Question 1

Use the following Figure to answer the question : Figure 2-14 :  Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two.
-Refer to Figure 2-14. Which points) on the graph isare) efficient production possibilities?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 2

A duty of economists at the Department of Labor is to

Accepted Answer

A)   analyze data on workers.
B)   schedule federal holidays.
C)   enforce the nation's antitrust laws.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 3

The essence of science is

Accepted Answer

A)   the laboratory experiment.
B)   the scientific method.
C)   the study of nature, but not the study of society.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 4

The President receives economic policy advice from economists at each of the following except

Accepted Answer

A)   the Council of Economic Advisors.
B)   the Department of the Treasury.
C)   the Congressional Budget office.
D)   the Department of Labor.E) A) and C)
F) A) and D)

Question 5

Use the following Figure to answer the question : 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 6

Economic growth causes a production possibilities frontier to shift outward.

Accepted Answer

A) True 
 B)False

Question 7

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Accepted Answer

A)   teaching economics to people who have never before studied economics.
B)   advancing their political agendas.
C)   developing models when the scientific method cannot be used.
D)   focusing their thinking.E) A) and D)
F) B) and C)

Question 8

Which of the following is correct?

Accepted Answer

A)   A horizontal line has an infinite slope, and a vertical line has a zero slope.
B)   A horizontal line has a slope of 1, and a vertical line has a slope of -1.
C)   A horizontal line has a zero slope, and a vertical line has an infinite slope.
D)   A horizontal line has a slope of -1, and a vertical line has a slope of 1.E) A) and D)
F) None of the above

Question 9

The production possibilities frontier provides an illustration of the principle that

Accepted Answer

A)   trade can make everyone better off.
B)   governments can sometimes improve market outcomes.
C)   people face trade-offs.
D)   people respond to incentives.E) All of the above
F) A) and C)

Question 10

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) All of the above

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The art in scientific thinking is

Accepted Answer

A)   finding the right problem to study.
B)   deciding which assumptions to make.
C)   the ability to make an abstract subject easy to understand.
D)   not something in which economists have to be skilled.E) All of the above
F) None of the above

Question 13

Use the following Figure to answer the question : Figure 2-23 : 
-Refer to Figure 2-23. Points A, B, and D represent feasible outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 14

Use the following Figure to answer the question : Figure 2-5:  
-Refer to Figure 2-5. It is not possible for this economy to produce at point

Accepted Answer

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

Question 15

Economists at which administrative department help design tax policy?

Accepted Answer

Department...

Question 16

An example of a price that changes only infrequently is the price of

Accepted Answer

A)   stocks on the New York Stock Exchange.
B)   crude oil.
C)   residential real estate.
D)   magazines sold at newsstands.E) B) and C)
F) C) and D)

Question 17

Economists believe that production possibilities frontiers rarely have a bowed shape.

Accepted Answer

A) True 
 B)False

Question 18

"Prices rise when the quantity of money rises rapidly" is an example of a

Accepted Answer

A)   negative economic statement.
B)   positive economic statement.
C)   normative economic statement.
D)   statement that contradicts one of the basic principles of economics.E) A) and D)
F) A) and B)

Question 19

As a substitute for laboratory experiments, economists use evidence available through history's

Accepted Answer

natural ex...

Question 20

Economic models can help us understand reality only when they include all details of the economy.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

The production possibilities frontier provides an illustration of the principle that

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Which of the following is correct?

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The President receives economic policy advice from economists at each of the following except

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A duty of economists at the Department of Labor is to

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Economic models can help us understand reality only when they include all details of the economy.

Correct AnswerverifiedShow Answer

Economic growth causes a production possibilities frontier to shift outward.

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Economists at which administrative department help design tax policy?

Correct AnswerverifiedDepartment...View AnswerShow Answer

John Maynard Keynes referred to economics as an easy subject,

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Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. Points A, B, and D represent feasible outcomes for this economy.

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Use the following Figure to answer the question : Figure 2-14 : Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. Which points) on the graph isare) efficient production possibilities?

Correct AnswerverifiedShow Answer

The essence of science is

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"Prices rise when the quantity of money rises rapidly" is an example of a

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers rarely have a bowed shape.

Correct AnswerverifiedShow Answer

As a substitute for laboratory experiments, economists use evidence available through history's

Correct Answerverifiednatural ex...View AnswerShow Answer

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. It is not possible for this economy to produce at point

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

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Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

Correct AnswerverifiedShow Answer

Economists make use of assumptions, some of which are unrealistic, for the purpose of

Correct AnswerverifiedShow Answer

An example of a price that changes only infrequently is the price of

Correct AnswerverifiedShow Answer

The art in scientific thinking is

Correct AnswerverifiedShow Answer

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Department...
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natural ex...
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