Question 1

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

Accepted Answer

A)   interest
B)   capital
C)   spending by households on goods
D)   spending by households on servicesE) A) and B)
F) All of the above

Question 2

A demand curve shows the relationship

Accepted Answer

A)   between income and quantity demanded.
B)   between price and income.
C)   between price and quantity demanded.
D)   among income, price, and quantity demanded.E) A) and B)
F) A) and C)

Question 3

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Accepted Answer

A) True 
 B)False

Question 4

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Accepted Answer

A)   should produce.
B)   wants to produce.
C)   can produce.
D)   demands.E) B) and D)
F) All of the above

Question 5

When a variable that is named on an axis of a graph changes, the curve shifts.

Accepted Answer

A) True 
 B)False

Question 6

Economists believe that production possibilities frontiers

Accepted Answer

A)   never have a bowed shape.
B)   rarely have a bowed shape.
C)   often have a bowed shape.
D)   always have a bowed shape.E) All of the above
F) None of the above

Question 7

Among economic models, the circular-flow diagram is unusual in that it

Accepted Answer

A)   drastically simplifies the real world.
B)   features more than one type of market.
C)   features flows of dollars.
D)   does not involve mathematics.E) C) and D)
F) All of the above

Question 8

In the ordered pair (10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Among economic models, the circular-flow diagram is unusual in that it

Correct Answer
verified

In the ordered pair (10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Correct Answer
verified

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Correct Answer
verified

When a variable that is named on an axis of a graph changes, the curve shifts.

Correct Answer
verified

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct Answer
verified

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

Correct Answer
verified

A demand curve shows the relationship

Correct Answer
verified

Economists believe that production possibilities frontiers

Correct Answer
verified

Exam 2: Thinking Like an Economist

Among economic models, the circular-flow diagram is unusual in that it

Correct AnswerverifiedShow Answer

In the ordered pair (10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Correct AnswerverifiedShow Answer

The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist.

Correct AnswerverifiedShow Answer

When a variable that is named on an axis of a graph changes, the curve shifts.

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph that shows the various combinations of output that an economy

Correct AnswerverifiedShow Answer

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

Correct AnswerverifiedShow Answer

A demand curve shows the relationship

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers

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
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