Question 1

The circular-flow diagram

Accepted Answer

A)  is an economic model. 
B)  incorporates two types of decision makers: households and firms. 
C)  represents the flows of inputs, outputs, and dollars. 
D)  All of the above are correct. 
A)  is an economic model. 
B)  incorporates two types of decision makers: households and firms. 
C)  represents the flows of inputs, outputs, and dollars. 
D)  All of the above are correct.

Question 2

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

Accepted Answer

A) True 
 B)False

Question 3

The production possibilities frontier is used to illustrate some basic economic ideas, including

Accepted Answer

A)  scarcity. 
B)  opportunity cost. 
C)  economic growth. 
D)  All of the above are correct. 
A)  scarcity. 
B)  opportunity cost. 
C)  economic growth. 
D)  All of the above are correct.

Question 4

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 5

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Accepted Answer

A) True 
 B)False

Question 6

When economists are trying to explain the world, they are

Accepted Answer

A)  scientists. 
B)  policy advisers. 
C)  in the realm of microeconomics rather than macroeconomics. 
D)  in the realm of normative economics rather than positive economics. 
A)  scientists. 
B)  policy advisers. 
C)  in the realm of microeconomics rather than macroeconomics. 
D)  in the realm of normative economics rather than positive economics.

Question 7

Economic models

Accepted Answer

A)  cannot be useful if they are based on false assumptions. 
B)  were once thought to be useful, but that is no longer true. 
C)  must incorporate all aspects of the economy if they are to be useful. 
D)  can be useful, even if they are not particularly realistic. 
A)  cannot be useful if they are based on false assumptions. 
B)  were once thought to be useful, but that is no longer true. 
C)  must incorporate all aspects of the economy if they are to be useful. 
D)  can be useful, even if they are not particularly realistic.

Question 8

In the circular-flow diagram,

Accepted Answer

A)  profit flows from households to firms. 
B)  labor flows from households to firms. 
C)  services flow from households to firms. 
D)  All of the above are correct. 
A)  profit flows from households to firms. 
B)  labor flows from households to firms. 
C)  services flow from households to firms. 
D)  All of the above are correct.

Question 9

When studying the effects of public policy changes, economists

Accepted Answer

A)  always refrain from making assumptions. 
B)  sometimes make different assumptions about the short run and the long run. 
C)  consider only the direct effects of those policy changes and not the indirect effects. 
D)  consider only the short-run effects of those policy changes and not the long-run effects. 
A)  always refrain from making assumptions. 
B)  sometimes make different assumptions about the short run and the long run. 
C)  consider only the direct effects of those policy changes and not the indirect effects. 
D)  consider only the short-run effects of those policy changes and not the long-run effects.

Question 10

In the circular-flow diagram, households and firms are the decision makers.

Accepted Answer

A) True 
 B)False

Question 11

The design of tax policy is one of the responsibilities of economists who work at the

Accepted Answer

A)  Council of Economic Advisers. 
B)  Federal Reserve. 
C)  Department of the Treasury. 
D)  Congressional Budget Office. 
A)  Council of Economic Advisers. 
B)  Federal Reserve. 
C)  Department of the Treasury. 
D)  Congressional Budget Office.

Question 12

Economists speaking like scientists make

Accepted Answer

A)  positive statements. 
B)  prescriptive statements. 
C)  claims about how the world should be. 
D)  More than one of the above is correct. 
A)  positive statements. 
B)  prescriptive statements. 
C)  claims about how the world should be. 
D)  More than one of the above is correct.

Question 13

A circular-flow diagram is a visual model of the economy.

Accepted Answer

A) True 
 B)False

Question 14

The slope of a line passing through the points 15, 3) and 10, 6) is

Accepted Answer

A)  -3/5. 
B)  3/5. 
C)  -5/3. 
D)  5/3. 
A)  -3/5. 
B)  3/5. 
C)  -5/3. 
D)  5/3.

Question 15

Use the following Figure to answer the question : Figure 2-7  
-Refer to Figure 2-7. This economy has the ability to produce at which points)?

Accepted Answer

A)  N, O, P 
B)  L, M 
C)  L, M, N, O, P 
D)  L, M, Q 
A)  N, O, P 
B)  L, M 
C)  L, M, N, O, P 
D)  L, M, Q

The circular-flow diagram

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

The production possibilities frontier is used to illustrate some basic economic ideas, including

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

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

When economists are trying to explain the world, they are

Economic models

In the circular-flow diagram,

When studying the effects of public policy changes, economists

In the circular-flow diagram, households and firms are the decision makers.

The design of tax policy is one of the responsibilities of economists who work at the

Economists speaking like scientists make

A circular-flow diagram is a visual model of the economy.

The slope of a line passing through the points 15, 3) and 10, 6) is

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which points)?

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

The circular-flow diagram

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

The production possibilities frontier is used to illustrate some basic economic ideas, including

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

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

When economists are trying to explain the world, they are

Economic models

In the circular-flow diagram,

When studying the effects of public policy changes, economists

In the circular-flow diagram, households and firms are the decision makers.

The design of tax policy is one of the responsibilities of economists who work at the

Economists speaking like scientists make

A circular-flow diagram is a visual model of the economy.

The slope of a line passing through the points 15, 3) and 10, 6) is

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which points)?

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