Question 1

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) B) and D)
F) A) and B)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-8
Panel (a) Panel (b)   
-Refer to Figure 2-8,Panel (a) .The opportunity cost of moving from point K to point L is

Accepted Answer

A)   0 cups of coffee.
B)   1 donut.
C)   2 donuts.
D)   4 cups of coffee.E) B) and C)
F) A) and D)

Question 4

Policies such as rent control and trade barriers persist

Accepted Answer

A)   because economists are about evenly divided as to the merits of those policies.
B)   because almost all economists agree that those policies have no discernible economic effects.
C)   because almost all economists agree that those policies are desirable.
D)   despite the fact that almost all economists agree that those policies are undesirable.E) A) and D)
F) A) and C)

Question 5

The x-coordinate is the

Accepted Answer

A)   first number of an ordered pair and represents the point's horizontal location.
B)   second number of an ordered pair and represents the point's horizontal location.
C)   first number of an ordered pair and represents the point's vertical location.
D)   second number of an ordered pair and represents the point's vertical location.E) C) and D)
F) B) and C)

Question 6

Figure 2-3 
-Refer to Figure 2-3.At which point is this economy producing its maximum possible quantity of tubas?

Accepted Answer

A)   J
B)   L
C)   M
D)   NE) A) and B)
F) C) and D)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-9
Panel (a) Panel (b)   
-Refer to Figure 2-9,Panel (a) .In order to gain 2 radios by moving from point S to point T,society must sacrifice

Accepted Answer

A)   6 televisions.
B)   employment.
C)   efficiency.
D)   More than one of the above is correct.E) A) and B)
F) A) and C)

Question 9

Figure 2-5 
-Refer to Figure 2-5.The opportunity cost of this economy moving from point A to point C is

Accepted Answer

A)   75 baseballs.
B)   125 baseballs.
C)   125 baseballs and 240 bananas.
D)   240 bananas.E) B) and C)
F) B) and D)

Question 10

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) None of the above
F) B) and D)

Question 11

Another term for factors of production is

Accepted Answer

A)   inputs.
B)   output.
C)   goods.
D)   services.E) A) and D)
F) A) and C)

Question 12

Economists view normative statements as

Accepted Answer

A)   prescriptive,making a claim about how the world ought to be.
B)   descriptive,making a claim about how the world is.
C)   statements about the normal condition of the world.
D)   pessimistic,putting the worst possible interpretation on things.E) None of the above
F) A) and C) A

Question 13

Which of the following statements applies to economics,as well as to other sciences such as physics?

Accepted Answer

A)   Experiments are considered valid only when they are conducted in a laboratory.
B)   Good theories do not need to be tested.
C)   Real-world observations often lead to theories.
D)   Economics,as well as other sciences,is concerned primarily with abstract concepts.E) A) and B)
F) B) and C) C

Question 14

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) C) and D)
F) A) and D) D

Question 15

Which types of models are built with assumptions?

Accepted Answer

A)   economic models,but not models in other disciplines such as physics and biology
B)   economic models as well as models in other disciplines such as physics and biology
C)   models that are built for teaching purposes but not for research purposes
D)   bad modelsE) None of the above
F) B) and C)

Question 16

In the markets for factors of production in the circular-flow diagram,

Accepted Answer

A)   households provide firms with labor,land,and capital.
B)   households provide firms with savings for investment.
C)   firms provide households with goods and services.
D)   firms provide households with profit.E) A) and D)
F) None of the above

Question 17

Microeconomics and macroeconomics are closely intertwined.

Accepted Answer

A) True 
 B)False

Question 18

Positive statements are

Accepted Answer

A)   prescriptive.
B)   claims about how the world should be.
C)   claims about how the world is.
D)   made by economists speaking as policy advisers.E) B) and C)
F) A) and D)

Question 19

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

Accepted Answer

A) True 
 B)False

Question 20

When two variables move in opposite directions,the curve relating them is upward sloping,and we say the variables are positively related.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

In the circular-flow diagram,in the markets for

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

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Figure 2-8 Panel (a) Panel (b) -Refer to Figure 2-8,Panel (a) .The opportunity cost of moving from point K to point L is

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Policies such as rent control and trade barriers persist

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The x-coordinate is the

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Figure 2-3 -Refer to Figure 2-3.At which point is this economy producing its maximum possible quantity of tubas?

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

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Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9,Panel (a) .In order to gain 2 radios by moving from point S to point T,society must sacrifice

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Figure 2-5 -Refer to Figure 2-5.The opportunity cost of this economy moving from point A to point C is

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

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Another term for factors of production is

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Economists view normative statements as

Correct AnswerverifiedA

Which of the following statements applies to economics,as well as to other sciences such as physics?

Correct AnswerverifiedC

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

Correct AnswerverifiedD

Which types of models are built with assumptions?

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In the markets for factors of production in the circular-flow diagram,

Correct AnswerverifiedShow Answer

Microeconomics and macroeconomics are closely intertwined.

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Positive statements are

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Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

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When two variables move in opposite directions,the curve relating them is upward sloping,and we say the variables are positively related.

Correct AnswerverifiedShow Answer

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D

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