Question 1

What does the art of scientific thinking include

Accepted Answer

A) capability of eliminating invalid theories 
B) understanding every scientific field, including physics, biology, and economics 
C) deciding which assumptions to make 
D) being able to mathematically express natural forces 
A) capability of eliminating invalid theories 
B) understanding every scientific field, including physics, biology, and economics 
C) deciding which assumptions to make 
D) being able to mathematically express natural forces

Question 2

The purpose of this exercise is to show you how a mathematical (economic) model can be adjusted to better represent an economic phenomenon.Consider the equation Y=2×L,where Y is the number of apple pies that Jonathan can cook in L hours.This equation describes the process of producing apple pies.a.In a graph,draw the line described by the equation Y=2×L.What is the slope of this line
 What does the slope represent
 Note that the slope is the same for the first,second,and all subsequent hours.In other words,the slope is constant.Why is the constant slope of the line a limitation of your model
b.How should the slope change for higher values of L,the number of hours worked,to account for the fact that the worker might get tired
c.How could you modify the model to capture the change in slope you identified in part b

Accepted Answer

@#IMG-DLM& a.The slope of the curve can be calcula

Question 3

What is the goal of theories

Accepted Answer

A) to provide an interesting, but not useful, framework of analysis 
B) to provoke stimulating debates in scientific journals 
C) to demonstrate that the developer of the theory is capable of logical thinking 
D) to help scientists understand how the world works 
A) to provide an interesting, but not useful, framework of analysis 
B) to provoke stimulating debates in scientific journals 
C) to demonstrate that the developer of the theory is capable of logical thinking 
D) to help scientists understand how the world works

Question 4

Sir Isaac Newton developed the theory of gravity after observing an apple fall from a tree.What is this an example of

Accepted Answer

A) a controlled experiment used to develop scientific theory 
B) being in the right place at the right time 
C) a natural consequence 
D) the interplay between observation and theory in science 
A) a controlled experiment used to develop scientific theory 
B) being in the right place at the right time 
C) a natural consequence 
D) the interplay between observation and theory in science

Question 5

Why do economists use models

Accepted Answer

A) to learn how the economy works 
B) to attract the attention of government officials 
C) to make economics accessible to the public 
D) to make sure that all of the details of the economy are included in their analysis 
A) to learn how the economy works 
B) to attract the attention of government officials 
C) to make economics accessible to the public 
D) to make sure that all of the details of the economy are included in their analysis

Question 6

Figure 2-8
  
-Refer to Figure 2-8.Which combination is NOT possible for this economy to produce

Accepted Answer

A) 10 barrels and 14 bathtubs 
B) 20 barrels and 8 bathtubs 
C) 25 barrels and 10 bathtubs 
D) 30 barrels and 6 bathtubs 
A) 10 barrels and 14 bathtubs 
B) 20 barrels and 8 bathtubs 
C) 25 barrels and 10 bathtubs 
D) 30 barrels and 6 bathtubs

Question 7

According to a simple circular-flow diagram,how many markets do households and firms interact in

Accepted Answer

A) one type of market 
B) two types of markets 
C) three types of markets 
D) four types of markets 
A) one type of market 
B) two types of markets 
C) three types of markets 
D) four types of markets

Question 8

Figure 2-11
  
-Refer to Figure 2-11.The opportunity cost of more doghouses increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 9

What does The Bank of Canada do

Accepted Answer

A) designs tax policy 
B) enforces the country's antitrust laws 
C) sets the country's monetary policy 
D) analyzes the data on workers 
A) designs tax policy 
B) enforces the country's antitrust laws 
C) sets the country's monetary policy 
D) analyzes the data on workers

Question 10

Figure 2-6
  
-Refer to Figure 2-6.What is the opportunity cost to society of the movement from point A to point C

Accepted Answer

A) 50 baseballs 
B) 100 baseballs 
C) 100 bananas 
D) 300 bananas 
A) 50 baseballs 
B) 100 baseballs 
C) 100 bananas 
D) 300 bananas

Question 11

Figure 2-8
  
-Refer to Figure 2-8.What is the opportunity cost of moving from point A to point B

Accepted Answer

A) 8 bathtubs 
B) 20 barrels 
C) the difference between the 8 bathtubs you get and the 20 barrels you give up 
D) the difference between the 20 barrels you get and the 8 bathtubs you give up 
A) 8 bathtubs 
B) 20 barrels 
C) the difference between the 8 bathtubs you get and the 20 barrels you give up 
D) the difference between the 20 barrels you get and the 8 bathtubs you give up

Question 12

The tradeoff between the production of different goods can change because of technological improvement over time.

