Question 1

Figure 2-11 
-Refer to Figure 2-11.The shift of the production possibilities frontier from A to B can best be described as

Accepted Answer

A)   a downturn in the economy.
B)   economic growth.
C)   an enhancement of equality.
D)   an improvement in the allocation of resources.E) B) and D)
F) All of the above

Question 2

Figure 2-9
 
-Refer to Figure 2-9,Panel (a) .The opportunity cost of one computer is highest when the economy produces

Accepted Answer

A)   0 computers.
B)   6 computers.
C)   10 computers.
D)   12 computers.E) All of the above
F) A) and B)

Question 3

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 D)
F) A) and C)

Question 4

Figure 2-13 
-Refer to Figure 2-13.The graph shown is known as a

Accepted Answer

A)   time-series graph.
B)   bar graph.
C)   scatterplot.
D)   pie chart.E) B) and C)
F) A) and D)

Question 5

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

Question 6

Figure 2-8
 
-Refer to Figure 2-8,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) A) and B)
F) A) and C)

Question 7

"Society would be better off if the welfare system were abolished" is a normative statement,not a positive statement.

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-17
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-17.Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years.Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes.Who is correct?

Accepted Answer

A)   Senator Smith is correct.
B)   Senator Jones is correct.
C)   It is difficult to say which senator might be correct due to the reverse causality problem.
D)   It is difficult to say which senator might be correct due to omitted variable bias.E) All of the above
F) C) and D)

Question 9

Figure 2-14 
-Refer to Figure 2-14.If this economy uses all its resources in the dishwasher industry,it produces 35 dishwashers and no doghouses.

Accepted Answer

A) True 
 B)False

Question 10

Normative statements are not

Accepted Answer

A)   descriptive.
B)   prescriptive.
C)   claims about how the world should be.
D)   made by economists speaking as policy advisers.E) C) and D)
F) B) and C)

Question 11

Figure 2-6 
-Refer to Figure 2-6.What is the opportunity cost of moving from point A to point B?

Accepted Answer

A)   zero
B)   6 clocks
C)   6 clocks and 15 candles
D)   15 candlesE) B) and C)
F) B) and D)

Question 12

Figure 2-14 
-Refer to Figure 2-14.This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-14 
-Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Accepted Answer

A) True 
 B)False

Question 14

If a line passes through the points (20,5)and (10,10),then the slope of the line is 1/2.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

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 17

When two variables move in opposite directions,the curve relating them is upward sloping,and we say the variables are positively related.

Accepted Answer

A) True 
 B)False

Question 18

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) C) and D)

Question 19

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

Question 20

The scientific method is

Accepted Answer

A)   the use of modern technology to understand the way the world works.
B)   the use of controlled laboratory experiments to understand the way the world works.
C)   the dispassionate development and testing of theories about how the world works.
D)   the search for evidence to support preconceived theories about how the world works.E) A) and B)
F) A) and C)

Exam 2: Thinking Like an Economist

When two variables move in opposite directions,the curve relating them is upward sloping,and we say the variables are positively related.

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

Correct Answer
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Figure 2-14 -Refer to Figure 2-14.If this economy uses all its resources in the dishwasher industry,it produces 35 dishwashers and no doghouses.

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

Correct Answer
verified

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 Answer
verified

"Society would be better off if the welfare system were abolished" is a normative statement,not a positive statement.

Correct Answer
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Normative statements are not

Correct Answer
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If a line passes through the points (20,5)and (10,10),then the slope of the line is 1/2.

Correct Answer
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Figure 2-9 -Refer to Figure 2-9,Panel (a) .The opportunity cost of one computer is highest when the economy produces

Correct Answer
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The scientific method is

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The second number in any ordered pair is

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

Correct Answer
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Figure 2-14 -Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Correct Answer
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Figure 2-11 -Refer to Figure 2-11.The shift of the production possibilities frontier from A to B can best be described as

Correct Answer
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Figure 2-14 -Refer to Figure 2-14.This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct Answer
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Figure 2-8 -Refer to Figure 2-8,Panel (a) .The opportunity cost of moving from point J to point L is

Correct Answer
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Figure 2-13 -Refer to Figure 2-13.The graph shown is known as a

Correct Answer
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Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost of moving from point A to point B?

Correct Answer
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The most common data for testing economic theories come from

Correct Answer
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Exam 2: Thinking Like an Economist

When two variables move in opposite directions,the curve relating them is upward sloping,and we say the variables are positively related.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.If this economy uses all its resources in the dishwasher industry,it produces 35 dishwashers and no doghouses.

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

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

"Society would be better off if the welfare system were abolished" is a normative statement,not a positive statement.

Correct AnswerverifiedShow Answer

Normative statements are not

Correct AnswerverifiedShow Answer

If a line passes through the points (20,5)and (10,10),then the slope of the line is 1/2.

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Figure 2-9 -Refer to Figure 2-9,Panel (a) .The opportunity cost of one computer is highest when the economy produces

Correct AnswerverifiedShow Answer

The scientific method is

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The second number in any ordered pair is

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.When this economy produces 30 doghouses and 25 dishwashers there is full employment.

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Figure 2-11 -Refer to Figure 2-11.The shift of the production possibilities frontier from A to B can best be described as

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct AnswerverifiedShow Answer

Figure 2-8 -Refer to Figure 2-8,Panel (a) .The opportunity cost of moving from point J to point L is

Correct AnswerverifiedShow Answer

Figure 2-13 -Refer to Figure 2-13.The graph shown is known as a

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Figure 2-6 -Refer to Figure 2-6.What is the opportunity cost of moving from point A to point B?

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The most common data for testing economic theories come from

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