Question 1

A demand curve shows the relationship

Accepted Answer

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

Question 2

When an economist evaluates a positive statement, he or she is primarily

Accepted Answer

A)  examining evidence. 
B)  acting as a scientist. 
C)  concerned with verifying how the world is. 
D)  All of the above are correct. 
A)  examining evidence. 
B)  acting as a scientist. 
C)  concerned with verifying how the world is. 
D)  All of the above are correct.

Question 3

A circular-flow model and production possibilities frontier are similar in that

Accepted Answer

A)  neither allows economic analysis to occur. 
B)  neither can be represented visually on a graph. 
C)  both make use of assumptions. 
D)  both make use of complex equations to arrive at solutions. 
A)  neither allows economic analysis to occur. 
B)  neither can be represented visually on a graph. 
C)  both make use of assumptions. 
D)  both make use of complex equations to arrive at solutions.

Question 4

Use the following Figure to answer the question : Figure 2-23 :  
-Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Accepted Answer

A) True 
 B)False

Question 5

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Accepted Answer

A)  spending. 
B)  revenue. 
C)  income. 
D)  wages, rent, and profit. 
A)  spending. 
B)  revenue. 
C)  income. 
D)  wages, rent, and profit.

Question 6

When economists disagree about whether a policy is fair, they are expressing a difference in

Accepted Answer

The answer of When economists disagree about whether a policy...

Question 7

The most common data for testing economic theories come from

Accepted Answer

A)  carefully controlled and conducted laboratory experiments. 
B)  computer models of economies. 
C)  historical episodes of economic change. 
D)  centrally planned economies. 
A)  carefully controlled and conducted laboratory experiments. 
B)  computer models of economies. 
C)  historical episodes of economic change. 
D)  centrally planned economies.

Question 8

Two variables that have a positive correlation move in the same direction.

Accepted Answer

A) True 
 B)False

Question 9

When a variable that is named on an axis of a graph changes, the curve shifts.

Accepted Answer

A) True 
 B)False

Question 10

Which types of models are built with assumptions?

Accepted Answer

A)  economic models, but not models in other disciplines such as physics and biology 
B)  economic models as well as models in other disciplines such as physics and biology 
C)  models that are built for teaching purposes but not for research purposes 
D)  bad models 
A)  economic models, but not models in other disciplines such as physics and biology 
B)  economic models as well as models in other disciplines such as physics and biology 
C)  models that are built for teaching purposes but not for research purposes 
D)  bad models

Question 11

The goal of an economist who formulates new theories is to

Accepted Answer

A)  provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. 
B)  provoke stimulating debate in scientific journals. 
C)  contribute to an understanding of how the world works. 
D)  demonstrate that economists, like other scientists, can formulate testable theories. 
A)  provide an interesting framework of analysis, whether or not the framework turns out to be of much use in understanding how the world works. 
B)  provoke stimulating debate in scientific journals. 
C)  contribute to an understanding of how the world works. 
D)  demonstrate that economists, like other scientists, can formulate testable theories.

Question 12

Unemployment causes production levels to be inefficient.

Accepted Answer

A) True 
 B)False

Question 13

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Accepted Answer

A) True 
 B)False

Question 14

In the circular-flow diagram, which of the following items does not flow from households to firms?

Accepted Answer

A)  revenue 
B)  land, labor, and capital 
C)  factors of production 
D)  profit 
A)  revenue 
B)  land, labor, and capital 
C)  factors of production 
D)  profit

Question 15

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use an)

Accepted Answer

A)  pie chart. 
B)  bar graph. 
C)  time-series graph 
D)  coordinate system. 
A)  pie chart. 
B)  bar graph. 
C)  time-series graph 
D)  coordinate system.

Question 16

When two variables have a negative correlation,

Accepted Answer

A)  when the x-variable decreases, the y-variable decreases. 
B)  when the x-variable decreases, the y-variable increases. 
C)  when the x-variable increases, the y-variable increases. 
D)  More than one of the above is correct. 
A)  when the x-variable decreases, the y-variable decreases. 
B)  when the x-variable decreases, the y-variable increases. 
C)  when the x-variable increases, the y-variable increases. 
D)  More than one of the above is correct.

Question 17

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Accepted Answer

A)  the effects of rent control on the availability of housing in New York City 
B)  the economic impact of tornadoes on cities and towns in Oklahoma 
C)  how tariffs on shoes affects the shoe industry 
D)  the effect on the economy of changes in the nation's unemployment rate 
A)  the effects of rent control on the availability of housing in New York City 
B)  the economic impact of tornadoes on cities and towns in Oklahoma 
C)  how tariffs on shoes affects the shoe industry 
D)  the effect on the economy of changes in the nation's unemployment rate

Question 18

If a line passes through the points 20,5) and 10,10), then the slope of the line is 1/2.

Accepted Answer

A) True 
 B)False

Question 19

Use the following Figure to answer the question : Figure 2-22 :  
-Refer to Figure 2-22. What are the coordinates of point C?

Accepted Answer

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

Question 20

Use the following Figure to answer the question Figure: 2-2  
-Refer to Figure 2-2. Carla regularly buys fruits and vegetables at a grocery store. Roberto regularly pays a lawn- care company to mow his lawn. If the flow of fruits and vegetables from the grocery store to Carla is represented by an arrow from Box C to Box B of this circular-flow diagram, then the money paid by Roberto to the lawn-care company is represented by an arrow

Accepted Answer

A)  from Box A to Box D. 
B)  from Box B to Box C. 
C)  from Box C to Box B. 
D)  from Box D to Box A. 
A)  from Box A to Box D. 
B)  from Box B to Box C. 
C)  from Box C to Box B. 
D)  from Box D to Box A.

A demand curve shows the relationship

When an economist evaluates a positive statement, he or she is primarily

A circular-flow model and production possibilities frontier are similar in that

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

When economists disagree about whether a policy is fair, they are expressing a difference in

The most common data for testing economic theories come from

Two variables that have a positive correlation move in the same direction.

When a variable that is named on an axis of a graph changes, the curve shifts.

Which types of models are built with assumptions?

The goal of an economist who formulates new theories is to

Unemployment causes production levels to be inefficient.

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

In the circular-flow diagram, which of the following items does not flow from households to firms?

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use an)

When two variables have a negative correlation,

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

If a line passes through the points 20,5) and 10,10), then the slope of the line is 1/2.

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What are the coordinates of point C?

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

A demand curve shows the relationship

When an economist evaluates a positive statement, he or she is primarily

A circular-flow model and production possibilities frontier are similar in that

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

When economists disagree about whether a policy is fair, they are expressing a difference in

The most common data for testing economic theories come from

Two variables that have a positive correlation move in the same direction.

When a variable that is named on an axis of a graph changes, the curve shifts.

Which types of models are built with assumptions?

The goal of an economist who formulates new theories is to

Unemployment causes production levels to be inefficient.

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

In the circular-flow diagram, which of the following items does not flow from households to firms?

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use an)

When two variables have a negative correlation,

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

If a line passes through the points 20,5) and 10,10), then the slope of the line is 1/2.

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What are the coordinates of point C?

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