Question 1

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

Question 2

In the markets for the factors of production in the circular-flow diagram,

Accepted Answer

A)   households are sellers and firms are buyers.
B)   households are buyers and firms are sellers.
C)   households and firms are both buyers.
D)   households and firms are both sellers.E) B) and C)
F) A) and C)

Question 3

In the circular-flow diagram,

Accepted Answer

A)   profit flows from households to firms.
B)   labor flows from households to firms.
C)   services flow from households to firms.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 4

The y-coordinate is the

Accepted Answer

A)   first number of an ordered pair and represents the point's horizontal location.
B)   second number of an ordered pair and represents the point's horizontal location.
C)   first number of an ordered pair and represents the point's vertical location.
D)   second number of an ordered pair and represents the point's vertical location.E) All of the above
F) A) and D)

Question 5

Figure 2-2
 
-Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram, then Juan's income is represented by a flow of dollars

Accepted Answer

A)   from Box A to Box C.
B)   from Box C to Box A.
C)   from Box B to Box D.
D)   from Box D to Box B.E) None of the above
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) All of the above
F) None of the above

Question 7

Figure 2-14
 
-Refer to Figure 2-14. The curves shown are

Accepted Answer

A)   supply curves.
B)   demand curves.
C)   preference curves.
D)   income-consumption curves.E) C) and D)
F) A) and D)

Question 8

Figure 2-1
 
-Refer to Figure 2-1. Ali buys a new pair of shoes at a shoe store. To which of the arrows does this transaction directly contribute?

Accepted Answer

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

Question 9

Which of the following allows you to provide information about the relationship between two variables?

Accepted Answer

A)   coordinate system.
B)   pie chart
C)   bar graph
D)   time-series graphE) A) and D)
F) None of the above

Question 10

Economic models can help us understand reality only when they include all details of the economy.

Accepted Answer

A) True 
 B)False

Question 11

"Other things equal, an increase in supply causes a decrease in price" is a normative statement, not a positive statement.

Accepted Answer

A) True 
 B)False

Question 12

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) A) and C)

Question 13

Figure 2-15
Relationship between Price and Cups of Coffee
 
-Refer to Figure 2-15. A movement from point A to point Z is called

Accepted Answer

A)   a shift in demand.
B)   a movement along the demand curve.
C)   a shift in supply.
D)   a movement along the supply curve.E) A) and B)
F) B) and D)

Question 14

Points on the production possibilities frontier represent efficient levels of production.

Accepted Answer

A) True 
 B)False

Question 15

When two variables have a negative correlation and the x-variable decreases,

Accepted Answer

A)   the y-variable increases.
B)   the y-variable decreases.
C)   the y-variable stays the same.
D)   the x-variable can never be positive.E) A) and B)
F) A) and C)

Question 16

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 D)
F) A) and C)

Question 17

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

Question 18

You know an economist has crossed the line from scientist to policy adviser when he or she

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   talks about the evidence.
C)   makes normative statements.
D)   makes a claim about how the world is.E) None of the above
F) All of the above

Question 19

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Accepted Answer

A) True 
 B)False

Question 20

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Accepted Answer

A)   the design and implementation of laboratory experiments.
B)   knowing when to stop collecting data and when to start analyzing the data.
C)   deciding which assumptions to make.
D)   being able to mathematically model natural phenomena.E) A) and B)
F) A) and C)

Exam 2: Thinking Like an Economist

The most common data for testing economic theories come from

Correct Answer
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Figure 2-14 -Refer to Figure 2-14. The curves shown are

Correct Answer
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In the circular-flow diagram,

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

Correct Answer
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Figure 2-1 -Refer to Figure 2-1. Ali buys a new pair of shoes at a shoe store. To which of the arrows does this transaction directly contribute?

Correct Answer
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Points on the production possibilities frontier represent efficient levels of production.

Correct Answer
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"Other things equal, an increase in supply causes a decrease in price" is a normative statement, not a positive statement.

Correct Answer
verified

When two variables have a negative correlation and the x-variable decreases,

Correct Answer
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Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15. A movement from point A to point Z is called

Correct Answer
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Economic models can help us understand reality only when they include all details of the economy.

Correct Answer
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Normative statements are not

Correct Answer
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When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Correct Answer
verified

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

Correct Answer
verified

The y-coordinate is the

Correct Answer
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Which of the following allows you to provide information about the relationship between two variables?

Correct Answer
verified

In the markets for the factors of production in the circular-flow diagram,

Correct Answer
verified

You know an economist has crossed the line from scientist to policy adviser when he or she

Correct Answer
verified

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

Correct Answer
verified

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Correct Answer
verified

Exam 2: Thinking Like an Economist

The most common data for testing economic theories come from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. The curves shown are

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In the circular-flow diagram,

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

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1. Ali buys a new pair of shoes at a shoe store. To which of the arrows does this transaction directly contribute?

Correct AnswerverifiedShow Answer

Points on the production possibilities frontier represent efficient levels of production.

Correct AnswerverifiedShow Answer

"Other things equal, an increase in supply causes a decrease in price" is a normative statement, not a positive statement.

Correct AnswerverifiedShow Answer

When two variables have a negative correlation and the x-variable decreases,

Correct AnswerverifiedShow Answer

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15. A movement from point A to point Z is called

Correct AnswerverifiedShow Answer

Economic models can help us understand reality only when they include all details of the economy.

Correct AnswerverifiedShow Answer

Normative statements are not

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

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

Correct AnswerverifiedShow Answer

The y-coordinate is the

Correct AnswerverifiedShow Answer

Which of the following allows you to provide information about the relationship between two variables?

Correct AnswerverifiedShow Answer

In the markets for the factors of production in the circular-flow diagram,

Correct AnswerverifiedShow Answer

You know an economist has crossed the line from scientist to policy adviser when he or she

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The art in scientific thinking -- whether in chemistry, economics, or biology -- is

Correct AnswerverifiedShow Answer

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