Question 1

Which of the following is not correct?

Accepted Answer

Graphs allow economists to visually represent the relationship between variables, but they do not necessarily provide indisputable conclusions about causality. Causality must be established through careful analysis and experimentation, and graphs are only one tool that can be used to aid in this process.

Question 2

Which of the following allows you to provide information about the relationship between two variables?

Accepted Answer

The answer of Which of the following allows you to...

Question 3

Economists have helped modify the debate over the environment

Accepted Answer

Economists have highlighted the importance of efficient allocation of resources in addressing environmental issues. They have emphasized the need to consider the costs and benefits of different environmental policies and the trade-offs involved in addressing environmental problems.

Question 4

An ordered pair is

Accepted Answer

An ordered pair is simply two numbers written in a specific order, usually represented as (x, y). These two numbers can be plotted on a graph and represented by a single point. Therefore, option B is the correct choice.

Question 5

In the past, environmentalists thought of economics as a method of maximizing profits. Presently,

Accepted Answer

The first two options (A and B) are both correct. There has been increased recognition that economics can help with natural resource allocation, and economists are now contributing to environmental protection efforts. However, the third option (C) is not entirely true, as there are economists who work for environmental advocacy groups. Therefore, the best answer is D, as it includes the two correct options.

Question 6

How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?

Accepted Answer

Keynes believed that good economists needed to possess a rare combination of gifts, including mathematical ability, mastery of complex economic models, and an intuition for understanding human behavior and the workings of the market. Therefore, it is a subject at which few excel because it requires a specific set of skills and talents.

Question 7

The x-coordinate is the

Accepted Answer

The x-coordinate is always the first number in an ordered pair, and it represents the horizontal location of the point. This means that as you move left or right on a graph, you are changing the x-coordinate.

Question 8

Almost all economists agree that tariffs and import quotas

Accepted Answer

Most economists believe that tariffs and import quotas reduce overall economic welfare by increasing prices for consumers and ultimately leading to reduced competition and innovation in the domestic market.

Question 9

Which of the following is not an example of a graph of a single variable?

Accepted Answer

The answer of Which of the following is not an...

Question 10

The 1990 amendment to the Clean Air Act

Accepted Answer

The 1990 amendment to the Clean Air Act implemented a tradable allowances system for acid rain, allowing companies to buy or sell pollution permits. This was seen as a more efficient way to reduce pollution compared to traditional command and control regulations. The amendment did not ban all forms of pollution, create a research council on asthma, or make global warming a national priority.

Question 11

Graphs such as bar graphs and pie charts are limited in that they

Accepted Answer

Bar graphs and pie charts only provide information on one variable, making them limited in their ability to show relationships between multiple variables. They are useful for displaying data within a single category or variable, but cannot show how different variables relate to each other.

Question 12

According to economist John Maynard Keynes, a great economist must also be a(n)

Accepted Answer

According to Keynes, a great economist must also be a mathematician to analyze data and make predictions, a historian to understand past economic events and their impact on the present, and a philosopher to consider ethical and moral implications of economic policies. Therefore, all three choices are correct.

Question 13

In order to display information on two variables, an economist must use

Accepted Answer

The coordinate system (also known as a scatterplot) is the best choice for displaying information on two variables, as it allows for a clear visualization of the relationship between the two variables. A bar graph and pie chart are more suitable for displaying categorical data, and a time-series graph is more suitable for displaying changes in a variable over time.

Question 14

Almost all economists agree that local and state governments should

Accepted Answer

Economists argue that subsidies to professional sports franchises do not result in a significant economic boost for the local region. In fact, the cost of the subsidy often outweighs the economic benefits. Therefore, eliminating subsidies to professional sports franchises would be the best choice for local and state governments.

Question 15

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

Accepted Answer

The answer of Policies such as rent control and trade...

Question 16

Policies such as rent control and trade barriers persist

Accepted Answer

Rent control and trade barriers are typically viewed by economists as harmful policies that create inefficiencies in the market and have negative economic effects. However, these policies may persist due to political and social pressure from groups that benefit from them or due to a lack of understanding among policymakers and the general public about their negative consequences. Therefore, even though economists generally agree that these policies are undesirable, they may continue to be implemented.

Question 17

The use of the coordinate system allows

Accepted Answer

The coordinate system is used to display two variables on a single graph by plotting points with their corresponding x and y values. This allows for easy visualization and comparison of the relationship between the variables. Options A and B do not relate to the specific use of the coordinate system, and option D is incorrect as pie charts and bar graphs do not use the coordinate system.

Question 18

John Maynard Keynes referred to economics as an easy subject,

Accepted Answer

Keynes famously said, "The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas. Not, indeed, immediately, but after a certain interval; for in the field of economic and political philosophy there are not many who are influenced by new theories after they are twenty-five or thirty years of age, so that the ideas which civil servants and politicians and even agitators apply to current events are not likely to be the newest. But, soon or late, it is ideas, not vested interests, which are dangerous for good or evil. This is elementary common sense. Yet the fact is that in times of stress and strain we are – in ever-increasing numbers – governed by the obtuse ideas of long-dead economists."

Question 19

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers. He should use a(n)

Accepted Answer

A coordinate system (also known as a scatter plot) allows for a visual representation of the relationship between two continuous variables, such as price and quantity. A bar graph is more appropriate for displaying categorical data, and a pie chart is better for showing proportions of a whole. A time-series graph is useful for tracking changes in data over time.

Question 20

Differences in scientific judgement between economists is similar to all of the following except

Accepted Answer

Economists may debate different theories or policy recommendations based on their values, assumptions, and interpretations of data. This is comparable to politicians arguing about tax fairness, because policy preferences are often influenced by political ideology and values. However, the other choices involve disagreements about empirical facts (e.g. the shape of the earth, the existence of global warming) that can be resolved through scientific evidence and observation.

Quiz 2: Thinking Like an Economist