ECON Midterm EXAM [ACTUAL EXAM] LATEST
VERSION [QUESTIONS AND ANSWERS]
DETAILED AND VERIFIED FOR GUARANTEED
PASS- LATEST UPDATE 2025 GRADED A
(BRAND NEW!!)
A model can be accurately described as a
a.theoretical abstraction with very little value.
b.device that is useful only to the people who created it.
c.realistic and carefully constructed theory.
d.simplification of reality - CORRECT ANSWER ✔✔✔✔✔
D.simplification of reality
Which of the following statements about models is correct?
a.The more details a model includes, the better the model.
b.Models assume away irrelevant details.
c.Models cannot be used to explain how the economy functions.
d.Models cannot be used to make predictions - CORRECT ANSWER
✔✔✔✔✔ B.Models assume away irrelevant details.
In building economic models, economists often omit
a.assumptions. b.theories.
c.details.
d.equations. - CORRECT ANSWER ✔✔✔✔✔ c.details.
Which of the following statements about economic models is correct?
a.Economic models are built to mirror reality exactly.
b.Economic models are useful, but they should not be used for the
purpose of improving public policies.
c.Because economic models omit many details, they allow us to see
what is truly important.
,d.Economic models seldom incorporate equations or diagrams -
CORRECT ANSWER ✔✔✔✔✔ c.Because economic models omit
many details, they allow us to see what is truly important.
Which of the following is
not
correct about most economic models?
a.They are composed of equations and diagrams.
b.They contribute very little to economists' understanding of the real
world.
c.They omit many features of the real-world economy.
d.In constructing models, economists make assumptions. - CORRECT
ANSWER ✔✔✔✔✔ b.They contribute very little to economists'
understanding of the real world.
The circular-flow diagram is an example of
a.a laboratory experiment.
b.an economic model.
c.a mathematical model.
d.All of the above are correct - CORRECT ANSWER ✔✔✔✔✔ b.an
economic model.
A circular-flow diagram is a model that
a.helps to explain how participants in the economy interact with one
another. b.helps to explain how the economy is organized.
c.incorporates all aspects of the real economy.
d.Both (a) and (b) are correct. - CORRECT ANSWER ✔✔✔✔✔ d.Both
(a) and (b) are correct.
Which of the following statements about the circular-flow diagram is
correct?
a.One must imagine that the economy operates without money in
order to make sense of the diagram.
b.The diagram leaves out details that are not essential for
understanding the economic transactionsthat occur between
households and firms.
c.The government cannot be excluded as a decision maker in a
circular-flow diagram.
, d.All of the above are correct. - CORRECT ANSWER ✔✔✔✔✔ b.The
diagram leaves out details that are not essential for understanding the
economic transactionsthat occur between households and firms.
In the simple circular-flow diagram, the participants in the economy
are
a.firms and government.
b.households and firms.
c.households and government.
d.households, firms, and government. - CORRECT ANSWER ✔✔✔✔✔
b.households and firms.
q - CORRECT ANSWER ✔✔✔✔✔ d.households and firms
In the circular-flow diagram, firms produce
a.goods and services using factors of production.
b.output using inputs.
c.factors of production using goods and services.
d.Both (a) and (b) are correct - CORRECT ANSWER ✔✔✔✔✔ d.Both
(a) and (b) are correct
Factors of production are
a.the mathematical calculations firms make in determining their
optimal production levels.
b.social and political conditions that affect production.
c.the physical relationships between economic inputs and outputs.
d.inputs into the production process - CORRECT ANSWER ✔✔✔✔✔
d.inputs into the production process
s - CORRECT ANSWER ✔✔✔✔✔ a.used to produce goods and
services.
In the circular-flow diagram, which of the following is
not
a factor of production?
a.labor
b.land
c.capital
d.money - CORRECT ANSWER ✔✔✔✔✔ d.money
VERSION [QUESTIONS AND ANSWERS]
DETAILED AND VERIFIED FOR GUARANTEED
PASS- LATEST UPDATE 2025 GRADED A
(BRAND NEW!!)
A model can be accurately described as a
a.theoretical abstraction with very little value.
b.device that is useful only to the people who created it.
c.realistic and carefully constructed theory.
d.simplification of reality - CORRECT ANSWER ✔✔✔✔✔
D.simplification of reality
Which of the following statements about models is correct?
a.The more details a model includes, the better the model.
b.Models assume away irrelevant details.
c.Models cannot be used to explain how the economy functions.
d.Models cannot be used to make predictions - CORRECT ANSWER
✔✔✔✔✔ B.Models assume away irrelevant details.
In building economic models, economists often omit
a.assumptions. b.theories.
c.details.
d.equations. - CORRECT ANSWER ✔✔✔✔✔ c.details.
Which of the following statements about economic models is correct?
a.Economic models are built to mirror reality exactly.
b.Economic models are useful, but they should not be used for the
purpose of improving public policies.
c.Because economic models omit many details, they allow us to see
what is truly important.
,d.Economic models seldom incorporate equations or diagrams -
CORRECT ANSWER ✔✔✔✔✔ c.Because economic models omit
many details, they allow us to see what is truly important.
Which of the following is
not
correct about most economic models?
a.They are composed of equations and diagrams.
b.They contribute very little to economists' understanding of the real
world.
c.They omit many features of the real-world economy.
d.In constructing models, economists make assumptions. - CORRECT
ANSWER ✔✔✔✔✔ b.They contribute very little to economists'
understanding of the real world.
The circular-flow diagram is an example of
a.a laboratory experiment.
b.an economic model.
c.a mathematical model.
d.All of the above are correct - CORRECT ANSWER ✔✔✔✔✔ b.an
economic model.
A circular-flow diagram is a model that
a.helps to explain how participants in the economy interact with one
another. b.helps to explain how the economy is organized.
c.incorporates all aspects of the real economy.
d.Both (a) and (b) are correct. - CORRECT ANSWER ✔✔✔✔✔ d.Both
(a) and (b) are correct.
Which of the following statements about the circular-flow diagram is
correct?
a.One must imagine that the economy operates without money in
order to make sense of the diagram.
b.The diagram leaves out details that are not essential for
understanding the economic transactionsthat occur between
households and firms.
c.The government cannot be excluded as a decision maker in a
circular-flow diagram.
, d.All of the above are correct. - CORRECT ANSWER ✔✔✔✔✔ b.The
diagram leaves out details that are not essential for understanding the
economic transactionsthat occur between households and firms.
In the simple circular-flow diagram, the participants in the economy
are
a.firms and government.
b.households and firms.
c.households and government.
d.households, firms, and government. - CORRECT ANSWER ✔✔✔✔✔
b.households and firms.
q - CORRECT ANSWER ✔✔✔✔✔ d.households and firms
In the circular-flow diagram, firms produce
a.goods and services using factors of production.
b.output using inputs.
c.factors of production using goods and services.
d.Both (a) and (b) are correct - CORRECT ANSWER ✔✔✔✔✔ d.Both
(a) and (b) are correct
Factors of production are
a.the mathematical calculations firms make in determining their
optimal production levels.
b.social and political conditions that affect production.
c.the physical relationships between economic inputs and outputs.
d.inputs into the production process - CORRECT ANSWER ✔✔✔✔✔
d.inputs into the production process
s - CORRECT ANSWER ✔✔✔✔✔ a.used to produce goods and
services.
In the circular-flow diagram, which of the following is
not
a factor of production?
a.labor
b.land
c.capital
d.money - CORRECT ANSWER ✔✔✔✔✔ d.money
