Question 1

If Martina's income increases and, as a result, she chooses to buy more lattés per month at each price, then her demand curve will

Accepted Answer

A)  shift to the right.
B)  shift to the left.
C)  not shift; instead, Martina will move along her demand curve downward and to the right.
D)  not shift; instead, Martina will move along her demand curve upward and to the left.E) None of the above
F) A) and B)

Question 2

A production possibilities frontier can shift outward if

Accepted Answer

A)  government increases the amount of money in the economy.
B)  there is a technological improvement.
C)  resources are shifted from the production of one good to the production of the other good.
D)  the economy abandons inefficient production methods in favor of efficient production methods.E) All of the above
F) A) and B)

Question 3

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 each car is

Accepted Answer

A)  the slope of the production possibilities frontier.
B)  3/2 sofas.
C)  2/3 of a sofa.
D)  Both a and b are correct.E) None of the above
F) B) and C)

Question 4

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Accepted Answer

A) True 
 B)False

Question 5

In the simple circular-flow diagram,

Accepted Answer

A)  households own the factors of production.
B)  households buy all the goods and services that firms produce.
C)  land, labor, and capital flow from households to firms.
D)  All of the above are correct.E) B) and C)
F) None of the above

Question 6

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Accepted Answer

A) True 
 B)False

Question 7

Figure 2-9
Panel (a) 
Panel (b)   
-Refer to Figure 2-9, Panel (a) . Production is

Accepted Answer

A)  possible at points J, K, L, and M, but efficient only at points J, L, and M.
B)  possible at points J, K, L, and M, but efficient only at point K.
C)  possible at points J, L, M, and N, but efficient only at points J, L, and M.
D)  possible at points J, L, M, and N, but efficient only at point N.E) B) and C)
F) None of the above

Question 8

Figure 2-20
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Accepted Answer

A)  positive
B)  negative
C)  inverse
D)  normativeE) None of the above
F) All of the above

Question 9

Figure 2-8 
-Refer to Figure 2-8. Point K represents an outcome in which

Accepted Answer

A)  production is inefficient.
B)  some of the economy's resources are unemployed.
C)  the economy is using all of its resources to produce hammers.
D)  the economy is using all of its nails to produce hammers.E) A) and B)
F) A) and C)

Question 10

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Accepted Answer

The answer of Which type of statement - positive or...

Question 11

Unemployment would cause an economy to

Accepted Answer

A)  produce inside its production possibilities frontier.
B)  produce on its production possibilities frontier.
C)  produce outside its production possibilities frontier.
D)  experience an inward shift of its production possibilities frontier.E) All of the above
F) B) and C)

Question 12

In the ordered pair (10,30), 10 is the horizontal location of the point and 30 is the vertical location of the point.

Accepted Answer

A) True 
 B)False

Question 13

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Accepted Answer

A)  is asked to explain the cause of an economic event.
B)  is asked to recommend a policy to improve economic outcomes.
C)  is asked as a policy adviser.
D)  does not have enough information to respond.E) None of the above
F) B) and C)

Question 14

Economists work both inside and outside the administrative branch of the U.S. government.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-14 
-Refer to Figure 2-14. Points A, B, and D represent efficient outcomes for this economy.

Accepted Answer

A) True 
 B)False

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

In building economic models, economists often omit

Accepted Answer

A)  assumptions.
B)  theories.
C)  details.
D)  equations.E) C) and D)
F) B) and C)

Question 18

The slope of a line is equal to

Accepted Answer

A)  the change in the value of x divided by the change in the value of y.
B)  the change in the value of y divided by the change in the value of x.
C)  the horizontal distance divided by the vertical distance.
D)  the value of y divided by the value of x.E) A) and D)
F) B) and C)

Question 19

Figure 2-13 
-Refer to Figure 2-13. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Accepted Answer

A)  I, L
B)  G, H
C)  J, K
D)  F, GE) None of the above
F) C) and D)

Question 20

The scientific method is the dispassionate development and testing of theories about how the world works.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Figure 2-13 -Refer to Figure 2-13. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Correct AnswerverifiedShow Answer

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Correct AnswerverifiedShow Answer

If Martina's income increases and, as a result, she chooses to buy more lattés per month at each price, then her demand curve will

Correct AnswerverifiedShow Answer

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . Production is

Correct AnswerverifiedShow Answer

In the ordered pair (10,30), 10 is the horizontal location of the point and 30 is the vertical location of the point.

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. Points A, B, and D represent efficient outcomes for this economy.

Correct AnswerverifiedShow Answer

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 each car is

Correct AnswerverifiedShow Answer

A production possibilities frontier can shift outward if

Correct AnswerverifiedShow Answer

Unemployment would cause an economy to

Correct AnswerverifiedShow Answer

Figure 2-8 -Refer to Figure 2-8. Point K represents an outcome in which

Correct AnswerverifiedShow Answer

In building economic models, economists often omit

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The slope of a line is equal to

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Correct AnswerverifiedShow Answer

Economists work both inside and outside the administrative branch of the U.S. government.

Correct AnswerverifiedShow Answer

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Correct AnswerverifiedShow Answer

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Correct AnswerverifiedShow Answer

The scientific method is the dispassionate development and testing of theories about how the world works.

Correct AnswerverifiedShow Answer

In the simple circular-flow diagram,

Correct AnswerverifiedShow Answer

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