Question 1

Figure 2-4  
-Refer to Figure 2-4.Unemployment could cause this economy to produce at which point(s)?

Accepted Answer

A) Q,S 
B) Q,S,T 
C) R,U 
D) T 
A) Q,S 
B) Q,S,T 
C) R,U 
D) T

Question 2

Figure 2-7  
-Refer to Figure 2-7.What is the opportunity cost of moving from point L to point M?

Accepted Answer

A) zero 
B) 15 tvs 
C) 20 engines and 15 tvs 
D) 20 engines 
A) zero 
B) 15 tvs 
C) 20 engines and 15 tvs 
D) 20 engines

Question 3

Which of the following is not correct about most economic models?

Accepted Answer

A) They are composed of equations and diagrams. 
B) They contribute very little to economists' understanding of the real world. 
C) They omit many features of the real-world economy. 
D) In constructing models,economists make assumptions. 
A) They are composed of equations and diagrams. 
B) They contribute very little to economists' understanding of the real world. 
C) They omit many features of the real-world economy. 
D) In constructing models,economists make assumptions.

Question 4

Figure 2-7  
-Refer to Figure 2-7.If this economy devotes all of its resources to the production of engines,then it will produce

Accepted Answer

A) 0 engines and 40 tvs. 
B) 10 engines and 35 tvs. 
C) 40 engines and 0 tvs. 
D) 40 engines and 40 tvs. 
A) 0 engines and 40 tvs. 
B) 10 engines and 35 tvs. 
C) 40 engines and 0 tvs. 
D) 40 engines and 40 tvs.

Question 5

Figure 2-7  
-Refer to Figure 2-7.If this economy moved from point P to point N,then

Accepted Answer

A) it still would not be producing efficiently. 
B) there would be no gain in either engines or tvs. 
C) it would be producing more engines and more tvs than at point P. 
D) It is not possible for this economy to move from point P to point N without additional resources. 
A) it still would not be producing efficiently. 
B) there would be no gain in either engines or tvs. 
C) it would be producing more engines and more tvs than at point P. 
D) It is not possible for this economy to move from point P to point N without additional resources.

Question 6

The decision of which assumptions to make is

Accepted Answer

A) an easy decision for an economist,but a difficult decision for a physicist or a chemist. 
B) not a particularly important decision for an economist. 
C) usually regarded as an art in scientific thinking. 
D) usually regarded as the easiest part of the scientific method. 
A) an easy decision for an economist,but a difficult decision for a physicist or a chemist. 
B) not a particularly important decision for an economist. 
C) usually regarded as an art in scientific thinking. 
D) usually regarded as the easiest part of the scientific method.

Question 7

Figure 2-1  
-Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 8

Which of the following statements is (are)correct?

Accepted Answer

A) Relative to some other scientists,economists find it more difficult to conduct experiments. 
B) Theory and observation are important in economics as well as in other sciences. 
C) To obtain data,economists often rely upon the natural experiments offered by history. 
D) All of the above are correct. 
A) Relative to some other scientists,economists find it more difficult to conduct experiments. 
B) Theory and observation are important in economics as well as in other sciences. 
C) To obtain data,economists often rely upon the natural experiments offered by history. 
D) All of the above are correct.

Question 9

Figure 2-2  
-Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

Accepted Answer

A) Box B 
B) Box C 
C) Box D 
D) Any one of the other boxes (B,C,or 
D) could represent households. 
A) Box B 
B) Box C 
C) Box D 
D) Any one of the other boxes (B,C,or 
D) could represent households.

Question 10

One thing economists do to help them understand how the real world works is

Accepted Answer

A) make assumptions. 
B) ignore the past. 
C) try to capture every aspect of the real world in the models they construct. 
D) All of the above are correct. 
A) make assumptions. 
B) ignore the past. 
C) try to capture every aspect of the real world in the models they construct. 
D) All of the above are correct.

Question 11

With respect to how economists study the economy,which of the following statements is most accurate?

Accepted Answer

A) Economists study the past,but they do not try to predict the future. 
B) Economists use "rules of thumb" to predict the future. 
C) Economists devise theories,collect data,and analyze the data to test the theories. 
D) Economists use controlled experiments in much the same way that biologists and physicists do. 
A) Economists study the past,but they do not try to predict the future. 
B) Economists use "rules of thumb" to predict the future. 
C) Economists devise theories,collect data,and analyze the data to test the theories. 
D) Economists use controlled experiments in much the same way that biologists and physicists do.

