econ 211

Government controls over market prices frequently "backfire."

True

Slope is measured as rise/run.

True

The lower left-hand corner of a graph where the two axes meet is called the graph's origin.

True

Graphs are useful because of the way they

a. facilitate interpretation and analysis of data. b. clarify interpretation and analysis of ideas. c. permit a person to easily see relationships. d. convey an idea that might otherwise take many words.

During one winter quarter at Frozen U., snow falls every Friday night. Students assume that, on their campus, Fridays cause snow. This hypothesis

assumes that correlation implies causation

According to Robert Reich, secretary of Labor in the Clinton administration,

it is almost impossible to define the nationality of a multinational company.

One popular definition of economics is the study of

how to use limited means to meet unlimited wants

To an economist, the cost of a college education

includes the income that the student could have earned during the time spent in college.

The United States produces ____ of what it consumes, and consumes ____ of what it produces.

most, most

A ____ is a graph whose axes show the quantities of two inputs that are used to produce some output.

production indifference map

Every economic decision involves a trade-off because of

scarcity

An optimal decision is one that chooses

the most desirable alternative among the possibilities permitted by the resources available

Probably the most important source of efficiency in production is

the specialization of labor

A contour map illustrates which of the following?

the way that three variables are correlated

A recession can best be defined as a period of time in which

total output of the economy falls

Economic analysis requires both mathematical reasoning and historical study.

true

Economists define "efficiency" as the absence of waste

true

Economists use the term capital to describe that factor of production that includes human-made resources such as factories, buildings, machinery and tools.

true

From a society's viewpoint, when all resources are fully employed, a decision to have more of one thing means we must give up some of another thing.

true

The personal income tax is the single largest source of revenue for the federal government.

true

During fiscal year 2012, the most recent mentioned in the text, the federal government spent approximately

$3.7 trillion

The working population of the United States is approximately

144 million

Which of the following illustrates government acting as a referee?

enforcing contract provisions between buyer and seller

Although economic science can contribute theoretical and factual knowledge on a particular issue, the final decision on policy questions often depends on:

ethical considerations b. information that is not currently available c. social values

A minority of American women work outside of the home

false

In the Wealth of Nations, Adam Smith wrote about how countries could increase their consumption of goods and services through specialization and trade with other countries.

false

Market economies are not constrained by scarcity; only planned economies have that problem

false

The corporate income tax is the single largest source of revenue for the federal government.

false

The factors of production include all goods and services produced in an economy.

false

if society produces at a point inside the production possibilities frontier, it is characterized by full employment of resources.

false