Question 1

In the circular-flow diagram, firms produce

Accepted Answer

A)  goods and services using factors of production. 
B)  output using inputs. 
C)  factors of production using goods and services. 
D)  Both a) and b) are correct. 
A)  goods and services using factors of production. 
B)  output using inputs. 
C)  factors of production using goods and services. 
D)  Both a) and b) are correct.

Question 2

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

Accepted Answer

A)  less than 0. 
B)  between zero and 1. 
C)  between one and infinity. 
D)  undefined. 
A)  less than 0. 
B)  between zero and 1. 
C)  between one and infinity. 
D)  undefined.

Question 3

It is difficult for economists to make observations and develop theories, but it is easy for economists to run experiments to generate data to test their theories.

Accepted Answer

A) True 
 B)False

Question 4

Use the following Figure to answer the question : Figure 2-14   Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two.
-Refer to Figure 2-14. If this society moves from point U to point V,

Accepted Answer

A)  it gives up 40 bushels of apples to get 80 sweaters. 
B)  it gives up 140 bushels of apples to get 80 sweaters. 
C)  it gives up 80 sweaters to get 140 bushels of apples. 
D)  it gives up 80 sweaters to get 40 bushels of apples. 
A)  it gives up 40 bushels of apples to get 80 sweaters. 
B)  it gives up 140 bushels of apples to get 80 sweaters. 
C)  it gives up 80 sweaters to get 140 bushels of apples. 
D)  it gives up 80 sweaters to get 40 bushels of apples.

Question 5

The scientific method is applicable to studying

Accepted Answer

A)  natural sciences, but not social sciences. 
B)  social sciences, but not natural sciences. 
C)  both natural sciences and social sciences. 
D)  None of the above is correct. 
A)  natural sciences, but not social sciences. 
B)  social sciences, but not natural sciences. 
C)  both natural sciences and social sciences. 
D)  None of the above is correct.

Question 6

Economists speaking like policy advisers make

Accepted Answer

A)  positive statements. 
B)  descriptive statements. 
C)  claims about how the world is. 
D)  claims about how the world should be. 
A)  positive statements. 
B)  descriptive statements. 
C)  claims about how the world is. 
D)  claims about how the world should be.

Question 7

Which of the following is not held constant when looking at an individual's demand curve?

Accepted Answer

A)  income 
B)  price 
C)  preferences 
D)  the availability of alternative goods 
A)  income 
B)  price 
C)  preferences 
D)  the availability of alternative goods

Question 8

Use the following Figure to answer the question : Figure 2-4 :  
-Refer to Figure 2-4. This economy cannot produce at which points)?

Accepted Answer

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

Question 9

Use the following Figure to answer the question : Figure 2-14 :   Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two.
-Refer to Figure 2-14. Which points) on the graph isare) unattainable given current resources and technology?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 10

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Use the following Figure to answer the question 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 13

Which of the following is not correct?

Accepted Answer

A)  Economists use some familiar words in specialized ways. 
B)  Economics has its own language and its own way of thinking, but few other fields of study do. 
C)  Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are all terms that are part of the economist's language. 
D)  The value of the economist's language lies in its ability to provide you with a new and useful way of thinking about the world in which you live. 
A)  Economists use some familiar words in specialized ways. 
B)  Economics has its own language and its own way of thinking, but few other fields of study do. 
C)  Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are all terms that are part of the economist's language. 
D)  The value of the economist's language lies in its ability to provide you with a new and useful way of thinking about the world in which you live.

Question 14

Use the following Figure to answer the question : Figure 2-20 :
Relationship Between Years of Education and Annual Income  
-Refer to Figure 2-20. The graph above is a

Accepted Answer

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

Question 15

Factors of production are

Accepted Answer

A)  used to produce goods and services. 
B)  also called output. 
C)  abundant in most economies. 
D)  assumed to be owned by firms in the circular-flow diagram. 
A)  used to produce goods and services. 
B)  also called output. 
C)  abundant in most economies. 
D)  assumed to be owned by firms in the circular-flow diagram.

Question 16

Figure 2-10
Panel a)
  
Panel b)
 
-Refer to Figure 2-10, Panel a). Production is

Accepted Answer

A)  possible at points V, W, Y, and Z, but efficient only at points V, W, and Z. 
B)  possible at points V, W, Y, and Z, but efficient only at point Y. 
C)  possible at points U, V, W, and Z, but efficient only at points V, W, and Z. 
D)  possible at points U, V, W, and Z, but efficient only at point U. 
A)  possible at points V, W, Y, and Z, but efficient only at points V, W, and Z. 
B)  possible at points V, W, Y, and Z, but efficient only at point Y. 
C)  possible at points U, V, W, and Z, but efficient only at points V, W, and Z. 
D)  possible at points U, V, W, and Z, but efficient only at point U.

Question 17

Use the following Figure to answer the question : Figure 2-3 :  
-Refer to Figure 2-3. What are two elements not included in this figure that could be included in a more complex model?

Accepted Answer

government

Question 18

Economic models omit many details to allow us to see what is truly important.

Accepted Answer

A) True 
 B)False

Question 19

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 20

While the production possibilities frontier is a useful model, it cannot be used to illustrate economic growth.

Accepted Answer

A) True 
 B)False

In the circular-flow diagram, firms produce

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

It is difficult for economists to make observations and develop theories, but it is easy for economists to run experiments to generate data to test their theories.

Use the following Figure to answer the question : Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. If this society moves from point U to point V,

The scientific method is applicable to studying

Economists speaking like policy advisers make

Which of the following is not held constant when looking at an individual's demand curve?

Use the following Figure to answer the question : Figure 2-4 : -Refer to Figure 2-4. This economy cannot produce at which points)?

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

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

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. If Box A of this circular-flow diagram represents firms, then which box represents households?

Which of the following is not correct?

Use the following Figure to answer the question : Figure 2-20 : Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. The graph above is a

Factors of production are

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a). Production is

Use the following Figure to answer the question : Figure 2-3 : -Refer to Figure 2-3. What are two elements not included in this figure that could be included in a more complex model?

Economic models omit many details to allow us to see what is truly important.

The use of the coordinate system allows

While the production possibilities frontier is a useful model, it cannot be used to illustrate economic growth.

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

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 2: Thinking Like an Economist

In the circular-flow diagram, firms produce

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

It is difficult for economists to make observations and develop theories, but it is easy for economists to run experiments to generate data to test their theories.

Use the following Figure to answer the question : Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. If this society moves from point U to point V,

The scientific method is applicable to studying

Economists speaking like policy advisers make

Which of the following is not held constant when looking at an individual's demand curve?

Use the following Figure to answer the question : Figure 2-4 : -Refer to Figure 2-4. This economy cannot produce at which points)?

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

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

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. If Box A of this circular-flow diagram represents firms, then which box represents households?

Which of the following is not correct?

Use the following Figure to answer the question : Figure 2-20 : Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. The graph above is a

Factors of production are

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a). Production is

Use the following Figure to answer the question : Figure 2-3 : -Refer to Figure 2-3. What are two elements not included in this figure that could be included in a more complex model?

Economic models omit many details to allow us to see what is truly important.

The use of the coordinate system allows

While the production possibilities frontier is a useful model, it cannot be used to illustrate economic growth.

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

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters