Question 1

Figure 2-23 
-Refer to Figure 2-23. 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 2

Which of these statements about economic models is correct?

Accepted Answer

A)   For economists, economic models provide insights about the world.
B)   Economic models are built with assumptions.
C)   Economic models are often composed of equations and diagrams.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 3

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Accepted Answer

A)   For the most part, microeconomists are unconcerned with macroeconomics, and macroeconomists are unconcerned with microeconomics.
B)   Microeconomists study markets for small products, whereas macroeconomists study markets for large products.
C)   Microeconomics and macroeconomics are distinct from one another, yet they are closely related.
D)   Microeconomics is oriented toward policy studies, whereas macroeconomics is oriented toward theoretical studies.E) All of the above
F) A) and C)

Question 4

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Accepted Answer

scientific...

Question 5

Figure 2-7 
-Refer to Figure 2-7. If this economy moved from point P to point N, then

Accepted Answer

A)   it still would not be producing efficiently.
B)   there would be no gain in either engines or tvs.
C)   it would be producing more engines and more tvs than at point P.
D)   It is not possible for this economy to move from point P to point N without additional resources.E) All of the above
F) C) and D)

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. The bowed outward shape of the production possibilities curve indicates that opportunity cost of apples in terms of sweaters is

Accepted Answer

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

Question 7

Economic models are most often composed of diagrams and equations.

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-3 
-Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Accepted Answer

A)   revenue
B)   goods and services sold
C)   factors of production
D)   labor, land, and capitalE) All of the above
F) A) and B)

Question 9

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Accepted Answer

The answer of Economists at which administrative department analyze data...

Question 10

In the circular-flow diagram, in the markets for

Accepted Answer

A)   goods and services, households and firms are both sellers.
B)   goods and services, households are sellers and firms are buyers.
C)   the factors of production, households are sellers and firms are buyers.
D)   the factors of production, households and firms are both buyers.E) A) and B)
F) None of the above

Question 11

Figure 2-3 
-Refer to Figure 2-3. What are two elements not included in this figure that could be included in a more complex model?

Accepted Answer

government...

Question 12

Figure 2-3 
-Refer to Figure 2-3. Which shape refers to the markets for goods and services?

Accepted Answer

A)   oval A
B)   oval B
C)   rectangle 1
D)   rectangle 2E) A) and B)
F) A) and C)

Question 13

Macroeconomics is the study of

Accepted Answer

A)   individual decision makers.
B)   international trade.
C)   economy-wide phenomena.
D)   markets for large products.E) All of the above
F) None of the above

Question 14

Economists, like mathematicians, physicists, and biologists,

Accepted Answer

A)   make use of the scientific method.
B)   try to address their subject with a scientist's objectivity.
C)   devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.
D)   All of the above are correct.E) None of the above
F) A) and D)

Question 15

Figure 2-11 
-Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Accepted Answer

A)   The economy's citizens developed an enhanced taste for books.
B)   The economy experienced a technological advance in the production of books.
C)   More capital became available in the economy.
D)   More labor became available in the economy.E) None of the above
F) A) and C)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 D)
F) B) and C)

Question 18

With respect to how economists study the economy, which of the following statements is most accurate?

Accepted Answer

A)   Economists study the past, but they do not try to predict the future.
B)   Economists use "rules of thumb" to predict the future.
C)   Economists devise theories, collect data, and analyze the data to test the theories.
D)   Economists use controlled experiments in much the same way that biologists and physicists do.E) B) and C)
F) A) and C)

Question 19

The production possibilities frontier is used to illustrate some basic economic ideas, including

Accepted Answer

A)   scarcity.
B)   opportunity cost.
C)   economic growth.
D)   All of the above are correct.E) A) and C)
F) C) and D)

Question 20

When studying the effects of public policy changes, economists

Accepted Answer

A)   always refrain from making assumptions.
B)   sometimes make different assumptions about the short run and the long run.
C)   consider only the direct effects of those policy changes and not the indirect effects.
D)   consider only the short-run effects of those policy changes and not the long-run effects.E) C) and D)
F) None of the above

Exam 2: Thinking Like an Economist

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answerverifiedscientific...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Correct AnswerverifiedShow Answer

When studying the effects of public policy changes, economists

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

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

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Figure 2-23 -Refer to Figure 2-23. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.

Correct AnswerverifiedShow Answer

Economists, like mathematicians, physicists, and biologists,

Correct AnswerverifiedShow Answer

Economic models are most often composed of diagrams and equations.

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. The bowed outward shape of the production possibilities curve indicates that opportunity cost of apples in terms of sweaters is

Correct AnswerverifiedShow Answer

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Correct AnswerverifiedShow Answer

The production possibilities frontier is used to illustrate some basic economic ideas, including

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Macroeconomics is the study of

Correct AnswerverifiedShow Answer

With respect to how economists study the economy, which of the following statements is most accurate?

Correct AnswerverifiedShow Answer

Which of these statements about economic models is correct?

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In the circular-flow diagram, in the markets for

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Figure 2-11 -Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

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Figure 2-3 -Refer to Figure 2-3. What are two elements not included in this figure that could be included in a more complex model?

Correct Answerverifiedgovernment...View AnswerShow Answer

Figure 2-3 -Refer to Figure 2-3. Which shape refers to the markets for goods and services?

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Figure 2-7 -Refer to Figure 2-7. If this economy moved from point P to point N, then

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government...
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