Question 1

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 2

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Accepted Answer

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

Question 3

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 4

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 5

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases, the y-variable decreases.
B)   when the x-variable decreases, the y-variable increases.
C)   when the x-variable increases, the y-variable increases.
D)   More than one of the above is correct.E) None of the above
F) B) and D)

Question 6

Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?

Accepted Answer

A)   a landowner leases land to a farmer
B)   a farmer hires a teenager to help with harvest
C)   a construction company rents trucks for its business
D)   a woman buys corn for dinnerE) B) and D)
F) B) and C)

Question 7

Figure 2-23 
-Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-9
Panel a)  Panel b) 
  
-Refer to Figure 2-9, Panel a) . The opportunity cost of one cup of coffee is highest when the economy produces

Accepted Answer

A)   0 cups of coffee.
B)   2 cups of coffee.
C)   4 cups of coffee.
D)   6 cups of coffee.E) All of the above
F) A) and D)

Question 9

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

Question 10

Figure 2-20
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Accepted Answer

A)   positive
B)   negative
C)   inverse
D)   normativeE) A) and C)
F) None of the above

Question 11

In principle, we can

Accepted Answer

A)   ignore positive statements when choosing among various public policy alternatives.
B)   ignore normative statements when choosing among various public policy alternatives.
C)   confirm or refute positive statements by examining evidence.
D)   confirm or refute normative statements by examining evidence.E) None of the above
F) All of the above

Question 12

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

Accepted Answer

A)   zero.
B)   40 blankets.
C)   120 pillows.
D)   360 blankets.E) B) and C)
F) C) and D)

Question 13

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Accepted Answer

A)   0 washers.
B)   20 washers.
C)   40 washers.
D)   None of the above; the economy cannot move from point D to point A.E) None of the above
F) A) and B)

Question 14

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Accepted Answer

A) True 
 B)False

Question 15

Table 2-5
 
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

Accepted Answer

A)   bowed outward indicating increasing opportunity costs.
B)   bowed outward indicating decreasing opportunity costs.
C)   a straight line indicating constant opportunity costs.
D)   bowed inward indicating increasing opportunity costs.E) All of the above
F) B) and D)

Question 16

Figure 2-5 
-Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

Accepted Answer

A)   it is not using all of its resources.
B)   it is not using the most efficient production process.
C)   it does not have the resources and technology to produce that level of output.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 17

The slope of a line that passes through the points 20, 30)  and 40, 14)  is

Accepted Answer

A)   -5/4.
B)   -4/5.
C)   4/5.
D)   5/4.E) All of the above
F) B) and C)

Question 18

Graphs such as bar graphs and pie charts are limited in that they

Accepted Answer

A)   can only show variables that are positively related.
B)   can only show variables that have a negative correlation.
C)   provide information on only one variable.
D)   provide information on no more than two variables.E) B) and C)
F) None of the above

Question 19

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) A) and B)
F) None of the above

Question 20

Figure 2-3 
-Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Accepted Answer

goods and ...

Exam 2: Thinking Like an Economist

Graphs such as bar graphs and pie charts are limited in that they

Correct Answer
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Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . The opportunity cost of one cup of coffee is highest when the economy produces

Correct Answer
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Correct Answer
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Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?

Correct Answer
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Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Correct Answer
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Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

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

Correct Answer
verified

The slope of a line that passes through the points 20, 30) and 40, 14) is

Correct Answer
verified

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct Answer
verified

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

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Correct Answer
verified

When two variables have a negative correlation,

Correct Answer
verified

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 Answer
verified

Figure 2-3 -Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Correct Answer
verified
goods and ...
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Who would be more likely to study the effects of government spending on the unemployment rate, a macroeconomist or a microeconomist?

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

Correct Answer
verified

In principle, we can

Correct Answer
verified

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Correct Answer
verified

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct Answer
verified

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Graphs such as bar graphs and pie charts are limited in that they

Correct AnswerverifiedShow Answer

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . The opportunity cost of one cup of coffee is highest when the economy produces

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following transactions does not take place in the markets for factors of production in the circular-flow diagram?

Correct AnswerverifiedShow Answer

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Based on the values in the table, the production possibilities frontier is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points 20, 30) and 40, 14) is

Correct AnswerverifiedShow Answer

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

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

Figure 2-3 -Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Correct Answerverifiedgoods and ...View AnswerShow 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. This economy cannot currently produce 70 washers and 70 dryers because

Correct AnswerverifiedShow Answer

In principle, we can

Correct AnswerverifiedShow Answer

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

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goods and ...
View Answer

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