Question 1

Changes in one variable on a graph might be caused by the other variable on the graph or by a third omitted variable.

Accepted Answer

A) True 
 B)False

Question 2

In the ordered pair (17,75) ,17 is the

Accepted Answer

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

Question 3

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of an increase in the production of coffee from 350 pounds to 650 pounds?

Accepted Answer

A)   400 dozen cookies
B)   300 dozen cookies
C)   200 dozen cookies
D)   200 pounds of coffeeE) All of the above
F) A) and B)

Question 4

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

Question 5

Table 2-5
 
-Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Based on the values in the table,the production possibilities frontier is

Accepted Answer

A)   bowed outward indicating increasing opportunity costs.
B)   bowed outward indicating decreasing opportunity costs.
C)   a straight line indicating constant opportunity costs.
D)   bowed inward indicating decreasing opportunity costs.E) B) and C)
F) All of the above

Question 6

Good assumptions simplify a problem without substantially affecting the answer.

Accepted Answer

A) True 
 B)False

Question 7

Figure 2-4 
-Refer to Figure 2-4.Efficient production is represented by which point(s) ?

Accepted Answer

A)   Y,Z
B)   W,Y,Z
C)   V,Y,Z
D)   VE) A) and C)
F) A) and B)

Question 8

When a relevant variable that is not named on either axis changes,

Accepted Answer

A)   there will be a movement along the curve.
B)   the curve will rotate clockwise.
C)   the curve will be unaffected since only the variables on the axis affect the curve.
D)   the curve will shift.E) A) and D)
F) C) and D)

Question 9

Figure 2-15
Relationship between Price and Cups of Coffee 
-Refer to Figure 2-15.In the ordered pair (4,6)

Accepted Answer

A)   the x-coordinate is 4 and the y-coordinate is 6.
B)   the x-coordinate is 6 and the y-coordinate is 4.
C)   the numbers tell the location of the origin.
D)   the 4 represents the price and the 6 represents the number of cups of coffee.E) B) and C)
F) A) and B)

Question 10

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct about the extent of disagreement among economists?

Accepted Answer

A)   There is a great deal of agreement among economists on virtually every economic issue.
B)   There is a great deal of agreement among economists on many important economic issues.
C)   All disagreements among economists are attributable to differences in their values.
D)   All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories.E) B) and D)
F) B) and C)

Question 12

Macroeconomics is the study of economy-wide phenomena.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers.He should use a(n)

Accepted Answer

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

Question 15

Figure 2-14 
-Refer to Figure 2-14.The opportunity cost of an additional doghouse increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 16

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 buyers and firms are sellers.
C)   the factors of production,households are buyers and firms are sellers.
D)   the factors of production,households and firms are both buyers.E) B) and C)
F) None of the above

Question 17

Which of the following statements is an example of a positive,as opposed to normative,statement?

Accepted Answer

A)   Americans deserve a cleaner environment.
B)   Reducing emissions reduces days missed from school due to asthma.
C)   All Americans are entitled to quality health care.
D)   Economic policies should focus on improving equality.E) A) and D)
F) All of the above

Question 18

In the markets for the factors of production in the circular-flow diagram,households are buyers and firms are sellers.

Accepted Answer

A) True 
 B)False

Question 19

Historical episodes are not valuable to economists.

Accepted Answer

A) True 
 B)False

Question 20

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases,the y-variable decreases.
B)   when the x-variable decreases,the y-variable increases.
C)   when the x-variable increases,the y-variable increases.
D)   More than one of the above is correct.E) C) and D)
F) A) and B)

Exam 2: Thinking Like an Economist

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s) ?

Correct Answer
verified

When a relevant variable that is not named on either axis changes,

Correct Answer
verified

Macroeconomics is the study of economy-wide phenomena.

Correct Answer
verified

Correct Answer
verified

Changes in one variable on a graph might be caused by the other variable on the graph or by a third omitted variable.

Correct Answer
verified

In the ordered pair (17,75) ,17 is the

Correct Answer
verified

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.In the ordered pair (4,6)

Correct Answer
verified

When two variables have a negative correlation,

Correct Answer
verified

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Based on the values in the table,the production possibilities frontier is

Correct Answer
verified

Which of the following statements is an example of a positive,as opposed to normative,statement?

Correct Answer
verified

Good assumptions simplify a problem without substantially affecting the answer.

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14.The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct Answer
verified

Which of the following statements is correct about the extent of disagreement among economists?

Correct Answer
verified

In the circular-flow diagram,in the markets for

Correct Answer
verified

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

Correct Answer
verified

In the markets for the factors of production in the circular-flow diagram,households are buyers and firms are sellers.

Correct Answer
verified

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of an increase in the production of coffee from 350 pounds to 650 pounds?

Correct Answer
verified

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers.He should use a(n)

Correct Answer
verified

Historical episodes are not valuable to economists.

Correct Answer
verified

Exam 2: Thinking Like an Economist

A production point is said to be efficient if there is no way for the economy to produce more of one good without producing less of another.

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

When a relevant variable that is not named on either axis changes,

Correct AnswerverifiedShow Answer

Macroeconomics is the study of economy-wide phenomena.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Changes in one variable on a graph might be caused by the other variable on the graph or by a third omitted variable.

Correct AnswerverifiedShow Answer

In the ordered pair (17,75) ,17 is the

Correct AnswerverifiedShow Answer

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.In the ordered pair (4,6)

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.Based on the values in the table,the production possibilities frontier is

Correct AnswerverifiedShow Answer

Which of the following statements is an example of a positive,as opposed to normative,statement?

Correct AnswerverifiedShow Answer

Good assumptions simplify a problem without substantially affecting the answer.

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14.The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct AnswerverifiedShow Answer

Which of the following statements is correct about the extent of disagreement among economists?

Correct AnswerverifiedShow Answer

In the circular-flow diagram,in the markets for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the markets for the factors of production in the circular-flow diagram,households are buyers and firms are sellers.

Correct AnswerverifiedShow Answer

Table 2-5 -Refer to Table 2-5.Table 2-5 shows one set of production possibilities.What is the opportunity cost of an increase in the production of coffee from 350 pounds to 650 pounds?

Correct AnswerverifiedShow Answer

Philip wants to create a graph containing the prices of apples and the corresponding quantities of apples demanded by customers.He should use a(n)

Correct AnswerverifiedShow Answer

Historical episodes are not valuable to economists.

Correct AnswerverifiedShow Answer

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