Question 12

Because it is difficult for economists to use experiments to generate data,they generally must

Accepted Answer

A) do without data. 
B) substitute assumptions for data when data are unavailable. 
C) rely upon hypothetical data that were previously concocted by other economists. 
D) use whatever data the world gives them. 
A) do without data. 
B) substitute assumptions for data when data are unavailable. 
C) rely upon hypothetical data that were previously concocted by other economists. 
D) use whatever data the world gives them.

Question 13

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

Accepted Answer

A) zero. 
B) 40 blankets. 
C) 120 pillows. 
D) 360 blankets. 
A) zero. 
B) 40 blankets. 
C) 120 pillows. 
D) 360 blankets.

Question 14

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Accepted Answer

A) For the most part,microeconomists are unconcerned with macroeconomics,and macroeconomists are unconcerned with microeconomics. 
B) Microeconomists study markets for small products,whereas macroeconomists study markets for large products. 
C) Microeconomics and macroeconomics are distinct from one another,yet they are closely related. 
D) Microeconomics is oriented toward policy studies,whereas macroeconomics is oriented toward theoretical studies. 
A) For the most part,microeconomists are unconcerned with macroeconomics,and macroeconomists are unconcerned with microeconomics. 
B) Microeconomists study markets for small products,whereas macroeconomists study markets for large products. 
C) Microeconomics and macroeconomics are distinct from one another,yet they are closely related. 
D) Microeconomics is oriented toward policy studies,whereas macroeconomics is oriented toward theoretical studies.

Question 15

Figure 2-16​  
-Refer to Figure 2-16.The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

Accepted Answer

A) 10 gadgets. 
B) 30 widgets 
C) 10 gadgets and 30 widgets. 
D) 0 gadgets. 
A) 10 gadgets. 
B) 30 widgets 
C) 10 gadgets and 30 widgets. 
D) 0 gadgets.

Question 16

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Accepted Answer

A) society's preferences. 
B) the available production technology. 
C) a fair distribution of the output. 
D) the available demand for the output. 
A) society's preferences. 
B) the available production technology. 
C) a fair distribution of the output. 
D) the available demand for the output.

Question 17

Figure 2-4  
-Refer to Figure 2-4.Efficient production is represented by which point(s)?

Accepted Answer

A) Q,R,U 
B) R,T,U 
C) R,U 
D) S,T 
A) Q,R,U 
B) R,T,U 
C) R,U 
D) S,T

Question 18

Refer to Figure 2-13.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Accepted Answer

A) I,L 
B) G,H 
C) J,K 
D) F,G 
A) I,L 
B) G,H 
C) J,K 
D) F,G

Question 19

Factors of production are

Accepted Answer

A) the mathematical calculations firms make in determining their optimal production levels. 
B) social and political conditions that affect production. 
C) the physical relationships between economic inputs and outputs. 
D) inputs into the production process. 
A) the mathematical calculations firms make in determining their optimal production levels. 
B) social and political conditions that affect production. 
C) the physical relationships between economic inputs and outputs. 
D) inputs into the production process.

Question 20

Figure 2-10
 
-Refer to Figure 2-10,Panel (a)and Panel (b).A shift of the economy's production possibilities frontier from Panel (a)to Panel (b)could be caused by

Accepted Answer

A) unemployment. 
B) an improvement in sofa production technology. 
C) an improvement in tractor production technology. 
D) an improvement in both sofa and tractor production technology. 
A) unemployment. 
B) an improvement in sofa production technology. 
C) an improvement in tractor production technology. 
D) an improvement in both sofa and tractor production technology.

Exam 2: Thinking Like an Economist: The Economist As Scientist

Figure 2-4 -Refer to Figure 2-4.Unemployment could cause this economy to produce at which point(s)?

Figure 2-7 -Refer to Figure 2-7.What is the opportunity cost of moving from point L to point M?

Which of the following is not correct about most economic models?

Figure 2-7 -Refer to Figure 2-7.If this economy devotes all of its resources to the production of engines,then it will produce

Figure 2-7 -Refer to Figure 2-7.If this economy moved from point P to point N,then

The decision of which assumptions to make is

Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

Which of the following statements is (are)correct?

Figure 2-2 -Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

One thing economists do to help them understand how the real world works is

With respect to how economists study the economy,which of the following statements is most accurate?

Because it is difficult for economists to use experiments to generate data,they generally must

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

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Figure 2-16​ -Refer to Figure 2-16.The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s)?

Refer to Figure 2-13.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Factors of production are

Figure 2-10 -Refer to Figure 2-10,Panel (a)and Panel (b).A shift of the economy's production possibilities frontier from Panel (a)to Panel (b)could be caused by

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Figure 2-16 -Refer to Figure 2-16.The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is