Question 1

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 2

Almost all economists agree that rent control

Accepted Answer

Rent control can discourage investment in new housing units and lead to a decrease in the quality of existing housing. It can also reduce the incentive for landlords to maintain and repair their properties, leading to a decline in availability and quality of rental units.

Question 3

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, which included mathematical ability, a keen intuition for human psychology, and an understanding of history and politics. He believed that few possessed all of these qualities, which made economics a difficult subject to truly excel in.

Question 4

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

John Maynard Keynes did not mention environmental science, regulation, and political science as necessary areas of understanding for excelling in economics.

Question 5

To display information on two variables, an economist must use

Accepted Answer

The coordinate system is the best choice for displaying information on two variables as it allows for easy visualization of the relationship between the two variables by plotting their values on an x-y axis. Bar graphs and pie charts are more appropriate for displaying information on categorical data, while time-series graphs are better suited for displaying changes in one variable over time.

Question 6

Almost all economists agree that tariffs and import quotas

Accepted Answer

Tariffs and import quotas create market distortions by increasing the price of imported goods, which reduces general economic welfare by decreasing consumer surplus, increasing producer surplus, and reducing international trade. This results in lower efficiency, lower output, and fewer choices for consumers.

Question 7

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 line graph) is the best choice for displaying the relationship between two continuous variables, such as price and quantity demanded. A bar graph is better suited for comparing discrete data, such as the number of tickets sold for each concert, rather than the relationship between price and quantity. A pie chart is used to show how a whole is divided into parts and is not appropriate for displaying the relationship between price and quantity. A time-series graph is used to display data over time and is not appropriate for the relationship between price and quantity demanded.

Question 8

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 survey revealed that more than three-fourths of professional economists agreed with propositions related to free trade, the negative effects of price controls, and the benefits of flexible exchange rates. However, there was no proposition related to universal health care, making choice D the correct answer.

Question 9

Which of the following is not correct?

Accepted Answer

Graphs cannot guarantee indisputable conclusions about causes and effects in economics. Inferences drawn from graphs must also be supported by empirical evidence and sound economic reasoning in order to be considered credible.

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

According to the survey, more than three-fourths of professional economists agreed with thirteen economic propositions, including the elimination of agricultural subsidies and subsidies to professional sports franchises, as well as not restricting employers from outsourcing work to foreign countries. However, there is no mention of withdrawing from NAFTA in the survey results. Therefore, option B is not one of the fourteen economic propositions agreed upon by the economists surveyed.

Question 11

Almost all economists agree that local and state governments should

Accepted Answer

Eliminating subsidies to professional sports franchises is the best choice as it is a more prudent use of taxpayer money for local and state governments. These subsidies rarely generate enough economic benefits to justify their cost, and those who benefit the most from these subsidies are usually the team owners and players, not the local community.

Question 12

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

The question states that more than three-fourths of professional economists agreed with a number of statements. The statements are A) Tariffs and import quotas usually reduce general economic welfare, B) A large federal budget deficit has an adverse effect on the economy, and C) Minimum wage increases unemployment among young and unskilled workers. Therefore, all of the above statements are correct according to the survey.

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

The use of the coordinate system allows

Accepted Answer

The coordinate system is used to display two variables on a single graph, allowing for the visualization of patterns and relationships between the variables. It is commonly used in economics to plot data such as supply and demand curves, production possibilities frontiers, and economic growth models. While options A and B are related to economics, they do not specifically relate to the use of the coordinate system. Option D is incorrect because pie charts and bar graphs are typically not created using a coordinate system.

Question 15

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 16

Policies such as rent control and trade barriers persist

Accepted Answer

Almost all economists agree that rent control creates housing shortages and reduces quality of housing, while trade barriers reduce trade and economic growth, yet these policies continue due to political reasons and the interests of certain groups, such as rent control being supported by tenant advocacy groups and trade barriers being favored by industries protected from foreign competition.

Question 17

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 18

John Maynard Keynes referred to economics as an easy subject,

Accepted Answer

Keynes is quoted as saying, "The study of economics does not seem to require any specialised gifts of an unusually high order. Is it not, intellectually regarded, a very easy subject compared with the higher branches of philosophy and pure science? An easy subject at which very few excel!" Hence, the best answer would be A) at which very few excel.

Question 19

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

Accepted Answer

Bar graphs and pie charts are limited in that they only provide information on one variable. Bar graphs can show the frequency or magnitude of a single variable, while pie charts can show the proportion of a single variable. They do not provide information on the relationship between multiple variables.

Question 20

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...

Quiz 2: Thinking Like an Economist

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

Almost all economists agree that rent control

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?

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?

To display information on two variables, an economist must use

Almost all economists agree that tariffs and import quotas

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 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?

Which of the following is not correct?

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?

Almost all economists agree that local and state governments should

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

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

The use of the coordinate system allows

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

Policies such as rent control and trade barriers persist

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

John Maynard Keynes referred to economics as an easy subject,

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

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