Question 1

The slope of a line that passes through the points (10, 15)  and (20, 7)  is

Accepted Answer

A)   -5/4.
B)   -4/5.
C)   4/5.
D)   5/4.E) B) and D)
F) A) and D)

Question 2

Figure 2-5
 
-Refer to Figure 2-5. A movement from point C to point D could be caused by

Accepted Answer

A)   unemployment.
B)   a decrease in society's preference for sweaters.
C)   fewer resources available for production of sweaters.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 3

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Accepted Answer

A) True 
 B)False

Question 4

If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient.

Accepted Answer

A) True 
 B)False

Question 5

The circular-flow diagram is an example of

Accepted Answer

A)   a laboratory experiment.
B)   an economic model.
C)   a mathematical model.
D)   All of the above are correct.E) B) and D)
F) A) and D)

Question 6

Which of the following statements about models is correct?

Accepted Answer

A)   The more details a model includes, the better the model.
B)   Models assume away irrelevant details.
C)   Models cannot be used to explain how the economy functions.
D)   Models cannot be used to make predictions.E) A) and B)
F) A) and C)

Question 7

Table 2-5
 
-Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Accepted Answer

A)   100 pounds of coffee
B)   200 pounds of coffee
C)   300 pounds of coffee
D)   400 pounds of coffeeE) A) and B)
F) None of the above

Question 8

Figure 2-14
 
-Refer to Figure 2-14. The movement from point B to point C is a(n)

Accepted Answer

A)   shift of the demand curve.
B)   movement along the demand curve.
C)   indication that the price of grapes has changed.
D)   indication that the costs incurred by firms that produce grapes have changed.E) None of the above
F) B) and D)

Question 9

A circular-flow model and production possibilities frontier are similar in that

Accepted Answer

A)   neither allows economic analysis to occur.
B)   neither can be represented visually on a graph.
C)   both make use of assumptions.
D)   both make use of complex equations to arrive at solutions.E) None of the above
F) A) and C)

Question 10

Figure 2-10
 
-Refer to Figure 2-10. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Accepted Answer

A)   The economy's citizens developed an enhanced taste for books.
B)   The economy experienced a technological advance in the production of books.
C)   More capital became available in the economy.
D)   More labor became available in the economy.E) B) and C)
F) A) and C)

Question 11

When economists make normative statements, they are

Accepted Answer

A)   speaking as scientists.
B)   speaking as policy advisers.
C)   making claims about how the world is.
D)   revealing that they are very liberal in their views of how the world works.E) B) and C)
F) B) and D)

Question 12

The slope of a steep upward-sloping line will be a

Accepted Answer

A)   small positive number.
B)   large positive number.
C)   small negative number.
D)   large negative number.E) A) and D)
F) B) and C)

Question 13

The point where both x and y are zero is known as the

Accepted Answer

A)   origin.
B)   null.
C)   zero coordinate.
D)   center.E) B) and C)
F) A) and D)

Question 14

The ordered pair that represents the origin on a graph is

Accepted Answer

A)   (1, 1) .
B)   (0, 0) .
C)   (-1, -1) .
D)   () .E) B) and C)
F) A) and C)

Question 15

In the early 19th century, the Russian government sent doctors to southern Russian villages to provide assistance during a cholera epidemic. The villagers noticed that wherever doctors appeared, people died. Therefore, many doctors were chased away from villages, and some were even killed. This reaction to the correlation between doctors and deaths is most likely a problem of

Accepted Answer

A)   omitted variables.
B)   reverse causality.
C)   government propaganda.
D)   medical incompetence.E) A) and C)
F) A) and B)

Question 16

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

Question 17

Figure 2-14
 
-Refer to Figure 2-14. Points A, B, and D represent efficient outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 18

When an economy is operating inside its production possibilities frontier, we know that

Accepted Answer

A)   there are unused resources or inefficiencies in the economy.
B)   all of the economy's resources are fully employed.
C)   economic growth would have to occur in order for the economy to move to a point on the frontier.
D)   in order to produce more of one good, the economy would have to give up some of the other good.E) A) and C)
F) A) and B)

Question 19

Analysis of data on workers and those looking for work is conducted by economists at the

Accepted Answer

A)   Office of Management and Budget.
B)   Department of Labor.
C)   Congressional Budget Office.
D)   Department of the Treasury.E) B) and C)
F) A) and D)

Question 20

A duty of economists at the Department of Labor is to

Accepted Answer

A)   analyze data on workers.
B)   schedule federal holidays.
C)   enforce the nation's antitrust laws.
D)   All of the above are correct.E) A) and B)
F) B) and C)

Exam 2: Thinking Like an Economist

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Correct Answer
verified

The slope of a line that passes through the points (10, 15) and (20, 7) is

Correct Answer
verified

When an economy is operating inside its production possibilities frontier, we know that

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

Which of the following statements about models is correct?

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. A movement from point C to point D could be caused by

Correct Answer
verified

A circular-flow model and production possibilities frontier are similar in that

Correct Answer
verified

The slope of a steep upward-sloping line will be a

Correct Answer
verified

Correct Answer
verified

The point where both x and y are zero is known as the

Correct Answer
verified

The ordered pair that represents the origin on a graph is

Correct Answer
verified

A duty of economists at the Department of Labor is to

Correct Answer
verified

Analysis of data on workers and those looking for work is conducted by economists at the

Correct Answer
verified

If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient.

Correct Answer
verified

The circular-flow diagram is an example of

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14. Points A, B, and D represent efficient outcomes for this economy.

Correct Answer
verified

Figure 2-10 -Refer to Figure 2-10. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Correct Answer
verified

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14. The movement from point B to point C is a(n)

Correct Answer
verified

When economists make normative statements, they are

Correct Answer
verified

Exam 2: Thinking Like an Economist

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. What is the opportunity cost of increasing the production of cookies from 200 dozen to 400 dozen?

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points (10, 15) and (20, 7) is

Correct AnswerverifiedShow Answer

When an economy is operating inside its production possibilities frontier, we know that

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

Which of the following statements about models is correct?

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. A movement from point C to point D could be caused by

Correct AnswerverifiedShow Answer

A circular-flow model and production possibilities frontier are similar in that

Correct AnswerverifiedShow Answer

The slope of a steep upward-sloping line will be a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The point where both x and y are zero is known as the

Correct AnswerverifiedShow Answer

The ordered pair that represents the origin on a graph is

Correct AnswerverifiedShow Answer

A duty of economists at the Department of Labor is to

Correct AnswerverifiedShow Answer

Analysis of data on workers and those looking for work is conducted by economists at the

Correct AnswerverifiedShow Answer

If an economy can produce more of one good without giving up any of another good, then the economy's current production point is inefficient.

Correct AnswerverifiedShow Answer

The circular-flow diagram is an example of

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. Points A, B, and D represent efficient outcomes for this economy.

Correct AnswerverifiedShow Answer

Figure 2-10 -Refer to Figure 2-10. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Correct AnswerverifiedShow Answer

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. The movement from point B to point C is a(n)

Correct AnswerverifiedShow Answer

When economists make normative statements, they are

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified