Flashcards and Answers – Chapter 2 –
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The x-coordinate
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First number of an ordered pair and represents the point's horizontal location.
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Congress relies on economists at the Congressional Budget Office to
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Provide independent evaluation of policy proposals.
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Which of the following areas of study typifies macroeconomics as opposed to microeconomics?
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The effect on the economy of changes in the nation's unemployment rate.
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The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the
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Amount of the other good that must be given up
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The slope of a straight line is calculated by
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• Rise divided by run
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normative statement
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• Gasoline prices ought to be lower than they are now. • The federal government should raise taxes on wealthy people. • The social security system is a good system and it deserves to be preserved as it is.
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Who among the following individuals majored in economics as a college student?
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• Mick Jagger, singer • John Elway, National Football League quarterback • Kofi Annan, United Nations Secretary General
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Economics regard events from the past as
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• Interesting and valuable, because those events are capable of helping us to understand the past, the present, and the future.
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Because it is difficult for economists to use experiments to generate data, they generally must
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• Use whatever data the world gives them.
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True/False - If government regulations designed to protect wetlands removed very productive farmland from production, the production possibilities would shift inward.
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True
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In 2002, the Bush administration imposed temporary tariffs to protect domestic
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Steel Producers
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A survey of economists revealed that more than three-fourths of them agreed with a number of statements, including?
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• A minimum wage increases unemployment among young and unskilled workers. • A large federal budget deficit has an adverse effect on the economy. • Tariffs and import quotas usually reduce general economic well-being.
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Production is efficient if the economy is producing at a point
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On the production possibilities frontier.
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All of the following statements are correct.
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• Theory and observation are important in economics as well as in other sciences. • Relative to other scientists; economists find it more difficult to generate useful data. • To obtain data, economists often rely upon the natural experiments offered by history.
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The field of economics is traditionally divided into two broad sub-fields.
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Microeconomics and macroeconomics
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True/False - A production possibilities frontier is a graph that shows the various combinations of outputs the economy can produce given its factors of production and its technology.
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True
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The circular-flow diagram is a
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• Visual model of how the economy is organized.
