Question 1

Table 2-5 
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Accepted Answer

A)  800 bushels of corn
B)  600 bushels of corn
C)  400 bushels of corn
D)  400 bushels of wheatE) None of the above
F) A) and B)

Question 2

Which of the following is an example of a normative - as opposed to a positive - statement?

Accepted Answer

A)  The discount rate is the interest rate the Federal Reserve charges banks to borrow funds.
B)  The US income tax rate increases with the amount of income earned.
C)  The government should increase the tax on gasoline.
D)  The US unemployment rate increased to 10 percent in 2009.E) All of the above
F) None of the above

Question 3

If a line passes through the points (20,5) and (10,10), then the slope of the line is 1/2.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about economic models is correct?

Accepted Answer

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.E) None of the above
F) A) and C)

Question 5

Figure 2-14 
-Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Accepted Answer

A) True 
 B)False

Question 6

Figure 2-8 
-Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Accepted Answer

A)  point J
B)  point K
C)  point L
D)  point ME) All of the above
F) C) and D)

Question 7

Figure 2-22 
-Refer to Figure 2-22. How are price and quantity related in this graph?

Accepted Answer

negatively...

Question 8

Figure 2-12 
-Refer to Figure 2-12. The shift of the production possibilities frontier from A to B can best be described as

Accepted Answer

A)  a downturn in the economy.
B)  economic growth.
C)  an enhancement of equality.
D)  an improvement in the allocation of resources.E) All of the above
F) A) and C)

Question 9

Which of the following is not something that John Maynard Keynes ​used to describe an economist?

Accepted Answer

A)  ​He must be a mathematician, historian, statesman, and philosopher in some degree.
B)  ​He must understand symbols and speak in words.
C)  ​He must only contemplate in abstract and general terms.
D)  ​He must study the present in light of the past for purposes of the future.E) A) and D)
F) B) and C)

Question 10

In the markets for goods and services in the circular-flow diagram,

Accepted Answer

A)  households provide firms with savings for investment.
B)  households provide firms with labor, land, and capital.
C)  firms provide households with output.
D)  firms provide households with profit.E) A) and B)
F) A) and C)

Question 11

An economy's production of two goods is efficient if

Accepted Answer

A)  all members of society consume equal portions of the goods.
B)  the goods are produced using only some of society's available resources.
C)  it is impossible to produce more of one good without producing less of the other.
D)  the opportunity cost of producing more of one good is zero.E) All of the above
F) A) and D)

Question 12

Figure 2-15 
-Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one car is

Accepted Answer

The answer of Figure 2-15 
-Refer to Figure 2-15. Consider...

Question 13

Figure 2-9
Panel (a) 
Panel (b)   
-Refer to Figure 2-9, Panel (a) . The opportunity cost of moving from point J to point L is

Accepted Answer

A)  2 donuts.
B)  2 donuts and 2 cups of coffee.
C)  2 cups of coffee.
D)  6 cups of coffee.E) C) and D)
F) A) and C)

Question 14

For an economist, the idea of making assumptions is regarded generally as a

Accepted Answer

A)  bad idea, since doing so leads to the omission of important ideas and variables from economic models.
B)  bad idea, since doing so invariably leads to data-collection problems.
C)  good idea, since doing so helps to simplify the complex world and make it easier to understand.
D)  good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.E) All of the above
F) None of the above

Question 15

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  a pie chart
B)  a bar graph
C)  a time-series graph
D)  a scatterplotE) C) and D)
F) All of the above

Question 17

The slope of a line passing through the points (15, 3)  and (10, 6)  is

Accepted Answer

A)  -3/5.
B)  3/5.
C)  -5/3.
D)  5/3.E) A) and D)
F) All of the above

Question 18

In the early 19th century, the Russian government sent doctors to southern Russian villages to provide assistance during a cholera epidemic. The villagers noticed that wherever doctors appeared, people died. Therefore, many doctors were chased away from villages, and some were even killed. This reaction to the correlation between doctors and deaths is most likely a problem of

Accepted Answer

A)  omitted variables.
B)  reverse causality.
C)  government propaganda.
D)  medical incompetence.E) All of the above
F) A) and B)

Question 19

Figure 2-11 
-Refer to Figure 2-11. The shift of the production possibilities frontier from A to B illustrates

Accepted Answer

A)  simultaneous technological advances in the book and DVD industries.
B)  a reallocation of resources away from the production of DVDs and toward the production of books.
C)  economic growth.
D)  All of the above are correct.E) None of the above
F) B) and C)

Question 20

Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

In the markets for goods and services in the circular-flow diagram,

Correct Answer
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Figure 2-14 -Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Correct Answer
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Figure 2-12 -Refer to Figure 2-12. The shift of the production possibilities frontier from A to B can best be described as

Correct Answer
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Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one car is

Correct Answer
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Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . The opportunity cost of moving from point J to point L is

Correct Answer
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Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Correct Answer
verified

Which of the following statements about economic models is correct?

Correct Answer
verified

If a line passes through the points (20,5) and (10,10), then the slope of the line is 1/2.

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

Correct Answer
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Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Correct Answer
verified

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Correct Answer
verified

Which of the following is an example of a normative - as opposed to a positive - statement?

Correct Answer
verified

For an economist, the idea of making assumptions is regarded generally as a

Correct Answer
verified

Which of the following is not something that John Maynard Keynes used to describe an economist?

Correct Answer
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Figure 2-11 -Refer to Figure 2-11. The shift of the production possibilities frontier from A to B illustrates

Correct Answer
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Figure 2-8 -Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Correct Answer
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The slope of a line passing through the points (15, 3) and (10, 6) is

Correct Answer
verified

Figure 2-22 -Refer to Figure 2-22. How are price and quantity related in this graph?

Correct Answer
verified
negatively...
View Answer

An economy's production of two goods is efficient if

Correct Answer
verified

Exam 2: Thinking Like an Economist

In the markets for goods and services in the circular-flow diagram,

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Correct AnswerverifiedShow Answer

Figure 2-12 -Refer to Figure 2-12. The shift of the production possibilities frontier from A to B can best be described as

Correct AnswerverifiedShow Answer

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one car is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . The opportunity cost of moving from point J to point L is

Correct AnswerverifiedShow Answer

Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Correct AnswerverifiedShow Answer

Which of the following statements about economic models is correct?

Correct AnswerverifiedShow Answer

If a line passes through the points (20,5) and (10,10), then the slope of the line is 1/2.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Correct AnswerverifiedShow Answer

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

Correct AnswerverifiedShow Answer

Which of the following is an example of a normative - as opposed to a positive - statement?

Correct AnswerverifiedShow Answer

For an economist, the idea of making assumptions is regarded generally as a

Correct AnswerverifiedShow Answer

Which of the following is not something that John Maynard Keynes ​used to describe an economist?

Correct AnswerverifiedShow Answer

Figure 2-11 -Refer to Figure 2-11. The shift of the production possibilities frontier from A to B illustrates

Correct AnswerverifiedShow Answer

Figure 2-8 -Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Correct AnswerverifiedShow Answer

The slope of a line passing through the points (15, 3) and (10, 6) is

Correct AnswerverifiedShow Answer

Figure 2-22 -Refer to Figure 2-22. How are price and quantity related in this graph?

Correct Answerverifiednegatively...View AnswerShow Answer

An economy's production of two goods is efficient if

Correct AnswerverifiedShow Answer

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Which of the following is not something that John Maynard Keynes used to describe an economist?

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negatively...
View Answer

Correct Answer
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