Question 1

The use of the coordinate system allows

Accepted Answer

A)  for the display of the flows of dollars, goods and services, and factors of production in an economic system. 
B)  for the display of how labor and other resources are organized in the production process. 
C)  for the display of two variables on a single graph. 
D)  for the creation of pie charts and bar graphs. 
A)  for the display of the flows of dollars, goods and services, and factors of production in an economic system. 
B)  for the display of how labor and other resources are organized in the production process. 
C)  for the display of two variables on a single graph. 
D)  for the creation of pie charts and bar graphs.

Question 2

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-13  
-Refer to Figure 2-13. Which of the following statements is true about point G for this economy?

Accepted Answer

A)  Point G is currently unattainable. 
B)  Point G is efficient. 
C)  At point G, more cakes are produced than cookies. 
D)  There is unemployment at point G. 
A)  Point G is currently unattainable. 
B)  Point G is efficient. 
C)  At point G, more cakes are produced than cookies. 
D)  There is unemployment at point G.

Question 4

In the markets for goods and services in the circular-flow diagram,

Accepted Answer

A)  households and firms are both buyers. 
B)  households and firms are both sellers. 
C)  households are buyers and firms are sellers. 
D)  households are sellers and firms are buyers. 
A)  households and firms are both buyers. 
B)  households and firms are both sellers. 
C)  households are buyers and firms are sellers. 
D)  households are sellers and firms are buyers.

Question 5

Different values are not a reason for disagreement among economists.

Accepted Answer

A) True 
 B)False

Question 6

The x-coordinate of an ordered pair specifies the

Accepted Answer

A)  diagonal location of the point. 
B)  vertical location of the point. 
C)  horizontal location of the point. 
D)  quadrant location in which the point is located. 
A)  diagonal location of the point. 
B)  vertical location of the point. 
C)  horizontal location of the point. 
D)  quadrant location in which the point is located.

Question 7

Figure 2-22  
-Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Accepted Answer

The answer of Figure 2-22  
-Refer to Figure 2-22....

Question 8

Unemployment would cause an economy to

Accepted Answer

A)  produce inside its production possibilities frontier. 
B)  produce on its production possibilities frontier. 
C)  produce outside its production possibilities frontier. 
D)  experience an inward shift of its production possibilities frontier. 
A)  produce inside its production possibilities frontier. 
B)  produce on its production possibilities frontier. 
C)  produce outside its production possibilities frontier. 
D)  experience an inward shift of its production possibilities frontier.

Question 9

In building economic models, economists often omit

Accepted Answer

A)  assumptions. 
B)  theories. 
C)  details. 
D)  equations. 
A)  assumptions. 
B)  theories. 
C)  details. 
D)  equations.

Question 10

Normative statements describe how the world is, while positive statements prescribe how the world should be.

Accepted Answer

A) True 
 B)False

Question 11

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Accepted Answer

The answer of Suppose a war in the Middle East...

Question 12

Figure 2-6  
-Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Accepted Answer

A)  zero. 
B)  50 blankets. 
C)  60 pillows. 
D)  50 blankets and 60 pillows. 
A)  zero. 
B)  50 blankets. 
C)  60 pillows. 
D)  50 blankets and 60 pillows.

Question 13

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

Accepted Answer

A)  increases as more of the good is produced. 
B)  decreases as more of the good is produced. 
C)  does not change as more of the good is produced. 
D)  may increase, decrease, or not change as more of the good is produced. 
A)  increases as more of the good is produced. 
B)  decreases as more of the good is produced. 
C)  does not change as more of the good is produced. 
D)  may increase, decrease, or not change as more of the good is produced.

Question 14

The scientific method is

Accepted Answer

A)  the use of modern technology to understand the way the world works. 
B)  the use of controlled laboratory experiments to understand the way the world works. 
C)  the dispassionate development and testing of theories about how the world works. 
D)  the search for evidence to support preconceived theories about how the world works. 
A)  the use of modern technology to understand the way the world works. 
B)  the use of controlled laboratory experiments to understand the way the world works. 
C)  the dispassionate development and testing of theories about how the world works. 
D)  the search for evidence to support preconceived theories about how the world works.

Question 15

Table 2-4
Production Possibilities for Picnicland
  
-Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Accepted Answer

A)  150 hotdogs 
B)  225 hotdogs 
C)  300 hotdogs 
D)  450 hotdogs 
A)  150 hotdogs 
B)  225 hotdogs 
C)  300 hotdogs 
D)  450 hotdogs

Question 16

What you must give up to get something else is called the

Accepted Answer

The answer of What you must give up to get...

Question 17

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 18

If a line passes through the points (20,5) and (10,10), then the slope of the line is -2.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements is correct?

Accepted Answer

A)  Economists almost always find it easy to conduct experiments in order to test their theories. 
B)  Economics is not a true science because economists are not usually allowed to conduct experiments to test their theories. 
C)  Economics is a social science rather than a true science because it cannot employ the scientific method. 
D)  Economists are usually not able to conduct experiments, so they must rely on natural experiments offered by history. 
A)  Economists almost always find it easy to conduct experiments in order to test their theories. 
B)  Economics is not a true science because economists are not usually allowed to conduct experiments to test their theories. 
C)  Economics is a social science rather than a true science because it cannot employ the scientific method. 
D)  Economists are usually not able to conduct experiments, so they must rely on natural experiments offered by history.

Question 20

When two variables move in opposite directions, the curve relating them is

Accepted Answer

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

Exam 2: Thinking Like an Economist

The use of the coordinate system allows

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Figure 2-13 -Refer to Figure 2-13. Which of the following statements is true about point G for this economy?

In the markets for goods and services in the circular-flow diagram,

Different values are not a reason for disagreement among economists.

The x-coordinate of an ordered pair specifies the

Figure 2-22 -Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Unemployment would cause an economy to

In building economic models, economists often omit

Normative statements describe how the world is, while positive statements prescribe how the world should be.

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

The scientific method is

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

What you must give up to get something else is called the

When two variables have a negative correlation,

If a line passes through the points (20,5) and (10,10), then the slope of the line is -2.

Which of the following statements is correct?

When two variables move in opposite directions, the curve relating them 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

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

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