Question 1

Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of

Accepted Answer

A)  a controlled experiment that lead to the formulation of a scientific theory. 
B)  being in the right place at the right time. 
C)  an idea whose time had come. 
D)  the interplay between observation and theory in science. 
A)  a controlled experiment that lead to the formulation of a scientific theory. 
B)  being in the right place at the right time. 
C)  an idea whose time had come. 
D)  the interplay between observation and theory in science.

Question 2

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Accepted Answer

A) True 
 B)False

Question 3

Analysis of data on workers and those looking for work is conducted by economists at the

Accepted Answer

A)  Office of Management and Budget. 
B)  Department of Labor. 
C)  Congressional Budget Office. 
D)  Department of the Treasury. 
A)  Office of Management and Budget. 
B)  Department of Labor. 
C)  Congressional Budget Office. 
D)  Department of the Treasury.

Question 4

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Accepted Answer

A) True 
 B)False

Question 5

Figure 2-17  
-Refer to Figure 2-17. The slope of the curve between points A and B is

Accepted Answer

A)  -5 
B)  -1/5 
C)  1/5 
D)  5 
A)  -5 
B)  -1/5 
C)  1/5 
D)  5

Question 6

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production 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 7

Which two groups of decision makers are included in the simple circular-flow diagram?

Accepted Answer

A)  markets and government 
B)  households and government 
C)  firms and government 
D)  households and firms 
A)  markets and government 
B)  households and government 
C)  firms and government 
D)  households and firms

Question 8

Figure 2-13  
-Refer to Figure 2-13. One difference between points F and G is that

Accepted Answer

A)  Point G is unattainable with current resources, but point F is attainable. 
B)  All resources are fully employed at point F but there is unemployment at point G. 
C)  More output can be produced at point F but no additional output can be produced at point G. 
D)  This economy produces more cookies at point G than at point F. 
A)  Point G is unattainable with current resources, but point F is attainable. 
B)  All resources are fully employed at point F but there is unemployment at point G. 
C)  More output can be produced at point F but no additional output can be produced at point G. 
D)  This economy produces more cookies at point G than at point F.

Question 9

Figure 2-23  
-Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

Accepted Answer

A) True 
 B)False

Question 10

Figure 2-4  
-Refer to Figure 2-4. This economy cannot produce at which points)?

Accepted Answer

A)  Q 
B)  Q, S 
C)  Q, S, T 
D)  S 
A)  Q 
B)  Q, S 
C)  Q, S, T 
D)  S

Question 11

Which of the following is an example of using the scientific method with a natural experiment?

Accepted Answer

A)  measuring how long it takes a marble to fall from a ten story building 
B)  comparing plant growth with and without a soil additive 
C)  tracking the price of oil when a war in the Middle East interrupts the flow of crude oil 
D)  observing the reaction when two chemicals are mixed together 
A)  measuring how long it takes a marble to fall from a ten story building 
B)  comparing plant growth with and without a soil additive 
C)  tracking the price of oil when a war in the Middle East interrupts the flow of crude oil 
D)  observing the reaction when two chemicals are mixed together

Question 12

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Accepted Answer

The answer of In the circular flow diagram, who owns...

Question 13

The use of the coordinate system allows

Accepted Answer

A)  for the display of the flows of dollars, goods and services, and factors of production in an economic system. 
B)  for the display of how labor and other resources are organized in the production process. 
C)  for the display of two variables on a single graph. 
D)  for the creation of pie charts and bar graphs. 
A)  for the display of the flows of dollars, goods and services, and factors of production in an economic system. 
B)  for the display of how labor and other resources are organized in the production process. 
C)  for the display of two variables on a single graph. 
D)  for the creation of pie charts and bar graphs.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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.

Question 16

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 17

Figure 2-23  
-Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 18

Normative statements are not

Accepted Answer

A)  descriptive. 
B)  prescriptive. 
C)  claims about how the world should be. 
D)  made by economists speaking as policy advisers. 
A)  descriptive. 
B)  prescriptive. 
C)  claims about how the world should be. 
D)  made by economists speaking as policy advisers.

Question 19

When economists make positive statements, they are

Accepted Answer

A)  speaking as scientists. 
B)  speaking as policy advisers. 
C)  making claims about how the world should be. 
D)  revealing that they are very conservative in their views of how the world works. 
A)  speaking as scientists. 
B)  speaking as policy advisers. 
C)  making claims about how the world should be. 
D)  revealing that they are very conservative in their views of how the world works.

Question 20

Production possibilities frontiers are usually bowed outward. This is because

Accepted Answer

A)  the more resources a society uses to produce one good, the fewer resources it has available to produce another good. 
B)  the opportunity cost of producing a good decreases as more and more of that good is produced. 
C)  of the effects of technological change. 
D)  resources are specialized; that is, some are better at producing particular goods rather than other goods. 
A)  the more resources a society uses to produce one good, the fewer resources it has available to produce another good. 
B)  the opportunity cost of producing a good decreases as more and more of that good is produced. 
C)  of the effects of technological change. 
D)  resources are specialized; that is, some are better at producing particular goods rather than other goods.

Exam 2: Thinking Like an Economist

Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Analysis of data on workers and those looking for work is conducted by economists at the

Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements.

Figure 2-17 -Refer to Figure 2-17. The slope of the curve between points A and B is

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Which two groups of decision makers are included in the simple circular-flow diagram?

Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

Figure 2-23 -Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

Figure 2-4 -Refer to Figure 2-4. This economy cannot produce at which points)?

Which of the following is an example of using the scientific method with a natural experiment?

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

The use of the coordinate system allows

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

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?

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Normative statements are not

When economists make positive statements, they are

Production possibilities frontiers are usually bowed outward. This is because

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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