Question 1

What is the y-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 2

What does a demand curve show?

Accepted Answer

A)  the relationship between income and quantity demanded 
B)  the relationship between price and income 
C)  the relationship between price and quantity demanded 
D)  the relationship among income,price,and quantity demanded 
A)  the relationship between income and quantity demanded 
B)  the relationship between price and income 
C)  the relationship between price and quantity demanded 
D)  the relationship among income,price,and quantity demanded

Question 3

How do economists begin building an economic model?

Accepted Answer

A)  by writing grants for government funding 
B)  by conducting controlled experiments in a lab 
C)  by making assumptions 
D)  by reviewing statistical forecasts 
A)  by writing grants for government funding 
B)  by conducting controlled experiments in a lab 
C)  by making assumptions 
D)  by reviewing statistical forecasts

Question 4

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 5

Which of the following is an example of a normative statement?

Accepted Answer

A)  If the price of a product decreases,quantity demanded increases. 
B)  Reducing speed limits to 40km / hr would reduce accidents involving pedestrians. 
C)  Students who take public transit to school are more concerned about the environment. 
D)  An increase in minimum wages will increase unemployment. 
A)  If the price of a product decreases,quantity demanded increases. 
B)  Reducing speed limits to 40km / hr would reduce accidents involving pedestrians. 
C)  Students who take public transit to school are more concerned about the environment. 
D)  An increase in minimum wages will increase unemployment.

Question 6

Figure 2-10  
-Refer to Figure 2-10.What is the movement from point B to point C?

Accepted Answer

A)  a shift of the curve 
B)  a change in price 
C)  a movement along the curve 
D)  a change in costs to the firm 
A)  a shift of the curve 
B)  a change in price 
C)  a movement along the curve 
D)  a change in costs to the firm

Question 7

When constructing a production possibilities frontier,which of the following is NOT an assumption?

Accepted Answer

A)  The economy produces more than two goods. 
B)  All the economy's factors of production are being used. 
C)  The economy has a fixed level of technology. 
D)  The economy's available factors of production are fixed. 
A)  The economy produces more than two goods. 
B)  All the economy's factors of production are being used. 
C)  The economy has a fixed level of technology. 
D)  The economy's available factors of production are fixed.

Question 8

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 9

What is the opportunity cost of obtaining more of one good,as it relates to the production possibilities frontier?

Accepted Answer

A)  the amount of the other good that must be given up 
B)  the market price of the additional amount produced 
C)  the amount of resources that must be devoted to its production 
D)  the number of dollars that must be spent to produce it 
A)  the amount of the other good that must be given up 
B)  the market price of the additional amount produced 
C)  the amount of resources that must be devoted to its production 
D)  the number of dollars that must be spent to produce it

Question 10

Which statement does NOT illustrate a characteristic of an economic model?

Accepted Answer

A)  A model simplifies reality. 
B)  A model can explain how the economy is organized. 
C)  A model can assume away irrelevant details. 
D)  A model's conclusions are unrelated to assumptions 
A)  A model simplifies reality. 
B)  A model can explain how the economy is organized. 
C)  A model can assume away irrelevant details. 
D)  A model's conclusions are unrelated to assumptions

Question 11

What would NOT be considered a factor of production?

Accepted Answer

A)  labour 
B)  land 
C)  capital 
D)  bonds 
A)  labour 
B)  land 
C)  capital 
D)  bonds

Question 12

What is the single most important purpose of your textbook?

Accepted Answer

A)  to teach you about the effects of the government's economic policies 
B)  to teach you the language of economics 
C)  to teach you the economist's way of thinking 
D)  to teach you how to make good consumer choices 
A)  to teach you about the effects of the government's economic policies 
B)  to teach you the language of economics 
C)  to teach you the economist's way of thinking 
D)  to teach you how to make good consumer choices

Question 13

In the simple circular-flow diagram,in which market are firms sellers?

Accepted Answer

A)  the goods and services market 
B)  the factors of production market 
C)  both the factors of production market and the goods and services market 
D)  neither the factors of production market nor the goods and services market 
A)  the goods and services market 
B)  the factors of production market 
C)  both the factors of production market and the goods and services market 
D)  neither the factors of production market nor the goods and services market

Question 14

What are the roles of economists when trying to explain or to improve the world?

Accepted Answer

A)  In trying to explain the world,economists are policy advisers; in trying to improve the world,they are scientists. 
B)  In trying to explain the world,economists are mathematicians; in trying to improve the world,they are policymakers. 
C)  In trying to explain the world,economists are mathematicians; in trying to improve the world,they are scientists. 
D)  In trying to explain the world,economists are scientists; in trying to improve the world,they are policy advisers. 
A)  In trying to explain the world,economists are policy advisers; in trying to improve the world,they are scientists. 
B)  In trying to explain the world,economists are mathematicians; in trying to improve the world,they are policymakers. 
C)  In trying to explain the world,economists are mathematicians; in trying to improve the world,they are scientists. 
D)  In trying to explain the world,economists are scientists; in trying to improve the world,they are policy advisers.