Accepted Answer

A) True 
 B)False

Question 13

What will the slope of a fairly flat upward-sloping line be

Accepted Answer

A) a small positive number 
B) a large positive number 
C) a small negative number 
D) a large negative number 
A) a small positive number 
B) a large positive number 
C) a small negative number 
D) a large negative number

Question 14

What might a microeconomist NOT study

Accepted Answer

A) the effects of rent control on housing in Toronto 
B) how a college student makes financial decisions 
C) how tariffs on shoes affects the shoe industry 
D) the effect on the economy when interest rates change 
A) the effects of rent control on housing in Toronto 
B) how a college student makes financial decisions 
C) how tariffs on shoes affects the shoe industry 
D) the effect on the economy when interest rates change

Question 15

Figure 2-6
  
-Refer to Figure 2-6.What is the opportunity cost to society of moving from point B to point D

Accepted Answer

A) 100 bananas and 100 baseballs 
B) 50 bananas and 50 baseballs 
C) 100 bananas and 50 baseballs 
D) 50 bananas and 100 baseballs 
A) 100 bananas and 100 baseballs 
B) 50 bananas and 50 baseballs 
C) 100 bananas and 50 baseballs 
D) 50 bananas and 100 baseballs

Question 16

When do you know an economist has crossed the line from scientist to policy adviser

Accepted Answer

A) when he explains just the facts 
B) when he makes positive statements 
C) when he makes normative statements 
D) when he cannot reach a conclusion 
A) when he explains just the facts 
B) when he makes positive statements 
C) when he makes normative statements 
D) when he cannot reach a conclusion

Question 17

What happens when scientists make good assumptions

Accepted Answer

A) They greatly simplify the problem without substantially affecting the answer. 
B) They further complicate an already complicated subject. 
C) They can leave out necessary variables that may result in incorrect answers. 
D) They are capable of eliminating invalid causations. 
A) They greatly simplify the problem without substantially affecting the answer. 
B) They further complicate an already complicated subject. 
C) They can leave out necessary variables that may result in incorrect answers. 
D) They are capable of eliminating invalid causations.

Question 18

What is the x-coordinate

Accepted Answer

A) the first number of an ordered pair, which represents the point's horizontal location 
B) the second number of an ordered pair, which represents the point's horizontal location 
C) the first number of an ordered pair, which represents the point's vertical location 
D) the second number of an ordered pair, which represents the point's vertical location 
A) the first number of an ordered pair, which represents the point's horizontal location 
B) the second number of an ordered pair, which represents the point's horizontal location 
C) the first number of an ordered pair, which represents the point's vertical location 
D) the second number of an ordered pair, which represents the point's vertical location

Question 19

What is a circular-flow diagram

Accepted Answer

A) a visual model of how the economy is organized 
B) a mathematical model of how the economy works 
C) a model that shows the effects of government and the central bank on the economy 
D) a visual model of the relationship between money, prices, and businesses 
A) a visual model of how the economy is organized 
B) a mathematical model of how the economy works 
C) a model that shows the effects of government and the central bank on the economy 
D) a visual model of the relationship between money, prices, and businesses

What does the art of scientific thinking include

What is the goal of theories

Sir Isaac Newton developed the theory of gravity after observing an apple fall from a tree.What is this an example of

Why do economists use models

Figure 2-8 -Refer to Figure 2-8.Which combination is NOT possible for this economy to produce

According to a simple circular-flow diagram,how many markets do households and firms interact in

Figure 2-11 -Refer to Figure 2-11.The opportunity cost of more doghouses increases as more doghouses are produced.

What does The Bank of Canada do

Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost to society of the movement from point A to point C

Figure 2-8 -Refer to Figure 2-8.What is the opportunity cost of moving from point A to point B

The tradeoff between the production of different goods can change because of technological improvement over time.

What will the slope of a fairly flat upward-sloping line be

What might a microeconomist NOT study

Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost to society of moving from point B to point D

When do you know an economist has crossed the line from scientist to policy adviser

What happens when scientists make good assumptions

What is the x-coordinate

What is a circular-flow diagram

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 Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters

Exam 2: Thinking Like an Economist

What does the art of scientific thinking include

What is the goal of theories

Sir Isaac Newton developed the theory of gravity after observing an apple fall from a tree.What is this an example of

Why do economists use models

Figure 2-8 -Refer to Figure 2-8.Which combination is NOT possible for this economy to produce

According to a simple circular-flow diagram,how many markets do households and firms interact in

Figure 2-11 -Refer to Figure 2-11.The opportunity cost of more doghouses increases as more doghouses are produced.

What does The Bank of Canada do

Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost to society of the movement from point A to point C

Figure 2-8 -Refer to Figure 2-8.What is the opportunity cost of moving from point A to point B

The tradeoff between the production of different goods can change because of technological improvement over time.

What will the slope of a fairly flat upward-sloping line be

What might a microeconomist NOT study

Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost to society of moving from point B to point D

When do you know an economist has crossed the line from scientist to policy adviser

What happens when scientists make good assumptions

What is the x-coordinate

What is a circular-flow diagram

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 Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Filters