Question 1

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

Question 2

Figure 2-2 
-Refer to Figure 2-2.If households are buyers in the markets represented by Box C of this circular-flow diagram,then

Accepted Answer

A)   Box C must represent the markets for the factors of production.
B)   Box D must represent the markets for goods and services.
C)   firms are sellers in the markets represented by Box C.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 3

Economists speaking like scientists make

Accepted Answer

A)   normative statements.
B)   prescriptive statements.
C)   claims about how the world is.
D)   claims about how the world should be.E) A) and B)
F) All of the above

Question 4

Economists view positive statements as

Accepted Answer

A)   affirmative,justifying existing economic policy.
B)   optimistic,putting the best possible interpretation on things.
C)   descriptive,making a claim about how the world is.
D)   prescriptive,making a claim about how the world ought to be.E) None of the above
F) All of the above

Question 5

There is only one explanation for why economists give conflicting advice on policy issues,and it is that they have different values about what policy should try to accomplish.

Accepted Answer

A) True 
 B)False

Question 6

Efficiency is illustrated by

Accepted Answer

A)   both the production possibilities frontier and the circular-flow diagram.
B)   neither the production possibilities frontier nor the circular-flow diagram.
C)   the production possibilities frontier only.
D)   the circular-flow diagram only.E) C) and D)
F) B) and D)

Question 7

Figure 2-5 
-Refer to Figure 2-5.If this economy moves from point A to point B,then which of the following statements is correct?

Accepted Answer

A)   This economy has moved from a point of inefficient production to a point of efficient production.
B)   This economy has experienced economic growth.
C)   This economy has experienced an increase in employment.
D)   None of the above is correct.E) None of the above
F) A) and C)

Question 8

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> This diagram should duplicate the essen...

Question 9

Economists,like mathematicians,physicists,and biologists,

Accepted Answer

A)   make use of the scientific method.
B)   try to address their subject with a scientist's objectivity.
C)   devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Question 10

The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

Accepted Answer

A) True 
 B)False

Question 11

If an economy is producing efficiently,then

Accepted Answer

A)   there is no way to produce more of one good without producing less of another good.
B)   it is possible to produce more of both goods without increasing the quantities of inputs that are being used.
C)   it is possible to produce more of one good without producing less of another good.
D)   it is not possible to produce more of any good at any cost.E) A) and B)
F) A) and C)

Question 12

In the circular-flow diagram,one loop represents the flow of goods,services,and factors of production,and the other loop represents the corresponding flow of dollars.

Accepted Answer

A) True 
 B)False

Question 13

Economists sometimes give conflicting advice because

Accepted Answer

A)   graduate students in economics are encouraged to argue with each other.
B)   economists have different values and scientific judgment.
C)   economists acting as scientists do not like to agree with economists acting as policy advisers.
D)   economics is more of a belief system than a science.E) B) and C)
F) C) and D)

Question 14

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

Question 15

In building economic models,economists often omit

Accepted Answer

A)   assumptions.
B)   theories.
C)   details.
D)   equations.E) A) and D)
F) B) and C)

Question 16

Almost all economists agree that rent control

Accepted Answer

A)   has no effect on the rental income of landlords.
B)   allows the market for housing to work more efficiently.
C)   adversely affects the availability and quality of housing.
D)   is a very inexpensive way to help the most needy members of society.E) C) and D)
F) All of the above

Question 17

With respect to how economists study the economy,which of the following statements is most accurate?

Accepted Answer

A)   Economists study the past,but they do not try to predict the future.
B)   Economists use "rules of thumb" to predict the future.
C)   Economists devise theories,collect data,and analyze the data to test the theories.
D)   Economists use controlled experiments in much the same way that biologists and physicists do.E) A) and B)
F) A) and C)

Question 18

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 19

Figure 2-2 
-Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

Accepted Answer

A)   Box B
B)   Box C
C)   Box D
D)   Any one of the other boxes (B,C,or 
D)  could represent households.E) All of the above
F) B) and C)

Question 20

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

Accepted Answer

A)   opinions and education.
B)   opinions and values.
C)   scientific judgments and education.
D)   scientific judgments and values.E) A) and B)
F) B) and C)

Exam 2: Thinking Like an Economist

Efficiency is illustrated by

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Almost all economists agree that rent control

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In building economic models,economists often omit

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

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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

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Figure 2-2 -Refer to Figure 2-2.If households are buyers in the markets represented by Box C of this circular-flow diagram,then

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Figure 2-2 -Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

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Economists,like mathematicians,physicists,and biologists,

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The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

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Economists speaking like scientists make

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The y-coordinate is the

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Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Correct Answerverified This diagram should duplicate the essen...View AnswerShow Answer

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

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Figure 2-5 -Refer to Figure 2-5.If this economy moves from point A to point B,then which of the following statements is correct?

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Economists view positive statements as

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In the circular-flow diagram,one loop represents the flow of goods,services,and factors of production,and the other loop represents the corresponding flow of dollars.

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With respect to how economists study the economy,which of the following statements is most accurate?

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Economists sometimes give conflicting advice because

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There is only one explanation for why economists give conflicting advice on policy issues,and it is that they have different values about what policy should try to accomplish.

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If an economy is producing efficiently,then

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This diagram should duplicate the essen...
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