Question 1

Positive statements are

Accepted Answer

A)   prescriptive.
B)   claims about how the world should be.
C)   claims about how the world is.
D)   made by economists speaking as policy advisers.E) A) and C)
F) All of the above

Question 2

Economists regard events from the past as

Accepted Answer

A)   irrelevant, since history is unlikely to repeat itself.
B)   of limited interest, since those events seldom provide any useful economic data.
C)   interesting but not particularly valuable, since those events cannot be used to evaluate present-day economic theories.
D)   interesting and valuable, since those events are capable of helping us to understand the past, the present, and the future.E) All of the above
F) C) and D)

Question 3

Figure 2-4 
-Refer to Figure 2-4. Inefficient production is represented by which points) ?

Accepted Answer

A)   Q, S
B)   Q, S, T
C)   R, U
D)   TE) B) and D)
F) A) and D)

Question 4

Figure 2-2 
-Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

Accepted Answer

A)   Box C must represent the markets for the factors of production.
B)   Box D must represent the markets for goods and services.
C)   firms are sellers in the markets represented by Box C.
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 5

Normative conclusions

Accepted Answer

A)   come from positive analysis alone.
B)   are based on ignorance of positive analysis.
C)   involve value judgments.
D)   reflect the economist's role as scientist.E) A) and B)
F) A) and C)

Question 6

Figure 2-1 
-Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Accepted Answer

A)   B only
B)   A and B
C)   C only
D)   C and DE) A) and D)
F) All of the above

Question 7

Figure 2-19
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service 
-Refer to Figure 2-19. A policymaker observes this graph and concludes that increasing the frequency of commuter rail service is a certain way to get more commuters to choose the commuter rail instead of driving their own cars. You warn the policymaker about making a reverse causality mistake with which of the following statements?

Accepted Answer

A)   Higher gas prices are causing more people to choose the commuter rail over driving.
B)   The service frequency was increased in response to an increase in the number of passengers per hour.
C)   There is a positive relationship between frequency of stops and number of passengers.
D)   None of the above is correct.E) A) and B)
F) None of the above

Question 8

Figure 2-4 
-Refer to Figure 2-4. Unemployment could cause this economy to produce at which points) ?

Accepted Answer

A)   Q, S
B)   Q, S, T
C)   R, U
D)   TE) All of the above
F) None of the above

Question 9

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Accepted Answer

A) True 
 B)False

Question 10

Two variables that have a negative correlation move in opposite directions.

Accepted Answer

A) True 
 B)False

Question 11

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is are)  correct?

Accepted Answer

A)   Relative to some other scientists, economists find it more difficult to conduct experiments.
B)   Theory and observation are important in economics as well as in other sciences.
C)   To obtain data, economists often rely upon the natural experiments offered by history.
D)   All of the above are correct.E) All of the above
F) A) and C)

Question 13

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 14

A relatively flat demand curve indicates that

Accepted Answer

A)   quantity demanded will adjust only slightly to a price change.
B)   quantity demanded will adjust significantly to a price change.
C)   quantity demanded will not adjust to a price change.
D)   the change in quantity demanded will exactly equal a change in price.E) C) and D)
F) A) and C)

Question 15

Figure 2-22 
-Refer to Figure 2-22. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Accepted Answer

The answer of Figure 2-22 
-Refer to Figure 2-22. Is...

Question 16

Figure 2-1 
-Refer to Figure 2-1. Which arrow represents the flow of income payments?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) A) and B)
F) A) and C)

Question 17

Economists view positive statements as

Accepted Answer

A)   affirmative, justifying existing economic policy.
B)   optimistic, putting the best possible interpretation on things.
C)   descriptive, making a claim about how the world is.
D)   prescriptive, making a claim about how the world ought to be.E) B) and D)
F) All of the above

Question 18

Which of the following is not correct?

Accepted Answer

A)   The slope of a line will be a small positive number for a fairly flat upward-sloping line.
B)   The slope of a line will be a large positive number for a steep upward-sloping line.
C)   The slope of a line will be a negative number for a downward-sloping line.
D)   The slope of a line will be infinite for a horizontal line.E) A) and B)
F) All of the above

Question 19

Figure 2-16 
-Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Accepted Answer

A)   a positive correlation.
B)   a negative correlation.
C)   a random correlation.
D)   no correlation.E) A) and D)
F) A) and B)

Question 20

Figure 2-4 
-Refer to Figure 2-4. This economy has the ability to produce at which points) ?

Accepted Answer

A)   Q, R, T, U
B)   R, T, U
C)   R, U
D)   TE) All of the above
F) A) and D)

Exam 2: Thinking Like an Economist

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Correct Answer
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A relatively flat demand curve indicates that

Correct Answer
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Which of the following statements is are) correct?

Correct Answer
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Economists view positive statements as

Correct Answer
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Normative conclusions

Correct Answer
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Figure 2-22 -Refer to Figure 2-22. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Correct Answer
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Economists regard events from the past as

Correct Answer
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Figure 2-4 -Refer to Figure 2-4. This economy has the ability to produce at which points) ?

Correct Answer
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Figure 2-2 -Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

Correct Answer
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Figure 2-1 -Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Correct Answer
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Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of income payments?

Correct Answer
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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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Figure 2-16 -Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Correct Answer
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Figure 2-4 -Refer to Figure 2-4. Unemployment could cause this economy to produce at which points) ?

Correct Answer
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Positive statements are

Correct Answer
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Two variables that have a negative correlation move in opposite directions.

Correct Answer
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A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Correct Answer
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Correct Answer
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Figure 2-4 -Refer to Figure 2-4. Inefficient production is represented by which points) ?

Correct Answer
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Which of the following is not correct?

Correct Answer
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Exam 2: Thinking Like an Economist

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Correct AnswerverifiedShow Answer

A relatively flat demand curve indicates that

Correct AnswerverifiedShow Answer

Which of the following statements is are) correct?

Correct AnswerverifiedShow Answer

Economists view positive statements as

Correct AnswerverifiedShow Answer

Normative conclusions

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Figure 2-22 -Refer to Figure 2-22. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Correct AnswerverifiedShow Answer

Economists regard events from the past as

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. This economy has the ability to produce at which points) ?

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

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Figure 2-1 -Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of income payments?

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

Correct AnswerverifiedShow Answer

Figure 2-16 -Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. Unemployment could cause this economy to produce at which points) ?

Correct AnswerverifiedShow Answer

Positive statements are

Correct AnswerverifiedShow Answer

Two variables that have a negative correlation move in opposite directions.

Correct AnswerverifiedShow Answer

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. Inefficient production is represented by which points) ?

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Which of the following is not correct?

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