Question 1

Figure 2-6 
-Refer to Figure 2-6.Efficient production is represented by which point(s) ?

Accepted Answer

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

Question 2

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> This diagram should duplicate the essen...

Question 3

Figure 2-2  Consider the production possibilities curve for a country that can produce cars,corn (in bushels) ,or a combination of the two.
-Which of the following is a positive,as opposed to a normative,statement?

Accepted Answer

A)   The US Department of Justice should allow a merger between AT&T and T-Mobile because it would have little effect on consumers.
B)   Antitrust laws should be used to prevent further concentration in the wireless telephone service market.
C)   The US Department of Justice sued AT&T to block its merger with T-Mobile.
D)   The wireless telephone service market is too highly concentrated.E) A) and D)
F) A) and C)

Question 4

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 5

Figure 2-2  Consider the production possibilities curve for a country that can produce cars,corn (in bushels),or a combination of the two.
-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 Figure 2-2  Consider the production possibilities...

Question 6

Policymaking in a representative democracy

Accepted Answer

A)   is straightforward and does not involve any disagreement.
B)   benefits from the input of economists,even if their advice is not always followed.
C)   is conducted without the input of economists.
D)   is always based exclusively on the results of economic analysis.E) A) and C)
F) A) and B)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In the circular-flow diagram,which of the following items flows from firms to households through the markets for goods and services?

Accepted Answer

A)   goods and services
B)   dollars paid to land,labor,and capital
C)   dollars spent on goods and services
D)   wages,rent,and profitE) All of the above
F) B) and C)

Question 9

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 10

Figure 2-14 
-Refer to Figure 2-14.Points A,B,and D represent efficient outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 11

Unemployment would cause an economy to

Accepted Answer

A)   produce inside its production possibilities frontier.
B)   produce on its production possibilities frontier.
C)   produce outside its production possibilities frontier.
D)   experience an inward shift of its production possibilities frontier.E) B) and C)
F) B) and D)

Question 12

Figure 2-1 
-Refer to Figure 2-1.What is the name of the model depicted in the figure?

Accepted Answer

The answer of Figure 2-1 
-Refer to Figure 2-1.What is...

Question 13

When a production possibilities frontier is bowed outward,the opportunity cost of producing an additional unit of a good

Accepted Answer

A)   increases as more of the good is produced.
B)   decreases as more of the good is produced.
C)   does not change as more of the good is produced.
D)   may increase,decrease,or not change as more of the good is produced.E) A) and D)
F) A) and C)

Question 14

The slope of an upward-sloping line is positive,and the slope of a downward-sloping line is negative.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-14 
-Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)   Inflation is more harmful to the economy than unemployment is.
B)   If welfare payments increase,the world will be a better place.
C)   Prices rise when the government prints too much money.
D)   When public policies are evaluated,the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.E) None of the above
F) All of the above

Question 17

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements,including which of the following?

Accepted Answer

A)   Tariffs and import quotas usually reduce general economic welfare.
B)   A large federal budget deficit has an adverse effect on the economy.
C)   Minimum wage increases unemployment among young and unskilled workers.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 18

The ordered pair that represents the origin on a graph is

Accepted Answer

A)   (1,1) .
B)   (0,0) .
C)   (-1,-1) .
D)   () .E) A) and B)
F) A) and C)

Question 19

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Accepted Answer

A) True 
 B)False

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

The ordered pair that represents the origin on a graph is

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Figure 2-1 -Refer to Figure 2-1.What is the name of the model depicted in the figure?

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The slope of an upward-sloping line is positive,and the slope of a downward-sloping line is negative.

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

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Figure 2-14 -Refer to Figure 2-14.Points A,B,and D represent efficient outcomes for this economy.

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

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Figure 2-6 -Refer to Figure 2-6.Efficient production is represented by which point(s) ?

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Policymaking in a representative democracy

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Unemployment would cause an economy to

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In the circular-flow diagram,which of the following items flows from firms to households through the markets for goods and services?

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Figure 2-2 Consider the production possibilities curve for a country that can produce cars,corn (in bushels),or a combination of the two. -Who would be more likely to study the effects of government spending on the unemployment rate,a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Correct Answerverified This diagram should duplicate the essen...View AnswerShow Answer

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

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When a production possibilities frontier is bowed outward,the opportunity cost of producing an additional unit of a good

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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.

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A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements,including which of the following?

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Figure 2-14 -Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

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

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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.

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Figure 2-2 Consider the production possibilities curve for a country that can produce cars,corn (in bushels) ,or a combination of the two. -Which of the following is a positive,as opposed to a normative,statement?

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This diagram should duplicate the essen...
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