Question 1

Figure 2-1 
-Refer to Figure 2-1.Ali buys a new pair of shoes at a shoe store.To which of the arrows does this transaction directly contribute?

Accepted Answer

A)   A only
B)   A and B
C)   C only
D)   C and D

Question 2

Economic models omit many details to allow us to see what is truly important.

Accepted Answer

A) True 
 B)False

Question 3

In the circular-flow diagram,which of the following items does not flow from firms to households?

Accepted Answer

A)   goods
B)   services
C)   capital
D)   profit

Question 4

Which of the following is not an assumption of the productions possibilities frontier?

Accepted Answer

A)   A country produces only two goods or types of goods.
B)   Technology does not change.
C)   The amount of available resources does not change.
D)   There is a fixed quantity of money.

Question 5

An ordered pair is

Accepted Answer

A)   the process of checking calculations twice before placing them on a graph.
B)   two numbers that can be represented by a single point on a graph.
C)   two numbers that are represented by two points on a graph.
D)   two points on a graph that are of equal distance from the origin.

Question 6

Figure 2-7 
-Refer to Figure 2-7.For this economy,as more and more hammers are produced,the opportunity cost of an additional hammers produced,in terms of nails,

Accepted Answer

A)   remains constant.
B)   increases.
C)   decreases.
D)   This cannot be determined from the graph.

Question 7

Which of the following is an example of a normative,as opposed to positive,statement?

Accepted Answer

A)   Gasoline prices ought to be lower than they are now.
B)   The federal government should raise taxes on wealthy people.
C)   The social security system is a good system and it deserves to be preserved as it is.
D)   All of the above are normative statements.

Question 8

Economists speaking like scientists make

Accepted Answer

A)   normative statements.
B)   prescriptive statements.
C)   claims about how the world is.
D)   claims about how the world should be.

Question 9

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.

Question 10

A demand curve shows the relationship between price and

Accepted Answer

A)   income.
B)   quantity demanded.
C)   production.
D)   income and quantity demanded.

Question 11

Economists at the U.S.Department of Justice help enforce the nation's antitrust laws.

Accepted Answer

A) True 
 B)False

Question 12

Almost all economists agree that local and state governments should

Accepted Answer

A)   eliminate subsidies to professional sports franchises.
B)   increase subsidies to professional sports franchises.
C)   copy economic policy from Washington,D.C.
D)   prevent companies from outsourcing work.

Question 13

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.

Question 14

Figure 2-7 
-Refer to Figure 2-7.In order to reach point L,the economy would have to

Accepted Answer

A)   acquire more resources or experience a technological advance.
B)   begin using its available resources more efficiently than it is currently using them.
C)   shift resources away from the production of nails and toward production of hammers.
D)   None of the above are correct; the economy will never be able to reach point L.

Question 15

Figure 2-4 
-Refer to Figure 2-4.If this economy devotes all of its resources to the production of notepads,then it will produce

Accepted Answer

A)   0 notepads and 40 lamps.
B)   35 notepads and 20 lamps.
C)   70 notepads and 0 lamps.
D)   70 notepads and 40 lamps.

Question 16

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Accepted Answer

A) True 
 B)False

Question 17

Figure 2-1 
-Refer to Figure 2-1.Sonia completes her first week of employment working as a hairdresser at a salon.On Friday of that week,she receives her first paycheck.To which of the arrows does this transaction directly contribute?

Accepted Answer

A)   B only
B)   A and B
C)   C only
D)   C and D

Question 18

Figure 2-14 
-Refer to Figure 2-14.The slope of the curve between points A and B is

Accepted Answer

A)   -5
B)   -1/5
C)   1/5
D)   5

Question 19

In the circular-flow diagram,which of the following items represents a payment for a factor of production?

Accepted Answer

A)   interest
B)   capital
C)   spending by households on goods
D)   spending by households on services

Question 20

A model that shows how dollars flow through markets among households and firms is called the

Accepted Answer

A)   production possibilities frontier.
B)   circular-flow diagram.
C)   demand and supply diagram.
D)   comparative advantage model.

Exam 2: Thinking Like an Economist

Figure 2-7 -Refer to Figure 2-7.In order to reach point L,the economy would have to

Correct Answer
verified

Figure 2-7 -Refer to Figure 2-7.For this economy,as more and more hammers are produced,the opportunity cost of an additional hammers produced,in terms of nails,

Correct Answer
verified

In the circular-flow diagram,which of the following items does not flow from firms to households?

Correct Answer
verified

Economists speaking like scientists make

Correct Answer
verified

Economists at the U.S.Department of Justice help enforce the nation's antitrust laws.

Correct Answer
verified

Economic models omit many details to allow us to see what is truly important.

Correct Answer
verified

In the circular-flow diagram,which of the following items represents a payment for a factor of production?

Correct Answer
verified

Correct Answer
verified

Which of the following is not an assumption of the productions possibilities frontier?

Correct Answer
verified

Which of the following is an example of a normative,as opposed to positive,statement?

Correct Answer
verified

An ordered pair is

Correct Answer
verified

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14.The slope of the curve between points A and B is

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4.If this economy devotes all of its resources to the production of notepads,then it will produce

Correct Answer
verified

Almost all economists agree that local and state governments should

Correct Answer
verified

A production possibilities frontier can shift outward if

Correct Answer
verified

A model that shows how dollars flow through markets among households and firms is called the

Correct Answer
verified

Figure 2-1 -Refer to Figure 2-1.Ali buys a new pair of shoes at a shoe store.To which of the arrows does this transaction directly contribute?

Correct Answer
verified

A demand curve shows the relationship between price and

Correct Answer
verified

Figure 2-1 -Refer to Figure 2-1.Sonia completes her first week of employment working as a hairdresser at a salon.On Friday of that week,she receives her first paycheck.To which of the arrows does this transaction directly contribute?

Correct Answer
verified

Exam 2: Thinking Like an Economist

Figure 2-7 -Refer to Figure 2-7.In order to reach point L,the economy would have to

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7.For this economy,as more and more hammers are produced,the opportunity cost of an additional hammers produced,in terms of nails,

Correct AnswerverifiedShow Answer

In the circular-flow diagram,which of the following items does not flow from firms to households?

Correct AnswerverifiedShow Answer

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

Economists at the U.S.Department of Justice help enforce the nation's antitrust laws.

Correct AnswerverifiedShow Answer

Economic models omit many details to allow us to see what is truly important.

Correct AnswerverifiedShow Answer

In the circular-flow diagram,which of the following items represents a payment for a factor of production?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not an assumption of the productions possibilities frontier?

Correct AnswerverifiedShow Answer

Which of the following is an example of a normative,as opposed to positive,statement?

Correct AnswerverifiedShow Answer

An ordered pair is

Correct AnswerverifiedShow Answer

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The slope of the curve between points A and B is

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.If this economy devotes all of its resources to the production of notepads,then it will produce

Correct AnswerverifiedShow Answer

Almost all economists agree that local and state governments should

Correct AnswerverifiedShow Answer

A production possibilities frontier can shift outward if

Correct AnswerverifiedShow Answer

A model that shows how dollars flow through markets among households and firms is called the

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1.Ali buys a new pair of shoes at a shoe store.To which of the arrows does this transaction directly contribute?

Correct AnswerverifiedShow Answer

A demand curve shows the relationship between price and

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1.Sonia completes her first week of employment working as a hairdresser at a salon.On Friday of that week,she receives her first paycheck.To which of the arrows does this transaction directly contribute?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified