Question 1

What is a type of graph that can be used to display the relationship between two variables?

Accepted Answer

A)  a pie chart 
B)  a bar graph 
C)  a time-series graph 
D)  the coordinate system 
A)  a pie chart 
B)  a bar graph 
C)  a time-series graph 
D)  the coordinate system

Question 2

How is the slope of a line calculated?

Accepted Answer

A)  change in x/change in y 
B)  change in y/change in x 
C)  x/y 
D)  x + y 
A)  change in x/change in y 
B)  change in y/change in x 
C)  x/y 
D)  x + y

Question 3

What does a relatively steep demand curve mean?

Accepted Answer

A)  quantity demand will adjust slightly to a price change 
B)  quantity demand will adjust greatly to a price change 
C)  quantity demand will not adjust to a price change 
D)  the change in quantity demand will exactly equal a change in price 
A)  quantity demand will adjust slightly to a price change 
B)  quantity demand will adjust greatly to a price change 
C)  quantity demand will not adjust to a price change 
D)  the change in quantity demand will exactly equal a change in price

Question 4

In the simple circular-flow diagram, in which market are households sellers?

Accepted Answer

A)  the factors of production market 
B)  the goods and services market 
C)  both the factors of production market and the goods and services market 
D)  neither the factors of production market nor the goods and services market 
A)  the factors of production market 
B)  the goods and services market 
C)  both the factors of production market and the goods and services market 
D)  neither the factors of production market nor the goods and services market

Question 5

Which of the following is a difficulty that economists face that some other scientists do not?

Accepted Answer

A)  Unlike other sciences, economic studies must include the largest economic player, the government. 
B)  Economists, unfortunately, receive less government funding than other scientists. 
C)  Corporations are reluctant to disclose necessary information for economic research. 
D)  Experiments are often difficult to conduct in economics. 
A)  Unlike other sciences, economic studies must include the largest economic player, the government. 
B)  Economists, unfortunately, receive less government funding than other scientists. 
C)  Corporations are reluctant to disclose necessary information for economic research. 
D)  Experiments are often difficult to conduct in economics.

Question 6

Figure 2-10  
-Refer to Figure 2-10. What is the movement from point A to point B?

Accepted Answer

A)  a shift of the curve 
B)  a change in consumer tastes 
C)  a movement along the curve 
D)  a change in consumer income 
A)  a shift of the curve 
B)  a change in consumer tastes 
C)  a movement along the curve 
D)  a change in consumer income

Question 7

How do economists view positive statements?

Accepted Answer

A)  affirmative, justifying existing economic policy 
B)  optimistic, putting the best possible interpretation on things 
C)  descriptive, making a claim about how the world is 
D)  prescriptive, making a claim about how the world ought to be 
A)  affirmative, justifying existing economic policy 
B)  optimistic, putting the best possible interpretation on things 
C)  descriptive, making a claim about how the world is 
D)  prescriptive, making a claim about how the world ought to be

Question 8

Draw a production possibilities frontier showing increasing opportunity cost for hammers and horseshoes.
a. On the graph, identify the area of feasible outcomes and the area of unfeasible outcomes.
b. On the graph, label a point that is efficient as point E and a point that is inefficient as point I.
c. On the graph, illustrate the effect of the discovery of a new vein of iron ore, a resource needed to make both horseshoes and hammers, on this economy.
d. On a separate graph for hammers and horseshoes, illustrate the effect a new computerized assembly line in the production of hammers would have.

Accepted Answer

The graph on the lef

Question 9

When constructing a production possibilities frontier, which of the following is NOT an assumption?

Accepted Answer

A)  The economy produces more than two goods. 
B)  All the economy's factors of production are being used. 
C)  The economy has a fixed level of technology. 
D)  The economy's available factors of production are fixed. 
A)  The economy produces more than two goods. 
B)  All the economy's factors of production are being used. 
C)  The economy has a fixed level of technology. 
D)  The economy's available factors of production are fixed.

Question 10

Since natural experiments offered by history cannot be used in economics, carefully constructed laboratory experiments must be used.

Accepted Answer

A) True 
 B)False

Question 11

What are the two basic reasons why economists often appear to give conflicting advice to policymakers?

Accepted Answer

A)  differences in opinions and education 
B)  differences in scientific judgments and values 
C)  differences in scientific judgments and education 
D)  differences in opinions and values 
A)  differences in opinions and education 
B)  differences in scientific judgments and values 
C)  differences in scientific judgments and education 
D)  differences in opinions and values

Question 12

Which statement is the best explanation for why policies such as rent control and import quotas persist in spite of the fact that experts are united in their opposition to such policies?

Accepted Answer

A)  Economists have not yet convinced the general public that the policies are undesirable. 
B)  Economists are simply wrong about the economic impact of these policies. 
C)  Economists have different values than do most people. 
D)  Economists are usually of a different political party than are lawmakers. 
A)  Economists have not yet convinced the general public that the policies are undesirable. 
B)  Economists are simply wrong about the economic impact of these policies. 
C)  Economists have different values than do most people. 
D)  Economists are usually of a different political party than are lawmakers.

Question 13

What does a demand curve show?

Accepted Answer

A)  the relationship between income and quantity demanded 
B)  the relationship between price and income 
C)  the relationship between price and quantity demanded 
D)  the relationship among income, price, and quantity demanded 
A)  the relationship between income and quantity demanded 
B)  the relationship between price and income 
C)  the relationship between price and quantity demanded 
D)  the relationship among income, price, and quantity demanded

Question 14

How does a scientist make assumptions?

Accepted Answer

A)  A scientist chooses the assumptions that best prove a desired result. 
B)  A scientist chooses the assumptions randomly so as not to appear biased. 
C)  A scientist chooses the assumptions that would be most widely accepted. 
D)  A scientist chooses the assumptions that best capture the essential features of the problem. 
A)  A scientist chooses the assumptions that best prove a desired result. 
B)  A scientist chooses the assumptions randomly so as not to appear biased. 
C)  A scientist chooses the assumptions that would be most widely accepted. 
D)  A scientist chooses the assumptions that best capture the essential features of the problem.

Question 15

Figure 2-10  
-Refer to Figure 2-10. What are the curves shown?

Accepted Answer

A)  supply curves 
B)  demand curves 
C)  preference curves 
D)  income-consumption curves 
A)  supply curves 
B)  demand curves 
C)  preference curves 
D)  income-consumption curves

Question 16

Figure 2-2  
-Refer to Figure 2-2. Who owns the factors of production?

Accepted Answer

A)  Box A 
B)  Box B 
C)  Box C 
D)  Box D 
A)  Box A 
B)  Box B 
C)  Box C 
D)  Box D

Question 17

Why are historical episodes valuable to economists?

Accepted Answer

A)  They allow economists to see how far the discipline has evolved. 
B)  It is easier to obtain historical data than observe current trends. 
C)  It is easier to evaluate a past situation than to predict a future situation. 
D)  They allow economists to evaluate economic theories of the present. 
A)  They allow economists to see how far the discipline has evolved. 
B)  It is easier to obtain historical data than observe current trends. 
C)  It is easier to evaluate a past situation than to predict a future situation. 
D)  They allow economists to evaluate economic theories of the present.

Question 18

Figure 2-6  
-Refer to Figure 2-6. What is the opportunity cost to society of the movement from point A to point B?

Accepted Answer

A)  4 baseballs 
B)  50 baseballs 
C)  100 bananas 
D)  200 bananas 
A)  4 baseballs 
B)  50 baseballs 
C)  100 bananas 
D)  200 bananas

Question 19

Figure 2-1  
-Refer to Figure 2-1. Which arrow shows the flow of income payments?

Accepted Answer

A)  arrow A 
B)  arrow B 
C)  arrow C 
D)  arrow D 
A)  arrow A 
B)  arrow B 
C)  arrow C 
D)  arrow D

Question 20

Which statement about slope is NOT correct?

Accepted Answer

A)  Slope explains how much one variable responds to changes in another variable. 
B)  Slope can be computed by delta x divided by delta y. 
C)  Slope is positive if the two variables are moving in the same direction. 
D)  Slope does not change if the line is linear. 
A)  Slope explains how much one variable responds to changes in another variable. 
B)  Slope can be computed by delta x divided by delta y. 
C)  Slope is positive if the two variables are moving in the same direction. 
D)  Slope does not change if the line is linear.

What is a type of graph that can be used to display the relationship between two variables?

How is the slope of a line calculated?

What does a relatively steep demand curve mean?

In the simple circular-flow diagram, in which market are households sellers?

Which of the following is a difficulty that economists face that some other scientists do not?

Figure 2-10 -Refer to Figure 2-10. What is the movement from point A to point B?

How do economists view positive statements?

When constructing a production possibilities frontier, which of the following is NOT an assumption?

Since natural experiments offered by history cannot be used in economics, carefully constructed laboratory experiments must be used.

What are the two basic reasons why economists often appear to give conflicting advice to policymakers?

Which statement is the best explanation for why policies such as rent control and import quotas persist in spite of the fact that experts are united in their opposition to such policies?

What does a demand curve show?

How does a scientist make assumptions?

Figure 2-10 -Refer to Figure 2-10. What are the curves shown?

Figure 2-2 -Refer to Figure 2-2. Who owns the factors of production?

Why are historical episodes valuable to economists?

Figure 2-6 -Refer to Figure 2-6. What is the opportunity cost to society of the movement from point A to point B?

Figure 2-1 -Refer to Figure 2-1. Which arrow shows the flow of income payments?

Which statement about slope is NOT correct?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 2: Thinking Like an Economist

What is a type of graph that can be used to display the relationship between two variables?

How is the slope of a line calculated?

What does a relatively steep demand curve mean?

In the simple circular-flow diagram, in which market are households sellers?

Which of the following is a difficulty that economists face that some other scientists do not?

Figure 2-10 -Refer to Figure 2-10. What is the movement from point A to point B?

How do economists view positive statements?

When constructing a production possibilities frontier, which of the following is NOT an assumption?

Since natural experiments offered by history cannot be used in economics, carefully constructed laboratory experiments must be used.

What are the two basic reasons why economists often appear to give conflicting advice to policymakers?

Which statement is the best explanation for why policies such as rent control and import quotas persist in spite of the fact that experts are united in their opposition to such policies?

What does a demand curve show?

How does a scientist make assumptions?

Figure 2-10 -Refer to Figure 2-10. What are the curves shown?

Figure 2-2 -Refer to Figure 2-2. Who owns the factors of production?

Why are historical episodes valuable to economists?

Figure 2-6 -Refer to Figure 2-6. What is the opportunity cost to society of the movement from point A to point B?

Figure 2-1 -Refer to Figure 2-1. Which arrow shows the flow of income payments?

Which statement about slope is NOT correct?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary Policy on Aggregate Demand

The Influence of Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters