Question 1

Figure 2-9  
-Refer to Figure 2-9.What would you say about the relationship between coffee and hours without sleep?

Accepted Answer

A)  The less coffee a person drinks per day,the more time he can go without sleep. 
B)  There is no relationship between how much coffee per day a person drinks and how long they can go without sleep. 
C)  The more coffee a person drinks per day,the longer he can go without sleep. 
D)  The relationship between cups of coffee per day and time without sleep is too unpredictable to consider. 
A)  The less coffee a person drinks per day,the more time he can go without sleep. 
B)  There is no relationship between how much coffee per day a person drinks and how long they can go without sleep. 
C)  The more coffee a person drinks per day,the longer he can go without sleep. 
D)  The relationship between cups of coffee per day and time without sleep is too unpredictable to consider.

Question 2

What is NOT a common characteristic of economic models?

Accepted Answer

A)  They are often built using the tools of mathematics. 
B)  They are useful to economists,but not to policymakers. 
C)  They include only the important features of an economy. 
D)  They are built using assumptions. 
A)  They are often built using the tools of mathematics. 
B)  They are useful to economists,but not to policymakers. 
C)  They include only the important features of an economy. 
D)  They are built using assumptions.

Question 3

An economy can produce at any point on or outside the production possibilities frontier,but it cannot produce at points inside the frontier.

Accepted Answer

A) True 
 B)False

Question 4

Figure 2-11  
-Refer to Figure 2-11.The opportunity cost to the economy of moving from point A to point B is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 5

Suppose there are two countries,Freedonia and Sylvania,which have identical amounts of resources,identical technologies,and identical populations.Both produce two types of goods,consumer goods and capital goods,and they both always operate on their production possibilities frontiers.The only difference is that this year Sylvania chooses to produce relatively more capital goods than Freedonia. What will happen as a result?

Accepted Answer

A)  Freedonia will have a lower living standard this year and will grow slower than Sylvania. 
B)  Freedonia will have a lower living standard this year but will grow faster than Sylvania. 
C)  Sylvania will have a lower living standard this year and will grow slower than Freedonia. 
D)  Sylvania will have a lower living standard this year but will grow faster than Freedonia. 
A)  Freedonia will have a lower living standard this year and will grow slower than Sylvania. 
B)  Freedonia will have a lower living standard this year but will grow faster than Sylvania. 
C)  Sylvania will have a lower living standard this year and will grow slower than Freedonia. 
D)  Sylvania will have a lower living standard this year but will grow faster than Freedonia.

Question 6

What do almost all economists agree on about rent control?

Accepted Answer

A)  It improves the availability and quality of housing. 
B)  It allows the market for housing to work more efficiently. 
C)  It adversely affects the availability and quality of housing. 
D)  It is a very inexpensive way to help the most needy members of society. 
A)  It improves the availability and quality of housing. 
B)  It allows the market for housing to work more efficiently. 
C)  It adversely affects the availability and quality of housing. 
D)  It is a very inexpensive way to help the most needy members of society.

Question 7

What happens when two variables have a negative correlation?

Accepted Answer

A)  They tend to move in opposite directions. 
B)  They tend to move in the same direction. 
C)  One variable will move while the other remains constant. 
D)  The movement of the two variables is unpredictable. 
A)  They tend to move in opposite directions. 
B)  They tend to move in the same direction. 
C)  One variable will move while the other remains constant. 
D)  The movement of the two variables is unpredictable.

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 do the duties of the economists employed by Human Resources and Skill Development Canada include?

Accepted Answer

A)  advising Parliament 
B)  designing tax policy 
C)  writing the annual Economic Report 
D)  studying the relationship between average wages and gender 
A)  advising Parliament 
B)  designing tax policy 
C)  writing the annual Economic Report 
D)  studying the relationship between average wages and gender

Question 10

Figure 2-3  
-Refer to Figure 2-3.At which point or points can the economy produce?

Accepted Answer

A)  points B,D,and E 
B)  points A,B,D,and E 
C)  points D and C 
D)  point D 
A)  points B,D,and E 
B)  points A,B,D,and E 
C)  points D and C 
D)  point D

Question 11

In the simple circular-flow diagram,who are the decision makers?

Accepted Answer

A)  individuals and government 
B)  households and firms 
C)  households and government 
D)  households,individuals,and foreign nations 
A)  individuals and government 
B)  households and firms 
C)  households and government 
D)  households,individuals,and foreign nations

Question 12

When a production possibilities frontier is linear,what does it show?

Accepted Answer

A)  a truer picture of real life than a bowed-out production possibilities frontier 
B)  that resources are perfectly adaptable from the production of one good to another 
C)  an example of increasing opportunity cost 
D)  an example of decreasing opportunity cost 
A)  a truer picture of real life than a bowed-out production possibilities frontier 
B)  that resources are perfectly adaptable from the production of one good to another 
C)  an example of increasing opportunity cost 
D)  an example of decreasing opportunity cost

Question 13

What is a characteristic of a good theory?

Accepted Answer

A)  It is a widely accepted theory. 
B)  It is a theory that starts from realistic assumptions. 
C)  It is a theory that helps us understand how the world works. 
D)  It is a theory based on original predictions. 
A)  It is a widely accepted theory. 
B)  It is a theory that starts from realistic assumptions. 
C)  It is a theory that helps us understand how the world works. 
D)  It is a theory based on original predictions.

