Question 1

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers. He should use a(n)

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 2

Figure 2-13  
-Refer to Figure 2-13. The graph shown is known as a

Accepted Answer

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

Question 3

In the circular-flow diagram, which of the following items does not flow from households to firms?

Accepted Answer

A) revenue 
B) land, labor, and capital 
C) factors of production 
D) profit 
A) revenue 
B) land, labor, and capital 
C) factors of production 
D) profit

Question 4

Figure 2-3  
-Refer to Figure 2-3. This economy cannot produce at which point(s)?

Accepted Answer

A) J 
B) J, L 
C) J, L, M 
D) L 
A) J 
B) J, L 
C) J, L, M 
D) L

Question 5

Suppose that someone makes the argument that because empty alcohol containers are found at many accidents, the containers cause accidents. This would be an example of

Accepted Answer

A) sound logic. 
B) reverse causality. 
C) omitted variables. 
D) bias. 
A) sound logic. 
B) reverse causality. 
C) omitted variables. 
D) bias.

Question 6

When income increases the slope of an individual's demand curve, the demand curve

Accepted Answer

A) turns positive. 
B) becomes undefined. 
C) remains negative. 
D) becomes infinite. 
A) turns positive. 
B) becomes undefined. 
C) remains negative. 
D) becomes infinite.

Question 7

Figure 2-4  
-Refer to Figure 2-4. The opportunity cost of obtaining 20 additional lamps by moving from point W to point V is

Accepted Answer

A) 0 notepads. 
B) 10 notepads. 
C) 50 notepads. 
D) None of the above; the economy cannot move from point W to point V. 
A) 0 notepads. 
B) 10 notepads. 
C) 50 notepads. 
D) None of the above; the economy cannot move from point W to point V.

Question 8

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 9

In order to display information on two variables, an economist must use

Accepted Answer

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

Question 10

Economists at the Department of the Treasury

Accepted Answer

A) design U.S. currency and coins. 
B) provide Congress with the annual budget. 
C) enforce the U.S. antitrust laws. 
D) provide advice on tax policy to the President. 
A) design U.S. currency and coins. 
B) provide Congress with the annual budget. 
C) enforce the U.S. antitrust laws. 
D) provide advice on tax policy to the President.

Question 11

Figure 2-8
  
-Refer to Figure 2-8, Panel (a). The opportunity cost of moving from point M to point L is

Accepted Answer

A) 2 donuts. 
B) 2 donuts and 4 cups of coffee. 
C) 4 donuts. 
D) 4 cups of coffee. 
A) 2 donuts. 
B) 2 donuts and 4 cups of coffee. 
C) 4 donuts. 
D) 4 cups of coffee.

Question 12

Figure 2-8
  
-Refer to Figure 2-8, Panel (a) and Panel (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b)?

Accepted Answer

A) the tradeoff between the production of donuts and coffee changes 
B) the opportunity cost of a cup of coffee is higher at all levels of coffee production 
C) production of 4 donuts and 2 cups of coffee becomes possible 
D) production of 1 donut and 4 cups of coffee becomes efficient 
A) the tradeoff between the production of donuts and coffee changes 
B) the opportunity cost of a cup of coffee is higher at all levels of coffee production 
C) production of 4 donuts and 2 cups of coffee becomes possible 
D) production of 1 donut and 4 cups of coffee becomes efficient

Question 13

When two variables have a negative correlation,

Accepted Answer

A) when the x-variable decreases, the y-variable decreases. 
B) when the x-variable decreases, the y-variable increases. 
C) when the x-variable increases, the y-variable increases. 
D) More than one of the above is correct. 
A) when the x-variable decreases, the y-variable decreases. 
B) when the x-variable decreases, the y-variable increases. 
C) when the x-variable increases, the y-variable increases. 
D) More than one of the above is correct.

Question 14

Economists view positive statements as

Accepted Answer

A) affirmative, justifying existing economic policy. 
B) optimistic, putting the best possible interpretation on things. 
C) descriptive, making a claim about how the world is. 
D) prescriptive, making a claim about how the world ought to be. 
A) affirmative, justifying existing economic policy. 
B) optimistic, putting the best possible interpretation on things. 
C) descriptive, making a claim about how the world is. 
D) prescriptive, making a claim about how the world ought to be.

Question 15

The slope of a line passing through the points (12, 8) and (16, 5) is

Accepted Answer

A) -3/4. 
B) 3/4. 
C) -4/3. 
D) 4/3. 
A) -3/4. 
B) 3/4. 
C) -4/3. 
D) 4/3.

Question 16

The slope of a line is equal to

Accepted Answer

A) rise divided by run. 
B) run divided by rise. 
C) rise minus run. 
D) rise plus run. 
A) rise divided by run. 
B) run divided by rise. 
C) rise minus run. 
D) rise plus run.

Question 17

When two variables move in the same direction, the curve relating them is downward sloping, and we say the variables are negatively related.

Accepted Answer

A) True 
 B)False

Question 18

A demand curve shows the relationship between price and

Accepted Answer

A) income. 
B) quantity demanded. 
C) production. 
D) income and quantity demanded. 
A) income. 
B) quantity demanded. 
C) production. 
D) income and quantity demanded.

Question 19

Table 2-5
 $$\begin{array} { | c | c | } 
\hline \text { Cooki=s (in dazens) } & \text { Caffe (inguund) } \
\hline 1000 & 0 \
\hline 800 & 350 \
\hline 600 & 650 \
\hline 400 & 800 \
\hline 200 & 1000 \
\hline 0 & 1150 \
\hline
\end{array}$$
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Accepted Answer

A) 100 pounds of coffee 
B) 200 pounds of coffee 
C) 300 pounds of coffee 
D) 400 pounds of coffee 
A) 100 pounds of coffee 
B) 200 pounds of coffee 
C) 300 pounds of coffee 
D) 400 pounds of coffee

Question 20

The ordered pair that represents the origin on a graph is

Accepted Answer

A) (1, 1). 
B) (0, 0). 
C) (-1, -1). 
D) (). 
A) (1, 1). 
B) (0, 0). 
C) (-1, -1). 
D) ().

Exam 2: Thinking Like an Economist

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers. He should use a(n)

Figure 2-13 -Refer to Figure 2-13. The graph shown is known as a

In the circular-flow diagram, which of the following items does not flow from households to firms?

Figure 2-3 -Refer to Figure 2-3. This economy cannot produce at which point(s)?

Suppose that someone makes the argument that because empty alcohol containers are found at many accidents, the containers cause accidents. This would be an example of

When income increases the slope of an individual's demand curve, the demand curve

Figure 2-4 -Refer to Figure 2-4. The opportunity cost of obtaining 20 additional lamps by moving from point W to point V is

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

In order to display information on two variables, an economist must use

Economists at the Department of the Treasury

Figure 2-8 -Refer to Figure 2-8, Panel (a). The opportunity cost of moving from point M to point L is

Figure 2-8 -Refer to Figure 2-8, Panel (a) and Panel (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b)?

When two variables have a negative correlation,

Economists view positive statements as

The slope of a line passing through the points (12, 8) and (16, 5) is

The slope of a line is equal to

When two variables move in the same direction, the curve relating them is downward sloping, and we say the variables are negatively related.

A demand curve shows the relationship between price and

Table 2-5 Cooki=s (in dazens) Caffe (inguund) 1000 0 800 350 600 650 400 800 200 1000 0 1150 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

The ordered pair that represents the origin on a graph is

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

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomic Models

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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