Question 1

Economic models

Accepted Answer

A)   are people who act out the behavior of firms and households so that economists can study this behavior.
B)   are usually detailed replications of reality.
C)   incorporate simplifying assumptions that often contradict reality,but also help economists better understand reality.
D)   are useful to researchers but not to teachers because economic models omit many details of the real-world economy.E) A) and B)
F) A) and D)

Question 2

Figure 2-5 
-Refer to Figure 2-5.If this economy devotes all of its resources to the production of sweaters,then it will produce

Accepted Answer

A)   0 sweaters and 200 soccer balls.
B)   180 sweaters and 125 soccer balls.
C)   300 sweaters and 0 soccer balls.
D)   300 sweaters and 200 soccer balls.E) B) and C)
F) B) and D)

Question 3

When economists are trying to explain the world,they are

Accepted Answer

A)   scientists.
B)   policy advisers.
C)   in the realm of microeconomics rather than macroeconomics.
D)   in the realm of normative economics rather than positive economics.E) B) and C)
F) A) and B)

Question 4

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following statements is correct?

Accepted Answer

A)   The opportunity cost of a dozen cookies does not depend on how many pounds of coffee are being produced.
B)   The opportunity cost of a dozen cookies increases as more cookies are produced.
C)   The opportunity cost of a dozen cookies decreases as more cookies are produced.
D)   The opportunity cost of a pound of coffee decreases as more coffee is produced.E) A) and C)
F) A) and D)

Question 5

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) A) and D)
F) All of the above

Question 6

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 B)
F) A) and C)

Question 7

The circular-flow diagram explains,in general terms,how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 8

The slope of a line passing through the points (12,8) and (16,5) is

Accepted Answer

A)   -3/4.
B)   3/4.
C)   -4/3.
D)   4/3.E) B) and D)
F) B) and C)

Question 9

The circular flow model is not used anymore because it fails to perfectly replicate real world situations.

Accepted Answer

A) True 
 B)False

Question 10

Figure 2-12 
-Refer to Figure 2-12.Which of the following statements is true about point B for this economy?

Accepted Answer

A)   Point B is currently unattainable.
B)   Point B is efficient.
C)   At point B,more pillows are produced than blankets.
D)   There is unemployment at point B.E) A) and B)
F) A) and C)

Question 11

Figure 2-6 
-Refer to Figure 2-6.Unemployment could cause this economy to produce at which point(s) ?

Accepted Answer

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

Question 12

In the circular-flow diagram,households and firms are the decision makers.

Accepted Answer

A) True 
 B)False

Question 13

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 C)
F) C) and D)

Question 14

In conducting their research,economists face an obstacle that not all scientists face; specifically,in economics,it is often difficult and sometimes impossible to

Accepted Answer

A)   make use of theory and observation.
B)   rely upon the scientific method.
C)   conduct laboratory experiments.
D)   find articles or books that were written before 1900.E) A) and B)
F) A) and D)

Question 15

The scientific method can be applied to the study of economics.

Accepted Answer

A) True 
 B)False

Question 16

A certain production possibilities frontier shows production possibilities for two goods,jewelry and clothing.Which of the following concepts cannot be illustrated by this model?

Accepted Answer

A)   the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing
B)   the tradeoff between production of jewelry and production of clothing
C)   the opportunity cost of clothing in terms of jewelry
D)   the effect of economic growth on production possibilities involving jewelry and clothingE) A) and B)
F) A) and C)

Question 17

Economic models are built with

Accepted Answer

A)   recommendations concerning public policies.
B)   facts about the legal system.
C)   assumptions.
D)   statistical forecasts.E) A) and D)
F) B) and C)

Question 18

Figure 2-12 
-Refer to Figure 2-12.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Accepted Answer

A)   D,H
B)   B,C
C)   F,G
D)   A,BE) A) and B)
F) A) and C)

Question 19

When economists are trying to help improve the world,they are

Accepted Answer

A)   in the realm of positive economics rather than normative economics.
B)   in the realm of macroeconomics rather than microeconomics.
C)   scientists.
D)   policy advisers.E) A) and B)
F) B) and D)

Question 20

Normative conclusions

Accepted Answer

A)   come from positive analysis alone.
B)   are based on ignorance of positive analysis.
C)   involve value judgments.
D)   reflect the economist's role as scientist.E) B) and C)
F) A) and B)

Exam 2: Thinking Like an Economist

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

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In conducting their research,economists face an obstacle that not all scientists face; specifically,in economics,it is often difficult and sometimes impossible to

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Economists make assumptions to

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Figure 2-6 -Refer to Figure 2-6.Unemployment could cause this economy to produce at which point(s) ?

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The circular-flow diagram explains,in general terms,how the economy is organized and how participants in the economy interact with one another.

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5.If this economy devotes all of its resources to the production of sweaters,then it will produce

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The circular flow model is not used anymore because it fails to perfectly replicate real world situations.

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

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A certain production possibilities frontier shows production possibilities for two goods,jewelry and clothing.Which of the following concepts cannot be illustrated by this model?

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The scientific method can be applied to the study of economics.

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Normative conclusions

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Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Which of the following statements is correct?

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When economists are trying to help improve the world,they are

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Figure 2-12 -Refer to Figure 2-12.Which of the following statements is true about point B for this economy?

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In the circular-flow diagram,households and firms are the decision makers.

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The slope of a line passing through the points (12,8) and (16,5) is

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Economic models are built with

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When economists are trying to explain the world,they are

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Figure 2-12 -Refer to Figure 2-12.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

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Economic models

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