Question 1

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Accepted Answer

The answer of Suppose a war in the Middle East...

Question 2

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Accepted Answer

A) True 
 B)False

Question 3

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)   Home experienced increased unemployment.
B)   Home experienced a decline in pear-producing technology.
C)   Home experienced an improvement in cellular phone-making technology.
D)   Home experienced a reduction in resources.E) None of the above
F) A) and D)

Question 4

It is possible for an economy to increase its production of both goods if the economy

Accepted Answer

A)   moves downward and to the right along its production possibilities frontier and the frontier is bowed outward.
B)   moves upward and to the left along its production possibilities frontier and the frontier is bowed outward.
C)   moves in either direction along its production possibilities frontier and the frontier is a straight line.
D)   moves from a situation of inefficient production to a situation of efficient production.E) A) and B)
F) A) and C)

Question 5

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Accepted Answer

The answer of Like biologists and physicists, economists use the...

Question 6

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Accepted Answer

A)   120 pillows.
B)   120 blankets.
C)   120 blankets and 120 pillows.
D)   200 blankets.E) B) and D)
F) B) and C)

Question 7

The two loops in the circular-flow diagram represent

Accepted Answer

A)   the flow of goods and the flow of services.
B)   the flow of dollars and the flow of financial assets.
C)   the flow of inputs into production processes and the flow of outputs from production processes.
D)   the flows of inputs and outputs and the flow of dollars.E) A) and B)
F) None of the above

Question 8

The Council of Economic Advisers

Accepted Answer

A)   was created in 1946.
B)   advises the president of the United States on economic policy matters.
C)   writes the annual Economic Report of the President.
D)   All of the above are correct.E) All of the above
F) C) and D)

Question 9

Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50,000 textiles and 1300 computers. This year it produced 45,000 textiles and 1100 computers. Given no further information, which of the following events could explain this change?

Accepted Answer

A)   Indiadesh decreased unemployment.
B)   Indiadesh experienced an improvement in textile-making technology.
C)   Indiadesh experienced an improvement in computer-making technology.
D)   Indiadesh experienced a reduction in resources.E) A) and B)
F) A) and C)

Question 10

Figure 2-21 
-Refer to Figure 2-21. According to the graph, snowstorms

Accepted Answer

A)   and snowblowers sold are positively correlated.
B)   and snowblowers sold are negatively correlated
C)   and snowblowers sold are uncorrelated.
D)   are caused by more snowblowers being sold.E) A) and C)
F) B) and C)

Question 11

Figure 2-20
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-20. The graph above is a

Accepted Answer

A)   bar graph
B)   scatterplot
C)   pie chart
D)   time series analysisE) All of the above
F) B) and D)

Question 12

Figure 2-16 
-Refer to Figure 2-16. The graph shown is known as a

Accepted Answer

A)   time-series graph.
B)   bar graph.
C)   scatterplot.
D)   pie chart.E) None of the above
F) B) and C)

Question 13

Economic models

Accepted Answer

A)   are constructed to mirror reality as closely as possible, and in this respect economic models are no different from other scientific models.
B)   are constructed to mirror reality as closely as possible, and in this respect economic models are very different from other scientific models.
C)   are simplifications of reality, and in this respect economic models are no different from other scientific models.
D)   are simplifications of reality, and in this respect economic models are very different from other scientific models.E) B) and D)
F) B) and C)

Question 14

In the markets for factors of production in the circular-flow diagram,

Accepted Answer

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

Question 15

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) All of the above
F) None of the above

Question 16

Who would be more likely to study the effects of government spending on the unemployment rate, a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 17

In the circular-flow diagram, in the markets for

Accepted Answer

A)   goods and services, households and firms are both sellers.
B)   goods and services, households are sellers and firms are buyers.
C)   the factors of production, households are sellers and firms are buyers.
D)   the factors of production, households and firms are both buyers.E) A) and D)
F) B) and C)

Question 18

Which of the following statements is correct about the roles of economists?

Accepted Answer

A)   Economists are best viewed as policy advisers.
B)   Economists are best viewed as scientists.
C)   In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists.
D)   In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers.E) All of the above
F) A) and B)

Question 19

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Accepted Answer

A)   20 dryers.
B)   20 washers.
C)   20 dryers and 20 washers.
D)   60 dryers.E) C) and D)
F) All of the above

Question 20

If a major union goes on strike, then the country would be operating inside its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

In the circular-flow diagram, in the markets for

Correct AnswerverifiedShow Answer

The two loops in the circular-flow diagram represent

Correct AnswerverifiedShow Answer

Which of the following statements is correct about the roles of economists?

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

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. The graph above is a

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Correct AnswerverifiedShow Answer

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Correct AnswerverifiedShow Answer

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Correct AnswerverifiedShow Answer

Figure 2-16 -Refer to Figure 2-16. The graph shown is known as a

Correct AnswerverifiedShow Answer

Who would be more likely to study the effects of government spending on the unemployment rate, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Correct AnswerverifiedShow Answer

Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50,000 textiles and 1300 computers. This year it produced 45,000 textiles and 1100 computers. Given no further information, which of the following events could explain this change?

Correct AnswerverifiedShow Answer

In the markets for factors of production in the circular-flow diagram,

Correct AnswerverifiedShow Answer

The Council of Economic Advisers

Correct AnswerverifiedShow Answer

It is possible for an economy to increase its production of both goods if the economy

Correct AnswerverifiedShow Answer

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Correct AnswerverifiedShow Answer

If a major union goes on strike, then the country would be operating inside its production possibilities frontier.

Correct AnswerverifiedShow Answer

Figure 2-21 -Refer to Figure 2-21. According to the graph, snowstorms

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified