Question 1

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Accepted Answer

The answer of Economists at which administrative department analyze data...

Question 2

A circular-flow diagram is a model that

Accepted Answer

A) helps to explain how participants in the economy interact with one another. 
B) helps to explain how the economy is organized. 
C) incorporates all aspects of the real economy. 
D) Both (a) and (b) are correct. 
A) helps to explain how participants in the economy interact with one another. 
B) helps to explain how the economy is organized. 
C) incorporates all aspects of the real economy. 
D) Both (a) and (b) are correct.

Question 3

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. 
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 4

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 5

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Accepted Answer

The answer of Suppose a war in the Middle East...

Question 6

Good assumptions simplify a problem without substantially affecting the answer.

Accepted Answer

A) True 
 B)False

Question 7

Figure 2-9
Panel (a)
Panel (b)    
-Refer to Figure 2-9, Panel (a). To gain 2 donuts by moving from point L to point M, society must sacrifice

Accepted Answer

A) efficiency. 
B) employment. 
C) 4 cups of coffee. 
D) More than one of the above is correct. 
A) efficiency. 
B) employment. 
C) 4 cups of coffee. 
D) More than one of the above is correct.

Question 8

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Accepted Answer

A) True 
 B)False

Question 9

The Economic Report of the President

Accepted Answer

A) discusses recent developments in the economy and presents analysis of current policy issues. 
B) is written by the Council of Economic Advisers. 
C) is the responsibility of the economists at the Office of Management and Budget. 
D) Both a and b are correct. 
A) discusses recent developments in the economy and presents analysis of current policy issues. 
B) is written by the Council of Economic Advisers. 
C) is the responsibility of the economists at the Office of Management and Budget. 
D) Both a and b are correct.

Question 10

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

Accepted Answer

A) is useless, since the real world has many countries trading many goods. 
B) can be useful only in situations involving two countries and two goods. 
C) can be useful in the classroom, but is useless in the real world. 
D) can be useful in helping economists understand the complex world of international trade involving many countries and many goods. 
A) is useless, since the real world has many countries trading many goods. 
B) can be useful only in situations involving two countries and two goods. 
C) can be useful in the classroom, but is useless in the real world. 
D) can be useful in helping economists understand the complex world of international trade involving many countries and many goods.

Question 11

Figure 2-6  
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point F is

Accepted Answer

A) zero. 
B) 40 blankets. 
C) 120 pillows. 
D) 360 blankets. 
A) zero. 
B) 40 blankets. 
C) 120 pillows. 
D) 360 blankets.

Question 12

Figure 2-14  
-Refer to Figure 2-14. The opportunity cost of moving from point A to point D is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 13

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Accepted Answer

A) Tariffs and import quotas usually reduce general economic welfare. 
B) A large federal budget deficit has an adverse effect on the economy. 
C) Minimum wage increases unemployment among young and unskilled workers. 
D) All of the above are correct. 
A) Tariffs and import quotas usually reduce general economic welfare. 
B) A large federal budget deficit has an adverse effect on the economy. 
C) Minimum wage increases unemployment among young and unskilled workers. 
D) All of the above are correct.

Question 14

Figure 2-17​  
-Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Accepted Answer

A) True 
 B)False

Question 15

Is the following a positive or normative statement? The Federal Reserve should set an inflation target and employ policies to meet the target.

Accepted Answer

The answer of Is the following a positive or normative...

Question 16

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

Accepted Answer

A) True 
 B)False

Question 17

Figure 2-4  
-Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Accepted Answer

A) R 
B) S 
C) T 
D) U 
A) R 
B) S 
C) T 
D) U

Question 18

In the markets for goods and services in the circular-flow diagram,

Accepted Answer

A) households and firms are both buyers. 
B) households and firms are both sellers. 
C) households are buyers and firms are sellers. 
D) households are sellers and firms are buyers. 
A) households and firms are both buyers. 
B) households and firms are both sellers. 
C) households are buyers and firms are sellers. 
D) households are sellers and firms are buyers.

Question 19

Figure 2-3  
-Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Accepted Answer

goods and

Question 20

Points outside the production possibilities frontier represent infeasible levels of production.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

A circular-flow diagram is a model that

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

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Good assumptions simplify a problem without substantially affecting the answer.

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a). To gain 2 donuts by moving from point L to point M, society must sacrifice

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

The Economic Report of the President

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point F is

Figure 2-14 -Refer to Figure 2-14. The opportunity cost of moving from point A to point D is 10 dishwashers.

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Figure 2-17​ -Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Is the following a positive or normative statement? The Federal Reserve should set an inflation target and employ policies to meet the target.

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

In the markets for goods and services in the circular-flow diagram,

Figure 2-3 -Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Points outside the production possibilities frontier represent infeasible levels of production.

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Figure 2-17 -Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.