Question 1

Use the following Figure to answer the question : Figure 2-23 : 
-Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

Accepted Answer

A) True 
 B)False

Question 2

Use the following Figure to answer the question : Figure 2-22 : 
-Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Accepted Answer

The answer of Use the following Figure to answer the...

Question 3

In the simple circular-flow diagram,

Accepted Answer

A)   households own the factors of production.
B)   households buy all the goods and services that firms produce.
C)   land, labor, and capital flow from households to firms.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 4

For economists, substitutes for laboratory experiments often come in the form of

Accepted Answer

A)   natural experiments offered by history.
B)   untested theories.
C)   "rules of thumb" and other such conveniences.
D)   reliance upon the wisdom of elders in the economics profession.E) A) and B)
F) A) and C)

Question 5

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Accepted Answer

The answer of Who would be more likely to study...

Question 6

Use the following Figure to answer the question : Figure 2-15 : 
-Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Accepted Answer

The answer of Use the following Figure to answer the...

Question 7

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) None of the above
F) B) and C)

Question 8

Use the following Figure to answer the question : Figure 2-6 
-Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Accepted Answer

A)   120 pillows and 320 blankets.
B)   180 pillows and 180 blankets.
C)   240 pillows and 200 blankets.
D)   We would have to know the details of this economy's technology in order to determine this.E) None of the above
F) B) and D)

Question 9

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Accepted Answer

A)   An economist must also be a mathematician, historian, statesman, and philosopher in some degree.
B)   An economist must understand symbols and speak in words.
C)   An economist must be purposeful and disinterested in a simultaneous mood.
D)   An economist must understand environmental science, regulation, and political science.E) All of the above
F) B) and C)

Question 10

Use the following Figure to answer the question Figure:2-3 
-Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Accepted Answer

A)   revenue
B)   goods and services sold
C)   factors of production
D)   labor, land, and capitalE) A) and B)
F) A) and C)

Question 11

In the circular-flow diagram, factors of production are the goods and services produced by firms.

Accepted Answer

A) True 
 B)False

Question 12

Use the following Figure to answer the question :  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) A) and D)
F) A) and B)

Question 13

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

Accepted Answer

A) True 
 B)False

Question 14

According to the circular flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates

Accepted Answer

A)   in the markets for factors of production exchanging labor for income.
B)   in the markets for factors of production exchanging flowers for revenue.
C)   in the markets for goods and services exchanging flowers for wages, rent, and profit.
D)   in the markets for goods and services exchanging labor for income.E) A) and B)
F) None of the above

Question 15

Which of the following steps does an economist take when studying the economy?

Accepted Answer

A)   devise theories
B)   collect data
C)   analyze data
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 16

Use the following Figure to answer the question : Figure 2-12 
-Refer to Figure 2-12. 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) All of the above

Question 17

Economists at the Department of the Treasury

Accepted Answer

A)   design U.S. currency and coins.
B)   provide Congress with the annual budget.
C)   enforce the U.S. antitrust laws.
D)   provide advice on tax policy to the President.E) All of the above
F) B) and C)

Question 18

The president of the United States receives tax policy advice from economists in the

Accepted Answer

A)   Federal Reserve.
B)   Department of Justice.
C)   Department of the Treasury.
D)   Congressional Budget Office.E) All of the above
F) None of the above

Question 19

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Accepted Answer

A)   is asked to explain the cause of an economic event.
B)   is asked to recommend a policy to improve economic outcomes.
C)   is asked as a policy adviser.
D)   does not have enough information to respond.E) B) and C)
F) C) and D)

Question 20

Production is efficient if the economy is producing at a point

Accepted Answer

A)   on the production possibilities frontier.
B)   outside the production possibilities frontier.
C)   on or inside the production possibilities frontier.
D)   inside the production possibilities frontier.E) A) and C)
F) B) and D)

Exam 2: Thinking Like an Economist

With the resources it has, an economy can produce at any point on or outside the production possibilities frontier, but it cannot produce at points inside the frontier.

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Use the following Figure to answer the question : Figure 2-22 : -Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

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In the simple circular-flow diagram,

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According to the circular flow diagram, if Suzy is a worker who delivers flowers for Happy Day Flower Company, she participates

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Use the following Figure to answer the question : Figure 2-15 : -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

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Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

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In the circular-flow diagram, factors of production are the goods and services produced by firms.

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Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

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Use the following Figure to answer the question Figure:2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

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For economists, substitutes for laboratory experiments often come in the form of

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Production is efficient if the economy is producing at a point

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

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When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

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Use the following Figure to answer the question : 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

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Use the following Figure to answer the question : Figure 2-12 -Refer to Figure 2-12. The shift of the production possibilities frontier from A to B can best be described as

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The president of the United States receives tax policy advice from economists in the

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Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

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Which of the following steps does an economist take when studying the economy?

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John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

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Economists at the Department of the Treasury

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