question 7

Suppose an economy produces two goods: food and machines.This economy always operates on its production possibilities frontier.Last year,it produced 91 units of food and 48 machines.This year,it is producing 95 units of food and 51 machines.Which of the following would NOT explain the increase in output

Accepted Answer

A)  a reduction in unemployment
B)  an increase in the labour force
C)  an improvement in technology
D)  an increase in worker productivityE) A) and B)
F) A) and C)

Question 8

What would unemployment cause an economy to do

Accepted Answer

A)  produce inside its production possibilities frontier
B)  produce on its production possibilities frontier
C)  produce outside its production possibilities frontier
D)  shift its production possibilities frontier inwardsE) A) and B)
F) A) and C)

Question 9

What do economists at Industry Canada do

Accepted Answer

A)  assess temporary foreign worker programs
B)  give advice to overseas development projects
C)  help design and enforce Canada's competition laws
D)  decide which industries should be protectedE) A) and D)
F) B) and D)

Question 10

This is an exercise in model building,based on the idea that one better understands the concept of models when faced with the task of making them.
a.Construct a block diagram showing how different levels of governments interact with taxpayers and with each other in a federal state like Canada.Indicate with arrows what they exchange with each other.Identify the main elements of your model.
b.Describe your model in a few sentences.
c.What makes your description to be a model,instead of an accurate picture of the Canadian economy
d.What purpose can your model serve,or is there anything that this model helped you understand

Accepted Answer

a. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> b.A federal state has mainly three l...

Question 11

When economists are speaking as policy advisors,which statements are they more likely to use

Accepted Answer

A)  normative statements
B)  positive statements
C)  objective statements
D)  descriptive statementsE) A) and B)
F) A) and C)

Question 12

What happens when a relevant variable that is not named on either axis changes

Accepted Answer

A)  There will be a movement along the curve.
B)  The curve may or may not change depending on how the variables are related.
C)  The curve will be unaffected since only the variables on the axis affect the curve.
D)  The curve will shift.E) All of the above
F) B) and C)

Question 13

Identify each of the following topics as being part of microeconomics or macroeconomics:
a.the impact of a change in consumer income on the purchase of vacation properties
b.the effect of a change in the price of eggs on the consumption of bacon
c.the impact of a war in the Middle East on the rate of inflation in Canada
d.factors influencing the rate of economic growth
e.factors influencing the demand for cellphones
f.the impact of tax policy on national saving
g.the effect of pollution taxes on the Canadian coal industry
h.the degree of competition in the airline industry
i.the effect of an increase in the money supply on interest rates
j.the impact of deregulation on the financial industry

Accepted Answer

a,b,e,g,h,and j are ...

Question 14

How did the great economist John Maynard Keynes explain his comment that although economics is an easy subject compared with the higher branches of philosophy or pure science,it is a subject at which few excel

Accepted Answer

A)  Most people who study economics are not very bright.
B)  Good economists must possess a rare combination of gifts.
C)  Economics is actually quite boring; hence, people tend to lose interest in it.
D)  Good thinkers become frustrated with economics because it is not logical or relevant.E) B) and D)
F) B) and C)

Question 15

What observation did Albert Einstein once make about science

Accepted Answer

A)  "The whole of science is nothing more than a refinement of everyday thinking."
B)  "The whole of science is nothing more than an interesting intellectual exercise."
C)  "In order to understand what science is, one must simply look around themselves."
D)  "In order to understand what science is, one must transcend everyday thinking."E) A) and B)
F) A) and C)

Question 16

Why is the use of theory and observation more difficult in economics than in sciences,such as physics

Accepted Answer

A)  It is difficult to evaluate an economic experiment.
B)  It is difficult to devise an economic experiment.
C)  It is difficult to actually perform an experiment in an economic system.
D)  It is difficult to find participants for an economics experiment.E) A) and C)
F) C) and D)

Question 17

What is a coordinate system used for

Accepted Answer

A)  to show the flow of income and products in an economic system
B)  to organize labour and other resources in the production process
C)  to allow economists to show two variables on a single graph
D)  to teach economists how to draw graphs consistentlyE) None of the above
F) All of the above C

