Question 1

"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 ReaganE) B) and D)
F) A) and B)

Question 2

Figure 2-2 
-Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular­flow diagram, then Juan's income is represented by a flow of dollars

Accepted Answer

A)   from Box A to Box C.
B)   from Box C to Box A.
C)   from Box B to Box D.
D)   from Box D to Box B.E) All of the above
F) B) and C)

Question 3

The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Accepted Answer

A)   households
B)   firms
C)   government
D)   markets for factors of productionE) A) and B)
F) C) and D)

Question 4

The slope of a line that passes through the points 5, 8)  and 12, 12)  is

Accepted Answer

A)   -7/4.
B)   -4/7.
C)   4/7.
D)   7/4.E) A) and D)
F) A) and B)

Question 5

Points outside the production possibilities frontier represent infeasible levels of production.

Accepted Answer

A) True 
 B)False

Question 6

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

Accepted Answer

A)   is useless, since the real world has many countries trading many goods.
B)   can be useful only in situations involving two countries and two goods.
C)   can be useful in the classroom, but is useless in the real world.
D)   can be useful in helping economists understand the complex world of international trade involving many countries and many goods.E) None of the above
F) A) and B)

Question 7

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

Accepted Answer

A)   Gasoline prices ought to be lower than they are now.
B)   The federal government should raise taxes on wealthy people.
C)   The social security system is a good system and it deserves to be preserved as it is.
D)   All of the above are normative statements.E) A) and D)
F) A) and C)

Question 8

Figure 2-22 
-Refer to Figure 2-22. What is the x-coordinate of point R?

Accepted Answer

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

Question 9

The circular-flow diagram

Accepted Answer

A)   is an economic model.
B)   incorporates two types of decision makers: households and firms.
C)   represents the flows of inputs, outputs, and dollars.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 10

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 11

Between the two ordered pairs 3, 6)  and 7, 18) , the slope is

Accepted Answer

A)   1/3
B)   -1/3.
C)   3.
D)   -3.E) C) and D)
F) B) and C)

Question 12

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two.
-Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Accepted Answer

The answer of Figure 2-14  Consider the production possibilities...

Question 13

The y-coordinate of an ordered pair specifies the

Accepted Answer

A)   diagonal location of the point.
B)   vertical location of the point.
C)   horizontal location of the point.
D)   quadrant location in which the point is located.E) None of the above
F) A) and B)

Question 14

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Accepted Answer

A) True 
 B)False

Question 15

Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

Accepted Answer

A)   Isaac Newton
B)   Albert Einstein
C)   Adam Smith
D)   Benjamin FranklinE) A) and B)
F) All of the above

Question 16

Which of the following is not correct?

Accepted Answer

A)   Economists use some familiar words in specialized ways.
B)   Economics has its own language and its own way of thinking, but few other fields of study do.
C)   Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are all terms that are part of the economist's language.
D)   The value of the economist's language lies in its ability to provide you with a new and useful way of thinking about the world in which you live.E) All of the above
F) A) and B)

Question 17

Figure 2-10
Panel a)  Panel b) 
  
-Refer to Figure 2-10, Panel a) . The opportunity cost of one sofa is highest when the economy produces

Accepted Answer

A)   0 sofas.
B)   12 sofas.
C)   20 sofas.
D)   24 sofas.E) A) and B)
F) B) and D)

Question 18

For an economist, the idea of making assumptions is regarded generally as a

Accepted Answer

A)   bad idea, since doing so leads to the omission of important ideas and variables from economic models.
B)   bad idea, since doing so invariably leads to data-collection problems.
C)   good idea, since doing so helps to simplify the complex world and make it easier to understand.
D)   good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.E) B) and C)
F) C) and D)

Question 19

Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. The slope of the line containing points A and B is

Accepted Answer

A)   -1/2.
B)   -2.
C)   1/2.
D)   2.E) A) and D)
F) B) and D)

Question 20

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

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

Correct Answer
verified

The circular-flow diagram

Correct Answer
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The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Correct Answer
verified

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Correct Answer
verified

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

Correct Answer
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Correct Answer
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The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Correct Answer
verified

Between the two ordered pairs 3, 6) and 7, 18) , the slope is

Correct Answer
verified

Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

Correct Answer
verified

For an economist, the idea of making assumptions is regarded generally as a

Correct Answer
verified

Figure 2-22 -Refer to Figure 2-22. What is the x-coordinate of point R?

Correct Answer
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Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points A and B is

Correct Answer
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The slope of a line that passes through the points 5, 8) and 12, 12) is

Correct Answer
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Points outside the production possibilities frontier represent infeasible levels of production.

Correct Answer
verified

The y-coordinate of an ordered pair specifies the

Correct Answer
verified

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) . The opportunity cost of one sofa is highest when the economy produces

Correct Answer
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Which of the following is not correct?

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

Correct Answer
verified

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Correct Answer
verified

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

Correct Answer
verified

Exam 2: Thinking Like an Economist

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

Correct AnswerverifiedShow Answer

The circular-flow diagram

Correct AnswerverifiedShow Answer

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

Correct AnswerverifiedShow Answer

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels), or a combination of the two. -Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Correct AnswerverifiedShow Answer

Between the two ordered pairs 3, 6) and 7, 18) , the slope is

Correct AnswerverifiedShow Answer

Who said, "The whole of science is nothing more than the refinement of everyday thinking"?

Correct AnswerverifiedShow Answer

For an economist, the idea of making assumptions is regarded generally as a

Correct AnswerverifiedShow Answer

Figure 2-22 -Refer to Figure 2-22. What is the x-coordinate of point R?

Correct AnswerverifiedShow Answer

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points A and B is

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points 5, 8) and 12, 12) is

Correct AnswerverifiedShow Answer

Points outside the production possibilities frontier represent infeasible levels of production.

Correct AnswerverifiedShow Answer

The y-coordinate of an ordered pair specifies the

Correct AnswerverifiedShow Answer

Figure 2-10 Panel a) Panel b) -Refer to Figure 2-10, Panel a) . The opportunity cost of one sofa is highest when the economy produces

Correct AnswerverifiedShow Answer

Which of the following is not correct?

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

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Correct AnswerverifiedShow Answer

An economic theory about international trade that is based on the assumption that there are only two countries trading two goods

Correct AnswerverifiedShow Answer

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