Question 1

Figure 2-15
​
   ​
-Refer to Figure 2-15. How are price and quantity related in this graph?

Accepted Answer

negatively

Question 2

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 show unemployment of resources?

Accepted Answer

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

Question 3

Figure 2-8
  
-Refer to Figure 2-8. The movement from point B to point C is

Accepted Answer

A) a movement along the demand curve. 
B) an indication that the price of bananas has changed. 
C) a shift of the demand curve. 
D) an indication that the costs incurred by firms that produce bananas have changed. 
A) a movement along the demand curve. 
B) an indication that the price of bananas has changed. 
C) a shift of the demand curve. 
D) an indication that the costs incurred by firms that produce bananas have changed.

Question 4

Which of the following is an example of a normative, as opposed to a positive, statement?

Accepted Answer

A) Gasoline prices ought to be lower than they are now. 
B) A decrease in the minimum wage would decrease unemployment. 
C) The elimination of trade restrictions would increase an economy's standard of living. 
D) In response to the most recent recession, the federal government extended the duration of unemployment benefits. 
A) Gasoline prices ought to be lower than they are now. 
B) A decrease in the minimum wage would decrease unemployment. 
C) The elimination of trade restrictions would increase an economy's standard of living. 
D) In response to the most recent recession, the federal government extended the duration of unemployment benefits.

Question 5

Figure 2-4
Graph (a)
Graph (b)
    
-Refer to Figure 2-4, Graph (a) and Graph (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Graph (a) to Graph (b)?

Accepted Answer

A) The trade-off between the production of DVDs and books changes. 
B) The opportunity cost of a book is higher at all levels of book production. 
C) Production of 4 DVDs and 2 books becomes possible. 
D) Production of 2 DVDs and 2 books becomes efficient. 
A) The trade-off between the production of DVDs and books changes. 
B) The opportunity cost of a book is higher at all levels of book production. 
C) Production of 4 DVDs and 2 books becomes possible. 
D) Production of 2 DVDs and 2 books becomes efficient.

Question 6

In the circular-flow diagram,

Accepted Answer

A) factors of production flow from government to firms. 
B) income paid to the factors of production flows from firms to households. 
C) goods and services flow from households to firms. 
D) inputs and outputs flow in the same direction as the flow of dollars, from households to firms. 
A) factors of production flow from government to firms. 
B) income paid to the factors of production flows from firms to households. 
C) goods and services flow from households to firms. 
D) inputs and outputs flow in the same direction as the flow of dollars, from households to firms.

Question 7

A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 10

What type of statement is a descriptive statement about how the world is?

Accepted Answer

The answer of What type of statement is a descriptive...

Question 11

Figure 2-15
​
   ​
-Refer to Figure 2-15. What are the coordinates of point C?

Accepted Answer

The answer of Figure 2-15
​
   ​
-Refer to Figure...

Question 12

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Accepted Answer

A) True 
 B)False

Question 13

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

Accepted Answer

A) True 
 B)False

Question 14

In the markets for the factors of production in the circular-flow diagram, households are buyers and firms are sellers.

Accepted Answer

A) True 
 B)False

Question 15

The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues.

Accepted Answer

A) True 
 B)False

Question 16

Figure 2-15
​
   ​
-Refer to Figure 2-15. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Accepted Answer

The answer of Figure 2-15
​
   ​
-Refer to Figure...

Question 17

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 18

Figure 2-11
   ​
-Refer to Figure 2-11. Point B represents an inefficient outcome for this economy.

Accepted Answer

A) True 
 B)False

Question 19

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Accepted Answer

A) True 
 B)False

Question 20

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Figure 2-15 ​ ​ -Refer to Figure 2-15. How are price and quantity related in this graph?

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 show unemployment of resources?

Figure 2-8 -Refer to Figure 2-8. The movement from point B to point C is

Which of the following is an example of a normative, as opposed to a positive, statement?

Figure 2-4 Graph (a) Graph (b) -Refer to Figure 2-4, Graph (a) and Graph (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Graph (a) to Graph (b)?

In the circular-flow diagram,

A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output.

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

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

What type of statement is a descriptive statement about how the world is?

Figure 2-15 ​ ​ -Refer to Figure 2-15. What are the coordinates of point C?

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

In the markets for the factors of production in the circular-flow diagram, households are buyers and firms are sellers.

The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues.

Figure 2-15 ​ ​ -Refer to Figure 2-15. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

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

Figure 2-11 ​ -Refer to Figure 2-11. Point B represents an inefficient outcome for this economy.

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

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 2-15 -Refer to Figure 2-15. How are price and quantity related in this graph?

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 show unemployment of resources?

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

Figure 2-15 -Refer to Figure 2-15. What are the coordinates of point C?

Figure 2-15 -Refer to Figure 2-15. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Figure 2-11 -Refer to Figure 2-11. Point B represents an inefficient outcome for this economy.