Question 1

Graph 2-9  
-Refer to Graph 2-9.In the graph shown, the movement from point A to point B is:

Accepted Answer

A) a shift of the curve 
B) a change in preferences 
C) a movement along the curve 
D) all of the above 
A) a shift of the curve 
B) a change in preferences 
C) a movement along the curve 
D) all of the above

Question 2

An economy will always operate at some point on its production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 3

Graph 2-1  
-Refer to Graph 2-1.In the graph shown, the opportunity cost of moving from point D to point B is 20 pieces of art.

Accepted Answer

A) True 
 B)False

Question 4

Graph 2-1  
-Refer to Graph 2-1.In the graph shown, points A, B and C represent feasible or attainable outcomes for society.

Accepted Answer

A) True 
 B)False

Question 5

Economic analysis can generate different outputs as:

Accepted Answer

A) All of the above 
B) There is a great deal of valid data that can enable a number of conclusions 
C) Differing opinions exists on the validity of certain parameters chosen 
D) Different variables are taken into consideration in the model 
A) All of the above 
B) There is a great deal of valid data that can enable a number of conclusions 
C) Differing opinions exists on the validity of certain parameters chosen 
D) Different variables are taken into consideration in the model

Question 6

Graph 2-7  
-Refer to Graph 2-7.What is the opportunity cost to society of the movement from point C to point B, given the production possibilities frontier shown?

Accepted Answer

A) 650 pretzels 
B) 500 pretzels 
C) 300 pretzels 
D) 150 pretzels 
A) 650 pretzels 
B) 500 pretzels 
C) 300 pretzels 
D) 150 pretzels

Question 7

The production possibilities frontier is a:

Accepted Answer

A) graph that shows the various combinations of output the economy can possibly produce, given the available resources and technology 
B) graph that shows the various combinations of resources the economy can possibly produce, given the available output 
C) graph that shows the various combinations of concrete the economy can possibly produce, given the available agricultural land 
D) graph that shows the various combinations of wheat the economy can possibly produce, given the available cement 
A) graph that shows the various combinations of output the economy can possibly produce, given the available resources and technology 
B) graph that shows the various combinations of resources the economy can possibly produce, given the available output 
C) graph that shows the various combinations of concrete the economy can possibly produce, given the available agricultural land 
D) graph that shows the various combinations of wheat the economy can possibly produce, given the available cement

Question 8

Graph 2-2  
-Refer to Graph 2-2.In the circular-flow diagram shown, which arrow shows the flow of income payments?

Accepted Answer

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

Question 9

Graph 2-1  
-Refer to Graph 2-1.In the graph shown, the opportunity cost to the economy of moving from point A to point B is 20 units of concrete.

Accepted Answer

A) True 
 B)False

Question 10

The art in scientific thinking is in deciding which assumptions to make.

Accepted Answer

A) True 
 B)False

Question 11

Graph 2-1  
-Refer to Graph 2-1.In the graph shown, the opportunity cost of more art increases as more art is produced.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the most accurate statement about economic models?

Accepted Answer

A) economic models attempt to mirror reality exactly 
B) economic models are useful, but should not be used for policymaking 
C) economic models cannot be used in the real world because they omit details 
D) economic models omit many details to allow us to see what is truly important 
A) economic models attempt to mirror reality exactly 
B) economic models are useful, but should not be used for policymaking 
C) economic models cannot be used in the real world because they omit details 
D) economic models omit many details to allow us to see what is truly important

Question 13

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 point on a graph 
C) the inventory system used to keep track of right and left shoes, etc. 
D) two halves of a whole 
A) the process of checking calculations twice before placing them on a graph 
B) two numbers that can be represented by a point on a graph 
C) the inventory system used to keep track of right and left shoes, etc. 
D) two halves of a whole

Exam 2: Thinking Like an Economist

Graph 2-9 -Refer to Graph 2-9.In the graph shown, the movement from point A to point B is:

An economy will always operate at some point on its production possibilities curve.

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost of moving from point D to point B is 20 pieces of art.

Graph 2-1 -Refer to Graph 2-1.In the graph shown, points A, B and C represent feasible or attainable outcomes for society.

Economic analysis can generate different outputs as:

Graph 2-7 -Refer to Graph 2-7.What is the opportunity cost to society of the movement from point C to point B, given the production possibilities frontier shown?

The production possibilities frontier is a:

Graph 2-2 -Refer to Graph 2-2.In the circular-flow diagram shown, which arrow shows the flow of income payments?

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost to the economy of moving from point A to point B is 20 units of concrete.

The art in scientific thinking is in deciding which assumptions to make.

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost of more art increases as more art is produced.

Which of the following is the most accurate statement about economic models?

An ordered pair is:

Ten Lessons From 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

Application: 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

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

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 Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

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