Question 1

Figure 2-4
  
-Refer to Figure 2-4.It is not possible for this economy to produce at point

Accepted Answer

A)  V. 
B)  W. 
C)  Y. 
D)  Z. 
A)  V. 
B)  W. 
C)  Y. 
D)  Z.

Question 2

The field of economics is traditionally divided into two broad subfields,

Accepted Answer

A)  national economics and international economics. 
B)  consumer economics and producer economics. 
C)  private sector economics and public sector economics. 
D)  microeconomics and macroeconomics. 
A)  national economics and international economics. 
B)  consumer economics and producer economics. 
C)  private sector economics and public sector economics. 
D)  microeconomics and macroeconomics.

Question 3

Figure 2-6
  
-Refer to Figure 2-6.This economy has the ability to produce at which point(s)?

Accepted Answer

A)  A, B 
B)  A, B, D 
C)  A, B, C, F, G 
D)  C, F, G 
A)  A, B 
B)  A, B, D 
C)  A, B, C, F, G 
D)  C, F, G

Question 4

Figure 2-14
  
-Refer to Figure 2-14.The curves shown are

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 5

When two variables have a negative correlation,

Accepted Answer

A)  they tend to move in opposite directions. 
B)  they tend to move in the same direction. 
C)  one variable will move while the other remains constant. 
D)  the variables' values are never positive. 
A)  they tend to move in opposite directions. 
B)  they tend to move in the same direction. 
C)  one variable will move while the other remains constant. 
D)  the variables' values are never positive.

Question 6

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions.Which of the following is not one of those propositions?

Accepted Answer

A)  A ceiling on rents reduces the quantity and quality of housing available. 
B)  Fiscal policy has a significant stimulative impact on a less than fully employed economy. 
C)  The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. 
D)  The United States should implement universal health care for its citizens. 
A)  A ceiling on rents reduces the quantity and quality of housing available. 
B)  Fiscal policy has a significant stimulative impact on a less than fully employed economy. 
C)  The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. 
D)  The United States should implement universal health care for its citizens.

Question 7

"Minimum wage laws result in unemployment" is a normative statement,while "the minimum wage should be higher" is a positive statement.

Accepted Answer

A) True 
 B)False

Question 8

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Accepted Answer

A)  is asked to explain the cause of an economic event. 
B)  is asked to recommend a policy to improve economic outcomes. 
C)  is asked as a policy adviser. 
D)  does not have enough information to respond. 
A)  is asked to explain the cause of an economic event. 
B)  is asked to recommend a policy to improve economic outcomes. 
C)  is asked as a policy adviser. 
D)  does not have enough information to respond.

Question 9

In economics,graphs serve two purposes: they offer a way to visually express ideas,and they provide a way of finding and interpreting patterns when analyzing economic data.

Accepted Answer

A) True 
 B)False

Question 10

In the circular-flow diagram,which of the following items flows from households to firms through the markets for the factors of production?

Accepted Answer

A)  goods and services 
B)  land, labor, and capital 
C)  dollars spent on goods and services 
D)  wages, rent, and profit 
A)  goods and services 
B)  land, labor, and capital 
C)  dollars spent on goods and services 
D)  wages, rent, and profit

Question 11

Which of the following statements about models is correct?

Accepted Answer

A)  The more details a model includes, the better the model. 
B)  Models assume away irrelevant details. 
C)  Models cannot be used to explain how the economy functions. 
D)  Models cannot be used to make predictions. 
A)  The more details a model includes, the better the model. 
B)  Models assume away irrelevant details. 
C)  Models cannot be used to explain how the economy functions. 
D)  Models cannot be used to make predictions.

Question 12

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Accepted Answer

A)  the effects of rent control on the availability of housing in New York City 
B)  the economic impact of tornadoes on cities and towns in Oklahoma 
C)  how tariffs on shoes affects the shoe industry 
D)  the effect on the economy of changes in the nation's unemployment rate 
A)  the effects of rent control on the availability of housing in New York City 
B)  the economic impact of tornadoes on cities and towns in Oklahoma 
C)  how tariffs on shoes affects the shoe industry 
D)  the effect on the economy of changes in the nation's unemployment rate

Question 13

The slope of an upward-sloping line is positive,and the slope of a downward-sloping line is negative.

