Question 1

Figure 2-23 
-Refer to Figure 2-23. It is possible for this economy to produce 75 doghouses.

Accepted Answer

A) True 
 B)False

Question 2

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

Question 3

Figure 2-22 
-Refer to Figure 2-22. What is the x-coordinate of point R?

Accepted Answer

The answer of Figure 2-22 
-Refer to Figure 2-22. What...

Question 4

Among economic models, the circular-flow diagram is unusual in that it

Accepted Answer

A)   drastically simplifies the real world.
B)   features more than one type of market.
C)   features flows of dollars.
D)   does not involve mathematics.E) A) and C)
F) A) and B)

Question 5

Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> This diagram should duplicate the essen...

Question 6

Economists make assumptions to

Accepted Answer

A)   provide issues for political discussion.
B)   make a complex world easier to understand.
C)   make it easier to teach economic concepts and analysis.
D)   create policy alternatives that are incomplete or subject to criticism.E) A) and D)
F) None of the above

Question 7

Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. Which of the following could result in a movement from point B to point Z?

Accepted Answer

A)   a change in the price of a restaurant meal
B)   a change in the number of restaurant meals demanded
C)   a change in income
D)   Both a and b are correct.E) B) and D)
F) B) and C)

Question 8

Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

Accepted Answer

A)   Isaac Newton
B)   Albert Einstein
C)   Adam Smith
D)   Benjamin FranklinE) None of the above
F) C) and D)

Question 9

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) C) and D)
F) None of the above

Question 10

Figure 2-2 
-Refer to Figure 2-2. If Box A of this circular-flow diagram represents firms, then which box represents households?

Accepted Answer

A)   Box B
B)   Box C
C)   Box D
D)   Any one of the other boxes B, C, or 
D)   could represent households.E) B) and D)
F) None of the above

Question 11

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

Question 12

The argument that purchases of minivans cause large families is an example of

Accepted Answer

A)   omitted variables.
B)   normative statements.
C)   reverse causality.
D)   bias.E) None of the above
F) C) and D)

Question 13

In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services?

Accepted Answer

A)   goods and services
B)   dollars paid to land, labor, and capital
C)   dollars spent on goods and services
D)   wages, rent, and profitE) None of the above
F) A) and D)

Question 14

The second number in any ordered pair is

Accepted Answer

A)   the x-coordinate.
B)   the y-coordinate.
C)   the horizontal location of the point.
D)   the slope.E) A) and B)
F) A) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

Economists view normative statements as

Accepted Answer

A)   prescriptive, making a claim about how the world ought to be.
B)   descriptive, making a claim about how the world is.
C)   statements about the normal condition of the world.
D)   pessimistic, putting the worst possible interpretation on things.E) A) and B)
F) A) and C)

Question 18

In the ordered pair 20, 30) , 20 is the

Accepted Answer

A)   the x-coordinate.
B)   the horizontal location of the point.
C)   the y-coordinate.
D)   Both a and b are correct.E) None of the above
F) A) and B)

Question 19

Economists speaking like policy advisers make

Accepted Answer

A)   positive statements.
B)   descriptive statements.
C)   claims about how the world is.
D)   claims about how the world should be.E) All of the above
F) A) and B)

Question 20

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Among economic models, the circular-flow diagram is unusual in that it

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The y-coordinate of an ordered pair specifies the

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

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Figure 2-23 -Refer to Figure 2-23. It is possible for this economy to produce 75 doghouses.

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Economists make assumptions to

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In the ordered pair 20, 30) , 20 is the

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Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point B to point Z?

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The second number in any ordered pair is

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Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.

Correct Answerverified This diagram should duplicate the essen...View AnswerShow Answer

Figure 2-22 -Refer to Figure 2-22. What is the x-coordinate of point R?

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

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Economists view normative statements as

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In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services?

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Economists speaking like policy advisers make

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Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

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Figure 2-2 -Refer to Figure 2-2. If Box A of this circular-flow diagram represents firms, then which box represents households?

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The argument that purchases of minivans cause large families is an example of

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The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

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

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

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This diagram should duplicate the essen...
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