Question 1

Just like models constructed in other areas of science, economic models

Accepted Answer

A)   incorporate assumptions that contradict reality.
B)   incorporate all details of the real world.
C)   complicate reality.
D)   avoid the use of diagrams and equations.E) A) and B)
F) A) and C)

Question 2

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Accepted Answer

A) True 
 B)False

Question 3

What type of statement is a descriptive statement about how the world is?

Accepted Answer

The answer of What type of statement is a descriptive...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Accepted Answer

A)   For the most part, microeconomists are unconcerned with macroeconomics, and macroeconomists are unconcerned with microeconomics.
B)   Microeconomists study markets for small products, whereas macroeconomists study markets for large products.
C)   Microeconomics and macroeconomics are distinct from one another, yet they are closely related.
D)   Microeconomics is oriented toward policy studies, whereas macroeconomics is oriented toward theoretical studies.E) None of the above
F) A) and B)

Question 6

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Accepted Answer

A) True 
 B)False

Question 7

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Accepted Answer

A)   normative economic statement.
B)   positive economic statement.
C)   statement made by an economist working as a scientist.
D)   judgment based on evaluation of evidence, not values.E) All of the above
F) B) and C)

Question 8

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Accepted Answer

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

Question 9

Use the following Figure to answer the question :  Figure 2-9
Panel a) 
 
Panel b)  
-Refer to Figure 2-9, Panel a) . The opportunity cost of moving from point J to point L is

Accepted Answer

A)   2 donuts.
B)   2 donuts and 2 cups of coffee.
C)   2 cups of coffee.
D)   6 cups of coffee.E) None of the above
F) B) and C)

Question 10

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Accepted Answer

A) True 
 B)False

Question 11

Figure 2-10
Panel a) 
 
Panel b)

-Refer to Figure 2-10, Panel a) . The opportunity cost of one sofa is highest when the economy produces

Accepted Answer

A)   0 sofas.
B)   12 sofas.
C)   20 sofas.
D)   24 sofas.E) A) and D)
F) None of the above

Question 12

Use the following Figure to answer the question : Figure 2-21 : 
-Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Accepted Answer

A)   the price of snowblowers
B)   a change in consumers' incomes
C)   a change in the seasons
D)   All of the above are correct.E) A) and B)
F) A) and D)

Question 13

In the markets for goods and services in the circular-flow diagram,

Accepted Answer

A)   households provide firms with savings for investment.
B)   households provide firms with labor, land, and capital.
C)   firms provide households with output.
D)   firms provide households with profit.E) B) and D)
F) B) and C)

Question 14

Use the following Figure to answer the question : Figure 2-23 : 
-Refer to Figure 2-23. Unemployment could cause this economy to produce at point B.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Accepted Answer

The answer of Which type of statement - positive or...

Question 19

The institution that sets the nation's monetary policy is called the

Accepted Answer

The answer of The institution that sets the nation's monetary...

Question 20

In the circular-flow diagram, in the markets for

Accepted Answer

A)   goods and services, households and firms are both sellers.
B)   goods and services, households are sellers and firms are buyers.
C)   the factors of production, households are sellers and firms are buyers.
D)   the factors of production, households and firms are both buyers.E) A) and D)
F) None of the above

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-21 : -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Correct Answer
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When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Correct Answer
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A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Correct Answer
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What type of statement is a descriptive statement about how the world is?

Correct Answer
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In the circular-flow diagram, in the markets for

Correct Answer
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"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Correct Answer
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Correct Answer
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Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. Unemployment could cause this economy to produce at point B.

Correct Answer
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When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Correct Answer
verified

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Correct Answer
verified

The institution that sets the nation's monetary policy is called the

Correct Answer
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In the markets for goods and services in the circular-flow diagram,

Correct Answer
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Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) . The opportunity cost of one sofa is highest when the economy produces

Correct Answer
verified

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

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

Correct Answer
verified

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Correct Answer
verified

Just like models constructed in other areas of science, economic models

Correct Answer
verified

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Correct Answer
verified

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . The opportunity cost of moving from point J to point L is

Correct Answer
verified

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-21 : -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Correct AnswerverifiedShow Answer

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Correct AnswerverifiedShow Answer

What type of statement is a descriptive statement about how the world is?

Correct AnswerverifiedShow Answer

In the circular-flow diagram, in the markets for

Correct AnswerverifiedShow Answer

"Ensuring that Social Security is financially sound for future generations is an important use of taxpayer dollars" is an example of a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. Unemployment could cause this economy to produce at point B.

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Correct AnswerverifiedShow Answer

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Correct AnswerverifiedShow Answer

The institution that sets the nation's monetary policy is called the

Correct AnswerverifiedShow Answer

In the markets for goods and services in the circular-flow diagram,

Correct AnswerverifiedShow Answer

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) . The opportunity cost of one sofa is highest when the economy produces

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Just like models constructed in other areas of science, economic models

Correct AnswerverifiedShow Answer

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Correct AnswerverifiedShow Answer

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . The opportunity cost of moving from point J to point L is

Correct AnswerverifiedShow Answer

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