Question 1

Economists at which administrative department help formulate spending plans and regulatory policies?

Accepted Answer

Office of

Question 2

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-8  
-Refer to Figure 2-8. Point K represents an outcome in which

Accepted Answer

A)  production is inefficient. 
B)  some of the economy's resources are unemployed. 
C)  the economy is using all of its resources to produce hammers. 
D)  the economy is using all of its nails to produce hammers. 
A)  production is inefficient. 
B)  some of the economy's resources are unemployed. 
C)  the economy is using all of its resources to produce hammers. 
D)  the economy is using all of its nails to produce hammers.

Question 4

In the ordered pair 3, 6), 3 is the

Accepted Answer

A)  x-coordinate. 
B)  y-coordinate. 
C)  origin. 
D)  slope. 
A)  x-coordinate. 
B)  y-coordinate. 
C)  origin. 
D)  slope.

Question 5

Table 2-3
Production Possibilities for Footville
  
-Refer to Table 2-3. Which of the following statements is correct?

Accepted Answer

A)  The opportunity cost of an additional 200 shoes is constant at 200 socks. 
B)  The opportunity cost of an additional 200 shoes is constant at 300 socks. 
C)  Footville's production possibilities frontier is a straight, downward­sloping line. 
D)  The opportunity cost of an additional 200 shoes increases as more socks are produced. 
A)  The opportunity cost of an additional 200 shoes is constant at 200 socks. 
B)  The opportunity cost of an additional 200 shoes is constant at 300 socks. 
C)  Footville's production possibilities frontier is a straight, downward­sloping line. 
D)  The opportunity cost of an additional 200 shoes increases as more socks are produced.

Question 6

"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?

Accepted Answer

A)  Harry Truman 
B)  George Bernard Shaw 
C)  John Maynard Keynes 
D)  Ronald Reagan 
A)  Harry Truman 
B)  George Bernard Shaw 
C)  John Maynard Keynes 
D)  Ronald Reagan

Question 7

What type of statement is a descriptive statement about how the world is?

Accepted Answer

The answer of What type of statement is a descriptive...

Question 8

A production possibilities frontier can shift outward if

Accepted Answer

A)  government increases the amount of money in the economy. 
B)  there is a technological improvement. 
C)  resources are shifted from the production of one good to the production of the other good. 
D)  the economy abandons inefficient production methods in favor of efficient production methods. 
A)  government increases the amount of money in the economy. 
B)  there is a technological improvement. 
C)  resources are shifted from the production of one good to the production of the other good. 
D)  the economy abandons inefficient production methods in favor of efficient production methods.

Question 9

In the ordered pair 5, 3), 3 is the

Accepted Answer

A)  horizontal location of the point. 
B)  the slope. 
C)  the x-coordinate. 
D)  the y-coordinate. 
A)  horizontal location of the point. 
B)  the slope. 
C)  the x-coordinate. 
D)  the y-coordinate.

Question 10

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Accepted Answer

A)  It is often difficult to formulate theories in economics. 
B)  It is often impractical to perform experiments in economics. 
C)  Economics cannot be addressed objectively; it must be addressed subjectively. 
D)  The scientific method cannot be applied to the study of economics. 
A)  It is often difficult to formulate theories in economics. 
B)  It is often impractical to perform experiments in economics. 
C)  Economics cannot be addressed objectively; it must be addressed subjectively. 
D)  The scientific method cannot be applied to the study of economics.

Question 11

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Accepted Answer

A)  performing an experiment in an economic system. 
B)  applying mathematical methods to economic analysis. 
C)  analyzing available data. 
D)  formulating theories about economic events. 
A)  performing an experiment in an economic system. 
B)  applying mathematical methods to economic analysis. 
C)  analyzing available data. 
D)  formulating theories about economic events.

Question 12

Figure 2-22  
-Refer to Figure 2-22. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Accepted Answer

The answer of Figure 2-22  
-Refer to Figure 2-22....

Question 13

Table 2-5
  
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Accepted Answer

A)  800 bushels of corn 
B)  600 bushels of corn 
C)  400 bushels of corn 
D)  400 bushels of wheat 
A)  800 bushels of corn 
B)  600 bushels of corn 
C)  400 bushels of corn 
D)  400 bushels of wheat

Question 14

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-18
Relationship between Price and Restaurant Meals  
-Refer to Figure 2-18. A movement from point A to point B is called

Accepted Answer

A)  a shift in demand. 
B)  a movement along the demand curve. 
C)  a shift in supply. 
D)  a movement along the supply curve. 
A)  a shift in demand. 
B)  a movement along the demand curve. 
C)  a shift in supply. 
D)  a movement along the supply curve.

Question 16

Figure 2-9
Panel a) Panel b)
    
-Refer to Figure 2-9, Panel a). The opportunity cost of moving from point K to point L is

Accepted Answer

A)  0 cups of coffee. 
B)  1 donut. 
C)  2 donuts. 
D)  4 cups of coffee. 
A)  0 cups of coffee. 
B)  1 donut. 
C)  2 donuts. 
D)  4 cups of coffee.

Question 17

The bowed shape of the production possibilities frontier can be explained by the fact that

Accepted Answer

A)  all resources are scarce. 
B)  economic growth is always occurring. 
C)  the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing. 
D)  the only way to get more of one good is to get less of the other. 
A)  all resources are scarce. 
B)  economic growth is always occurring. 
C)  the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing. 
D)  the only way to get more of one good is to get less of the other.

Question 18

Figure 2-2  
-Refer to Figure 2-2. If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram, then

Accepted Answer

A)  the flow of factors of production is also part of what is represented by the inner loop. 
B)  the flow of income paid to households is also part of what is represented by the inner loop. 
C)  the flow of revenue to firms is also part of what is represented by the inner loop. 
D)  households must be sellers of output. 
A)  the flow of factors of production is also part of what is represented by the inner loop. 
B)  the flow of income paid to households is also part of what is represented by the inner loop. 
C)  the flow of revenue to firms is also part of what is represented by the inner loop. 
D)  households must be sellers of output.

Question 19

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Accepted Answer

The answer of Which type of statement - positive or...

Question 20

Figure 2-3  
-Refer to Figure 2-3. What do the outer arrows represent in the figure?

Accepted Answer

The answer of Figure 2-3  
-Refer to Figure 2-3....

Exam 2: Thinking Like an Economist

Economists at which administrative department help formulate spending plans and regulatory policies?

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Figure 2-8 -Refer to Figure 2-8. Point K represents an outcome in which

In the ordered pair 3, 6), 3 is the

Table 2-3 Production Possibilities for Footville -Refer to Table 2-3. Which of the following statements is correct?

"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?

What type of statement is a descriptive statement about how the world is?

A production possibilities frontier can shift outward if

In the ordered pair 5, 3), 3 is the

Economists face an obstacle that many other scientists do not face. What is that obstacle?

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Figure 2-22 -Refer to Figure 2-22. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of an increase in the production of wheat from 700 bushels to 1300 bushels?

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point B is called

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). The opportunity cost of moving from point K to point L is

The bowed shape of the production possibilities frontier can be explained by the fact that

Figure 2-2 -Refer to Figure 2-2. If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram, then

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Figure 2-3 -Refer to Figure 2-3. What do the outer arrows represent in the figure?

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

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