Question 1

Use the following Figure to answer the question : 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

When two variables move in opposite directions, the curve relating them is

Accepted Answer

A)   upward sloping, and we say the variables are positively related.
B)   upward sloping, and we say the variables are negatively related.
C)   downward sloping, and we say the variables are positively related.
D)   downward sloping, and we say the variables are negatively related.E) B) and C)
F) A) and D)

Question 3

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Accepted Answer

A) True 
 B)False

Question 4

Efficiency is illustrated by

Accepted Answer

A)   both the production possibilities frontier and the circular-flow diagram.
B)   neither the production possibilities frontier nor the circular-flow diagram.
C)   the production possibilities frontier only.
D)   the circular-flow diagram only.E) A) and B)
F) All of the above

Question 5

Economic models

Accepted Answer

A)   are not useful because they omit many real-world details.
B)   are usually composed of diagrams and equations.
C)   are useful because they do not omit any real-world details.
D)   are usually plastic representations of the economy.E) None of the above
F) C) and D)

Question 6

In the ordered pair 3, 6) , 3 is the

Accepted Answer

A)   x-coordinate.
B)   y-coordinate.
C)   origin.
D)   slope.E) A) and C)
F) None of the above

Question 7

Use the following Figure to answer the question : Figure 2-5:  
-Refer to Figure 2-5. Efficient production is represented by which points) ?

Accepted Answer

A)   A, B
B)   A, B, D
C)   A, B, C
D)   CE) A) and C)
F) None of the above

Question 8

In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called

Accepted Answer

The answer of In the circular flow diagram, when Brian...

Question 9

Economists believe that production possibilities frontiers

Accepted Answer

A)   never have a bowed shape.
B)   rarely have a bowed shape.
C)   often have a bowed shape.
D)   always have a bowed shape.E) A) and D)
F) All of the above

Question 10

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Accepted Answer

The answer of Like biologists and physicists, economists use the...

Question 11

A microeconomist - as opposed to a macroeconomist - might study

Accepted Answer

A)   the effect of a national healthcare program on the nation's unemployment rate.
B)   the effect of new regulations on production in the pulp and paper industry.
C)   the effect of changes in interest rates on gross domestic product.
D)   the growth rate of production in the economy.E) B) and C)
F) A) and D)

Question 12

Use the following Figure to answer the question Figure: 2-2 
-Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Accepted Answer

A)   households are represented by Box A.
B)   firms are represented by Box C.
C)   firms are represented by Box A.
D)   firms are sellers in Box B.E) All of the above
F) B) and D)

Question 13

Use the following Figure to answer the question Figure: 2-1 
-Refer to Figure 2-1. Which arrow represents the flow of income payments?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) B) and C)
F) None of the above

Question 14

How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?

Accepted Answer

A)   Most people who study economics are not very bright.
B)   Good economists must possess a rare combination of gifts.
C)   Economics is quite boring; hence, people tend to lose interest in it before mastering it.
D)   Good thinkers become frustrated with economics because it does not make use of the scientific method.E) A) and B)
F) A) and C)

Question 15

Use the following Figure to answer the question : Figure 2-20 :
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-20. Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years. Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes. Who is correct?

Accepted Answer

A)   Senator Smith is correct.
B)   Senator Jones is correct.
C)   It is difficult to say which senator might be correct due to the reverse causality problem.
D)   It is difficult to say which senator might be correct due to omitted variable bias.E) B) and C)
F) All of the above

Question 16

An assumption an economist might make while studying international trade is

Accepted Answer

A)   there are only two countries.
B)   countries only produce two goods.
C)   technology does not change.
D)   All of the above are possible assumptions.E) B) and D)
F) None of the above

Question 17

Use the following Figure to answer the question : Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. A movement from point A to point Z is called

Accepted Answer

A)   a shift in demand.
B)   a movement along the demand curve.
C)   a shift in supply.
D)   a movement along the supply curve.E) A) and B)
F) None of the above

Question 18

When economists make

Accepted Answer

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

Question 19

What you must give up to get something else is called the

Accepted Answer

The answer of What you must give up to get...

Question 20

Use the following Figure to answer the question : Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. Which of the following could result in a movement from point A to point B?

Accepted Answer

A)   a change in income
B)   a change in the cost of producing a restaurant meal
C)   a change in the price of restaurant meals
D)   a change in the price of moviesE) A) and D)
F) B) and C)

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : 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 Answer
verified

Efficiency is illustrated by

Correct Answer
verified

What you must give up to get something else is called the

Correct Answer
verified

A microeconomist - as opposed to a macroeconomist - might study

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point Z is called

Correct Answer
verified

Economists believe that production possibilities frontiers

Correct Answer
verified

Correct Answer
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Economic models

Correct Answer
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Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. Efficient production is represented by which points) ?

Correct Answer
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Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point A to point B?

Correct Answer
verified

When two variables move in opposite directions, the curve relating them is

Correct Answer
verified

In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called

Correct Answer
verified

When economists make

Correct Answer
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Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Which arrow represents the flow of income payments?

Correct Answer
verified

How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?

Correct Answer
verified

An assumption an economist might make while studying international trade is

Correct Answer
verified

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Correct Answer
verified

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Correct Answer
verified

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Correct Answer
verified

In the ordered pair 3, 6) , 3 is the

Correct Answer
verified

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : 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

Efficiency is illustrated by

Correct AnswerverifiedShow Answer

What you must give up to get something else is called the

Correct AnswerverifiedShow Answer

A microeconomist - as opposed to a macroeconomist - might study

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point Z is called

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. Efficient production is represented by which points) ?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point A to point B?

Correct AnswerverifiedShow Answer

When two variables move in opposite directions, the curve relating them is

Correct AnswerverifiedShow Answer

In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called

Correct AnswerverifiedShow Answer

When economists make

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Which arrow represents the flow of income payments?

Correct AnswerverifiedShow Answer

How did the influential economist John Maynard Keynes explain his remark that though economics is an easy subject compared with the higher branches of philosophy or pure science, it is a subject at which few excel?

Correct AnswerverifiedShow Answer

An assumption an economist might make while studying international trade is

Correct AnswerverifiedShow Answer

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. If the owners of land, labor, and capital are represented by Box B of this circular-flow diagram, then

Correct AnswerverifiedShow Answer

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Correct AnswerverifiedShow Answer

In the ordered pair 3, 6) , 3 is the

Correct AnswerverifiedShow Answer

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