Question 1

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

Question 2

Albert Einstein once made the following observation about science:

Accepted Answer

A)  "The whole of science is nothing more than the refinement of everyday thinking."
B)  "The whole of science is nothing more than an interesting intellectual exercise."
C)  "In order to understand science, one must rely solely on abstraction."
D)  "In order to understand science, one must transcend everyday thinking."E) A) and B)
F) A) and D)

Question 3

Figure 2-7 
-Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s) ?

Accepted Answer

A)  L, M
B)  N, O, P, Q
C)  N, O, P
D)  QE) None of the above
F) C) and D)

Question 4

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Accepted Answer

A)  should produce.
B)  wants to produce.
C)  can produce.
D)  demands.E) None of the above
F) B) and C)

Question 5

Positive statements are

Accepted Answer

A)  prescriptive.
B)  claims about how the world should be.
C)  claims about how the world is.
D)  made by economists speaking as policy advisers.E) None of the above
F) B) and C)

Question 6

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Accepted Answer

The answer of Is the following a positive or normative...

Question 7

In the circular-flow diagram, firms consume all the goods and services that they produce.

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-3 
-Refer to Figure 2-3. What is the name of the model depicted in the figure?

Accepted Answer

The answer of Figure 2-3 
-Refer to Figure 2-3. What...

Question 9

Figure 2-16​ 
-Refer to Figure 2-16. It is possible for this economy to produce

Accepted Answer

A)  30 gadgets and 90 widgets.
B)  50 gadgets and 80 widgets.
C)  80 gadgets and 50 widgets.
D)  90 gadgets and 30 widgets.E) None of the above
F) C) and D)

Question 10

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. Which combination of points show production possibilities only achievable with improvements in technology or increases in resources?

Accepted Answer

A)  Q, R, U, and V
B)  S and X
C)  T and W
D)  None of the above is correct.E) B) and D)
F) A) and B)

Question 11

A statement describing how the world is

Accepted Answer

A)  is a normative statement.
B)  is a positive statement.
C)  would only be made by an economist speaking as a policy adviser.
D)  would only be made by an economist employed by the government.E) B) and C)
F) A) and D)

Question 12

An ordered pair is

Accepted Answer

A)  the process of checking calculations twice before placing them on a graph.
B)  two numbers that can be represented by a single point on a graph.
C)  two numbers that are represented by two points on a graph.
D)  two points on a graph that are of equal distance from the origin.E) C) and D)
F) B) and D)

Question 13

Figure 2-16​ 
-Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Accepted Answer

A)  10 gadgets.
B)  30 widgets
C)  10 gadgets and 30 widgets.
D)  0 gadgets.E) B) and C)
F) All of the above

Question 14

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-9
Panel (a) 
Panel (b)   
-Refer to Figure 2-9, Panel (a) . The opportunity cost of moving from point M to point L is

Accepted Answer

A)  2 donuts.
B)  2 donuts and 4 cups of coffee.
C)  4 donuts.
D)  4 cups of coffee.E) A) and B)
F) A) and D)

Question 16

Figure 2-12 
-Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Accepted Answer

A)  a decrease in unemployment
B)  a technological advance in the consumer goods industries
C)  a general technological advance
D)  an increase in the availability of capital-producing resourcesE) A) and B)
F) A) and C)

Question 17

Figure 2-13 
-Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Accepted Answer

A)  G, H
B)  F, I, L
C)  F, G, H, I, L
D)  J, KE) None of the above
F) A) and B)

Question 18

The nation's antitrust laws are enforced by economists at the Department of

Accepted Answer

A)  Labor.
B)  Health and Human Services.
C)  Justice.
D)  Treasury.E) None of the above
F) A) and D)

Question 19

Economists at which administrative department help enforce the nation's antitrust laws?

Accepted Answer

Department...

Question 20

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct Answer
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Figure 2-3 -Refer to Figure 2-3. What is the name of the model depicted in the figure?

Correct Answer
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Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct Answer
verified

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Correct Answer
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Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . The opportunity cost of moving from point M to point L is

Correct Answer
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Figure 2-16 -Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Correct Answer
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The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Correct Answer
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Figure 2-12 -Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Correct Answer
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Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

Correct Answer
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Albert Einstein once made the following observation about science:

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

Correct Answer
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Economists at which administrative department help enforce the nation's antitrust laws?

Correct Answer
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Department...
View Answer

An ordered pair is

Correct Answer
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In the circular-flow diagram, firms consume all the goods and services that they produce.

Correct Answer
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The nation's antitrust laws are enforced by economists at the Department of

Correct Answer
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Positive statements are

Correct Answer
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Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s) ?

Correct Answer
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Figure 2-16 -Refer to Figure 2-16. It is possible for this economy to produce

Correct Answer
verified

A statement describing how the world is

Correct Answer
verified

Exam 2: Thinking Like an Economist

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. What is the name of the model depicted in the figure?

Correct AnswerverifiedShow Answer

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . The opportunity cost of moving from point M to point L is

Correct AnswerverifiedShow Answer

Figure 2-16​ -Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Correct AnswerverifiedShow Answer

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

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Figure 2-12 -Refer to Figure 2-12. Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

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Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

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Correct AnswerverifiedShow Answer

Albert Einstein once made the following observation about science:

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In the circular-flow diagram, in the markets for

Correct AnswerverifiedShow Answer

Economists at which administrative department help enforce the nation's antitrust laws?

Correct AnswerverifiedDepartment...View AnswerShow Answer

An ordered pair is

Correct AnswerverifiedShow Answer

In the circular-flow diagram, firms consume all the goods and services that they produce.

Correct AnswerverifiedShow Answer

The nation's antitrust laws are enforced by economists at the Department of

Correct AnswerverifiedShow Answer

Positive statements are

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7. Unemployment could cause this economy to produce at which point(s) ?

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Figure 2-16​ -Refer to Figure 2-16. It is possible for this economy to produce

Correct AnswerverifiedShow Answer

A statement describing how the world is

Correct AnswerverifiedShow Answer

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Figure 2-16 -Refer to Figure 2-16. The opportunity cost of obtaining 30 additional widgets by moving from point A to point C is approximately

Correct Answer
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Correct Answer
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Correct Answer
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Department...
View Answer

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Figure 2-16 -Refer to Figure 2-16. It is possible for this economy to produce

Correct Answer
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Correct Answer
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