Question 1

Which of the following is not correct?

Accepted Answer

A)  The slope of a line will be a small positive number for a fairly flat upward-sloping line.
B)  The slope of a line will be a large positive number for a steep upward-sloping line.
C)  The slope of a line will be a negative number for a downward-sloping line.
D)  The slope of a line will be infinite for a horizontal line.E) A) and D)
F) C) and D)

Question 2

Economists at which of the following offices help formulate spending plans and regulatory policies?

Accepted Answer

A)  Office of Management and Budget
B)  Department of the Treasury
C)  Congressional Budget Office
D)  The Federal ReserveE) None of the above
F) A) and D) A

Question 3

When studying the effects of public policy changes, economists

Accepted Answer

A)  always refrain from making assumptions.
B)  sometimes make different assumptions about the short run and the long run.
C)  consider only the direct effects of those policy changes and not the indirect effects.
D)  consider only the short-run effects of those policy changes and not the long-run effects.E) A) and C)
F) A) and B)

Question 4

The x-coordinate of an ordered pair specifies the

Accepted Answer

A)  diagonal location of the point.
B)  vertical location of the point.
C)  horizontal location of the point.
D)  quadrant location in which the point is located.E) C) and D)
F) A) and B) C

Question 5

Figure 2-3 
-Refer to Figure 2-3. What do the ovals represent in the figure?

Accepted Answer

Market for Goods and...

Question 6

Figure 2-7 
-Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s) ?

Accepted Answer

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

Question 7

Figure 2-1 
-Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Accepted Answer

A)  B only
B)  A and B
C)  C only
D)  C and DE) C) and D)
F) A) and C)

Question 8

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) B) and C)
F) A) and D)

Question 9

Figure 2-10
Panel (a) 
Panel (b)   
-Refer to Figure 2-10, Panel (a) . The movement from point W to point Y could be caused by

Accepted Answer

A)  economic growth.
B)  unemployment.
C)  an improvement in efficiency.
D)  an advance in production technology.E) B) and C)
F) A) and D)

Question 10

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Accepted Answer

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

Question 11

The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Accepted Answer

A)  households
B)  firms
C)  government
D)  markets for factors of productionE) B) and C)
F) All of the above

Question 12

Figure 2-5 
-Refer to Figure 2-5. It is possible for this economy to produce

Accepted Answer

A)  60 dryers and 50 washers.
B)  60 dryers and 60 washers.
C)  80 dryers and 50 washers.
D)  All of the above.E) A) and D)
F) All of the above

Question 13

Which two groups of decision makers are included in the simple circular-flow diagram?

Accepted Answer

A)  markets and government
B)  households and government
C)  firms and government
D)  households and firmsE) A) and D)
F) B) and C)

Question 14

Economic models

Accepted Answer

A)  are not useful because they omit many real-world details.
B)  are usually composed of diagrams and equations.
C)  are useful because they do not omit any real-world details.
D)  are usually plastic representations of the economy.E) A) and C)
F) All of the above

Question 15

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Accepted Answer

A)  It is often difficult to formulate theories in economics.
B)  It is often impractical to perform experiments in economics.
C)  Economics cannot be addressed objectively; it must be addressed subjectively.
D)  The scientific method cannot be applied to the study of economics.E) A) and D)
F) B) and D)

Question 16

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Accepted Answer

A)  the effect of foreign direct investment on economic growth
B)  the effect of a sales tax on the cigarette industry
C)  the effect of an investment tax credit on the economy's capital stock
D)  the effect of a war on government spendingE) A) and B)
F) B) and D)

Question 18

Another term for factors of production is

Accepted Answer

A)  inputs.
B)  output.
C)  goods.
D)  services.E) A) and D)
F) C) and D)

Question 19

Which of these statements about economic models is correct?

Accepted Answer

A)  For economists, economic models provide insights about the world.
B)  Economic models are built with assumptions.
C)  Economic models are often composed of equations and diagrams.
D)  All of the above are correct.E) B) and C)
F) A) and D) D

Question 20

The y-coordinate of an ordered pair specifies the

Accepted Answer

A)  diagonal location of the point.
B)  vertical location of the point.
C)  horizontal location of the point.
D)  quadrant location in which the point is located.E) All of the above
F) A) and B)

Exam 2: Thinking Like an Economist

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Economists at which of the following offices help formulate spending plans and regulatory policies?

Correct AnswerverifiedA

When studying the effects of public policy changes, economists

Correct AnswerverifiedShow Answer

The x-coordinate of an ordered pair specifies the

Correct AnswerverifiedC

Figure 2-3 -Refer to Figure 2-3. What do the ovals represent in the figure?

Correct AnswerverifiedMarket for Goods and...View AnswerShow Answer

Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s) ?

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Correct AnswerverifiedShow Answer

When economists make

Correct AnswerverifiedShow Answer

Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a) . The movement from point W to point Y could be caused by

Correct AnswerverifiedShow Answer

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. It is possible for this economy to produce

Correct AnswerverifiedShow Answer

Which two groups of decision makers are included in the simple circular-flow diagram?

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

Correct AnswerverifiedShow Answer

Which of the following would likely be studied by a microeconomist rather than a macroeconomist?

Correct AnswerverifiedShow Answer

Another term for factors of production is

Correct AnswerverifiedShow Answer

Which of these statements about economic models is correct?

Correct AnswerverifiedD

The y-coordinate of an ordered pair specifies the

Correct AnswerverifiedShow Answer

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A

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C

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Market for Goods and...
View Answer

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D

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