Question 1

A model that shows how dollars flow through markets among households and firms is called the

Accepted Answer

A)   production possibilities frontier.
B)   circular-flow diagram.
C)   demand and supply diagram.
D)   comparative advantage model.E) A) and D)
F) A) and B)

Question 2

The President counts among his economic advisors the Congressional Budget Office.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-9

-Refer to Figure 2-9,Panel (a) .In order to gain 2 printers by moving from point C to point D,society must sacrifice

Accepted Answer

A)   6 computers.
B)   employment.
C)   efficiency.
D)   More than one of the above is correct.E) All of the above
F) None of the above

Question 4

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) A) and B)
F) None of the above

Question 5

In the circular-flow diagram,firms own the factors of production and use them to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 6

The bowed shape of the production possibilities frontier can be explained by the fact that

Accepted Answer

A)   all resources are scarce.
B)   economic growth is always occurring.
C)   the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.
D)   the only way to get more of one good is to get less of the other.E) A) and B)
F) C) and D)

Question 7

Figure 2-14 
-Refer to Figure 2-14.The curves shown are

Accepted Answer

A)   supply curves.
B)   demand curves.
C)   preference curves.
D)   income-consumption curves.E) A) and C)
F) A) and B)

Question 8

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 9

Which of the following is not an example of a graph of a single variable?

Accepted Answer

A)   a pie chart
B)   a bar graph
C)   a time-series graph
D)   a scatterplotE) A) and D)
F) A) and C)

Question 10

Which of the following famous people did not major in economics in college?

Accepted Answer

A)   Donald Trump
B)   Natalie Portman
C)   John Elway
D)   Mick JaggerE) B) and C)
F) None of the above

Question 11

Which of the following concepts cannot be illustrated by the production possibilities frontier?

Accepted Answer

A)   efficiency
B)   opportunity cost
C)   equality
D)   trade-offsE) B) and D)
F) None of the above

Question 12

Economists usually have to make do with whatever data the world happens to give them.

Accepted Answer

A) True 
 B)False

Question 13

Positive statements can be evaluated using data alone,but normative statements cannot.

Accepted Answer

A) True 
 B)False

Question 14

Economists speaking like scientists make

Accepted Answer

A)   normative statements.
B)   prescriptive statements.
C)   claims about how the world is.
D)   claims about how the world should be.E) A) and D)
F) None of the above

Question 15

Since economists cannot use natural experiments offered by history,they must use carefully constructed laboratory experiments instead.

Accepted Answer

A) True 
 B)False

Question 16

The most common data for testing economic theories come from

Accepted Answer

A)   carefully controlled and conducted laboratory experiments.
B)   computer models of economies.
C)   historical episodes of economic change.
D)   centrally planned economies.E) A) and B)
F) A) and C)

Question 17

Figure 2-14 
-Refer to Figure 2-14.The opportunity cost of moving from point A to point D is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 18

When two variables move in the same direction,the curve relating them is

Accepted Answer

A)   upward sloping,and we say the variables are positively related.
B)   upward sloping,and we say the variables are negatively related.
C)   downward sloping,and we say the variables are positively related.
D)   downward sloping,and we say the variables are negatively related.E) B) and D)
F) B) and C)

Question 19

Figure 2-9

-Refer to Figure 2-9,Panel (a) .Production at point B is

Accepted Answer

A)   impossible and inefficient.
B)   impossible but efficient.
C)   possible but inefficient.
D)   possible and efficient.E) B) and C)
F) C) and D)

Question 20

Economists use one standard set of assumptions to answer all economic questions.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

Economists use some familiar terms in specialized ways

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Figure 2-14 -Refer to Figure 2-14.The curves shown are

Correct AnswerverifiedShow Answer

A model that shows how dollars flow through markets among households and firms is called the

Correct AnswerverifiedShow Answer

The most common data for testing economic theories come from

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9,Panel (a) .Production at point B is

Correct AnswerverifiedShow Answer

The bowed shape of the production possibilities frontier can be explained by the fact that

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The opportunity cost of moving from point A to point D is 10 dishwashers.

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The President counts among his economic advisors the Congressional Budget Office.

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Which of the following concepts cannot be illustrated by the production possibilities frontier?

Correct AnswerverifiedShow Answer

Economists usually have to make do with whatever data the world happens to give them.

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Since economists cannot use natural experiments offered by history,they must use carefully constructed laboratory experiments instead.

Correct AnswerverifiedShow Answer

Which of the following famous people did not major in economics in college?

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Figure 2-9 -Refer to Figure 2-9,Panel (a) .In order to gain 2 printers by moving from point C to point D,society must sacrifice

Correct AnswerverifiedShow Answer

Economists use one standard set of assumptions to answer all economic questions.

Correct AnswerverifiedShow Answer

Which of the following is not an example of a graph of a single variable?

Correct AnswerverifiedShow Answer

Positive statements can be evaluated using data alone,but normative statements cannot.

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

In the circular-flow diagram,firms own the factors of production and use them to produce goods and services.

Correct AnswerverifiedShow Answer

When two variables move in the same direction,the curve relating them is

Correct AnswerverifiedShow Answer

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