Question 1

Figure 2-14
 
-Refer to Figure 2-14.The movement from point B to point C could have been caused by

Accepted Answer

A)   inflation.
B)   a change in income.
C)   a change in the price of grapes.
D)   a change in the cost of producing grapes.E) A) and D)
F) B) and C)

Question 2

The President counts among his economic advisors the Congressional Budget Office.

Accepted Answer

A) True 
 B)False

Question 3

The circular-flow diagram is an example of

Accepted Answer

A)   a laboratory experiment.
B)   an economic model.
C)   a mathematical model.
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 4

The slope of a line is equal to

Accepted Answer

A)   rise divided by run.
B)   run divided by rise.
C)   rise minus run.
D)   rise plus run.E) B) and D)
F) B) and C)

Question 5

The Congressional Budget Office,which is staffed by economists,provides Congress with independent evaluations of policy proposals.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment causes production levels to be inefficient.

Accepted Answer

A) True 
 B)False

Question 7

Figure 2-10
 
-Refer to Figure 2-10.The shift of the production possibilities frontier from A to B illustrates

Accepted Answer

A)   simultaneous technological advances in the book and DVD industries.
B)   a reallocation of resources away from the production of DVDs and toward the production of books.
C)   economic growth.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 8

Normative statements are not

Accepted Answer

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

Question 9

Economists speaking like policy advisers make

Accepted Answer

A)   claims about how the world is.
B)   descriptive statements.
C)   normative statements.
D)   More than one of the above is correct.E) A) and B)
F) None of the above

Question 10

Figure 2-9

-Refer to Figure 2-9,Panel (a) .In order to gain 2 printers by moving from point C to point D,society must sacrifice

Accepted Answer

A)   6 computers.
B)   employment.
C)   efficiency.
D)   More than one of the above is correct.E) B) and D)
F) None of the above

Question 11

The goal of an economist who formulates new theories is to

Accepted Answer

A)   provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works.
B)   provoke stimulating debate in scientific journals.
C)   contribute to an understanding of how the world works.
D)   demonstrate that economists, like other scientists, can formulate testable theories.E) A) and B)
F) A) and C)

Question 12

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

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   makes positive statements.
C)   talks about values.
D)   makes a claim about how the world should be.E) B) and C)
F) A) and B)

Question 13

When studying the effects of changes in public policy,economists believe that

Accepted Answer

A)   it is important to distinguish between the short run and the long run.
B)   the assumptions used in studying those effects should be the same for the short run as for the long run.
C)   the short-run effects of those changes are always more beneficial to society than are the long-run effects.
D)   the long-run effects of those changes are always more beneficial to society than are the short-run effects.E) B) and D)
F) A) and B)

Question 14

Another term for factors of production is

Accepted Answer

A)   inputs.
B)   output.
C)   goods.
D)   services.E) A) and C)
F) A) and B)

Question 15

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Accepted Answer

A)   society's preferences.
B)   the available production technology.
C)   a fair distribution of the output.
D)   the available demand for the output.E) A) and C)
F) C) and D)

Question 16

A relatively steep 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) B) and C)
F) All of the above

Question 17

When two variables have a positive correlation,

Accepted Answer

A)   when the x-variable increases, 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) B) and D)
F) C) and D)

Question 18

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Accepted Answer

A)   amount of the other good that must be given up.
B)   market price of the additional amount produced.
C)   amount of resources that must be devoted to its production.
D)   number of dollars that must be spent to produce it.E) A) and B)
F) B) and D)

Question 19

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Accepted Answer

A)   100 pounds of coffee
B)   200 pounds of coffee
C)   300 pounds of coffee
D)   400 pounds of coffeeE) A) and B)
F) B) and D)

Question 20

Where can an economy not produce?

Accepted Answer

A)   inside its production possibilities frontier
B)   on its production possibilities frontier
C)   outside its production possibilities frontier
D)   at the endpoints of its production possibilities frontierE) A) and B)
F) None of the above

Exam 2: Thinking Like an Economist.

Where can an economy not produce?

Correct AnswerverifiedShow Answer

Normative statements are not

Correct AnswerverifiedShow Answer

The goal of an economist who formulates new theories is to

Correct AnswerverifiedShow Answer

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Correct AnswerverifiedShow Answer

Another term for factors of production is

Correct AnswerverifiedShow Answer

The circular-flow diagram is an example of

Correct AnswerverifiedShow Answer

A relatively steep demand curve indicates that

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Correct AnswerverifiedShow Answer

When studying the effects of changes in public policy,economists believe that

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The movement from point B to point C could have been caused by

Correct AnswerverifiedShow Answer

The Congressional Budget Office,which is staffed by economists,provides Congress with independent evaluations of policy proposals.

Correct AnswerverifiedShow Answer

Economists speaking like policy advisers make

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Correct AnswerverifiedShow Answer

The slope of a line is equal to

Correct AnswerverifiedShow Answer

When two variables have a positive correlation,

Correct AnswerverifiedShow Answer

Unemployment causes production levels to be inefficient.

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9,Panel (a) .In order to gain 2 printers by moving from point C to point D,society must sacrifice

Correct AnswerverifiedShow Answer

Figure 2-10 -Refer to Figure 2-10.The shift of the production possibilities frontier from A to B illustrates

Correct AnswerverifiedShow Answer

The President counts among his economic advisors the Congressional Budget Office.

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