Question 14

Figure 2-2  
-Refer to Figure 2-2.What does the inner loop represent?

Accepted Answer

A)  the flow of inputs to firms and output to households 
B)  the flow of output to firms and inputs to households 
C)  the flow of spending to firms and factor payments to households 
D)  the flow of spending to households and factor payments to firms 
A)  the flow of inputs to firms and output to households 
B)  the flow of output to firms and inputs to households 
C)  the flow of spending to firms and factor payments to households 
D)  the flow of spending to households and factor payments to firms

Question 15

When economists are speaking as policy advisors,which statements are they more likely to use?

Accepted Answer

A)  normative statements 
B)  positive statements 
C)  objective statements 
D)  descriptive statements 
A)  normative statements 
B)  positive statements 
C)  objective statements 
D)  descriptive statements

Question 16

What is an ordered pair?

Accepted Answer

A)  the process of checking calculations twice before placing them on a graph 
B)  two numbers that can be represented by a single point on a graph 
C)  two numbers that are represented by side-by-side points on a graph 
D)  two points on a graph that are equal distances from the origin 
A)  the process of checking calculations twice before placing them on a graph 
B)  two numbers that can be represented by a single point on a graph 
C)  two numbers that are represented by side-by-side points on a graph 
D)  two points on a graph that are equal distances from the origin

Question 17

Table 2-1
​Production Possibilities for Toyland  
-Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 100?

Accepted Answer

A)  50 fire trucks 
B)  100 fire trucks 
C)  150 fire trucks 
D)  200 fire trucks 
A)  50 fire trucks 
B)  100 fire trucks 
C)  150 fire trucks 
D)  200 fire trucks

Question 18

Figure 2-10  
-Refer to Figure 2-10.What is the slope of the curve between point A and point B?

Accepted Answer

A)  5 / 2 
B)  2 / 5 
C)  -2 / 5 
D)  -5 / 2 
A)  5 / 2 
B)  2 / 5 
C)  -2 / 5 
D)  -5 / 2

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Suppose there are two countries,Freedonia and Sylvania,which have identical amounts of resources,identical technologies,and identical populations.Both produce two types of goods,consumer goods and capital goods,and they both always operate on their production possibilities frontiers.The only difference is that this year Freedonia chooses to produce relatively more consumer goods than Sylvania. What will happen as a result?

Accepted Answer

A)  Freedonia will have a higher living standard this year but will grow slower than Sylvania. 
B)  Freedonia will have a higher living standard this year and will grow faster than Sylvania. 
C)  Sylvania will have a higher living standard this year but will grow slower than Freedonia. 
D)  Sylvania will have a higher living standard this year and will grow faster than Freedonia. 
A)  Freedonia will have a higher living standard this year but will grow slower than Sylvania. 
B)  Freedonia will have a higher living standard this year and will grow faster than Sylvania. 
C)  Sylvania will have a higher living standard this year but will grow slower than Freedonia. 
D)  Sylvania will have a higher living standard this year and will grow faster than Freedonia.

Figure 2-9 -Refer to Figure 2-9.What would you say about the relationship between coffee and hours without sleep?

What is NOT a common characteristic of economic models?

An economy can produce at any point on or outside the production possibilities frontier,but it cannot produce at points inside the frontier.

Figure 2-11 -Refer to Figure 2-11.The opportunity cost to the economy of moving from point A to point B is 10 dishwashers.

What do almost all economists agree on about rent control?

What happens when two variables have a negative correlation?

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

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

Figure 2-3 -Refer to Figure 2-3.At which point or points can the economy produce?

In the simple circular-flow diagram,who are the decision makers?

When a production possibilities frontier is linear,what does it show?

What is a characteristic of a good theory?

Figure 2-2 -Refer to Figure 2-2.What does the inner loop represent?

When economists are speaking as policy advisors,which statements are they more likely to use?

What is an ordered pair?

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 100?

Figure 2-10 -Refer to Figure 2-10.What is the slope of the curve between point A and point B?

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

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small 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

Five Debates Over Macroeconomic Policy

Filters

Exam 2: Thinking Like an Economist

Figure 2-9 -Refer to Figure 2-9.What would you say about the relationship between coffee and hours without sleep?

What is NOT a common characteristic of economic models?

An economy can produce at any point on or outside the production possibilities frontier,but it cannot produce at points inside the frontier.

Figure 2-11 -Refer to Figure 2-11.The opportunity cost to the economy of moving from point A to point B is 10 dishwashers.

What do almost all economists agree on about rent control?

What happens when two variables have a negative correlation?

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

What do the duties of the economists employed by Human Resources and Skill Development Canada include?

Figure 2-3 -Refer to Figure 2-3.At which point or points can the economy produce?

In the simple circular-flow diagram,who are the decision makers?

When a production possibilities frontier is linear,what does it show?

What is a characteristic of a good theory?

Figure 2-2 -Refer to Figure 2-2.What does the inner loop represent?

When economists are speaking as policy advisors,which statements are they more likely to use?

What is an ordered pair?

Table 2-1 ​Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 100?

Figure 2-10 -Refer to Figure 2-10.What is the slope of the curve between point A and point B?

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

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small 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

Five Debates Over Macroeconomic Policy

Filters

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 0 to 100?