Question 15

When studying the effects of public policy changes,what do economists do?

Accepted Answer

A)  They often falsify results if the desired effect is not reached. 
B)  They may make different assumptions for the long run and the short run. 
C)  They attempt to consider only the direct effects and not the indirect effects. 
D)  They can immediately change policies if they are ineffective. 
A)  They often falsify results if the desired effect is not reached. 
B)  They may make different assumptions for the long run and the short run. 
C)  They attempt to consider only the direct effects and not the indirect effects. 
D)  They can immediately change policies if they are ineffective.

Question 16

An economic model can accurately explain how the economy is organized because it is designed to include every feature of the real world.

Accepted Answer

A) True 
 B)False

Question 17

The country of Econoland produces two goods: textbooks and widgets.Last year,it produced 300 textbooks and 600 widgets.This year,it produced 350 textbooks and 700 widgets.Given no other information,which of the following could NOT explain the change?

Accepted Answer

A)  Econoland experienced a reduction in unemployment. 
B)  Econoland experienced an improvement in widget-making technology. 
C)  Econoland acquired more resources. 
D)  Econoland experienced a high level of emigration out of the country. 
A)  Econoland experienced a reduction in unemployment. 
B)  Econoland experienced an improvement in widget-making technology. 
C)  Econoland acquired more resources. 
D)  Econoland experienced a high level of emigration out of the country.

Question 18

Figure 2-3  
-Refer to Figure 2-3.Which point or points are inefficient?

Accepted Answer

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

Question 19

Suppose an economy produces two goods: food and machines.This economy always operates on its production possibilities frontier.Last year,it produced 91 units of food and 48 machines.This year,it is producing 95 units of food and 51 machines.Which of the following would NOT explain the increase in output?

Accepted Answer

A)  a reduction in unemployment 
B)  an increase in the labour force 
C)  an improvement in technology 
D)  an increase in worker productivity 
A)  a reduction in unemployment 
B)  an increase in the labour force 
C)  an improvement in technology 
D)  an increase in worker productivity

Question 20

Figure 2-10  
-Refer to Figure 2-10.How are the price of roses and the quantity of roses related?

Accepted Answer

A)  directly related,and therefore moving in the same direction 
B)  directly related,and therefore moving in opposite directions 
C)  inversely related,and therefore moving in opposite directions 
D)  independent of each other 
A)  directly related,and therefore moving in the same direction 
B)  directly related,and therefore moving in opposite directions 
C)  inversely related,and therefore moving in opposite directions 
D)  independent of each other

What is the y-coordinate?

What does a demand curve show?

How do economists begin building an economic model?

What is the goal of theories?

Which of the following is an example of a normative statement?

Figure 2-10 -Refer to Figure 2-10.What is the movement from point B to point C?

When constructing a production possibilities frontier,which of the following is NOT an assumption?

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

What is the opportunity cost of obtaining more of one good,as it relates to the production possibilities frontier?

Which statement does NOT illustrate a characteristic of an economic model?

What would NOT be considered a factor of production?

What is the single most important purpose of your textbook?

In the simple circular-flow diagram,in which market are firms sellers?

What are the roles of economists when trying to explain or to improve the world?

When studying the effects of public policy changes,what do economists do?

An economic model can accurately explain how the economy is organized because it is designed to include every feature of the real world.

The country of Econoland produces two goods: textbooks and widgets.Last year,it produced 300 textbooks and 600 widgets.This year,it produced 350 textbooks and 700 widgets.Given no other information,which of the following could NOT explain the change?

Figure 2-3 -Refer to Figure 2-3.Which point or points are inefficient?

Figure 2-10 -Refer to Figure 2-10.How are the price of roses and the quantity of roses related?

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

What is the y-coordinate?

What does a demand curve show?

How do economists begin building an economic model?

What is the goal of theories?

Which of the following is an example of a normative statement?

Figure 2-10 -Refer to Figure 2-10.What is the movement from point B to point C?

When constructing a production possibilities frontier,which of the following is NOT an assumption?

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

What is the opportunity cost of obtaining more of one good,as it relates to the production possibilities frontier?

Which statement does NOT illustrate a characteristic of an economic model?

What would NOT be considered a factor of production?

What is the single most important purpose of your textbook?

In the simple circular-flow diagram,in which market are firms sellers?

What are the roles of economists when trying to explain or to improve the world?

When studying the effects of public policy changes,what do economists do?

An economic model can accurately explain how the economy is organized because it is designed to include every feature of the real world.

The country of Econoland produces two goods: textbooks and widgets.Last year,it produced 300 textbooks and 600 widgets.This year,it produced 350 textbooks and 700 widgets.Given no other information,which of the following could NOT explain the change?

Figure 2-3 -Refer to Figure 2-3.Which point or points are inefficient?

Figure 2-10 -Refer to Figure 2-10.How are the price of roses and the quantity of roses related?

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