Question 1

When two variables move in the same direction,the curve relating them is

Accepted Answer

A)   upward sloping,and we say the variables are positively related.
B)   upward sloping,and we say the variables are negatively related.
C)   downward sloping,and we say the variables are positively related.
D)   downward sloping,and we say the variables are negatively related.E) B) and D)
F) All of the above

Question 2

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 batteries.
B)   The economy experienced a technological advance in the production of batteries.
C)   More capital became available in the economy.
D)   More labor became available in the economy.E) None of the above
F) A) and B)

Question 3

Economic models

Accepted Answer

A)   are people who act out the behavior of firms and households so that economists can study this behavior.
B)   are usually detailed replications of reality.
C)   incorporate simplifying assumptions that often contradict reality,but also help economists better understand reality.
D)   are useful to researchers but not to teachers because economic models omit many details of the real-world economy.E) A) and D)
F) B) and C)

Question 4

When a relevant variable that is not named on either axis changes,

Accepted Answer

A)   there will be a movement along the curve.
B)   the curve will rotate clockwise.
C)   the curve will be unaffected since only the variables on the axis affect the curve.
D)   the curve will shift.E) A) and D)
F) A) and C)

Question 5

Table 2-2
Production Possibilities for Batterland
 
-Refer to Table 2-2.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Accepted Answer

A)   75 waffles
B)   150 waffles
C)   250 waffles
D)   325 wafflesE) All of the above
F) A) and B)

Question 6

In the simple circular-flow diagram,the participants in the economy are

Accepted Answer

A)   firms and government.
B)   households and firms.
C)   households and government.
D)   households,firms,and government.E) All of the above
F) C) and D)

Question 7

Production possibilities frontiers are usually bowed outward.This is because

Accepted Answer

A)   the more resources a society uses to produce one good,the fewer resources it has available to produce another good.
B)   it reflects the fact that the opportunity cost of producing a good decreases as more and more of that good is produced.
C)   of the effects of technological change.
D)   resources are specialized;that is,some are better at producing particular goods rather than other goods.E) C) and D)
F) All of the above

Question 8

When economists are trying to explain the world,they are scientists,and when they are trying to help improve the world,they are policy advisers.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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) C) and D)
F) B) and C)

Question 11

Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Accepted Answer

A)   the Department of Labor
B)   the Department of the Treasury
C)   the Congressional Budget Office
D)   the Council of Economic AdvisersE) B) and C)
F) All of the above

Exam 2: Thinking Like an Economist

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
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In the simple circular-flow diagram,the participants in the economy are

Correct Answer
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When a relevant variable that is not named on either axis changes,

Correct Answer
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Economic models

Correct Answer
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When economists make

Correct Answer
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Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Correct Answer
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When two variables move in the same direction,the curve relating them is

Correct Answer
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Production is efficient if the economy is producing at a point

Correct Answer
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Table 2-2 Production Possibilities for Batterland -Refer to Table 2-2.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Correct Answer
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Production possibilities frontiers are usually bowed outward.This is because

Correct Answer
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When economists are trying to explain the world,they are scientists,and when they are trying to help improve the world,they are policy advisers.

Correct Answer
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Exam 2: Thinking Like an Economist

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

In the simple circular-flow diagram,the participants in the economy are

Correct AnswerverifiedShow Answer

When a relevant variable that is not named on either axis changes,

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

When economists make

Correct AnswerverifiedShow Answer

Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

Correct AnswerverifiedShow Answer

When two variables move in the same direction,the curve relating them is

Correct AnswerverifiedShow Answer

Production is efficient if the economy is producing at a point

Correct AnswerverifiedShow Answer

Table 2-2 Production Possibilities for Batterland -Refer to Table 2-2.What is the opportunity cost to Batterland of increasing the production of pancakes from 150 to 300?

Correct AnswerverifiedShow Answer

Production possibilities frontiers are usually bowed outward.This is because

Correct AnswerverifiedShow Answer

When economists are trying to explain the world,they are scientists,and when they are trying to help improve the world,they are policy advisers.

Correct AnswerverifiedShow Answer

Correct Answer
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