Question 1

Economists make assumptions to

Accepted Answer

A)   provide issues for political discussion.
B)   make a complex world easier to understand.
C)   make it easier to teach economic concepts and analysis.
D)   create policy alternatives that are incomplete or subject to criticism.E) A) and B)
F) All of the above

Question 2

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Accepted Answer

A) True 
 B)False

Question 3

An ordered pair is

Accepted Answer

A)   the process of checking calculations twice before placing them on a graph.
B)   two numbers that can be represented by a single point on a graph.
C)   two numbers that are represented by two points on a graph.
D)   two points on a graph that are of equal distance from the origin.E) A) and B)
F) All of the above

Question 4

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Accepted Answer

A)   Collect and analyze data.
B)   Go to a laboratory and generate data to test the theory.
C)   Publish the theory without testing it.
D)   Consult with other economists to see they agree with the theory.E) All of the above
F) A) and B)

Question 5

Which markets are represented in the simple circular-flow diagram?

Accepted Answer

A)   markets for goods and services and markets for financial assets
B)   markets for factors of production and markets for financial assets
C)   markets for goods and services and markets for factors of production
D)   markets for goods and services and markets for imports and exportsE) A) and B)
F) A) and C)

Question 6

Economic models are most often composed of diagrams and equations.

Accepted Answer

A) True 
 B)False

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 D)
F) All of the above

Question 8

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Accepted Answer

A) True 
 B)False

Question 9

Among economic models, the circular-flow diagram is unusual in that it

Accepted Answer

A)   drastically simplifies the real world.
B)   features more than one type of market.
C)   features flows of dollars.
D)   does not involve mathematics.E) A) and D)
F) A) and C)

Question 10

In the circular-flow diagram, factors of production include land, labor, and capital.

Accepted Answer

A) True 
 B)False

Question 11

Use the following Figure to answer the question : Figure 2-13 
-Refer to Figure 2-13. One difference between points F and G is that

Accepted Answer

A)   Point G is unattainable with current resources, but point F is attainable.
B)   All resources are fully employed at point F but there is unemployment at point G.
C)   More output can be produced at point F but no additional output can be produced at point G.
D)   This economy produces more cookies at point G than at point F.E) A) and B)
F) A) and C)

Question 12

Use the following Table to answer the question : Table 2-6

-Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

Accepted Answer

The answer of Use the following Table to answer the...

Question 13

Use the following Figure to answer the question : 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. Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A)   There is a positive correlation between the frequency of service and the number of passengers.
B)   When there are 5 stops per hour, there are approximately 200 passengers.
C)   More stops per hour is associated with more passengers per hour.
D)   No other factors besides the frequency of service affect the number of passengers.E) A) and B)
F) C) and D)

Question 14

The x-coordinate is the

Accepted Answer

A)   first number of an ordered pair and represents the point's horizontal location.
B)   second number of an ordered pair and represents the point's horizontal location.
C)   first number of an ordered pair and represents the point's vertical location.
D)   second number of an ordered pair and represents the point's vertical location.E) A) and C)
F) A) and B)

Question 15

The argument that purchases of minivans cause large families is an example of

Accepted Answer

A)   omitted variables.
B)   normative statements.
C)   reverse causality.
D)   bias.E) A) and B)
F) B) and D)

Question 16

Positive statements are descriptive, while normative statements are prescriptive.

Accepted Answer

A) True 
 B)False

Question 17

Use the following Figure to answer the question : 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. The bowed outward shape of the production possibilities curve indicates that opportunity cost of apples in terms of sweaters is

Accepted Answer

The answer of Use the following Figure to answer the...

Question 18

Another term for factors of production is

Accepted Answer

A)   inputs.
B)   output.
C)   goods.
D)   services.E) A) and D)
F) All of the above

Question 19

You know an economist has crossed the line from scientist to policy adviser when he or she

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   talks about the evidence.
C)   makes normative statements.
D)   makes a claim about how the world is.E) None of the above
F) A) and D)

Question 20

Figure 2-10
Panel a) 
 
Panel b)

-Refer to Figure 2-10, Panel a)  and Panel b) . Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel a)  to Panel b) ?

Accepted Answer

A)   The tradeoff between the production of tractors and sofas changes.
B)   Production of 2 tractors and 10 sofas becomes efficient.
C)   Production of 6 tractors and 14 sofas becomes possible.
D)   The opportunity cost of a sofa is higher at all levels of sofa production.E) A) and B)
F) C) and D)

Exam 2: Thinking Like an Economist

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Correct Answer
verified

An ordered pair is

Correct Answer
verified

Use the following Table to answer the question : Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

Correct Answer
verified

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) and Panel b) . Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel a) to Panel b) ?

Correct Answer
verified

Among economic models, the circular-flow diagram is unusual in that it

Correct Answer
verified

Correct Answer
verified

Which markets are represented in the simple circular-flow diagram?

Correct Answer
verified

Positive statements are descriptive, while normative statements are prescriptive.

Correct Answer
verified

Economic models are most often composed of diagrams and equations.

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

Correct Answer
verified

You know an economist has crossed the line from scientist to policy adviser when he or she

Correct Answer
verified

Correct Answer
verified

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Correct Answer
verified

In the circular-flow diagram, factors of production include land, labor, and capital.

Correct Answer
verified

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Correct Answer
verified

The x-coordinate is the

Correct Answer
verified

The argument that purchases of minivans cause large families is an example of

Correct Answer
verified

The two loops in the circular-flow diagram represent

Correct Answer
verified

Economists make assumptions to

Correct Answer
verified

Another term for factors of production is

Correct Answer
verified

Exam 2: Thinking Like an Economist

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Correct AnswerverifiedShow Answer

An ordered pair is

Correct AnswerverifiedShow Answer

Use the following Table to answer the question : Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

Correct AnswerverifiedShow Answer

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) and Panel b) . Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel a) to Panel b) ?

Correct AnswerverifiedShow Answer

Among economic models, the circular-flow diagram is unusual in that it

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which markets are represented in the simple circular-flow diagram?

Correct AnswerverifiedShow Answer

Positive statements are descriptive, while normative statements are prescriptive.

Correct AnswerverifiedShow Answer

Economic models are most often composed of diagrams and equations.

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

Correct AnswerverifiedShow Answer

You know an economist has crossed the line from scientist to policy adviser when he or she

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Correct AnswerverifiedShow Answer

In the circular-flow diagram, factors of production include land, labor, and capital.

Correct AnswerverifiedShow Answer

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Correct AnswerverifiedShow Answer

The x-coordinate is the

Correct AnswerverifiedShow Answer

The argument that purchases of minivans cause large families is an example of

Correct AnswerverifiedShow Answer

The two loops in the circular-flow diagram represent

Correct AnswerverifiedShow Answer

Economists make assumptions to

Correct AnswerverifiedShow Answer

Another term for factors of production is

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