Econ quiz 2

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).

A demand curve shows the relationship

between price and quantity demanded.

A model that shows how dollars flow through markets among households and firms is called the

circular-flow diagram.

When two variables move in opposite directions, the curve relating them is

downward sloping, and we say the variables are negatively related.

Microeconomics is the study of

how individual households and firms make decisions.

Economists at the Department of the Treasury

provide advice on tax policy to the President.

Congress relies on economists at the Congressional Budget Office to

provide independent evaluations of policy proposals.

Almost all economists agree that tariffs and import quotas

reduces general economic welfare.

When two variables move in the same direction, the curve relating them is

upward sloping, and we say the variables are positively related.

A normative economic statement such as "The minimum wage should be abolished"

would require values and data to be evaluated.