Question 1

The slope of a steep upward-sloping line will be a

Accepted Answer

A)  small positive number. 
B)  large positive number. 
C)  small negative number. 
D)  large negative number. 
A)  small positive number. 
B)  large positive number. 
C)  small negative number. 
D)  large negative number.

Question 2

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-23  
-Refer to Figure 2-23. Points B and C represent infeasible outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 4

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 5

The outer loop of the circular-flow diagram represents the flows of dollars in the economy. Which of the following does not appear on the outer loop?

Accepted Answer

A)  wages 
B)  income 
C)  capital 
D)  rent 
A)  wages 
B)  income 
C)  capital 
D)  rent

Question 6

Figure 2-10
Panel a) Panel b)
    
-Refer to Figure 2-10, Panel a). The movement from point W to point Y could be caused by

Accepted Answer

A)  economic growth. 
B)  unemployment. 
C)  an improvement in efficiency. 
D)  an advance in production technology. 
A)  economic growth. 
B)  unemployment. 
C)  an improvement in efficiency. 
D)  an advance in production technology.

Question 7

The x-coordinate of an ordered pair specifies the

Accepted Answer

A)  diagonal location of the point. 
B)  vertical location of the point. 
C)  horizontal location of the point. 
D)  quadrant location in which the point is located. 
A)  diagonal location of the point. 
B)  vertical location of the point. 
C)  horizontal location of the point. 
D)  quadrant location in which the point is located.

Question 8

Figure 2-23  
-Refer to Figure 2-23. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Accepted Answer

A) True 
 B)False

Question 9

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

Accepted Answer

A) True 
 B)False

Question 10

One way to characterize the difference between positive statements and normative statements is as follows:

Accepted Answer

A)  Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future. 
B)  Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be. 
C)  Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation. 
D)  Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements. 
A)  Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future. 
B)  Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be. 
C)  Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation. 
D)  Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements.

Question 11

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 12

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Accepted Answer

A) True 
 B)False

Question 13

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Accepted Answer

A) True 
 B)False

Question 14

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Accepted Answer

A)  Collect and analyze data. 
B)  Go to a laboratory and generate data to test the theory. 
C)  Publish the theory without testing it. 
D)  Consult with other economists to see they agree with the theory. 
A)  Collect and analyze data. 
B)  Go to a laboratory and generate data to test the theory. 
C)  Publish the theory without testing it. 
D)  Consult with other economists to see they agree with the theory.

Question 15

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 16

In conducting their research, economists often substitute historical events and historical episodes for

Accepted Answer

A)  theories and observations. 
B)  laboratory experiments. 
C)  models. 
D)  assumptions. 
A)  theories and observations. 
B)  laboratory experiments. 
C)  models. 
D)  assumptions.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Figure 2-6  
-Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

Accepted Answer

A)  0 blankets and 360 pillows. 
B)  200 blankets and 240 pillows. 
C)  320 blankets and 120 pillows. 
D)  360 blankets and 0 pillows. 
A)  0 blankets and 360 pillows. 
B)  200 blankets and 240 pillows. 
C)  320 blankets and 120 pillows. 
D)  360 blankets and 0 pillows.

Question 19

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

Accepted Answer

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

Question 20

Figure 2-4  
-Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Accepted Answer

A)  R 
B)  S 
C)  T 
D)  U 
A)  R 
B)  S 
C)  T 
D)  U

Exam 2: Thinking Like an Economist

The slope of a steep upward-sloping line will be a

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Figure 2-23 -Refer to Figure 2-23. Points B and C represent infeasible outcomes for this economy.

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

The outer loop of the circular-flow diagram represents the flows of dollars in the economy. Which of the following does not appear on the outer loop?

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a). The movement from point W to point Y could be caused by

The x-coordinate of an ordered pair specifies the

Figure 2-23 -Refer to Figure 2-23. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

One way to characterize the difference between positive statements and normative statements is as follows:

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

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

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

In conducting their research, economists often substitute historical events and historical episodes for

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

Figure 2-6 -Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

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

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

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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