Question 1

Figure 2-22 
-Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Accepted Answer

The answer of Figure 2-22 
-Refer to Figure 2-22. What...

Question 2

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Accepted Answer

A)   zero.
B)   50 blankets.
C)   60 pillows.
D)   50 blankets and 60 pillows.

Question 3

Figure 2-7 
-Refer to Figure 2-7. Inefficient production is represented by which point(s) ?

Accepted Answer

A)   L, M
B)   N, O, P, Q
C)   N, O, P
D)   Q

Question 4

Historical episodes are

Accepted Answer

A)   valuable to economists because they allow economists to see how the science of economics has evolved.
B)   valuable to economists because they allow economists to evaluate economic theories.
C)   not of concern to economists because economics is about predicting the future, not dwelling on the past.
D)   not of concern to economists because the exact circumstances of historical episodes are unlikely to be observed again.

Question 5

An economic outcome is said to be efficient if the economy is

Accepted Answer

A)   using all of the scarce resources it has available.
B)   conserving on resources, rather than using all available resources.
C)   getting all it can get from the scarce resources it has available.
D)   able to produce more than what is currently being produced without additional resources.

Question 6

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. What is the opportunity cost of moving from point T to point R?

Accepted Answer

The answer of Figure 2-14  Consider the production possibilities...

Question 7

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

Accepted Answer

land, labo...

Question 8

Figure 2-5 
-Refer to Figure 2-5. Efficient production is represented by which point(s) ?

Accepted Answer

A)   A, B
B)   A, B, D
C)   A, B, C
D)   C

Question 9

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Accepted Answer

A)   Collect and analyze data.
B)   Go to a laboratory and generate data to test the theory.
C)   Publish the theory without testing it.
D)   Consult with other economists to see they agree with the theory.

Question 10

Figure 2-2 
-Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular­flow diagram, then Juan's income is represented by a flow of dollars

Accepted Answer

A)   from Box A to Box C.
B)   from Box C to Box A.
C)   from Box B to Box D.
D)   from Box D to Box B.

Question 11

Figure 2-15 
-Refer to Figure 2-15. 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 2-15 
-Refer to Figure 2-15. Consider...

Question 12

Figure 2-3 
-Refer to Figure 2-3. What is the name of the model depicted in the figure?

Accepted Answer

The answer of Figure 2-3 
-Refer to Figure 2-3. What...

Question 13

A circular-flow diagram is a model that

Accepted Answer

A)   helps to explain how participants in the economy interact with one another.
B)   helps to explain how the economy is organized.
C)   incorporates all aspects of the real economy.
D)   Both (a)  and (b)  are correct.

Question 14

Points inside the production possibilities frontier represent inefficient levels of production.

Accepted Answer

A) True 
 B)False

Question 15

In the simple circular-flow diagram, who buys the factors of production?

Accepted Answer

A)   households only
B)   firms only
C)   both households and firms
D)   neither households nor firms

Question 16

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not an example of a positive, as opposed to normative, statement?

Accepted Answer

A)   Higher gasoline prices will reduce gasoline consumption.
B)   Equality is more important than efficiency.
C)   Trade restrictions lower our standard of living.
D)   If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money.

Question 18

Economists regard events from the past as

Accepted Answer

A)   irrelevant, since history is unlikely to repeat itself.
B)   of limited interest, since those events seldom provide any useful economic data.
C)   interesting but not particularly valuable, since those events cannot be used to evaluate present-day economic theories.
D)   interesting and valuable, since those events are capable of helping us to understand the past, the present, and the future.

Question 19

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.

Question 20

Two variables that have a negative correlation move in opposite directions.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

A circular-flow diagram is a model that

Correct Answer
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The three main factors of production, or categories of inputs, used by firms to produce goods and services are

Correct Answer
verified
land, labo...
View Answer

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Correct Answer
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Figure 2-5 -Refer to Figure 2-5. Efficient production is represented by which point(s) ?

Correct Answer
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Figure 2-15 -Refer to Figure 2-15. 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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Historical episodes are

Correct Answer
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Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Correct Answer
verified

Points inside the production possibilities frontier represent inefficient levels of production.

Correct Answer
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Two variables that have a negative correlation move in opposite directions.

Correct Answer
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In the simple circular-flow diagram, who buys the factors of production?

Correct Answer
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Figure 2-22 -Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Correct Answer
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Figure 2-3 -Refer to Figure 2-3. What is the name of the model depicted in the figure?

Correct Answer
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Figure 2-7 -Refer to Figure 2-7. Inefficient production is represented by which point(s) ?

Correct Answer
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An economic outcome is said to be efficient if the economy is

Correct Answer
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Economists regard events from the past as

Correct Answer
verified

Which of the following is not an example of a positive, as opposed to normative, statement?

Correct Answer
verified

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Correct Answer
verified

The production possibilities frontier provides an illustration of the principle that

Correct Answer
verified

Correct Answer
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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. What is the opportunity cost of moving from point T to point R?

Correct Answer
verified

Exam 2: Thinking Like an Economist

A circular-flow diagram is a model that

Correct AnswerverifiedShow Answer

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

Correct Answerverifiedland, labo...View AnswerShow Answer

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

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Figure 2-5 -Refer to Figure 2-5. Efficient production is represented by which point(s) ?

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Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Correct AnswerverifiedShow Answer

Historical episodes are

Correct AnswerverifiedShow Answer

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Correct AnswerverifiedShow Answer

Points inside the production possibilities frontier represent inefficient levels of production.

Correct AnswerverifiedShow Answer

Two variables that have a negative correlation move in opposite directions.

Correct AnswerverifiedShow Answer

In the simple circular-flow diagram, who buys the factors of production?

Correct AnswerverifiedShow Answer

Figure 2-22 -Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

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Figure 2-3 -Refer to Figure 2-3. What is the name of the model depicted in the figure?

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Figure 2-7 -Refer to Figure 2-7. Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

An economic outcome is said to be efficient if the economy is

Correct AnswerverifiedShow Answer

Economists regard events from the past as

Correct AnswerverifiedShow Answer

Which of the following is not an example of a positive, as opposed to normative, statement?

Correct AnswerverifiedShow Answer

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Correct AnswerverifiedShow Answer

The production possibilities frontier provides an illustration of the principle that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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. What is the opportunity cost of moving from point T to point R?

Correct AnswerverifiedShow Answer

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land, labo...
View Answer

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