Question 1

The scientific method can be applied to the study of economics.

Accepted Answer

A) True 
 B)False

Question 2

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Accepted Answer

A)  should produce.
B)  wants to produce.
C)  can produce.
D)  demands.

Question 3

Figure 2-17​ 
-Refer to Figure 2-17. The opportunity cost of moving from point A to point B is zero.

Accepted Answer

A) True 
 B)False

Question 4

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.

Question 5

In the circular-flow diagram,

Accepted Answer

A)  firms own the factors of production.
B)  the factors of production are labor, land, and capital.
C)  the factors of production are also called "output."
D)  All of the above are correct.

Question 6

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Accepted Answer

A)  Tariffs and import quotas usually reduce general economic welfare.
B)  A large federal budget deficit has an adverse effect on the economy.
C)  Minimum wage increases unemployment among young and unskilled workers.
D)  All of the above are correct.

Question 7

Figure 2-6 
-Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Accepted Answer

A)  120 pillows and 320 blankets.
B)  180 pillows and 180 blankets.
C)  240 pillows and 200 blankets.
D)  We would have to know the details of this economy's technology in order to determine this.

Question 8

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Accepted Answer

A) True 
 B)False

Question 9

The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

Accepted Answer

A) True 
 B)False

Question 10

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.

Question 11

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.

Question 12

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

Accepted Answer

A)  the respondents were almost equally divided on the propositions.
B)  the respondents favored the propositions by a slight margin.
C)  the respondents disagreed with the propositions by a slight margin.
D)  there was overwhelming endorsement of the propositions among the respondents.

Question 13

Assumptions can simplify the complex world and make it easier to understand.

Accepted Answer

A) True 
 B)False

Question 14

Economists may disagree about the validity of alternative positive theories about how the world works.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Economists at the Department of the Treasury

Accepted Answer

A)  design U.S. currency and coins.
B)  provide Congress with the annual budget.
C)  enforce the U.S. antitrust laws.
D)  provide advice on tax policy to the President.

Question 17

Which of these terms are used interchangeably?

Accepted Answer

A)  "goods and services" and "inputs"
B)  "goods and services" and "factors of production"
C)  "inputs" and "factors of production"
D)  "land, labor, and capital" and "goods and services"

Question 18

Economists make assumptions to

Accepted Answer

A)  provide issues for political discussion.
B)  make a complex world easier to understand.
C)  make it easier to teach economic concepts and analysis.
D)  create policy alternatives that are incomplete or subject to criticism.

Question 19

Instead of conducting laboratory experiments to generate data to test their theories, economists often

Accepted Answer

A)  ask winners of the Nobel Prize in Economics to evaluate their theories.
B)  argue that data is impossible to collect in economics.
C)  gather data from historical episodes of economic change.
D)  assume that data would support their theories.

Question 20

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 economy devotes all of its available resources to producing apples, then it will produce

Accepted Answer

A)  0 bushels of apples and 200 sweaters.
B)  80 bushels of apples and 160 sweaters
C)  180 bushels of apples and 200 sweaters.
D)  180 bushels of apples and 0 sweaters.

Exam 2: Thinking Like an Economist

Economists may disagree about the validity of alternative positive theories about how the world works.

Correct Answer
verified

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Correct Answer
verified

The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

Correct Answer
verified

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Correct Answer
verified

Economists at the Department of the Treasury

Correct Answer
verified

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 economy devotes all of its available resources to producing apples, then it will produce

Correct Answer
verified

Which of these terms are used interchangeably?

Correct Answer
verified

Assumptions can simplify the complex world and make it easier to understand.

Correct Answer
verified

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

Correct Answer
verified

Instead of conducting laboratory experiments to generate data to test their theories, economists often

Correct Answer
verified

Correct Answer
verified

Figure 2-17 -Refer to Figure 2-17. The opportunity cost of moving from point A to point B is zero.

Correct Answer
verified

Economists make assumptions to

Correct Answer
verified

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

Correct Answer
verified

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

In the circular-flow diagram,

Correct Answer
verified

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Correct Answer
verified

The scientific method can be applied to the study of economics.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Economists may disagree about the validity of alternative positive theories about how the world works.

Correct AnswerverifiedShow Answer

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Correct AnswerverifiedShow Answer

The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Correct AnswerverifiedShow Answer

Economists at the Department of the Treasury

Correct AnswerverifiedShow Answer

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 economy devotes all of its available resources to producing apples, then it will produce

Correct AnswerverifiedShow Answer

Which of these terms are used interchangeably?

Correct AnswerverifiedShow Answer

Assumptions can simplify the complex world and make it easier to understand.

Correct AnswerverifiedShow Answer

A survey which sought the opinion of professional economists on fourteen propositions about economic policy found that

Correct AnswerverifiedShow Answer

Instead of conducting laboratory experiments to generate data to test their theories, economists often

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-17​ -Refer to Figure 2-17. The opportunity cost of moving from point A to point B is zero.

Correct AnswerverifiedShow Answer

Economists make assumptions to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular-flow diagram,

Correct AnswerverifiedShow Answer

A survey of professional economists revealed that more than three-fourths of them agreed with a number of statements, including which of the following?

Correct AnswerverifiedShow Answer

The scientific method can be applied to the study of economics.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 2-17 -Refer to Figure 2-17. The opportunity cost of moving from point A to point B is zero.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified