Question 1

Policymaking in a representative democracy

Accepted Answer

A)   is straightforward and does not involve any disagreement.
B)   benefits from the input of economists, even if their advice is not always followed.
C)   is conducted without the input of economists.
D)   is always based exclusively on the results of economic analysis.

Question 2

Use the following Figure to answer the question : Figure 2-7 
-Refer to Figure 2-7. If this economy moved from point P to point N, then

Accepted Answer

A)   it still would not be producing efficiently.
B)   there would be no gain in either engines or tvs.
C)   it would be producing more engines and more tvs than at point P.
D)   It is not possible for this economy to move from point P to point N without additional resources.

Question 3

The Council of Economic Advisers

Accepted Answer

A)   was created in 1776 and consists of three members and a staff of several dozen economists.
B)   was created in 1776 and consists of thirty members and a staff of a dozen economists.
C)   was created in 1946 and consists of three members and a staff of several dozen economists.
D)   was created in 1946 and consists of thirty members and a staff of a dozen economists.

Question 4

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Accepted Answer

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

Question 5

For an economist, the idea of making assumptions is regarded generally as a

Accepted Answer

A)   bad idea, since doing so leads to the omission of important ideas and variables from economic models.
B)   bad idea, since doing so invariably leads to data-collection problems.
C)   good idea, since doing so helps to simplify the complex world and make it easier to understand.
D)   good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.

Question 6

Between the two ordered pairs 3, 6)  and 7, 18) , the slope is

Accepted Answer

A)   1/3
B)   -1/3.
C)   3.
D)   -3.

Question 7

Use the following Figure to answer the question : Figure 2-7 
-Refer to Figure 2-7. Unemployment could cause this economy to produce at which points) ?

Accepted Answer

A)   L, M
B)   N, O, P, Q
C)   N, O, P
D)   Q

Question 8

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

Accepted Answer

A) True 
 B)False

Question 9

The field of economics is traditionally divided into two broad subfields,

Accepted Answer

A)   national economics and international economics.
B)   consumer economics and producer economics.
C)   private sector economics and public sector economics.
D)   microeconomics and macroeconomics.

Question 10

When two variables have a negative correlation and the x-variable decreases,

Accepted Answer

A)   the y-variable increases.
B)   the y-variable decreases.
C)   the y-variable stays the same.
D)   the x-variable can never be positive.

Question 11

A demand curve shows the relationship between price and

Accepted Answer

A)   income.
B)   quantity demanded.
C)   production.
D)   income and quantity demanded.

Question 12

Use the following Figure to answer the question : 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. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources?

Accepted Answer

A)   Q, R, U, and V
B)   S and X
C)   T and W
D)   None of the above is correct.

Question 13

Use the following Figure to answer the question : Figure 2-22 : 
-Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Accepted Answer

movement a...

Question 14

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 15

Use the following Figure to answer the question : 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. What is the opportunity cost of moving from point T to point R?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 16

Use the following Figure to answer the question : 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. Which points) on the graph show unemployment of resources?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 17

If an economy is producing efficiently, then

Accepted Answer

A)   there is no way to produce more of one good without producing less of another good.
B)   it is possible to produce more of both goods without increasing the quantities of inputs that are being used.
C)   it is possible to produce more of one good without producing less of another good.
D)   it is not possible to produce more of any good at any cost.

Question 18

Use the following Figure to answer the question : Figure 2-22 : 
-Refer to Figure 2-22. What is the x-coordinate of point R?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 19

Use the following Figure to answer the question : Figure 2-16 
-Refer to Figure 2-16. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

Accepted Answer

A)   The less coffee a person drinks per day, the more time he can go without sleep.
B)   There is no relationship between how much coffee per day a person drinks and how long he can go without sleep.
C)   The more coffee a person drinks per day, the more time he can go without sleep.
D)   The more coffee a person drinks per day, the less time he can go without sleep.

Question 20

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

Accepted Answer

land, labo...

Exam 2: Thinking Like an Economist

The Council of Economic Advisers

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

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What is the x-coordinate of point R?

Correct Answer
verified

Use the following Figure to answer the question : 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. Which points) on the graph show unemployment of resources?

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. If this economy moved from point P to point N, then

Correct Answer
verified

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Correct Answer
verified

Policymaking in a representative democracy

Correct Answer
verified

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

Correct Answer
verified
land, labo...
View Answer

For an economist, the idea of making assumptions is regarded generally as a

Correct Answer
verified

If an economy is producing efficiently, then

Correct Answer
verified

Between the two ordered pairs 3, 6) and 7, 18) , the slope is

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which points) ?

Correct Answer
verified

Use the following Figure to answer the question : 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. What is the opportunity cost of moving from point T to point R?

Correct Answer
verified

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-16 -Refer to Figure 2-16. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answer
verified
movement a...
View Answer

A demand curve shows the relationship between price and

Correct Answer
verified

Correct Answer
verified

The field of economics is traditionally divided into two broad subfields,

Correct Answer
verified

When two variables have a negative correlation and the x-variable decreases,

Correct Answer
verified

Exam 2: Thinking Like an Economist

The Council of Economic Advisers

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

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What is the x-coordinate of point R?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : 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. Which points) on the graph show unemployment of resources?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. If this economy moved from point P to point N, then

Correct AnswerverifiedShow Answer

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Policymaking in a representative democracy

Correct AnswerverifiedShow Answer

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

Correct Answerverifiedland, labo...View AnswerShow Answer

For an economist, the idea of making assumptions is regarded generally as a

Correct AnswerverifiedShow Answer

If an economy is producing efficiently, then

Correct AnswerverifiedShow Answer

Between the two ordered pairs 3, 6) and 7, 18) , the slope is

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which points) ?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : 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. What is the opportunity cost of moving from point T to point R?

Correct AnswerverifiedShow Answer

In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers.

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-16 -Refer to Figure 2-16. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answerverifiedmovement a...View AnswerShow Answer

A demand curve shows the relationship between price and

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The field of economics is traditionally divided into two broad subfields,

Correct AnswerverifiedShow Answer

When two variables have a negative correlation and the x-variable decreases,

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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land, labo...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
movement a...
View Answer

Correct Answer
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Correct Answer
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