Question 1

Figure 2-16​  
-Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Accepted Answer

A) 10 gadgets. 
B) 30 widgets 
C) 10 gadgets and 30 widgets. 
D) 0 gadgets. 
A) 10 gadgets. 
B) 30 widgets 
C) 10 gadgets and 30 widgets. 
D) 0 gadgets.

Question 2

Figure 2-7  
-Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s)?

Accepted Answer

A) L, M 
B) N, O, P, Q 
C) N, O, P 
D) Q 
A) L, M 
B) N, O, P, Q 
C) N, O, P 
D) Q

Question 3

Positive statements are

Accepted Answer

A) prescriptive. 
B) claims about how the world should be. 
C) claims about how the world is. 
D) made by economists speaking as policy advisers. 
A) prescriptive. 
B) claims about how the world should be. 
C) claims about how the world is. 
D) made by economists speaking as policy advisers.

Question 4

Figure 2-9
Panel (a)
Panel (b)    
-Refer to Figure 2-9, Panel (a). The opportunity cost of moving from point M to point L is

Accepted Answer

A) 2 donuts. 
B) 2 donuts and 4 cups of coffee. 
C) 4 donuts. 
D) 4 cups of coffee. 
A) 2 donuts. 
B) 2 donuts and 4 cups of coffee. 
C) 4 donuts. 
D) 4 cups of coffee.

Question 5

Figure 2-13  
-Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Accepted Answer

A) G, H 
B) F, I, L 
C) F, G, H, I, L 
D) J, K 
A) G, H 
B) F, I, L 
C) F, G, H, I, L 
D) J, K

Question 6

A statement describing how the world is

Accepted Answer

A) is a normative statement. 
B) is a positive statement. 
C) would only be made by an economist speaking as a policy adviser. 
D) would only be made by an economist employed by the government. 
A) is a normative statement. 
B) is a positive statement. 
C) would only be made by an economist speaking as a policy adviser. 
D) would only be made by an economist employed by the government.

Question 7

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-3  
-Refer to Figure 2-3. What is the name of the model depicted in the figure?

Accepted Answer

The answer of Figure 2-3  
-Refer to Figure 2-3....

Question 9

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Accepted Answer

A) should produce. 
B) wants to produce. 
C) can produce. 
D) demands. 
A) should produce. 
B) wants to produce. 
C) can produce. 
D) demands.

Question 10

In the circular-flow diagram, firms consume all the goods and services that they produce.

Accepted Answer

A) True 
 B)False

Question 11

Albert Einstein once made the following observation about science:

Accepted Answer

A) "The whole of science is nothing more than the refinement of everyday thinking." 
B) "The whole of science is nothing more than an interesting intellectual exercise." 
C) "In order to understand science, one must rely solely on abstraction." 
D) "In order to understand science, one must transcend everyday thinking." 
A) "The whole of science is nothing more than the refinement of everyday thinking." 
B) "The whole of science is nothing more than an interesting intellectual exercise." 
C) "In order to understand science, one must rely solely on abstraction." 
D) "In order to understand science, one must transcend everyday thinking."

Question 12

Figure 2-12  
-Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Accepted Answer

A) a decrease in unemployment 
B) a technological advance in the consumer goods industries 
C) a general technological advance 
D) an increase in the availability of capital-producing resources 
A) a decrease in unemployment 
B) a technological advance in the consumer goods industries 
C) a general technological advance 
D) an increase in the availability of capital-producing resources

Question 13

Figure 2-14   Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two
-Refer to Figure 2-14. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources?

Accepted Answer

A) Q, R, U, and V 
B) S and X 
C) T and W 
D) None of the above is correct. 
A) Q, R, U, and V 
B) S and X 
C) T and W 
D) None of the above is correct.

Question 14

Economists at which administrative department help enforce the nation's antitrust laws?

Accepted Answer

Department

Question 15

In the circular-flow diagram, in the markets for

Accepted Answer

A) goods and services, households and firms are both sellers. 
B) goods and services, households are sellers and firms are buyers. 
C) the factors of production, households are sellers and firms are buyers. 
D) the factors of production, households and firms are both buyers. 
A) goods and services, households and firms are both sellers. 
B) goods and services, households are sellers and firms are buyers. 
C) the factors of production, households are sellers and firms are buyers. 
D) the factors of production, households and firms are both buyers.

Question 16

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. 
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 17

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 18

The nation's antitrust laws are enforced by economists at the Department of

Accepted Answer

A) Labor. 
B) Health and Human Services. 
C) Justice. 
D) Treasury. 
A) Labor. 
B) Health and Human Services. 
C) Justice. 
D) Treasury.

Question 19

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Accepted Answer

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

Question 20

Figure 2-16​  
-Refer to Figure 2-16. It is possible for this economy to produce

Accepted Answer

A) 30 gadgets and 90 widgets. 
B) 50 gadgets and 80 widgets. 
C) 80 gadgets and 50 widgets. 
D) 90 gadgets and 30 widgets. 
A) 30 gadgets and 90 widgets. 
B) 50 gadgets and 80 widgets. 
C) 80 gadgets and 50 widgets. 
D) 90 gadgets and 30 widgets.

Exam 2: Thinking Like an Economist

Figure 2-16​ -Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s)?

Positive statements are

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a). The opportunity cost of moving from point M to point L is

Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

A statement describing how the world is

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Figure 2-3 -Refer to Figure 2-3. What is the name of the model depicted in the figure?

The production possibilities frontier is a graph that shows the various combinations of output that an economy

In the circular-flow diagram, firms consume all the goods and services that they produce.

Albert Einstein once made the following observation about science:

Figure 2-12 -Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Economists at which administrative department help enforce the nation's antitrust laws?

In the circular-flow diagram, in the markets for

An ordered pair is

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

The nation's antitrust laws are enforced by economists at the Department of

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Figure 2-16​ -Refer to Figure 2-16. It is possible for this economy to produce

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 2-16 -Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Figure 2-16 -Refer to Figure 2-16. It is possible for this economy to produce