Question 1

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Accepted Answer

A)   similar opinions about the validity of economic theories
B)   significant differences in education
C)   differences in personal values
D)   a reliance on normative statement for research theoriesE) A) and B)
F) A) and C)

Question 2

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Accepted Answer

A)   20 dryers.
B)   20 washers.
C)   20 dryers and 20 washers.
D)   60 dryers.E) A) and D)
F) A) and C)

Question 3

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

When economists make

Accepted Answer

A)   positive statements, they are speaking not as scientists but as policy advisers.
B)   positive statements, they are speaking not as scientists but as forecasters.
C)   normative statements, they are speaking not as scientists but as policy advisers.
D)   normative statements, they are speaking not as policy advisers but as model-builders.E) A) and B)
F) B) and D)

Question 7

Table 2-4
Production Possibilities for Picnicland
 
-Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Accepted Answer

A)   150 burgers
B)   225 burgers
C)   300 burgers
D)   450 burgersE) A) and B)
F) B) and C)

Question 8

Almost all economists agree that local and state governments should

Accepted Answer

A)   eliminate subsidies to professional sports franchises.
B)   increase subsidies to professional sports franchises.
C)   copy economic policy from Washington, D.C.
D)   prevent companies from outsourcing work.E) B) and D)
F) B) and C)

Question 9

Which two groups of decision makers are included in the simple circular-flow diagram?

Accepted Answer

A)   markets and government
B)   households and government
C)   firms and government
D)   households and firmsE) A) and B)
F) A) and C)

Question 10

A microeconomist - as opposed to a macroeconomist - might study

Accepted Answer

A)   the effect of a national healthcare program on the nation's unemployment rate.
B)   the effect of new regulations on production in the pulp and paper industry.
C)   the effect of changes in interest rates on gross domestic product.
D)   the growth rate of production in the economy.E) A) and C)
F) A) and B)

Question 11

Figure 2-7 
-Refer to Figure 2-7. What is the opportunity cost of moving from point M to point L?

Accepted Answer

A)   zero
B)   15 tvs
C)   20 engines and 15 tvs
D)   20 enginesE) A) and C)
F) B) and C)

Question 12

Table 2-5
 
-Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)   Home experienced increased unemployment.
B)   Home experienced a decline in pear-producing technology.
C)   Home experienced an improvement in cellular phone-making technology.
D)   Home experienced a reduction in resources.E) C) and D)
F) None of the above

Question 13

The Federal Reserve

Accepted Answer

A)   designs tax policy.
B)   enforces the nation's antitrust laws.
C)   sets the nation's monetary policy.
D)   analyzes data on workers.E) None of the above
F) A) and B)

Question 14

Which of these statements about economic models is correct?

Accepted Answer

A)   For economists, economic models provide insights about the world.
B)   Economic models are built with assumptions.
C)   Economic models are often composed of equations and diagrams.
D)   All of the above are correct.E) None of the above
F) A) and D)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Figure 2-23 
-Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Accepted Answer

A) True 
 B)False

Question 17

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Accepted Answer

A)   Gerance experienced a reduction in unemployment.
B)   Gerance experienced an improvement in car-making technology.
C)   Gerance acquired more resources.
D)   Any of these events could explain the change.E) A) and D)
F) B) and D)

Question 18

Figure 2-9
Panel a)  Panel b) 
  
-Refer to Figure 2-9, Panel a) . The movement from point M to point K could be caused by

Accepted Answer

A)   an advance in production technology.
B)   an improvement in efficiency.
C)   economic growth.
D)   unemployment.E) All of the above
F) B) and D)

Question 19

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

Accepted Answer

A)   Universal health care would be good for U.S. citizens.
B)   An increase in the cigarette tax would cause a decrease in the number of smokers.
C)   A decrease in the minimum wage would decrease unemployment.
D)   A law requiring the federal government to balance its budget would increase economic growth.E) A) and B)
F) None of the above

Question 20

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

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

Correct Answer
verified

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Correct Answer
verified

Which two groups of decision makers are included in the simple circular-flow diagram?

Correct Answer
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An ordered pair is

Correct Answer
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When economists make

Correct Answer
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Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . The movement from point M to point K could be caused by

Correct Answer
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Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Correct Answer
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Correct Answer
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A microeconomist - as opposed to a macroeconomist - might study

Correct Answer
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The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Correct Answer
verified

Almost all economists agree that rent control

Correct Answer
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The Federal Reserve

Correct Answer
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The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Correct Answer
verified

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

Correct Answer
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Figure 2-7 -Refer to Figure 2-7. What is the opportunity cost of moving from point M to point L?

Correct Answer
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Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Correct Answer
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Which of these statements about economic models is correct?

Correct Answer
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Almost all economists agree that local and state governments should

Correct Answer
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Exam 2: Thinking Like an Economist

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

Correct AnswerverifiedShow Answer

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is one of the basic reasons why economists often appear to give conflicting advice to policymakers?

Correct AnswerverifiedShow Answer

Which two groups of decision makers are included in the simple circular-flow diagram?

Correct AnswerverifiedShow Answer

An ordered pair is

Correct AnswerverifiedShow Answer

When economists make

Correct AnswerverifiedShow Answer

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . The movement from point M to point K could be caused by

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A microeconomist - as opposed to a macroeconomist - might study

Correct AnswerverifiedShow Answer

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Correct AnswerverifiedShow Answer

Almost all economists agree that rent control

Correct AnswerverifiedShow Answer

The Federal Reserve

Correct AnswerverifiedShow Answer

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7. What is the opportunity cost of moving from point M to point L?

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Correct AnswerverifiedShow Answer

Which of these statements about economic models is correct?

Correct AnswerverifiedShow Answer

Almost all economists agree that local and state governments should

Correct AnswerverifiedShow Answer

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