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