Question 1

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Accepted Answer

A)   It is often difficult to formulate theories in economics.
B)   It is often impractical to perform experiments in economics.
C)   Economics cannot be addressed objectively; it must be addressed subjectively.
D)   The scientific method cannot be applied to the study of economics.

Question 2

In the ordered pair 3, 6) , 3 is the

Accepted Answer

A)   x-coordinate.
B)   y-coordinate.
C)   origin.
D)   slope.

Question 3

Figure 2-22 
-Refer to Figure 2-22. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Accepted Answer

The answer of Figure 2-22 
-Refer to Figure 2-22. Given...

Question 4

Figure 2-8 
-Refer to Figure 2-8. Point K represents an outcome in which

Accepted Answer

A)   production is inefficient.
B)   some of the economy's resources are unemployed.
C)   the economy is using all of its resources to produce hammers.
D)   the economy is using all of its nails to produce hammers.

Question 5

In the ordered pair 5, 3) , 3 is the

Accepted Answer

A)   horizontal location of the point.
B)   the slope.
C)   the x-coordinate.
D)   the y-coordinate.

Question 6

The bowed shape of the production possibilities frontier can be explained by the fact that

Accepted Answer

A)   all resources are scarce.
B)   economic growth is always occurring.
C)   the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.
D)   the only way to get more of one good is to get less of the other.

Question 7

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Accepted Answer

A) True 
 B)False

Question 8

Figure 2-3 
-Refer to Figure 2-3. What do the outer arrows represent in the figure?

Accepted Answer

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

Question 9

A production possibilities frontier can shift outward if

Accepted Answer

A)   government increases the amount of money in the economy.
B)   there is a technological improvement.
C)   resources are shifted from the production of one good to the production of the other good.
D)   the economy abandons inefficient production methods in favor of efficient production methods.

Question 10

"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?

Accepted Answer

A)   Harry Truman
B)   George Bernard Shaw
C)   John Maynard Keynes
D)   Ronald Reagan

Question 11

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Accepted Answer

A) True 
 B)False

Question 12

What type of statement is a descriptive statement about how the world is?

Accepted Answer

The answer of What type of statement is a descriptive...

Question 13

Figure 2-2 
-Refer to Figure 2-2. If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram, then

Accepted Answer

A)   the flow of factors of production is also part of what is represented by the inner loop.
B)   the flow of income paid to households is also part of what is represented by the inner loop.
C)   the flow of revenue to firms is also part of what is represented by the inner loop.
D)   households must be sellers of output.

Question 14

Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. A movement from point A to point B 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.

Question 15

Economists at which administrative department help formulate spending plans and regulatory policies?

Accepted Answer

Office of ...

Question 16

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Accepted Answer

The answer of Which type of statement - positive or...

Question 17

Table 2-3
Production Possibilities for Footville
 
-Refer to Table 2-3. Which of the following statements is correct?

Accepted Answer

A)   The opportunity cost of an additional 200 shoes is constant at 200 socks.
B)   The opportunity cost of an additional 200 shoes is constant at 300 socks.
C)   Footville's production possibilities frontier is a straight, downward­sloping line.
D)   The opportunity cost of an additional 200 shoes increases as more socks are produced.

Question 18

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 wheat from 700 bushels to 1300 bushels?

Accepted Answer

A)   800 bushels of corn
B)   600 bushels of corn
C)   400 bushels of corn
D)   400 bushels of wheat

Question 19

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

Accepted Answer

A)   0 cups of coffee.
B)   1 donut.
C)   2 donuts.
D)   4 cups of coffee.

Question 20

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Accepted Answer

A)   performing an experiment in an economic system.
B)   applying mathematical methods to economic analysis.
C)   analyzing available data.
D)   formulating theories about economic events.

Exam 2: Thinking Like an Economist

In the ordered pair 3, 6) , 3 is the

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What type of statement is a descriptive statement about how the world is?

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Table 2-3 Production Possibilities for Footville -Refer to Table 2-3. Which of the following statements is correct?

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A production possibilities frontier can shift outward if

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The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

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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 wheat from 700 bushels to 1300 bushels?

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In the ordered pair 5, 3) , 3 is the

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Figure 2-22 -Refer to Figure 2-22. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

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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 K to point L is

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Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

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Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point B is called

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Which type of statement - positive or negative - can be evaluated by analyzing data alone?

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"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?

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Figure 2-8 -Refer to Figure 2-8. Point K represents an outcome in which

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Economists at which administrative department help formulate spending plans and regulatory policies?

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Figure 2-2 -Refer to Figure 2-2. If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram, then

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Economists face an obstacle that many other scientists do not face. What is that obstacle?

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The bowed shape of the production possibilities frontier can be explained by the fact that

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Figure 2-3 -Refer to Figure 2-3. What do the outer arrows represent in the figure?

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Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

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