Question 1

Figure 2-15
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  ​
-Refer to Figure 2-15. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Accepted Answer

movement a...

Question 2

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 construction company rents trucks for its business.
B)  A farmer hires a teenager to help with harvest.
C)  Anthony receives a salary for his work as an analyst for an investment firm.
D)  A woman buys corn for dinner.E) All of the above
F) A) and C)

Question 3

Economists at the Department of Justice

Accepted Answer

A)  track the behavior of the nation's money supply.
B)  advise Congress on economic matters.
C)  help enforce the nation's antitrust laws.
D)  prepare the federal budget.E) None of the above
F) All of the above

Question 4

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.
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  ​
​

Accepted Answer

This diagram should duplicate the ess...

Question 5

Figure 2-11
  ​
-Refer to Figure 2-11. It is possible for this economy to produce 1000 shoes.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Accepted Answer

A)  The effect of a national healthcare program on the nation's unemployment rate
B)  The impact of minimum-wage laws on employment in the fast food industry
C)  A comparison of alternative tax policies and their respective impacts on the rate of the nation's economic growth
D)  The effect of a war on government spendingE) C) and D)
F) B) and D)

Question 7

In the circular-flow diagram, in the markets for

Accepted Answer

A)  goods and services, households and firms are both buyers.
B)  the factors of production, households are sellers and firms are buyers.
C)  goods and services, households are sellers and firms are buyers.
D)  the factors of production, households and firms are both buyers.E) B) and D)
F) C) and D)

Question 8

Figure 2-1
 
-Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Accepted Answer

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

Question 9

Economic models omit many details to allow us to see what is truly important.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an example of a capital input?

Accepted Answer

A)  Buildings and machines used in the production process
B)  Stocks and bonds
C)  An hour of a worker's time
D)  The money households use to purchase firms' outputE) A) and B)
F) None of the above

Question 11

Figure 2-14
​
  ​
-Refer to Figure 2-14. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Accepted Answer

The answer of Figure 2-14
​
  ​
-Refer to Figure 2-14....

Question 12

Assumptions can simplify the complex world and make it easier to understand.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-12
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  ​
​
​
​
​
-Refer to Figure 2-12. What do the inner arrows represent in the figure?

Accepted Answer

flow of in...

Question 14

In the ordered pair (10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-12
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  ​
​
​
​
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-Refer to Figure 2-12. What do the ovals represent in the figure?

Accepted Answer

Market for Goods and...

Question 16

Figure 2-10
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  ​
​
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-Refer to Figure 2-10. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Accepted Answer

A) True 
 B)False

Question 17

Historical episodes are not valuable to economists.

Accepted Answer

A) True 
 B)False

Question 18

The opportunity cost of something is what you give up to get it.

Accepted Answer

A) True 
 B)False

Question 19

Figure 2-10
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  ​
​
​
​
-Refer to Figure 2-10. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.

Accepted Answer

A) True 
 B)False

Question 20

Macroeconomics is the study of economy-wide phenomena.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Figure 2-11 ​ -Refer to Figure 2-11. It is possible for this economy to produce 1000 shoes.

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Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

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Macroeconomics is the study of economy-wide phenomena.

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Assumptions can simplify the complex world and make it easier to understand.

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Historical episodes are not valuable to economists.

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Figure 2-15 ​ ​ -Refer to Figure 2-15. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answerverifiedmovement a...View AnswerShow Answer

Figure 2-12 ​ ​ ​ ​ ​ ​ -Refer to Figure 2-12. What do the ovals represent in the figure?

Correct AnswerverifiedMarket for Goods and...View AnswerShow Answer

Which of the following is an example of a capital input?

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The opportunity cost of something is what you give up to get it.

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Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct AnswerverifiedShow Answer

In the ordered pair (10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Correct AnswerverifiedShow Answer

Figure 2-12 ​ ​ ​ ​ ​ ​ -Refer to Figure 2-12. What do the inner arrows represent in the figure?

Correct Answerverifiedflow of in...View AnswerShow Answer

Figure 2-14 ​ ​ -Refer to Figure 2-14. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Correct AnswerverifiedShow Answer

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

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Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.

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In the circular-flow diagram, in the markets for

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Economists at the Department of Justice

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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 ess...View AnswerShow Answer

Economic models omit many details to allow us to see what is truly important.

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 2-11 -Refer to Figure 2-11. It is possible for this economy to produce 1000 shoes.

Correct Answer
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Figure 2-15 -Refer to Figure 2-15. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

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movement a...
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Figure 2-12 -Refer to Figure 2-12. What do the ovals represent in the figure?

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Market for Goods and...
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Figure 2-10 -Refer to Figure 2-10. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct Answer
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Correct Answer
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Figure 2-12 -Refer to Figure 2-12. What do the inner arrows represent in the figure?

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flow of in...
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Figure 2-14 -Refer to Figure 2-14. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Correct Answer
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Correct Answer
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Figure 2-10 -Refer to Figure 2-10. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.

Correct Answer
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Correct Answer
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Correct Answer
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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 Answer
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This diagram should duplicate the ess...
View Answer

Correct Answer
verified

Correct Answer
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