Question 1

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. Which points) on the graph isare) unattainable given current resources and technology?

Accepted Answer

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

Question 2

An economic outcome is said to be efficient if the economy is

Accepted Answer

A)   using all of the scarce resources it has available.
B)   conserving on resources, rather than using all available resources.
C)   getting all it can get from the scarce resources it has available.
D)   able to produce more than what is currently being produced without additional resources.E) A) and D)
F) None of the above

Question 3

When an economist evaluates a positive statement, he or she is primarily

Accepted Answer

A)   examining evidence.
B)   acting as a scientist.
C)   concerned with verifying how the world is.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 4

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

Question 5

As a substitute for laboratory experiments, economists use evidence available through history's

Accepted Answer

natural ex...

Question 6

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Accepted Answer

A)   the effect of an increase in the alcohol tax on the market for beer
B)   the effect of foreign competition on the domestic auto industry
C)   the effect of a price war in the airline industry
D)   the effect of an increase in the minimum wage on an economy's overall rate of unemploymentE) A) and D)
F) C) and D)

Question 7

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Accepted Answer

scientific...

Question 8

In economics, capital refers to

Accepted Answer

A)   the finances necessary for firms to produce their products.
B)   buildings and machines used in the production process.
C)   the money households use to purchase firms' output.
D)   stocks and bonds.E) A) and B)
F) All of the above

Question 9

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year, it is producing 1050 units of food and 52 machines. Which of the following events could not explain the increase in output?

Accepted Answer

A)   a reduction in unemployment
B)   an increase in available labor
C)   an improvement in technology
D)   Any of these events could explain the increase in output.E) A) and B)
F) B) and C)

Question 10

Figure 2-5 
-Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Accepted Answer

A)   0 washers.
B)   20 washers.
C)   40 washers.
D)   None of the above; the economy cannot move from point D to point A.E) A) and C)
F) A) and B)

Question 11

The art in scientific thinking is

Accepted Answer

A)   finding the right problem to study.
B)   deciding which assumptions to make.
C)   the ability to make an abstract subject easy to understand.
D)   not something in which economists have to be skilled.E) A) and B)
F) A) and D)

Question 12

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

Question 13

Normative statements are

Accepted Answer

A)   not usually made by economists.
B)   claims about how the world should be.
C)   claims about how variables in the economy normally behave.
D)   pessimistic interpretations of the economy.E) All of the above
F) C) and D)

Question 14

Figure 2-9
Panel a)  Panel b) 
  
-Refer to Figure 2-9, Panel a) . To gain 2 donuts by moving from point L to point M, society must sacrifice

Accepted Answer

A)   efficiency.
B)   employment.
C)   4 cups of coffee.
D)   More than one of the above is correct.E) B) and C)
F) A) and D)

Question 15

Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Accepted Answer

A) True 
 B)False

Question 16

Instead of conducting laboratory experiments to generate data to test their theories, economists often

Accepted Answer

A)   ask winners of the Nobel Prize in Economics to evaluate their theories.
B)   argue that data is impossible to collect in economics.
C)   gather data from historical episodes of economic change.
D)   assume that data would support their theories.E) None of the above
F) B) and D)

Question 17

To display information on two variables, an economist must use

Accepted Answer

A)   a bar graph.
B)   a pie chart.
C)   the coordinate system.
D)   a time-series graph.E) None of the above
F) A) and B)

Question 18

Figure 2-5 
-Refer to Figure 2-5. Efficient production is represented by which points) ?

Accepted Answer

A)   A, B
B)   A, B, D
C)   A, B, C
D)   CE) A) and C)
F) A) and B)

Question 19

Figure 2-17 
-Refer to Figure 2-17. The movement from point B to point C could have been caused by

Accepted Answer

A)   inflation.
B)   a change in income.
C)   a change in the price of grapes.
D)   a change in the cost of producing grapes.E) None of the above
F) A) and C)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

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. Which points) on the graph isare) unattainable given current resources and technology?

Correct Answer
verified

Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Correct Answer
verified

Instead of conducting laboratory experiments to generate data to test their theories, economists often

Correct Answer
verified

The art in scientific thinking is

Correct Answer
verified

When an economist evaluates a positive statement, he or she is primarily

Correct Answer
verified

In economics, capital refers to

Correct Answer
verified

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

Correct Answer
verified

Normative statements are

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. Efficient production is represented by which points) ?

Correct Answer
verified

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answer
verified
scientific...
View Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Correct Answer
verified

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C could have been caused by

Correct Answer
verified

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Correct Answer
verified

To display information on two variables, an economist must use

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

When economists make normative statements, they are

Correct Answer
verified

As a substitute for laboratory experiments, economists use evidence available through history's

Correct Answer
verified
natural ex...
View Answer

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . To gain 2 donuts by moving from point L to point M, society must sacrifice

Correct Answer
verified

An economic outcome is said to be efficient if the economy is

Correct Answer
verified

Exam 2: Thinking Like an Economist

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. Which points) on the graph isare) unattainable given current resources and technology?

Correct AnswerverifiedShow Answer

Economists devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories.

Correct AnswerverifiedShow Answer

Instead of conducting laboratory experiments to generate data to test their theories, economists often

Correct AnswerverifiedShow Answer

The art in scientific thinking is

Correct AnswerverifiedShow Answer

When an economist evaluates a positive statement, he or she is primarily

Correct AnswerverifiedShow Answer

In economics, capital refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Normative statements are

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. Efficient production is represented by which points) ?

Correct AnswerverifiedShow Answer

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answerverifiedscientific...View AnswerShow Answer

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 20 additional dryers by moving from point D to point A is

Correct AnswerverifiedShow Answer

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C could have been caused by

Correct AnswerverifiedShow Answer

Which of the following would likely be studied by a macroeconomist rather than a microeconomist?

Correct AnswerverifiedShow Answer

To display information on two variables, an economist must use

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When economists make normative statements, they are

Correct AnswerverifiedShow Answer

As a substitute for laboratory experiments, economists use evidence available through history's

Correct Answerverifiednatural ex...View AnswerShow Answer

Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a) . To gain 2 donuts by moving from point L to point M, society must sacrifice

Correct AnswerverifiedShow Answer

An economic outcome is said to be efficient if the economy is

Correct AnswerverifiedShow Answer

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natural ex...
View Answer

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Correct Answer
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