Accepted Answer

A) True 
 B)False

Question 14

Economists believe that production possibilities frontiers are often bowed because

Accepted Answer

A)  trade-offs inevitably create unemployment. 
B)  resources are not completely adaptable. 
C)  opportunity costs are constant. 
D)  of improvements in technology. 
A)  trade-offs inevitably create unemployment. 
B)  resources are not completely adaptable. 
C)  opportunity costs are constant. 
D)  of improvements in technology.

Question 15

Which of the following is not an example of a graph of a single variable?

Accepted Answer

A)  a pie chart 
B)  a bar graph 
C)  a time-series graph 
D)  a scatterplot 
A)  a pie chart 
B)  a bar graph 
C)  a time-series graph 
D)  a scatterplot

Question 16

The essence of science is

Accepted Answer

A)  the laboratory experiment. 
B)  the scientific method. 
C)  the study of nature, but not the study of society. 
D)  All of the above are correct. 
A)  the laboratory experiment. 
B)  the scientific method. 
C)  the study of nature, but not the study of society. 
D)  All of the above are correct.

Question 17

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

Accepted Answer

A) True 
 B)False

Question 18

Figure 2-16
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service
  
-Refer to Figure 2-16.Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A)  There is a positive correlation between the frequency of service and the number of passengers. 
B)  When there are 5 stops per hour, there are approximately 200 passengers. 
C)  More stops per hour is associated with more passengers per hour. 
D)  No other factors besides the frequency of service affect the number of passengers. 
A)  There is a positive correlation between the frequency of service and the number of passengers. 
B)  When there are 5 stops per hour, there are approximately 200 passengers. 
C)  More stops per hour is associated with more passengers per hour. 
D)  No other factors besides the frequency of service affect the number of passengers.

Question 19

"Society would be better off if the welfare system were abolished" is a normative statement,not a positive statement.

Accepted Answer

A) True 
 B)False

Question 20

A relatively flat demand curve indicates that

Accepted Answer

A)  quantity demanded will adjust only slightly to a price change. 
B)  quantity demanded will adjust significantly to a price change. 
C)  quantity demanded will not adjust to a price change. 
D)  the change in quantity demanded will exactly equal a change in price. 
A)  quantity demanded will adjust only slightly to a price change. 
B)  quantity demanded will adjust significantly to a price change. 
C)  quantity demanded will not adjust to a price change. 
D)  the change in quantity demanded will exactly equal a change in price.

Exam 2: Thinking Like an Economist.

Figure 2-4 -Refer to Figure 2-4.It is not possible for this economy to produce at point

The field of economics is traditionally divided into two broad subfields,

Figure 2-6 -Refer to Figure 2-6.This economy has the ability to produce at which point(s)?

Figure 2-14 -Refer to Figure 2-14.The curves shown are

When two variables have a negative correlation,

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions.Which of the following is not one of those propositions?

"Minimum wage laws result in unemployment" is a normative statement,while "the minimum wage should be higher" is a positive statement.

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

In economics,graphs serve two purposes: they offer a way to visually express ideas,and they provide a way of finding and interpreting patterns when analyzing economic data.

In the circular-flow diagram,which of the following items flows from households to firms through the markets for the factors of production?

Which of the following statements about models is correct?

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

The slope of an upward-sloping line is positive,and the slope of a downward-sloping line is negative.

Economists believe that production possibilities frontiers are often bowed because

Which of the following is not an example of a graph of a single variable?

The essence of science is

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

"Society would be better off if the welfare system were abolished" is a normative statement,not a positive statement.

A relatively flat demand curve indicates that

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.

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.

Oligopoly.

The Market For the Factors of Production.

Earnings and Discrimination.

Income Inequality and Poverty.

The Theory of Consumer Choice.

Frontiers in Microeconomics.

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