Question 1

To display information on two variables, an economist must use

Accepted Answer

A)   a bar graph.
B)   a pie chart.
C)   the coordinate system.
D)   a time-series graph.E) C) and D)
F) A) and B)

Question 2

The slope of a fairly flat upward-sloping line will be a

Accepted Answer

A)   small positive number.
B)   large positive number.
C)   small negative number.
D)   large negative number.E) All of the above
F) None of the above

Question 3

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Accepted Answer

A)   normative economic statement.
B)   positive economic statement.
C)   statement made by an economist working as a scientist.
D)   judgment based on evaluation of evidence, not values.E) C) and D)
F) B) and D)

Question 4

In the circular-flow diagram, households and firms are the decision makers.

Accepted Answer

A) True 
 B)False

Question 5

In the circular-flow diagram, firms produce

Accepted Answer

A)   goods and services using factors of production.
B)   output using inputs.
C)   factors of production using goods and services.
D)   Both (a)  and (b)  are correct.E) All of the above
F) B) and C)

Question 6

Figure 2-4 
-Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Accepted Answer

A)   R
B)   S
C)   T
D)   UE) A) and B)
F) A) and C)

Question 7

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Accepted Answer

A)   should produce.
B)   wants to produce.
C)   can produce.
D)   demands.E) All of the above
F) C) and D)

Question 8

In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called

Accepted Answer

The answer of In the circular flow diagram, when Brian...

Question 9

Among economic models, the circular-flow diagram is unusual in that it

Accepted Answer

A)   drastically simplifies the real world.
B)   features more than one type of market.
C)   features flows of dollars.
D)   does not involve mathematics.E) A) and B)
F) All of the above

Question 10

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to

Accepted Answer

A)   make use of theory and observation.
B)   rely upon the scientific method.
C)   conduct laboratory experiments.
D)   find articles or books that were written before 1900.E) B) and D)
F) A) and C)

Question 11

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

Accepted Answer

A)   increases as more of the good is produced.
B)   decreases as more of the good is produced.
C)   does not change as more of the good is produced.
D)   may increase, decrease, or not change as more of the good is produced.E) B) and C)
F) All of the above

Question 12

Table 2-6 
-Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. Describe the shape of the production possibilities frontier.

Accepted Answer

The answer of Table 2-6 
-Refer to Table 2-6. Consider...

Question 13

Almost all economists agree that rent control

Accepted Answer

A)   has no effect on the rental income of landlords.
B)   allows the market for housing to work more efficiently.
C)   adversely affects the availability and quality of housing.
D)   is a very inexpensive way to help the most needy members of society.E) B) and D)
F) B) and C)

Question 14

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 15

Figure 2-2 
-Refer to Figure 2-2. If the outer loop of this circular-flow diagram represents flows of dollars, then the inner loop includes

Accepted Answer

A)   flows of goods and services from households to firms.
B)   flows of inputs from households to firms.
C)   flows of rent payments paid to owners of land.
D)   flows of wages and salaries paid to workers.E) B) and D)
F) C) and D)

Question 16

Economic growth causes a production possibilities frontier to shift outward.

Accepted Answer

A) True 
 B)False

Question 17

Evaluating normative statements involves values as well as facts.

Accepted Answer

A) True 
 B)False

Question 18

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) B) and D)
F) B) and C)

Question 19

Figure 2-22 
-Refer to Figure 2-22. 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 20

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) All of the above

Exam 2: Thinking Like an Economist

The slope of a fairly flat upward-sloping line will be a

Correct AnswerverifiedShow Answer

Economic growth causes a production possibilities frontier to shift outward.

Correct AnswerverifiedShow Answer

Evaluating normative statements involves values as well as facts.

Correct AnswerverifiedShow Answer

In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called

Correct AnswerverifiedShow Answer

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct AnswerverifiedShow Answer

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular-flow diagram, households and firms are the decision makers.

Correct AnswerverifiedShow Answer

In the circular-flow diagram, firms produce

Correct AnswerverifiedShow Answer

Figure 2-22 -Refer to Figure 2-22. 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 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Correct AnswerverifiedShow Answer

Economists at the Department of Justice

Correct AnswerverifiedShow Answer

Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. Describe the shape of the production possibilities frontier.

Correct AnswerverifiedShow Answer

Almost all economists agree that rent control

Correct AnswerverifiedShow Answer

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

Correct AnswerverifiedShow Answer

To display information on two variables, an economist must use

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2. If the outer loop of this circular-flow diagram represents flows of dollars, then the inner loop includes

Correct AnswerverifiedShow Answer

Among economic models, the circular-flow diagram is unusual in that it

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
movement a...
View 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