Question 1

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) B) and C)
F) All of the above

Question 2

Which of the following statements are positive and which are normative?
a.The minimum wage creates unemployment among young and unskilled workers.
b.The minimum wage ought to be abolished.
c.If the price of a product in a market decreases,then,other things equal,quantity demanded will increase.
d.A little bit of inflation is worse for society than a little bit of unemployment.
e.There is a tradeoff between inflation and unemployment in the short run.
f.If consumer income increases,then,other things equal,the demand for automobiles will increase.
g.The U.S.income distribution is not fair.
h.U.S.workers deserve more liberal unemployment benefits.
i.If interest rates increase,then investment will decrease.
j.If welfare benefits were reduced,then the country would be better off.

Accepted Answer

a,c,e,f,and i are po...

Question 3

Which of the following is not an assumption of the productions possibilities frontier?

Accepted Answer

A)   A country produces only two goods or types of goods.
B)   Technology does not change.
C)   The amount of available resources does not change.
D)   There is a fixed quantity of money.E) None of the above
F) B) and C)

Question 4

Figure 2-3
 
-Refer to Figure 2-3.Inefficient production is represented by which point(s) ?

Accepted Answer

A)   J, L
B)   J, L, M
C)   K, N
D)   ME) A) and C)
F) C) and D)

Question 5

In the past,environmentalists thought of economics as a method of maximizing profits.Presently,

Accepted Answer

A)   there is now realization that economics offers a framework for natural resource allocation.
B)   economists are helping to formulate the intellectual framework behind approaches to protecting endangered species, reducing pollution, and preventing climate change.
C)   economics informs environmental studies but economists still do not work for environmental advocacy groups.
D)   More than one of the above is correct.E) A) and B)
F) C) and D)

Question 6

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers.He should use a(n)

Accepted Answer

A)   pie chart.
B)   bar graph.
C)   time-series graph
D)   coordinate system.E) None of the above
F) All of the above

Question 7

Economists speaking like scientists make

Accepted Answer

A)   normative statements.
B)   prescriptive statements.
C)   claims about how the world is.
D)   claims about how the world should be.E) All of the above
F) B) and D)

Question 8

The simple circular-flow diagram is a model that includes only some key players in the real economy.Which of the following key players are omitted from the simple circular-flow model?

Accepted Answer

A)   Households
B)   Firms
C)   Government
D)   Markets for Factors of ProductionE) A) and B)
F) A) and C)

Question 9

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Accepted Answer

A)   similar opinions about the validity of economic theories
B)   significant differences in education
C)   differences in personal values
D)   a reliance on normative statement for research theoriesE) None of the above
F) A) and C)

Question 10

Macroeconomics is the study of economy-wide phenomena.

Accepted Answer

A) True 
 B)False

Question 11

Positive statements are descriptive,while normative statements are prescriptive.

Accepted Answer

A) True 
 B)False

Question 12

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 13

Microeconomics and macroeconomics are closely intertwined.

Accepted Answer

A) True 
 B)False

Question 14

Figure 2-15
Relationship between Price and Cups of Coffee
 
-Refer to Figure 2-15.The slope of the line containing points A and B is

Accepted Answer

A)   -1/2.
B)   -2.
C)   1/2.
D)   2.E) C) and D)
F) B) and D)

Question 15

Figure 2-14
 
-Refer to Figure 2-14.The opportunity cost of moving from point A to point D is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 16

In the circular-flow diagram,

Accepted Answer

A)   profit flows from households to firms.
B)   labor flows from households to firms.
C)   services flow from households to firms.
D)   All of the above are correct.E) All of the above
F) A) and C)

Question 17

Production is efficient if the economy is producing at a point

Accepted Answer

A)   on the production possibilities frontier.
B)   outside the production possibilities frontier.
C)   on or inside the production possibilities frontier.
D)   inside the production possibilities frontier.E) C) and D)
F) A) and B)

Question 18

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 profit.E) B) and C)
F) A) and C)

Question 19

Which of the following trade-offs does the production possibilities frontier illustrate?

Accepted Answer

A)   if an economy wants to increase efficiency in production, then it must sacrifice equality in consumption
B)   once an economy has reached the efficient points on its production possibilities frontier, the only way of getting more of one good is to get less of the other
C)   for an economy to consume more of one good, it must stop consuming the other good entirely
D)   for an economy to produce and consume goods, it must sacrifice environmental qualityE) A) and D)
F) A) and C)

Question 20

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist.

Which of the following trade-offs does the production possibilities frontier illustrate?

Correct Answer
verified

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Correct Answer
verified

Microeconomics and macroeconomics are closely intertwined.

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14.The opportunity cost of moving from point A to point D is 10 dishwashers.

Correct Answer
verified

In the past,environmentalists thought of economics as a method of maximizing profits.Presently,

Correct Answer
verified

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers.He should use a(n)

Correct Answer
verified

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.The slope of the line containing points A and B is

Correct Answer
verified

Positive statements are descriptive,while normative statements are prescriptive.

Correct Answer
verified

Which of the following is not an assumption of the productions possibilities frontier?

Correct Answer
verified

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Correct Answer
verified

Economists speaking like scientists make

Correct Answer
verified

In the circular-flow diagram,

Correct Answer
verified

Correct Answer
verified
a,c,e,f,and i are po...
View Answer

Figure 2-3 -Refer to Figure 2-3.Inefficient production is represented by which point(s) ?

Correct Answer
verified

The simple circular-flow diagram is a model that includes only some key players in the real economy.Which of the following key players are omitted from the simple circular-flow model?

Correct Answer
verified

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

Correct Answer
verified

Policymaking in a representative democracy

Correct Answer
verified

Macroeconomics is the study of economy-wide phenomena.

Correct Answer
verified

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct Answer
verified

Production is efficient if the economy is producing at a point

Correct Answer
verified

Exam 2: Thinking Like an Economist.

Which of the following trade-offs does the production possibilities frontier illustrate?

Correct AnswerverifiedShow Answer

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Correct AnswerverifiedShow Answer

Microeconomics and macroeconomics are closely intertwined.

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The opportunity cost of moving from point A to point D is 10 dishwashers.

Correct AnswerverifiedShow Answer

In the past,environmentalists thought of economics as a method of maximizing profits.Presently,

Correct AnswerverifiedShow Answer

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers.He should use a(n)

Correct AnswerverifiedShow Answer

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.The slope of the line containing points A and B is

Correct AnswerverifiedShow Answer

Positive statements are descriptive,while normative statements are prescriptive.

Correct AnswerverifiedShow Answer

Which of the following is not an assumption of the productions possibilities frontier?

Correct AnswerverifiedShow Answer

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Correct AnswerverifiedShow Answer

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

In the circular-flow diagram,

Correct AnswerverifiedShow Answer

Correct Answerverifieda,c,e,f,and i are po...View AnswerShow Answer

Figure 2-3 -Refer to Figure 2-3.Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

The simple circular-flow diagram is a model that includes only some key players in the real economy.Which of the following key players are omitted from the simple circular-flow model?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Policymaking in a representative democracy

Correct AnswerverifiedShow Answer

Macroeconomics is the study of economy-wide phenomena.

Correct AnswerverifiedShow Answer

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct AnswerverifiedShow Answer

Production is efficient if the economy is producing at a point

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
a,c,e,f,and i are po...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified