Question 1

Economists at the U.S.Department of the Treasury help design U.S.coins and paper money.

Accepted Answer

A) True 
 B)False

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

Figure 2-4 
-Refer to Figure 2-4.It is possible for this economy to produce

Accepted Answer

A)   40 toothbrushes and 20 toasters.
B)   50 toothbrushes and 30 toasters.
C)   70 toothbrushes and 40 toasters.
D)   All of the above.E) A) and C)
F) A) and B)

Question 4

When a production possibilities frontier is bowed outward,the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Accepted Answer

A) True 
 B)False

Question 5

Figure 2-4 
-Refer to Figure 2-4.Inefficient production is represented by which point(s) ?

Accepted Answer

A)   A,B
B)   C
C)   C,D
D)   DE) None of the above
F) B) and D)

Question 6

In the simple circular-flow diagram,who consumes the goods and services that firms produce?

Accepted Answer

A)   households only
B)   firms only
C)   both households and firms
D)   neither households nor firmsE) A) and B)
F) All of the above

Question 7

Figure 2-4 
-Refer to Figure 2-4.The opportunity cost of this economy moving from point A to point B is

Accepted Answer

A)   0 toasters.
B)   10 toasters.
C)   10 toothbrushes.
D)   20 toasters.E) All of the above
F) B) and D)

Question 8

Albert Einstein once made the following observation about science:

Accepted Answer

A)   "The whole of science is nothing more than the refinement of everyday thinking."
B)   "The whole of science is nothing more than an interesting intellectual exercise."
C)   "In order to understand science,one must rely solely on abstraction."
D)   "In order to understand science,one must transcend everyday thinking."E) B) and D)
F) All of the above

Question 9

For economists,conducting experiments is often difficult and sometimes impossible.

Accepted Answer

A) True 
 B)False

Question 10

Duties of the Council of Economic Advisers include

Accepted Answer

A)   advising the president and writing the annual Economic Report of the President.
B)   implementing the president's tax policies.
C)   tracking the behavior of the nation's money supply.
D)   All of the above are correct.E) None of the above
F) B) and D)

Question 11

When an economy is operating at a point on its production possibilities frontier,then

Accepted Answer

A)   consumers are content with the mix of goods and services that is being produced.
B)   there is no way to produce more of one good without producing less of the other.
C)   equal amounts of the two goods are being produced.
D)   All of the above are correct.E) A) and B)
F) A) and D)

Question 12

Which of the following statements is (are) correct?

Accepted Answer

A)   Relative to other scientists,economists find it more difficult to generate useful data.
B)   Theory and observation are important in economics as well as in other sciences.
C)   To obtain data,economists often rely upon the natural experiments offered by history.
D)   All of the above are correct.E) B) and C)
F) C) and D)

Question 13

Figure 2-6 
-Refer to Figure 2-6.If this economy devotes all of its resources to the production of bathtubs,then it will produce

Accepted Answer

A)   0 bathtubs and 35 barrels.
B)   10 bathtubs and 25 barrels.
C)   16 bathtubs and 0 barrels.
D)   16 bathtubs and 35 barrels.E) B) and C)
F) A) and B)

Question 14

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 15

John Maynard Keynes referred to economics as an easy subject,

Accepted Answer

A)   at which very few excel.
B)   but not as easy as philosophy or the pure sciences.
C)   which very few can enjoy.
D)   which deals primarily with common sense.E) A) and C)
F) A) and D)

Question 16

Figure 2-5 
-Refer to Figure 2-5.A movement from point C to point D could be caused by

Accepted Answer

A)   unemployment.
B)   a decrease in society's preference for bananas.
C)   fewer resources available for production of bananas.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 17

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Accepted Answer

A)   will never be able to produce.
B)   can produce using all available resources and technology.
C)   can produce using some portion,but not all,of its resources and technology.
D)   may be able to produce in the future with more resources and/or superior technology.E) A) and C)
F) None of the above

Question 18

Figure 2-2 
-Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

Accepted Answer

A)   the flow of factors of production is also part of what is represented by the inner loop.
B)   the flow of income paid to households is also part of what is represented by the inner loop.
C)   the flow of revenue to firms is also part of what is represented by the inner loop.
D)   households must be sellers of output.E) A) and C)
F) A) and B)

Question 19

Good assumptions simplify a problem without substantially affecting the answer.

Accepted Answer

A) True 
 B)False

Question 20

Economists try to address their subject with a scientist's objectivity.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Figure 2-5 -Refer to Figure 2-5.A movement from point C to point D could be caused by

Correct Answer
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John Maynard Keynes referred to economics as an easy subject,

Correct Answer
verified

Economists at the U.S.Department of the Treasury help design U.S.coins and paper money.

Correct Answer
verified

Duties of the Council of Economic Advisers include

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4.The opportunity cost of this economy moving from point A to point B is

Correct Answer
verified

Which of the following statements is (are) correct?

Correct Answer
verified

For economists,conducting experiments is often difficult and sometimes impossible.

Correct Answer
verified

In the simple circular-flow diagram,who consumes the goods and services that firms produce?

Correct Answer
verified

Figure 2-6 -Refer to Figure 2-6.If this economy devotes all of its resources to the production of bathtubs,then it will produce

Correct Answer
verified

Figure 2-2 -Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

Correct Answer
verified

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Correct Answer
verified

Albert Einstein once made the following observation about science:

Correct Answer
verified

Economists try to address their subject with a scientist's objectivity.

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4.It is possible for this economy to produce

Correct Answer
verified

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

Figure 2-4 -Refer to Figure 2-4.Inefficient production is represented by which point(s) ?

Correct Answer
verified

Good assumptions simplify a problem without substantially affecting the answer.

Correct Answer
verified

When an economy is operating at a point on its production possibilities frontier,then

Correct Answer
verified

In principle,we can

Correct Answer
verified

When a production possibilities frontier is bowed outward,the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Figure 2-5 -Refer to Figure 2-5.A movement from point C to point D could be caused by

Correct AnswerverifiedShow Answer

John Maynard Keynes referred to economics as an easy subject,

Correct AnswerverifiedShow Answer

Economists at the U.S.Department of the Treasury help design U.S.coins and paper money.

Correct AnswerverifiedShow Answer

Duties of the Council of Economic Advisers include

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.The opportunity cost of this economy moving from point A to point B is

Correct AnswerverifiedShow Answer

Which of the following statements is (are) correct?

Correct AnswerverifiedShow Answer

For economists,conducting experiments is often difficult and sometimes impossible.

Correct AnswerverifiedShow Answer

In the simple circular-flow diagram,who consumes the goods and services that firms produce?

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6.If this economy devotes all of its resources to the production of bathtubs,then it will produce

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

Correct AnswerverifiedShow Answer

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Correct AnswerverifiedShow Answer

Albert Einstein once made the following observation about science:

Correct AnswerverifiedShow Answer

Economists try to address their subject with a scientist's objectivity.

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.It is possible for this economy to produce

Correct AnswerverifiedShow Answer

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

Figure 2-4 -Refer to Figure 2-4.Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

Good assumptions simplify a problem without substantially affecting the answer.

Correct AnswerverifiedShow Answer

When an economy is operating at a point on its production possibilities frontier,then

Correct AnswerverifiedShow Answer

In principle,we can

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward,the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Correct AnswerverifiedShow Answer

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

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