Question 1

Unemployment causes production levels to be inefficient.

Accepted Answer

A) True 
 B)False

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

Figure 2-6 
-Refer to Figure 2-6.The movement from point A to point B is a(n)

Accepted Answer

A)  shift of the demand curve.
B)  indication of a change in preferences for grapes.
C)  movement along the demand curve.
D)  indication of an increase in income.E) A) and B)
F) C) and D)

Question 4

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.E) B) and C)
F) All of the above

Question 5

When studying the effects of changes in public policy,economists believe that

Accepted Answer

A)  it is important to distinguish between the short run and the long run.
B)  the assumptions used in studying those effects should be the same for the short run as for the long run.
C)  the short-run effects of those changes are always more beneficial to society than are the long-run effects.
D)  the long-run effects of those changes are always more beneficial to society than are the short-run effects.E) B) and C)
F) B) and D)

Question 6

In the ordered pair (17,75) ,75 is the

Accepted Answer

A)  horizontal location of the point.
B)  the slope.
C)  the x-coordinate.
D)  the y-coordinate.E) B) and C)
F) None of the above

Question 7

Figure 2-3 
-Refer to Figure 2-3.This economy cannot produce at which point(s) ?

Accepted Answer

A)  J
B)  J,L
C)  J,L,M
D)  LE) A) and D)
F) A) and B)

Question 8

The goal of an economist who formulates new theories is to

Accepted Answer

A)  provide an interesting framework of analysis,whether or not the framework turns out to be of much use in understanding how the world works.
B)  provoke stimulating debate in scientific journals.
C)  contribute to an understanding of how the world works.
D)  demonstrate that economists,like other scientists,can formulate testable theories.E) C) and D)
F) B) and C)

Question 9

The opportunity cost of something is what you give up to get it.

Accepted Answer

A) True 
 B)False

Question 10

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.E) A) and B)
F) A) and C)

Question 11

Figure 2-2 
-Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

Accepted Answer

A)  the flow of factors of production is also part of what is represented by the inner loop.
B)  the flow of income paid to households is also part of what is represented by the inner loop.
C)  the flow of revenue to firms is also part of what is represented by the inner loop.
D)  households must be sellers of output.E) None of the above
F) A) and B)

Question 12

Which of the following statements is correct about the extent of disagreement among economists?

Accepted Answer

A)  There is a great deal of agreement among economists on virtually every economic issue.
B)  There is a great deal of agreement among economists on many important economic issues.
C)  All disagreements among economists are attributable to differences in their values.
D)  All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories.E) None of the above
F) B) and D)

Question 13

When economists make

Accepted Answer

A)  positive statements,they are speaking not as policy advisers but as scientists.
B)  positive statements,they are speaking not as scientists but as forecasters.
C)  normative statements,they are speaking not as policy advisers but as scientists.
D)  normative statements,they are speaking not as policy advisers but as model-builders.E) C) and D)
F) A) and B)

Question 14

When a variable that is not named on either axis of a graph changes,we read the change as a movement along the curve.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-2 
-Refer to Figure 2-2.Boxes C and D of this circular-flow diagram represent

Accepted Answer

A)  households and government.
B)  firms and government.
C)  the markets for goods and services and the markets for financial assets.
D)  the markets for goods and services and the markets for factors of production.E) A) and D)
F) B) and C)

Question 16

Table 2-3   Cookies (in dozens)   Coffee (in pounds)  10000800350600650400800200100001150\begin{array} { | c | c | } \hline 	ext { Cookies (in dozens)  } & 	ext { Coffee (in pounds)  } \\hline 1000 & 0 \\hline 800 & 350 \\hline 600 & 650 \\hline 400 & 800 \\hline 200 & 1000 \\hline 0 & 1150 \\hline\end{array} Cookies (in dozens)  10008006004002000​ Coffee (in pounds)  035065080010001150​​ 
-Refer to Table 2-3.What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Accepted Answer

