Question 1

In the ordered pair 20, 30), 20 is the

Accepted Answer

A)  the x-coordinate. 
B)  the horizontal location of the point. 
C)  the y-coordinate. 
D)  Both a and b are correct. 
A)  the x-coordinate. 
B)  the horizontal location of the point. 
C)  the y-coordinate. 
D)  Both a and b are correct.

Question 2

Figure 2-17  
-Refer to Figure 2-17. The curves shown are

Accepted Answer

A)  supply curves. 
B)  demand curves. 
C)  preference curves. 
D)  income-consumption curves. 
A)  supply curves. 
B)  demand curves. 
C)  preference curves. 
D)  income-consumption curves.

Question 3

A statement describing how the world should be

Accepted Answer

A)  is a normative statement. 
B)  is a positive statement. 
C)  would only be made by an economist speaking as a scientist. 
D)  would only be made by an economist employed by the government. 
A)  is a normative statement. 
B)  is a positive statement. 
C)  would only be made by an economist speaking as a scientist. 
D)  would only be made by an economist employed by the government.

Question 4

Figure 2-15  
-Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car is

Accepted Answer

A)  the slope of the production possibilities frontier. 
B)  3/2 sofas. 
C)  2/3 of a sofa. 
D)  Both a and b are correct. 
A)  the slope of the production possibilities frontier. 
B)  3/2 sofas. 
C)  2/3 of a sofa. 
D)  Both a and b are correct.

Question 5

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 6

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 7

The ordered pair that represents the origin on a graph is

Accepted Answer

A)  1, 1). 
B)  0, 0). 
C)  -1, -1). 
D)  ∞, ∞). 
A)  1, 1). 
B)  0, 0). 
C)  -1, -1). 
D)  ∞, ∞).

Question 8

Which of the following is an example of a normative, as opposed to positive, statement?

Accepted Answer

A)  If the price of a product decreases, people's willingness to buy that product will increase. 
B)  Reducing tax rates on the wealthy would benefit the nation. 
C)  If the national saving rate were to increase, so would the rate of economic growth. 
D)  The elimination of trade restrictions would increase an economy's standard of living. 
A)  If the price of a product decreases, people's willingness to buy that product will increase. 
B)  Reducing tax rates on the wealthy would benefit the nation. 
C)  If the national saving rate were to increase, so would the rate of economic growth. 
D)  The elimination of trade restrictions would increase an economy's standard of living.

Question 9

The two loops in the circular-flow diagram represent

Accepted Answer

A)  the flow of goods and the flow of services. 
B)  the flow of dollars and the flow of financial assets. 
C)  the flow of inputs into production processes and the flow of outputs from production processes. 
D)  the flows of inputs and outputs and the flow of dollars. 
A)  the flow of goods and the flow of services. 
B)  the flow of dollars and the flow of financial assets. 
C)  the flow of inputs into production processes and the flow of outputs from production processes. 
D)  the flows of inputs and outputs and the flow of dollars.

Question 10

Figure 2-13  
-Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Accepted Answer

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

Question 11

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 12

In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now?

Accepted Answer

A)  Unemployed labor is put to work producing jam and bread. 
B)  The economy puts its idle capital to work producing jam and bread. 
C)  The economy experiences economic growth. 
D)  All of the above are correct. 
A)  Unemployed labor is put to work producing jam and bread. 
B)  The economy puts its idle capital to work producing jam and bread. 
C)  The economy experiences economic growth. 
D)  All of the above are correct.

Question 13

The point where both x and y are zero is known as the

Accepted Answer

A)  origin. 
B)  null. 
C)  zero coordinate. 
D)  center. 
A)  origin. 
B)  null. 
C)  zero coordinate. 
D)  center.

Question 14

Figure 2-18
Relationship between Price and Restaurant Meals  
-Refer to Figure 2-18. The slope of the line containing points Y and Z is

Accepted Answer

A)  -0.5. 
B)  -1. 
C)  -2. 
D)  -4. 
A)  -0.5. 
B)  -1. 
C)  -2. 
D)  -4.

Question 15

Historical episodes allow economists to illustrate and evaluate current economic theories.

Accepted Answer

A) True 
 B)False

Question 16

The Economic Report of the President

Accepted Answer

A)  discusses recent developments in the economy and presents analysis of current policy issues. 
B)  is written by the Council of Economic Advisers. 
C)  is the responsibility of the economists at the Office of Management and Budget. 
D)  Both a and b are correct. 
A)  discusses recent developments in the economy and presents analysis of current policy issues. 
B)  is written by the Council of Economic Advisers. 
C)  is the responsibility of the economists at the Office of Management and Budget. 
D)  Both a and b are correct.

Question 17

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

Accepted Answer

The answer of Like biologists and physicists, economists use the...

Question 18

In the simple circular-flow diagram, who buys the factors of production?

Accepted Answer

A)  households only 
B)  firms only 
C)  both households and firms 
D)  neither households nor firms 
A)  households only 
B)  firms only 
C)  both households and firms 
D)  neither households nor firms

Question 19

Economists at which administrative department help enforce the nation's antitrust laws?

Accepted Answer

Department

Question 20

The y-coordinate is the

Accepted Answer

A)  first number of an ordered pair and represents the point's horizontal location. 
B)  second number of an ordered pair and represents the point's horizontal location. 
C)  first number of an ordered pair and represents the point's vertical location. 
D)  second number of an ordered pair and represents the point's vertical location. 
A)  first number of an ordered pair and represents the point's horizontal location. 
B)  second number of an ordered pair and represents the point's horizontal location. 
C)  first number of an ordered pair and represents the point's vertical location. 
D)  second number of an ordered pair and represents the point's vertical location.

Exam 2: Thinking Like an Economist

In the ordered pair 20, 30), 20 is the

Figure 2-17 -Refer to Figure 2-17. The curves shown are

A statement describing how the world should be

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car is

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

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?

The ordered pair that represents the origin on a graph is

Which of the following is an example of a normative, as opposed to positive, statement?

The two loops in the circular-flow diagram represent

Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

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,

In a certain economy, jam and bread are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more jam and more bread, relative to the quantities of those goods that are being produced now?

The point where both x and y are zero is known as the

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points Y and Z is

Historical episodes allow economists to illustrate and evaluate current economic theories.

The Economic Report of the President

Like biologists and physicists, economists use the dispassionate development and testing of how the world works known as the

In the simple circular-flow diagram, who buys the factors of production?

Economists at which administrative department help enforce the nation's antitrust laws?

The y-coordinate is the

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

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

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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