Question 1

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  2 donuts. 
B)  2 donuts and 2 cups of coffee. 
C)  2 cups of coffee. 
D)  6 cups of coffee. 
A)  2 donuts. 
B)  2 donuts and 2 cups of coffee. 
C)  2 cups of coffee. 
D)  6 cups of coffee.

Question 3

Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50,000 textiles and 1300 computers. This year it produced 45,000 textiles and 1100 computers. Given no further information, which of the following events could explain this change?

Accepted Answer

A)  Indiadesh decreased unemployment. 
B)  Indiadesh experienced an improvement in textile-making technology. 
C)  Indiadesh experienced an improvement in computer-making technology. 
D)  Indiadesh experienced a reduction in resources. 
A)  Indiadesh decreased unemployment. 
B)  Indiadesh experienced an improvement in textile-making technology. 
C)  Indiadesh experienced an improvement in computer-making technology. 
D)  Indiadesh experienced a reduction in resources.

Question 4

Who would be more likely to study the effects of government spending on the unemployment rate, a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 5

Figure 2-6  
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Accepted Answer

A)  120 pillows. 
B)  120 blankets. 
C)  120 blankets and 120 pillows. 
D)  200 blankets. 
A)  120 pillows. 
B)  120 blankets. 
C)  120 blankets and 120 pillows. 
D)  200 blankets.

Question 6

Figure 2-16  
-Refer to Figure 2-16. The graph shown is known as a

Accepted Answer

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

Question 7

Figure 2-5  
-Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Accepted Answer

A)  20 dryers. 
B)  20 washers. 
C)  20 dryers and 20 washers. 
D)  60 dryers. 
A)  20 dryers. 
B)  20 washers. 
C)  20 dryers and 20 washers. 
D)  60 dryers.

Question 8

The Council of Economic Advisers

Accepted Answer

A)  was created in 1946. 
B)  advises the president of the United States on economic policy matters. 
C)  writes the annual Economic Report of the President. 
D)  All of the above are correct. 
A)  was created in 1946. 
B)  advises the president of the United States on economic policy matters. 
C)  writes the annual Economic Report of the President. 
D)  All of the above are correct.

Question 9

Which of the following statements is correct about the roles of economists?

Accepted Answer

A)  Economists are best viewed as policy advisers. 
B)  Economists are best viewed as scientists. 
C)  In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists. 
D)  In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers. 
A)  Economists are best viewed as policy advisers. 
B)  Economists are best viewed as scientists. 
C)  In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists. 
D)  In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers.

Question 10

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 11

Economic models

Accepted Answer

A)  are constructed to mirror reality as closely as possible, and in this respect economic models are no different from other scientific models. 
B)  are constructed to mirror reality as closely as possible, and in this respect economic models are very different from other scientific models. 
C)  are simplifications of reality, and in this respect economic models are no different from other scientific models. 
D)  are simplifications of reality, and in this respect economic models are very different from other scientific models. 
A)  are constructed to mirror reality as closely as possible, and in this respect economic models are no different from other scientific models. 
B)  are constructed to mirror reality as closely as possible, and in this respect economic models are very different from other scientific models. 
C)  are simplifications of reality, and in this respect economic models are no different from other scientific models. 
D)  are simplifications of reality, and in this respect economic models are very different from other scientific models.

Question 12

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Accepted Answer

The answer of Suppose a war in the Middle East...

Question 13

In the circular-flow diagram, in the markets for

Accepted Answer

A)  goods and services, households and firms are both sellers. 
B)  goods and services, households are sellers and firms are buyers. 
C)  the factors of production, households are sellers and firms are buyers. 
D)  the factors of production, households and firms are both buyers. 
A)  goods and services, households and firms are both sellers. 
B)  goods and services, households are sellers and firms are buyers. 
C)  the factors of production, households are sellers and firms are buyers. 
D)  the factors of production, households and firms are both buyers.

Question 14

Figure 2-20
Relationship Between Years of Education and Annual Income  
-Refer to Figure 2-20. The graph above is a

Accepted Answer

A)  bar graph 
B)  scatterplot 
C)  pie chart 
D)  time series analysis 
A)  bar graph 
B)  scatterplot 
C)  pie chart 
D)  time series analysis

Question 15

In the markets for factors of production in the circular-flow diagram,

Accepted Answer

A)  households provide firms with labor, land, and capital. 
B)  households provide firms with savings for investment. 
C)  firms provide households with goods and services. 
D)  firms provide households with revenue. 
A)  households provide firms with labor, land, and capital. 
B)  households provide firms with savings for investment. 
C)  firms provide households with goods and services. 
D)  firms provide households with revenue.

Question 16

It is possible for an economy to increase its production of both goods if the economy

Accepted Answer

A)  moves downward and to the right along its production possibilities frontier and the frontier is bowed outward. 
B)  moves upward and to the left along its production possibilities frontier and the frontier is bowed outward. 
C)  moves in either direction along its production possibilities frontier and the frontier is a straight line. 
D)  moves from a situation of inefficient production to a situation of efficient production. 
A)  moves downward and to the right along its production possibilities frontier and the frontier is bowed outward. 
B)  moves upward and to the left along its production possibilities frontier and the frontier is bowed outward. 
C)  moves in either direction along its production possibilities frontier and the frontier is a straight line. 
D)  moves from a situation of inefficient production to a situation of efficient production.

Question 17

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 18

Figure 2-21  
-Refer to Figure 2-21. According to the graph, snowstorms

Accepted Answer

A)  and snowblowers sold are positively correlated. 
B)  and snowblowers sold are negatively correlated 
C)  and snowblowers sold are uncorrelated. 
D)  are caused by more snowblowers being sold. 
A)  and snowblowers sold are positively correlated. 
B)  and snowblowers sold are negatively correlated 
C)  and snowblowers sold are uncorrelated. 
D)  are caused by more snowblowers being sold.

Question 19

If a major union goes on strike, then the country would be operating inside its production possibilities frontier.

Accepted Answer

A) True 
 B)False

Question 20

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)  Home experienced increased unemployment. 
B)  Home experienced a decline in pear-producing technology. 
C)  Home experienced an improvement in cellular phone-making technology. 
D)  Home experienced a reduction in resources. 
A)  Home experienced increased unemployment. 
B)  Home experienced a decline in pear-producing technology. 
C)  Home experienced an improvement in cellular phone-making technology. 
D)  Home experienced a reduction in resources.

Exam 2: Thinking Like an Economist

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

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

Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50,000 textiles and 1300 computers. This year it produced 45,000 textiles and 1100 computers. Given no further information, which of the following events could explain this change?

Who would be more likely to study the effects of government spending on the unemployment rate, a macroeconomist or a microeconomist?

Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Figure 2-16 -Refer to Figure 2-16. The graph shown is known as a

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

The Council of Economic Advisers

Which of the following statements is correct about the roles of economists?

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

Economic models

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

In the circular-flow diagram, in the markets for

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. The graph above is a

In the markets for factors of production in the circular-flow diagram,

It is possible for an economy to increase its production of both goods if the economy

The two loops in the circular-flow diagram represent

Figure 2-21 -Refer to Figure 2-21. According to the graph, snowstorms

If a major union goes on strike, then the country would be operating inside its production possibilities frontier.

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

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 Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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

Filters