Question 1

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Accepted Answer

A) True 
 B)False

Question 2

Why are graphs such as bar graphs limited?

Accepted Answer

A)   They can only show variables that are positively related.
B)   They are extremely difficult to understand.
C)   They cannot show relationships between variables.
D)   They provide information on no more than two variables.E) A) and B)
F) B) and C)

Question 3

Figure 2-9
 
-Refer to Figure 2-9. What do cups of coffee per day and the hours that someone can go without sleep have?

Accepted Answer

A)   a positive correlation
B)   a negative correlation
C)   a random correlation
D)   no correlationE) A) and B)
F) A) and C)

Question 4

What happens when economists test theories?

Accepted Answer

A)   They must make do with whatever data the world gives them.
B)   They can manipulate conditions easier than other scientific fields.
C)   They can enlist the government's help to manipulate economic conditions.
D)   They can achieve statistically valid results with much smaller sample sizes.E) A) and C)
F) B) and D)

Question 5

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) C) and D)
F) B) and C)

Question 6

What are economists who try to improve the world considered?

Accepted Answer

A)   mathematicians
B)   policy advisors
C)   scientists
D)   politiciansE) B) and C)
F) A) and D)

Question 7

What does evaluating a positive statement involve?

Accepted Answer

A)   evaluating values as well as facts
B)   examining evidence
C)   evaluating the correctness of the statement
D)   consideration of the government's policy goalsE) All of the above
F) None of the above

Question 8

What do economists at the Bank of Canada do?

Accepted Answer

A)   analyze data on labour markets
B)   help negotiate trade agreements
C)   analyze macroeconomic developments
D)   enforce competition lawsE) A) and B)
F) All of the above

Question 9

Who designs tax policy?

Accepted Answer

A)   Ministry of Finance
B)   Bank of Canada
C)   Industry Canada
D)   Department of JusticeE) None of the above
F) A) and D)

Question 10

What is a characteristic of a good theory?

Accepted Answer

A)   It is a widely accepted theory.
B)   It is a theory that starts from realistic assumptions.
C)   It is a theory that helps us understand how the world works.
D)   It is a theory based on original predictions.E) A) and B)
F) A) and C)

Question 11

Figure 2-3
 
-Refer to Figure 2-3. At which point or points can the economy NOT produce?

Accepted Answer

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

Question 12

What does macroeconomics study?

Accepted Answer

A)   individual decision makers
B)   economic history
C)   economy-wide phenomena
D)   how firms maximize profitE) B) and C)
F) A) and B)

Question 13

Figure 2-11
 
-Refer to Figure 2-11. The opportunity cost of more doghouses increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 14

What happens when scientists make good assumptions?

Accepted Answer

A)   They greatly simplify the problem without substantially affecting the answer.
B)   They further complicate an already complicated subject.
C)   They can leave out necessary variables that may result in incorrect answers.
D)   They are capable of eliminating invalid causations.E) A) and B)
F) A) and C)

Question 15

What is an ordered pair?

Accepted Answer

A)   the process of checking calculations twice before placing them on a graph
B)   two numbers that can be represented by a single point on a graph
C)   two numbers that are represented by side-by-side points on a graph
D)   two points on a graph that are equal distances from the originE) B) and C)
F) A) and D)

Question 16

Which statement about slope is NOT correct?

Accepted Answer

A)   Slope explains how much one variable responds to changes in another variable.
B)   Slope can be computed by delta x divided by delta y.
C)   Slope is positive if the two variables are moving in the same direction.
D)   Slope does not change if the line is linear.E) B) and D)
F) B) and C)

Question 17

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.

b. A federal state has mainly three...

Question 18

Economic growth causes a production possibilities frontier to shift outward.

Accepted Answer

A) True 
 B)False

Question 19

What is the x-coordinate?

Accepted Answer

A)   the first number of an ordered pair, which represents the point's horizontal location
B)   the second number of an ordered pair, which represents the point's horizontal location
C)   the first number of an ordered pair, which represents the point's vertical location
D)   the second number of an ordered pair, which represents the point's vertical locationE) A) and C)
F) B) and C)

Question 20

What would NOT be considered a factor of production?

Accepted Answer

A)   labour
B)   land
C)   capital
D)   bondsE) A) and C)
F) B) and C)

Exam 2: Thinking Like an Economist

What happens when economists test theories?

Correct Answer
verified

How does a scientist make assumptions?

Correct Answer
verified

What happens when scientists make good assumptions?

Correct Answer
verified

What does macroeconomics study?

Correct Answer
verified

What are economists who try to improve the world considered?

Correct Answer
verified

What is an ordered pair?

Correct Answer
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Which statement about slope is NOT correct?

Correct Answer
verified

Figure 2-9 -Refer to Figure 2-9. What do cups of coffee per day and the hours that someone can go without sleep have?

Correct Answer
verified

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

Figure 2-11 -Refer to Figure 2-11. The opportunity cost of more doghouses increases as more doghouses are produced.

Correct Answer
verified

What would NOT be considered a factor of production?

Correct Answer
verified

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Correct Answer
verified

Why are graphs such as bar graphs limited?

Correct Answer
verified

What is a characteristic of a good theory?

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3. At which point or points can the economy NOT produce?

Correct Answer
verified

What is the x-coordinate?

Correct Answer
verified

Economic growth causes a production possibilities frontier to shift outward.

Correct Answer
verified

What does evaluating a positive statement involve?

Correct Answer
verified

What do economists at the Bank of Canada do?

Correct Answer
verified

Who designs tax policy?

Correct Answer
verified

Exam 2: Thinking Like an Economist

What happens when economists test theories?

Correct AnswerverifiedShow Answer

How does a scientist make assumptions?

Correct AnswerverifiedShow Answer

What happens when scientists make good assumptions?

Correct AnswerverifiedShow Answer

What does macroeconomics study?

Correct AnswerverifiedShow Answer

What are economists who try to improve the world considered?

Correct AnswerverifiedShow Answer

What is an ordered pair?

Correct AnswerverifiedShow Answer

Which statement about slope is NOT correct?

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9. What do cups of coffee per day and the hours that someone can go without sleep have?

Correct AnswerverifiedShow Answer

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

Figure 2-11 -Refer to Figure 2-11. The opportunity cost of more doghouses increases as more doghouses are produced.

Correct AnswerverifiedShow Answer

What would NOT be considered a factor of production?

Correct AnswerverifiedShow Answer

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Correct AnswerverifiedShow Answer

Why are graphs such as bar graphs limited?

Correct AnswerverifiedShow Answer

What is a characteristic of a good theory?

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. At which point or points can the economy NOT produce?

Correct AnswerverifiedShow Answer

What is the x-coordinate?

Correct AnswerverifiedShow Answer

Economic growth causes a production possibilities frontier to shift outward.

Correct AnswerverifiedShow Answer

What does evaluating a positive statement involve?

Correct AnswerverifiedShow Answer

What do economists at the Bank of Canada do?

Correct AnswerverifiedShow Answer

Who designs tax policy?

Correct AnswerverifiedShow Answer

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

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verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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