Question 1

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Accepted Answer

A)  the design and implementation of laboratory experiments.
B)  knowing when to stop collecting data and when to start analyzing the data.
C)  deciding which assumptions to make.
D)  being able to mathematically model natural phenomena.E) A) and C)
F) A) and D)

Question 2

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
-Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Accepted Answer

The answer of Figure 2-14  Consider the production possibilities...

Question 3

The inner loop of the circular-flow diagram represents the flows of inputs and outputs. Which of the following does not appear on the inner loop?

Accepted Answer

A)  wages
B)  land
C)  capital
D)  goods and services soldE) A) and B)
F) A) and D)

Question 4

Which of the following statements is correct?

Accepted Answer

A)  Economists almost always find it easy to conduct experiments in order to test their theories.
B)  Economics is not a true science because economists are not usually allowed to conduct experiments to test their theories.
C)  Economics is a social science rather than a true science because it cannot employ the scientific method.
D)  Economists are usually not able to conduct experiments, so they must rely on natural experiments offered by history.E) B) and C)
F) A) and D)

Question 5

Congress relies on economists at the Congressional Budget Office to

Accepted Answer

A)  enforce the nation's antitrust laws.
B)  set the nation's monetary policy.
C)  provide evidence that incumbent members of Congress are performing well in their jobs.
D)  provide independent evaluations of policy proposals.E) A) and B)
F) A) and C)

Question 6

Almost all economists agree that local and state governments should

Accepted Answer

A)  eliminate subsidies to professional sports franchises.
B)  increase subsidies to professional sports franchises.
C)  copy economic policy from Washington, D.C.
D)  prevent companies from outsourcing work.E) B) and C)
F) C) and D)

Question 7

In the markets for goods and services in the circular flow diagram, households act as

Accepted Answer

The answer of In the markets for goods and services...

Question 8

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Accepted Answer

A)  spending.
B)  revenue.
C)  income.
D)  wages, rent, and profit.E) A) and D)
F) B) and C)

Question 9

Figure 2-16​ 
-Refer to Figure 2-16. The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

Accepted Answer

A)  10 gadgets.
B)  30 widgets
C)  10 gadgets and 30 widgets.
D)  0 gadgets.E) A) and B)
F) A) and C)

Question 10

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

Accepted Answer

A) True 
 B)False

Question 11

Economic models are built with

Accepted Answer

A)  recommendations concerning public policies.
B)  facts about the legal system.
C)  assumptions.
D)  statistical forecasts.E) All of the above
F) C) and D)

Question 12

Figure 2-1 
-Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) None of the above
F) C) and D)

Question 13

The production possibilities frontier illustrates

Accepted Answer

A)  the trade-off between efficiency and equality.
B)  the combination of output that an economy should produce.
C)  the combination of output that each member of society should consume.
D)  None of the above is correct.E) A) and B)
F) A) and C)

Question 14

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
-Refer to Figure 2-14. Which point(s) on the graph is(are) unattainable given current resources and technology?

Accepted Answer

The answer of Figure 2-14  Consider the production possibilities...

Question 15

Economists at the Department of Justice

Accepted Answer

A)  track the behavior of the nation's money supply.
B)  advise Congress on economic matters.
C)  help enforce the nation's antitrust laws.
D)  prepare the federal budget.E) B) and C)
F) A) and D)

Question 16

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 17

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Accepted Answer

A)  0 washers.
B)  20 washers.
C)  40 washers.
D)  None of the above; the economy cannot move from point D to point A.E) A) and D)
F) A) and C)

Question 18

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Accepted Answer

A) True 
 B)False

Question 19

Figure 2-2 
-Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram, then Juan's income is represented by a flow of dollars

Accepted Answer

A)  from Box A to Box C.
B)  from Box C to Box A.
C)  from Box B to Box D.
D)  from Box D to Box B.E) All of the above
F) None of the above

Question 20

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Accepted Answer

A)  have no questions but hundreds of answers.
B)  have 100 questions and 3,000 answers.
C)  have 1,000 questions but no answers.
D)  never produce a winner.E) B) and C)
F) A) and D)

Exam 2: Thinking Like an Economist

Congress relies on economists at the Congressional Budget Office to

Correct Answer
verified

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Correct Answer
verified

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

Correct Answer
verified

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Correct Answer
verified

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Correct Answer
verified

The production possibilities frontier illustrates

Correct Answer
verified

Economic models are built with

Correct Answer
verified

Figure 2-16 -Refer to Figure 2-16. The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

Correct Answer
verified

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Correct Answer
verified

Economists at the Department of Justice

Correct Answer
verified

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct Answer
verified

In the markets for goods and services in the circular flow diagram, households act as

Correct Answer
verified

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Correct Answer
verified

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Correct Answer
verified

Almost all economists agree that local and state governments should

Correct Answer
verified

The inner loop of the circular-flow diagram represents the flows of inputs and outputs. Which of the following does not appear on the inner loop?

Correct Answer
verified

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. Which point(s) on the graph is(are) unattainable given current resources and technology?

Correct Answer
verified

Exam 2: Thinking Like an Economist

Congress relies on economists at the Congressional Budget Office to

Correct AnswerverifiedShow Answer

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Correct AnswerverifiedShow Answer

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

Correct AnswerverifiedShow Answer

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Correct AnswerverifiedShow Answer

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Correct AnswerverifiedShow Answer

The production possibilities frontier illustrates

Correct AnswerverifiedShow Answer

Economic models are built with

Correct AnswerverifiedShow Answer

Figure 2-16​ -Refer to Figure 2-16. The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Correct AnswerverifiedShow Answer

Economists at the Department of Justice

Correct AnswerverifiedShow Answer

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct AnswerverifiedShow Answer

In the markets for goods and services in the circular flow diagram, households act as

Correct AnswerverifiedShow Answer

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Correct AnswerverifiedShow Answer

Almost all economists agree that local and state governments should

Correct AnswerverifiedShow Answer

The inner loop of the circular-flow diagram represents the flows of inputs and outputs. Which of the following does not appear on the inner loop?

Correct AnswerverifiedShow Answer

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. Which point(s) on the graph is(are) unattainable given current resources and technology?

Correct AnswerverifiedShow Answer

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Figure 2-16 -Refer to Figure 2-16. The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

Correct Answer
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