Review Quiz On Economics And Economists! Trivia Quiz

Efficiency in an economy refers to the ability to maximize output from limited resources. If an outcome is efficient, it means that the economy is utilizing its scarce resources to their fullest potential, leaving no wasted or unused resources. This implies that the economy is producing the maximum possible output given its available resources, making the statement "True".

Economists use models composed of diagrams and equations to represent and analyze economic situations. These models help economists understand and predict the behavior of individuals, firms, and markets. Diagrams visually represent relationships and interactions between economic variables, while equations mathematically express these relationships. By using models, economists can simplify complex economic systems and make predictions about how changes in variables will affect outcomes. Therefore, the statement "Economists use models which are often composed of diagrams and equations" is true.

Economists use different assumptions when studying the short-run and long-run effects of a change in the quantity of money. This is true because the short-run effects of a change in the quantity of money are often characterized by sticky prices and wages, which means that they do not adjust immediately to changes in the money supply. In the short-run, changes in the quantity of money can have real effects on output and employment. In contrast, the long-run effects of a change in the quantity of money are primarily determined by changes in the price level. In the long-run, prices and wages are more flexible, and changes in the money supply primarily affect the price level rather than real variables.

This statement suggests that economists, similar to astronomers and evolutionary biologists, have to work with the data that is available to them. It implies that economists cannot always have access to perfect or ideal data, but they still have to make use of whatever information is provided to them in order to conduct their research and analysis. Therefore, the answer is true.

The statement is true because the production possibilities frontier represents the maximum potential output of an economy given its resources and technology. Any point on or inside the frontier represents a combination of goods and services that can be produced efficiently. However, points outside the frontier are unattainable with the current resources and technology. Therefore, the economy can only produce at points on or inside the production possibilities frontier.

The production possibilities frontier is a graphical representation of the maximum output combinations of two goods that an economy can produce with its given resources and technology. It illustrates the trade-off between producing different goods at a given time. However, this trade-off is not fixed and can change over time due to various factors such as technological advancements, changes in resource availability, or shifts in consumer preferences. Therefore, it is true that the trade-off depicted by the production possibilities frontier can change over time.

Economics being a young science implies that there is still a lot of knowledge to be acquired and understood in the field. This statement suggests that there are ongoing advancements and discoveries to be made, indicating that there is still much to learn in economics. Therefore, the answer "True" is appropriate as it aligns with the idea that economics is a continuously evolving discipline with more to be explored.

An economist as a scientist is responsible for devising theories, collecting data, and analyzing data. However, generalizing trends is not considered a role of an economist as a scientist. Generalizing trends involves making broad statements or conclusions about patterns observed in the data, which is more commonly associated with the role of an economist as a policy advisor or communicator rather than as a scientist.

Models are constructed based on certain assumptions, which are simplified representations of reality. These assumptions help to simplify complex systems and make them more manageable for analysis and interpretation. Therefore, it is true that all models are built with assumptions.

Microeconomics and macroeconomics are two branches of economics that focus on different aspects of the economy. Microeconomics studies the behavior of individual economic agents such as households and firms, while macroeconomics examines the overall performance and behavior of the entire economy. Due to these different focuses, each field requires its own specific models and theories to analyze and understand the economic phenomena being studied. Therefore, the statement that "each field has its own set of models" is true.

In fact, markets can help achieve environmental goals.

economists pay close attention to the natural experiments offered by history.

it is by deciding which assumptions to make.

It is impossible.

Economists use graphs to argue about how one set of events causes another set of events.

It is not just a matter of science. It involves our views on ethics, religion, and political philosophy.

This statement is true because the given graph shows a relationship between the risk of cancer and the number of lighters in the house. However, it does not consider other variables that could affect the risk of cancer, such as smoking habits, exposure to carcinogens, or genetic factors. Omitted variables refer to factors that are not included in the analysis but could have an impact on the relationship being studied. Therefore, this graph is an example of omitted variables as it only considers one variable (number of lighters) while ignoring other potential factors that could influence the risk of cancer.

it does not include every feature of the economy.

The production possibilities frontier is a graphical representation of the maximum output an economy can produce given its resources and technology. It helps to illustrate the concept of scarcity and trade-offs, as it shows the different combinations of goods and services that can be produced. Economic growth, opportunity cost, and scarcity are all concepts that the production possibilities frontier can effectively highlight. However, inflation is not directly related to the production possibilities frontier as it represents a general increase in prices over time.

They may disagree about it.

Economists may have different values and therefore different normative views about what policy should try to accomplish.

It will have a negative correlation.

The explanation for the given correct answer is that when a variable that is not named on either axis changes, it causes a shift in the curve. This means that if a factor or variable that affects the demand curve, such as income or consumer preferences, changes, it will result in a shift of the demand curve. Therefore, the statement that it is necessary to shift a curve when a variable that is not named on either axis changes is true.

It is an example of Reverse Causality.

Exports go down.

It is sometimes impossible.

The Bureau of Food and Drugs does not give inputs about the economy to the president of a country. This is because the Bureau of Food and Drugs primarily focuses on regulating and ensuring the safety of food and drugs in the country, rather than providing economic information or analysis.

That's what Sir said :))

Assumptions can simplify the complex world and make it easier to understand.

The circular-flow diagram is a simplified representation of how goods, services, and money flow in an economy. While it provides important information about the interconnections between households, businesses, and the government, it is not essential for a basic understanding of how the economy is organized. Basic understanding can be achieved by grasping concepts such as supply and demand, the role of prices, and the functions of different economic agents. Therefore, the statement that the circular-flow diagram does not provide crucial details for basic understanding of the economy is true.

Science is a search for understanding about the world around us.

Economy is the sum of the activities of all the decision makers in all the markets.

Economists offer crucial input into the policy process, but their advice is only one ingredient of a complex recipe.

Most economic models are built using tools of mathematics.

which variable moves first.

Graphs offer a way to visually express ideas, allowing information to be presented in a clear and concise manner. They provide a visual representation of data, making it easier for individuals to understand and interpret complex information. Additionally, graphs provide a powerful way of finding and interpreting patterns, allowing trends and relationships to be identified more easily. By visually representing data, graphs help simplify complex phenomena and allow economists to analyze and understand trends in the macroeconomic level.