A)  100 pounds of coffee
B)  200 pounds of coffee
C)  300 pounds of coffee
D)  400 pounds of coffee E) B) and C)
F) All of the above

Question 17

Table 2-2
Production Possibilities for Libraryland   Books  Magazines 40003002002003501004500500\begin{array} { | c | c | } \hline 	ext { Books } & 	ext { Magazines } \\hline 400 & 0 \\hline 300 & 200 \\hline 200 & 350 \\hline 100 & 450 \\hline 0 & 500 \\hline\end{array} Books 4003002001000​ Magazines 0200350450500​​ 
-Refer to Table 2-2.What is the opportunity cost to Libraryland of increasing the production of books from 200 to 300?

Accepted Answer

A)  100 magazines
B)  150 magazines
C)  200 magazines
D)  350 magazines E) A) and B)
F) C) and D)

Question 18

Figure 2-1 
-Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) None of the above
F) A) and C)

Question 19

Economists use some familiar terms in specialized ways

Accepted Answer

A)  to make the subject sound more complex than it is.
B)  because every respectable field of study has its own language.
C)  to provide a new and useful way of thinking about the world.
D)  because it was too difficult to come up with new terms.E) All of the above
F) None of the above

Question 20

Figure 2-3 
-Refer to Figure 2-3.Unemployment could cause this economy to produce at which point(s) ?

Accepted Answer

A)  J,L
B)  J,L,M
C)  K,N
D)  ME) A) and B)
F) A) and C)

Exam 2: Thinking Like an Economist

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

Correct Answer
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Figure 2-3 -Refer to Figure 2-3.This economy cannot produce at which point(s) ?

Correct Answer
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Economists use some familiar terms in specialized ways

Correct Answer
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Correct Answer
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Correct Answer
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Figure 2-2 -Refer to Figure 2-2.Boxes C and D of this circular-flow diagram represent

Correct Answer
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Unemployment causes production levels to be inefficient.

Correct Answer
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Which of the following statements is correct about the extent of disagreement among economists?

Correct Answer
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When a variable that is not named on either axis of a graph changes,we read the change as a movement along the curve.

Correct Answer
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When economists make

Correct Answer
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The opportunity cost of something is what you give up to get it.

Correct Answer
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When studying the effects of changes in public policy,economists believe that

Correct Answer
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Figure 2-6 -Refer to Figure 2-6.The movement from point A to point B is a(n)

Correct Answer
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Figure 2-2 -Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

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

Correct Answer
verified

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

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3.Unemployment could cause this economy to produce at which point(s) ?

Correct Answer
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The goal of an economist who formulates new theories is to

Correct Answer
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In the ordered pair (17,75) ,75 is the

Correct Answer
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Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

Correct Answer
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Exam 2: Thinking Like an Economist

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

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3.This economy cannot produce at which point(s) ?

Correct AnswerverifiedShow Answer

Economists use some familiar terms in specialized ways

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2.Boxes C and D of this circular-flow diagram represent

Correct AnswerverifiedShow Answer

Unemployment causes production levels to be inefficient.

Correct AnswerverifiedShow Answer

Which of the following statements is correct about the extent of disagreement among economists?

Correct AnswerverifiedShow Answer

When a variable that is not named on either axis of a graph changes,we read the change as a movement along the curve.

Correct AnswerverifiedShow Answer

When economists make

Correct AnswerverifiedShow Answer

The opportunity cost of something is what you give up to get it.

Correct AnswerverifiedShow Answer

When studying the effects of changes in public policy,economists believe that

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6.The movement from point A to point B is a(n)

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2.If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram,then

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3.Unemployment could cause this economy to produce at which point(s) ?

Correct AnswerverifiedShow Answer

The goal of an economist who formulates new theories is to

Correct AnswerverifiedShow Answer

In the ordered pair (17,75) ,75 is the

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

Correct AnswerverifiedShow Answer

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