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.