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Chapter 2 Thinking Like an Economist




Question;234. Which of the following would likely be studied by a macroeconomist;rather than a microeconomist?;a.;the;effect of an increase in the alcohol tax on the market for beer;b.;the;effect of foreign competition on the domestic auto industry;c.;the;effect of a price war in the airline industry;d.;the;effect of an increase in the minimum wage on an economy?s overall rate of;unemployment;235. Which of the following statements best captures the relationship;between microeconomics and macroeconomics?;a.;For the;most part, microeconomists are unconcerned with macroeconomics, and;macroeconomists are unconcerned with microeconomics.;b.;Microeconomists;study markets for small products, whereas macroeconomists study markets for;large products.;c.;Microeconomics;and macroeconomics are distinct from one another, yet they are closely;related.;d.;Microeconomics;is oriented toward policy studies, whereas macroeconomics is oriented toward;theoretical studies.;236. A macroeconomist - as opposed to a microeconomist - would study;a.;the;effects of rent control on housing in New York City.;b.;the;effects of foreign competition on the US auto industry.;c.;the;effects of borrowing by the federal government.;d.;the;effects of raising the gasoline tax on transit ridership.;The Economist as Policy Adviser;1. When economists are trying to explain the;world, they are;a.;scientists.;b.;policy;advisers.;c.;in the;realm of microeconomics rather than macroeconomics.;d.;in the;realm of normative economics rather than positive economics.;2. When economists are trying to help improve the;world, they are;a.;in the;realm of positive economics rather than normative economics.;b.;in the;realm of macroeconomics rather than microeconomics.;c.;scientists.;d.;policy;advisers.;3. Which of the following statements is correct;about the roles of economists?;a.;Economists;are best viewed as policy advisers.;b.;Economists;are best viewed as scientists.;c.;In;trying to explain the world, economists are policy advisers, in trying to;improve the world, they are scientists.;d.;In;trying to explain the world, economists are scientists, in trying to improve;the world, they are policy advisers.;4. When an economist is asked a question like;?why is unemployment higher for teenagers than for older workers?? the;economist;a.;is asked;to explain the cause of an economic event.;b.;is asked;to recommend a policy to improve economic outcomes.;c.;is asked;as a policy adviser.;d.;does not;have enough information to respond.;5. For economists, statements about the world are;of two types;a.;assumptions;and theories.;b.;true;statements and false statements.;c.;specific;statements and general statements.;d.;positive;statements and normative statements.;6. Normative statements are;a.;prescriptive;whereas positive statements are descriptive.;b.;descriptive;whereas positive statements are prescriptive.;c.;backward-looking;whereas positive statements are forward-looking.;d.;forward-looking;whereas positive statements are backward-looking.


Paper#55188 | Written in 18-Jul-2015

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