Question 1

Which of the following is an example of using the scientific method with a natural experiment?

Accepted Answer

A)   measuring how long it takes a marble to fall from a ten story building
B)   comparing plant growth with and without a soil additive
C)   tracking the price of oil when a war in the Middle East interrupts the flow of crude oil
D)   observing the reaction when two chemicals are mixed togetherE) All of the above
F) A) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which two groups of decision makers are included in the simple circular-flow diagram?

Accepted Answer

A)   markets and government
B)   households and government
C)   firms and government
D)   households and firmsE) All of the above
F) C) and D)

Question 4

When economists make positive statements, they are

Accepted Answer

A)   speaking as scientists.
B)   speaking as policy advisers.
C)   making claims about how the world should be.
D)   revealing that they are very conservative in their views of how the world works.E) None of the above
F) A) and D)

Question 5

Analysis of data on workers and those looking for work is conducted by economists at the

Accepted Answer

A)   Office of Management and Budget.
B)   Department of Labor.
C)   Congressional Budget Office.
D)   Department of the Treasury.E) A) and B)
F) All of the above

Question 6

Figure 2-4 
-Refer to Figure 2-4. This economy cannot produce at which points) ?

Accepted Answer

A)   Q
B)   Q, S
C)   Q, S, T
D)   SE) C) and D)
F) A) and B)

Question 7

Figure 2-23 
-Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

Accepted Answer

A) True 
 B)False

Question 8

The use of the coordinate system allows

Accepted Answer

A)   for the display of the flows of dollars, goods and services, and factors of production in an economic system.
B)   for the display of how labor and other resources are organized in the production process.
C)   for the display of two variables on a single graph.
D)   for the creation of pie charts and bar graphs.E) All of the above
F) A) and C)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Table 2-5
 
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Accepted Answer

A)   800 bushels of corn
B)   600 bushels of corn
C)   400 bushels of corn
D)   400 bushels of wheatE) A) and B)
F) B) and C)

Question 11

Production possibilities frontiers are usually bowed outward. This is because

Accepted Answer

A)   the more resources a society uses to produce one good, the fewer resources it has available to produce another good.
B)   the opportunity cost of producing a good decreases as more and more of that good is produced.
C)   of the effects of technological change.
D)   resources are specialized; that is, some are better at producing particular goods rather than other goods.E) A) and D)
F) None of the above

Question 12

Figure 2-2 
-Refer to Figure 2-2. Carla regularly buys fruits and vegetables at a grocery store. Roberto regularly pays a lawn- care company to mow his lawn. If the flow of fruits and vegetables from the grocery store to Carla is represented by an arrow from Box C to Box B of this circular-flow diagram, then the money paid by Roberto to the lawn-care company is represented by an arrow

Accepted Answer

A)   from Box A to Box D.
B)   from Box B to Box C.
C)   from Box C to Box B.
D)   from Box D to Box A.E) C) and D)
F) B) and C)

Question 13

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Accepted Answer

A)   spending.
B)   revenue.
C)   income.
D)   wages, rent, and profit.E) C) and D)
F) A) and D)

Question 14

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-23 
-Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 16

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Accepted Answer

The answer of In the circular flow diagram, who owns...

Question 17

Normative statements are not

Accepted Answer

A)   descriptive.
B)   prescriptive.
C)   claims about how the world should be.
D)   made by economists speaking as policy advisers.E) A) and C)
F) None of the above

Question 18

Figure 2-13 
-Refer to Figure 2-13. One difference between points F and G is that

Accepted Answer

A)   Point G is unattainable with current resources, but point F is attainable.
B)   All resources are fully employed at point F but there is unemployment at point G.
C)   More output can be produced at point F but no additional output can be produced at point G.
D)   This economy produces more cookies at point G than at point F.E) All of the above
F) A) and B)

Question 19

Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of

Accepted Answer

A)   a controlled experiment that lead to the formulation of a scientific theory.
B)   being in the right place at the right time.
C)   an idea whose time had come.
D)   the interplay between observation and theory in science.E) A) and B)
F) A) and C)

Question 20

Figure 2-17 
-Refer to Figure 2-17. The slope of the curve between points A and B is

Accepted Answer

A)   -5
B)   -1/5
C)   1/5
D)   5E) A) and B)
F) C) and D)

Exam 2: Thinking Like an Economist

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct Answer
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Which two groups of decision makers are included in the simple circular-flow diagram?

Correct Answer
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Production possibilities frontiers are usually bowed outward. This is because

Correct Answer
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Correct Answer
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Analysis of data on workers and those looking for work is conducted by economists at the

Correct Answer
verified

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

Correct Answer
verified

Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4. This economy cannot produce at which points) ?

Correct Answer
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Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Correct Answer
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Normative statements are not

Correct Answer
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In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Correct Answer
verified

Figure 2-17 -Refer to Figure 2-17. The slope of the curve between points A and B is

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

Correct Answer
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The use of the coordinate system allows

Correct Answer
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In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Correct Answer
verified

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Correct Answer
verified

Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

Correct Answer
verified

When economists make positive statements, they are

Correct Answer
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Which of the following is an example of using the scientific method with a natural experiment?

Correct Answer
verified

Figure 2-23 -Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct AnswerverifiedShow Answer

Which two groups of decision makers are included in the simple circular-flow diagram?

Correct AnswerverifiedShow Answer

Production possibilities frontiers are usually bowed outward. This is because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Analysis of data on workers and those looking for work is conducted by economists at the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. This economy cannot produce at which points) ?

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Correct AnswerverifiedShow Answer

Normative statements are not

Correct AnswerverifiedShow Answer

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Correct AnswerverifiedShow Answer

Figure 2-17 -Refer to Figure 2-17. The slope of the curve between points A and B is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The use of the coordinate system allows

Correct AnswerverifiedShow Answer

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Correct AnswerverifiedShow Answer

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Correct AnswerverifiedShow Answer

Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

Correct AnswerverifiedShow Answer

When economists make positive statements, they are

Correct AnswerverifiedShow Answer

Which of the following is an example of using the scientific method with a natural experiment?

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

Correct AnswerverifiedShow Answer

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