Question 1

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-10
​
   ​
​
​
​
-Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

Accepted Answer

A) True 
 B)False

Question 3

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following steps does an economist not take when studying the economy?

Accepted Answer

A) Devise theories 
B) Collect data 
C) Analyze data 
D) Model the economy without any assumptions 
A) Devise theories 
B) Collect data 
C) Analyze data 
D) Model the economy without any assumptions

Question 5

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 6

Figure 2-15
​
   ​
-Refer to Figure 2-15. What is the slope of the line with points A, B, and C?

Accepted Answer

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

Question 7

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for

Accepted Answer

The answer of In the circular flow diagram, when Daphne...

Question 8

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Accepted Answer

A) True 
 B)False

Question 9

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Accepted Answer

A) True 
 B)False

Question 10

Historical episodes allow economists to illustrate and evaluate current economic theories.

Accepted Answer

A) True 
 B)False

Question 11

Table 2-4
 $$\begin{array} { | l | l | } 
\hline \text { Mobile Phones } & \text { Pizzas } \
\hline 0 & 10,000 \
\hline 200 & 8,000 \
\hline 500 & 6,000 \
\hline 900 & 4,000 \
\hline 1400 & 2,000 \
\hline 2000 & 0 \
\hline
\end{array}$$
-Refer to Table 2-4. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of mobile phones from 200 to 500?

Accepted Answer

The answer of Table 2-4
 \[\begin{array} { | l |...

Question 12

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

Accepted Answer

A) One economist believes everyone should pay the same percentage of their income in taxes; another economist believes that wealthier citizens should pay a higher percentage of their income in taxes. 
B) One economist believes that manufacturing firms should face greater regulation to preserve the environment; another economist believes the government should not intervene in free markets. 
C) One economist believes that equality should be valued over efficiency in policy decisions; another economist believes that efficiency should be valued over equality in policy decisions. 
D) One economist believes the government should tax a household's income; another economist believes the government should tax a household's consumption because it will cause households to save more. 
A) One economist believes everyone should pay the same percentage of their income in taxes; another economist believes that wealthier citizens should pay a higher percentage of their income in taxes. 
B) One economist believes that manufacturing firms should face greater regulation to preserve the environment; another economist believes the government should not intervene in free markets. 
C) One economist believes that equality should be valued over efficiency in policy decisions; another economist believes that efficiency should be valued over equality in policy decisions. 
D) One economist believes the government should tax a household's income; another economist believes the government should tax a household's consumption because it will cause households to save more.

Question 13

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

Accepted Answer

A) possible at points P, Q, R, and S, but efficient only at points P, R, and S. 
B) possible at points P, Q, R, and S, but efficient only at point Q. 
C) possible at points P, R, S, and T, but efficient only at points P, R, and S. 
D) possible at points P, R, S, and T, but efficient only at point T. 
A) possible at points P, Q, R, and S, but efficient only at points P, R, and S. 
B) possible at points P, Q, R, and S, but efficient only at point Q. 
C) possible at points P, R, S, and T, but efficient only at points P, R, and S. 
D) possible at points P, R, S, and T, but efficient only at point T.

Question 14

How are economists not like mathematicians, physicists, and biologists?

Accepted Answer

A) Economists do not use models to represent the real world. 
B) Economists do not try to address their subject with a scientist's objectivity. 
C) Economists do not devise theories and collect and analyze data in an attempt to verify or refute their theories. 
D) Economists cannot run lab experiments in the same way that other scientists can. 
A) Economists do not use models to represent the real world. 
B) Economists do not try to address their subject with a scientist's objectivity. 
C) Economists do not devise theories and collect and analyze data in an attempt to verify or refute their theories. 
D) Economists cannot run lab experiments in the same way that other scientists can.

Question 15

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 16

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Accepted Answer

A) True 
 B)False

Question 17

The art in scientific thinking-whether in chemistry, economics, or engineering-is

Accepted Answer

A) the design and implementation of laboratory experiments. 
B) the ability to make an abstract subject easy to understand. 
C) deciding which assumptions to make. 
D) not something in which scientists have to be skilled. 
A) the design and implementation of laboratory experiments. 
B) the ability to make an abstract subject easy to understand. 
C) deciding which assumptions to make. 
D) not something in which scientists have to be skilled.

Question 18

Economists at which administrative department help design tax policy?

Accepted Answer

Department

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

In the simple circular-flow diagram, the participants in the economy are

Accepted Answer

A) firms and government. 
B) households and firms. 
C) households and government. 
D) households, firms, and government. 
A) firms and government. 
B) households and firms. 
C) households and government. 
D) households, firms, and government.

Exam 2: Thinking Like an Economist

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Which of the following steps does an economist not take when studying the economy?

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Figure 2-15 ​ ​ -Refer to Figure 2-15. What is the slope of the line with points A, B, and C?

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Historical episodes allow economists to illustrate and evaluate current economic theories.

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

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

How are economists not like mathematicians, physicists, and biologists?

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.

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

The art in scientific thinking-whether in chemistry, economics, or engineering-is

Economists at which administrative department help design tax policy?

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

In the simple circular-flow diagram, the participants in the economy 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 2-10 -Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

Figure 2-15 -Refer to Figure 2-15. What is the slope of the line with points A, B, and C?