ECO 251 CH 2 QUIZ
The design of tax policy is one of the responsibilities of economists who work at the
Department of the Treasury
With respect to how economists study the economy, which of the following statements is most accurate?
Economists devise theories, collect data, and analyze the data to test the theories.
One way to characterize the difference between positive statements and normative statements is as follows:
Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be.
A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?
The United States should withdraw from the North American Free Trade Agreement (NAFTA).
Table 2-5 Corn (in bushels) Wheat (in bushels) 2000 0 1600 700 1200 1300 800 1800 400 2200 0 2500 Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following statements is correct?
The opportunity cost of a bushel of corn increases as more corn is produced.
Policymaking in a representative democracy
benefits from the input of economists, even if their advice is not always followed
Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use a(n)
coordinate system
Economists sometimes give conflicting advice because
economists have different values and scientific judgment.
Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because
economists have not yet convinced the general public that the policies are undesirable.
When economists make
normative statements, they are speaking not as scientists but as policy advisers.
When economists are trying to help improve the world, they are
policy advisers
The slope of a line is equal to
rise divided by run.
The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in
scientific judgments and values
To display information on two variables, an economist must use
the coordinate system.
The scientific method is
the dispassionate development and testing of theories about how the world works.
A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that
there was overwhelming endorsement of the propositions among the respondents.
An ordered pair is
two numbers that can be represented by a single point on a graph.