Question 1

Figure 2-14 
-Refer to Figure 2-14.The movement from point B to point C is a(n)

Accepted Answer

A)   shift of the demand curve.
B)   movement along the demand curve.
C)   indication that the price of grapes has changed.
D)   indication that the costs incurred by firms that produce grapes have changed.E) B) and D)
F) A) and B)

Question 2

Figure 2-14 
-Refer to Figure 2-14.The curves shown are

Accepted Answer

A)   supply curves.
B)   demand curves.
C)   preference curves.
D)   income-consumption curves.E) A) and B)
F) C) and D)

Question 3

Figure 2-1 
-Refer to Figure 2-1.Which arrow represents the flow of spending by households?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) All of the above
F) B) and C)

Question 4

Which of the following is not correct?

Accepted Answer

A)   Evaluating statements about how the world should be involves values as well as facts.
B)   Positive statements can,in principle,be confirmed or refuted by examining evidence.
C)   Normative statements can be judged using data alone.
D)   Deciding what is good or bad policy is not just a matter of science.E) A) and D)
F) None of the above

Question 5

Economic models

Accepted Answer

A)   are constructed to mirror reality as closely as possible,and in this respect economic models are no different from other scientific models.
B)   are constructed to mirror reality as closely as possible,and in this respect economic models are very different from other scientific models.
C)   are simplifications of reality,and in this respect economic models are no different from other scientific models.
D)   are simplifications of reality,and in this respect economic models are very different from other scientific models.E) B) and D)
F) A) and C)

Question 6

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

Question 7

When economists make

Accepted Answer

A)   positive statements,they are speaking not as policy advisers but as scientists.
B)   positive statements,they are speaking not as scientists but as forecasters.
C)   normative statements,they are speaking not as policy advisers but as scientists.
D)   normative statements,they are speaking not as policy advisers but as model-builders.E) A) and C)
F) B) and C)

Question 8

Figure 2-14 
-Refer to Figure 2-14.The movement from point A to point B is a(n)

Accepted Answer

A)   shift of the demand curve.
B)   indication of a change in preferences for grapes.
C)   movement along the demand curve.
D)   indication of an increase in income.E) B) and D)
F) B) and C)

Question 9

In the circular-flow diagram,factors of production include land,labor,and capital.

Accepted Answer

A) True 
 B)False

Question 10

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.E) All of the above
F) None of the above

Question 11

In the early 19th century,the Russian government sent doctors to southern Russian villages to provide assistance during a cholera epidemic.The villagers noticed that wherever doctors appeared,people died.Therefore,many doctors were chased away from villages,and some were even killed.This reaction to the correlation between doctors and deaths is most likely a problem of

Accepted Answer

A)   omitted variables.
B)   reverse causality.
C)   government propaganda.
D)   medical incompetence.E) A) and C)
F) None of the above

Question 12

In economics,capital refers to

Accepted Answer

A)   the finances necessary for firms to produce their products.
B)   buildings and machines used in the production process.
C)   the money households use to purchase firms' output.
D)   stocks and bonds.E) None of the above
F) All of the above

Question 13

Economists make use of assumptions,some of which are unrealistic,for the purpose of

Accepted Answer

A)   teaching economics to people who have never before studied economics.
B)   advancing their political agendas.
C)   developing models when the scientific method cannot be used.
D)   focusing their thinking.E) None of the above
F) A) and C)

Question 14

The point where both x and y are zero is known as the

Accepted Answer

A)   origin.
B)   null.
C)   zero coordinate.
D)   center.E) B) and D)
F) A) and B)

Question 15

When two variables have a negative correlation and the x-variable decreases,

Accepted Answer

A)   the y-variable increases.
B)   the y-variable decreases.
C)   the y-variable stays the same.
D)   the x-variable can never be positive.E) C) and D)
F) A) and B)

Question 16

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 C)
F) A) and B)

Question 17

Economists speaking like scientists make

Accepted Answer

A)   positive statements.
B)   prescriptive statements.
C)   claims about how the world should be.
D)   More than one of the above is correct.E) All of the above
F) B) and C)

Question 18

Figure 2-16
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service 
-Refer to Figure 2-16.Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A)   There is a positive correlation between the frequency of service and the number of passengers.
B)   When there are 5 stops per hour,there are approximately 200 passengers.
C)   More stops per hour is associated with more passengers per hour.
D)   No other factors besides the frequency of service affect the number of passengers.E) B) and D)
F) A) and D)

Question 19

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> This diagram should duplicate the essen...

Question 20

In a certain economy,toys and greeting cards are produced,and the economy currently operates on its production possibilities frontier.Which of the following events would allow the economy to produce more toys and more greeting cards,relative to the quantities of those goods that are being produced now?

Accepted Answer

A)   The economy experiences economic growth.
B)   There is a technological advance in the toy industry,but the greeting card industry experiences no such advance.
C)   There is a technological advance in the greeting card industry,but the toy industry experiences no such advance.
D)   All of the above are correct.E) A) and D)
F) A) and B)

Exam 2: Thinking Like an Economist

Correct Answer
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When economists make

Correct Answer
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In the circular-flow diagram,factors of production include land,labor,and capital.

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

Correct Answer
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When two variables have a negative correlation and the x-variable decreases,

Correct Answer
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In economics,capital refers to

Correct Answer
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Which of the following is not correct?

Correct Answer
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The point where both x and y are zero is known as the

Correct Answer
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Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of spending by households?

Correct Answer
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Figure 2-14 -Refer to Figure 2-14.The curves shown are

Correct Answer
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Figure 2-14 -Refer to Figure 2-14.The movement from point B to point C is a(n)

Correct Answer
verified

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

Correct Answer
verified

Economic models

Correct Answer
verified

Economists speaking like scientists make

Correct Answer
verified

Economists make use of assumptions,some of which are unrealistic,for the purpose of

Correct Answer
verified

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Correct Answer
verified
This diagram should duplicate the essen...
View Answer

Correct Answer
verified

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

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14.The movement from point A to point B is a(n)

Correct Answer
verified

Exam 2: Thinking Like an Economist

Correct AnswerverifiedShow Answer

When economists make

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In the circular-flow diagram,factors of production include land,labor,and capital.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When two variables have a negative correlation and the x-variable decreases,

Correct AnswerverifiedShow Answer

In economics,capital refers to

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

The point where both x and y are zero is known as the

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of spending by households?

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The curves shown are

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Figure 2-14 -Refer to Figure 2-14.The movement from point B to point C is a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

Economists make use of assumptions,some of which are unrealistic,for the purpose of

Correct AnswerverifiedShow Answer

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Correct Answerverified This diagram should duplicate the essen...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The movement from point A to point B is a(n)

Correct AnswerverifiedShow Answer

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This diagram should duplicate the essen...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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