Question 1

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

Accepted Answer

Bar graphs and pie charts are designed to show the distribution or proportion of a single variable, making them limited in their ability to display information on multiple variables or relationships between variables.

Question 2

To display information on two variables, an economist must use

Accepted Answer

The coordinate system is the best choice as it allows for the display of two variables on a two-dimensional plane, allowing for easy comparison and analysis of the relationship between the two variables. Bar graphs and pie charts are better for displaying one variable, while a time-series graph is better for displaying changes in a variable over time.

Question 3

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Accepted Answer

All three statements are widely accepted among professional economists. The negative impacts of tariffs and import quotas on general economic welfare are well-established in international trade theory. The adverse effects of large budget deficits on the economy are also well-documented in macroeconomics literature. And the idea that increasing minimum wage can lead to unemployment among young and unskilled workers is a common argument among economists who study labor markets.

Question 4

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 an)

Accepted Answer

A coordinate system (also known as a scatter plot) would be the best choice for comparing the relationship between two variables, in this case ticket prices and quantity demanded. A scatter plot allows for a clear representation of the data points and any potential patterns or correlations between the variables. Bar graphs and pie charts are better suited for displaying categorical data or comparing single data points. A time-series graph would be appropriate if Eva wanted to track changes in ticket prices and demand over time.

Question 5

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

Accepted Answer

The answer of A survey which sought the opinion of...

Question 6

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?

Accepted Answer

The other three propositions are included in the majority agreement among professional economists, but the proposition of withdrawing from NAFTA is not.

Question 7

The use of the coordinate system allows

Accepted Answer

The coordinate system allows for the display of two variables on a single graph. This is done through plotting the variables on the x and y axes, respectively. The coordinate system is commonly used in economics to depict relationships between variables such as price and quantity, or income and consumption.

Question 8

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 9

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

Accepted Answer

John Maynard Keynes believed that a great economist must not only have a strong foundation in mathematics but must also be knowledgeable in history and philosophy to understand how society and human behavior influence economic outcomes. Thus, all of the options are correct.

Question 10

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?

Accepted Answer

The other three propositions were agreed upon by more than three-fourths of professional economists, but there was no consensus on universal health care.

Question 11

John Maynard Keynes referred to economics as an easy subject,

Accepted Answer

Keynes is known for saying "Economics is a difficult and technical subject, but nobody will believe it." The statement implies that while economics may seem easy, few are able to truly excel in the subject.

Question 12

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 13

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 14

Almost all economists agree that rent control

Accepted Answer

Rent control creates disincentives for landlords to maintain or improve their rental properties, leading to lower quality housing. It also reduces the supply of affordable housing as landlords may choose to convert their units to other uses or refrain from building new units. Ultimately, rent control can lead to shortages and poorer quality of housing stock, which adversely affects tenants.

Question 15

Which of the following is not correct?

Accepted Answer

Graphs may indicate a relationship, but they cannot establish definite causation without further analysis and testing through empirical methods.

Question 16

Policies such as rent control and trade barriers persist

Accepted Answer

The statement mentions that the policies persist despite the fact that almost all economists agree that those policies are undesirable. Therefore, option D is the best choice.

Question 17

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Accepted Answer

Keynes did not mention that an economist must understand environmental science, regulation, and political science, so D is the correct answer. The other options are mentioned by Keynes as reasons why very few excel in the study of economics.

Question 18

Almost all economists agree that tariffs and import quotas

Accepted Answer

Tariffs and import quotas increase the price of imported goods, reducing the demand for them and causing a shift towards domestic goods, which may be of lower quality or higher cost. This ultimately reduces overall economic welfare by limiting consumer choices and increasing costs for businesses that rely on imports.

Question 19

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 must possess a rare combination of gifts, including mathematical aptitude, understanding of human psychology, and a wide range of knowledge in various fields.

Question 20

Almost all economists agree that local and state governments should

Accepted Answer

Eliminating subsidies to professional sports franchises would free up public funds to be used for more essential services such as education, infrastructure, and public health. The economic benefits that sports teams bring to a city are often overstated and do not justify the large tax breaks and subsidies that are frequently given to these franchises.

Quiz 2: Thinking Like an Economist

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

To display information on two variables, an economist must use

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

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 an)

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

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 use of the coordinate system allows

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

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

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?

John Maynard Keynes referred to economics as an easy subject,

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

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

Almost all economists agree that rent control

Which of the following is not correct?

Policies such as rent control and trade barriers persist

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Almost all economists agree that tariffs and import quotas

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?

Almost all economists agree that local and state governments should