Question 1

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

Accepted Answer

A) True 
 B)False  True

Question 2

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

Accepted Answer

A) True 
 B)False  True

Question 3

When two variables move in the same direction, the curve relating them is

Accepted Answer

A) downward sloping, and we say the variables are negatively related. 
B) upward sloping, and we say the variables are negatively related. 
C) downward sloping, and we say the variables are positively related. 
D) upward sloping, and we say the variables are positively related. 
A) downward sloping, and we say the variables are negatively related. 
B) upward sloping, and we say the variables are negatively related. 
C) downward sloping, and we say the variables are positively related. 
D) upward sloping, and we say the variables are positively related. D

Question 4

Figure 2-12
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   ​
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-Refer to Figure 2-12. What are two elements not included in this figure that could be included in a more complex model?

Accepted Answer

government

Question 5

Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

Accepted Answer

Council of

Question 6

In the circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 7

Kiara wants to create a graph containing the prices of theater tickets and the corresponding quantities of theater tickets demanded by customers. She should use a

Accepted Answer

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

Question 8

Figure 2-10
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   ​
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-Refer to Figure 2-10. Points A, B, and D represent feasible outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 9

The slope of a line that passes through the points (10, 40) and (20, 35) is

Accepted Answer

A)  $$\frac { 1 } { 2 }$$ . 
B)  $$- \frac { 1 } { 2 }$$ . 
C) -2. 
D) 2. 
A)  $$\frac { 1 } { 2 }$$ . 
B)  $$- \frac { 1 } { 2 }$$ . 
C) -2. 
D) 2.

Question 10

Figure 2-10
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-Refer to Figure 2-10. It is possible for this economy to produce 75 doghouses.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Figure 2-13
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   Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
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-Refer to Figure 2-13. Which point(s) on the graph is(are) efficient production possibilities?

Accepted Answer

The answer of Figure 2-13
​
   Consider the production...

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Figure 2-4
Graph (a)
Graph (b)
    
-Refer to Figure 2-4, Graph (a). Production at point Q is

Accepted Answer

A) possible and efficient. 
B) possible but inefficient. 
C) impossible but efficient. 
D) impossible and inefficient. 
A) possible and efficient. 
B) possible but inefficient. 
C) impossible but efficient. 
D) impossible and inefficient.

Question 15

Figure 2-14
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-Refer to Figure 2-14. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one car is

Accepted Answer

The answer of Figure 2-14
​
   ​
-Refer to Figure...

Question 16

When a variable that is named on an axis of a graph changes, the curve shifts.

Accepted Answer

A) True 
 B)False

Question 17

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Accepted Answer

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

Question 18

Which of the following statements about models is correct?

Accepted Answer

A) The more details a model includes, the better the model. 
B) Because economic models omit many details, they allow us to see what is truly important. 
C) Models cannot be used to explain how the economy functions. 
D) Economic models complicate reality. 
A) The more details a model includes, the better the model. 
B) Because economic models omit many details, they allow us to see what is truly important. 
C) Models cannot be used to explain how the economy functions. 
D) Economic models complicate reality.

Question 19

Figure 2-6
  
-Refer to Figure 2-6. Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,

Accepted Answer

A) the opportunity cost is the same as when society moves from point B to point C. 
B) it is giving up cars to get sofas. 
C) the opportunity cost is increasing. 
D) it moves from an inefficient point to an efficient point. 
A) the opportunity cost is the same as when society moves from point B to point C. 
B) it is giving up cars to get sofas. 
C) the opportunity cost is increasing. 
D) it moves from an inefficient point to an efficient point.

Question 20

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Accepted Answer

The answer of When economists are trying to explain the...

Exam 2: Thinking Like an Economist

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

When two variables move in the same direction, the curve relating them is

Figure 2-12 ​ ​ ​ ​ ​ ​ -Refer to Figure 2-12. What are two elements not included in this figure that could be included in a more complex model?

Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

In the circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Kiara wants to create a graph containing the prices of theater tickets and the corresponding quantities of theater tickets demanded by customers. She should use a

Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. Points A, B, and D represent feasible outcomes for this economy.

The slope of a line that passes through the points (10, 40) and (20, 35) is

Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. It is possible for this economy to produce 75 doghouses.

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

Figure 2-13 ​ Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. ​ ​ ​ -Refer to Figure 2-13. Which point(s) on the graph is(are) efficient production possibilities?

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

Figure 2-4 Graph (a) Graph (b) -Refer to Figure 2-4, Graph (a). Production at point Q is

Figure 2-14 ​ ​ -Refer to Figure 2-14. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one car is

When a variable that is named on an axis of a graph changes, the curve shifts.

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Which of the following statements about models is correct?

Figure 2-6 -Refer to Figure 2-6. Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

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 Nations 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 2-12 -Refer to Figure 2-12. What are two elements not included in this figure that could be included in a more complex model?

Figure 2-10 -Refer to Figure 2-10. Points A, B, and D represent feasible outcomes for this economy.

Figure 2-10 -Refer to Figure 2-10. It is possible for this economy to produce 75 doghouses.

Figure 2-13 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-13. Which point(s) on the graph is(are) efficient production possibilities?

Figure 2-14 -Refer to Figure 2-14. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one car is