Question 18

What is meant by scientific method

Accepted Answer

A)  the use of modern electronic testing equipment to understand the world
B)  the dispassionate development and testing of theories about how the world works
C)  the use of controlled experiments in understanding the way the world works
D)  finding evidence to support preconceived theories about how the world worksE) A) and B)
F) A) and C)

Question 19

Figure 2-3
 
-Refer to Figure 2-3.Which point represents the maximum possible production of tubas

Accepted Answer

A)  point A
B)  point B
C)  point C
D)  point EE) B) and D)
F) A) and C)

Question 20

What is a model

Accepted Answer

A)  a theoretical abstraction with very little value
B)  a useful tool to only the ones who constructed it
C)  a realistic and carefully constructed theory
D)  a simplification of real lifeE) None of the above
F) A) and B) D

Exam 2: Thinking Like an Economist

What is NOT a common characteristic of economic models

Correct Answer
verified

How does a scientist make assumptions

Correct Answer
verified
D

Which statement best describes the way economists study the economy

Correct Answer
verified

Figure 2-2 -Refer to Figure 2-2.What does the outer loop represent

Correct Answer
verified

Because it is difficult for economists to use experiments to generate data,what must they generally do

Correct Answer
verified

What is the point where both x and y are zero called

Correct Answer
verified

Correct Answer
verified

What would unemployment cause an economy to do

Correct Answer
verified

What do economists at Industry Canada do

Correct Answer
verified

Correct Answer
verified
a. b.A federal state has mainly three l...
View Answer

When economists are speaking as policy advisors,which statements are they more likely to use

Correct Answer
verified

What happens when a relevant variable that is not named on either axis changes

Correct Answer
verified

Correct Answer
verified
a,b,e,g,h,and j are ...
View Answer

How did the great economist John Maynard Keynes explain his comment that although economics is an easy subject compared with the higher branches of philosophy or pure science,it is a subject at which few excel

Correct Answer
verified

What observation did Albert Einstein once make about science

Correct Answer
verified

Why is the use of theory and observation more difficult in economics than in sciences,such as physics

Correct Answer
verified

What is a coordinate system used for

Correct Answer
verified
C

What is meant by scientific method

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3.Which point represents the maximum possible production of tubas

Correct Answer
verified

What is a model

Correct Answer
verified
D

Exam 2: Thinking Like an Economist

What is NOT a common characteristic of economic models

Correct AnswerverifiedShow Answer

How does a scientist make assumptions

Correct AnswerverifiedD

Which statement best describes the way economists study the economy

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2.What does the outer loop represent

Correct AnswerverifiedShow Answer

Because it is difficult for economists to use experiments to generate data,what must they generally do

Correct AnswerverifiedShow Answer

What is the point where both x and y are zero called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What would unemployment cause an economy to do

Correct AnswerverifiedShow Answer

What do economists at Industry Canada do

Correct AnswerverifiedShow Answer

Correct Answerverifieda. b.A federal state has mainly three l...View AnswerShow Answer

When economists are speaking as policy advisors,which statements are they more likely to use

Correct AnswerverifiedShow Answer

What happens when a relevant variable that is not named on either axis changes

Correct AnswerverifiedShow Answer

Correct Answerverifieda,b,e,g,h,and j are ...View AnswerShow Answer

How did the great economist John Maynard Keynes explain his comment that although economics is an easy subject compared with the higher branches of philosophy or pure science,it is a subject at which few excel

Correct AnswerverifiedShow Answer

What observation did Albert Einstein once make about science

Correct AnswerverifiedShow Answer

Why is the use of theory and observation more difficult in economics than in sciences,such as physics

Correct AnswerverifiedShow Answer

What is a coordinate system used for

Correct AnswerverifiedC

What is meant by scientific method

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3.Which point represents the maximum possible production of tubas

Correct AnswerverifiedShow Answer

What is a model

Correct AnswerverifiedD

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. b.A federal state has mainly three l...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a,b,e,g,h,and j are ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D