Question 1

Which of the following is an example of using the scientific method with a natural experiment?

Accepted Answer

A)  measuring how long it takes a marble to fall from a ten story building
B)  comparing plant growth with and without a soil additive
C)  tracking the price of oil when a war in the Middle East interrupts the flow of crude oil
D)  observing the reaction when two chemicals are mixed togetherE) All of the above
F) A) and B)

Question 2

When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the second good is produced.

Accepted Answer

A) True 
 B)False

Question 3

Figure 2-10
Panel (a) 
Panel (b)   
-Refer to Figure 2-10, Panel (a)  and Panel (b) . A shift of the economy's production possibilities frontier from Panel (a)  to Panel (b)  could be caused by

Accepted Answer

A)  unemployment.
B)  an improvement in sofa production technology.
C)  an improvement in tractor production technology.
D)  an improvement in both sofa and tractor production technology.E) B) and C)
F) A) and B)

Question 4

Figure 2-3 
-Refer to Figure 2-3. What do the ovals represent in the figure?

Accepted Answer

Market for Goods and...

Question 5

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use a(n)

Accepted Answer

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

Question 6

In the ordered pair (5, 3) , 3 is the

Accepted Answer

A)  horizontal location of the point.
B)  the slope.
C)  the x-coordinate.
D)  the y-coordinate.E) A) and B)
F) A) and C)

Question 7

Figure 2-9
Panel (a) 
Panel (b)   
-Refer to Figure 2-9, Panel (a) . Production at point K is

Accepted Answer

A)  possible and efficient.
B)  possible but inefficient.
C)  impossible but efficient.
D)  impossible and inefficient.E) B) and D)
F) B) and C)

Question 8

A circular-flow model and production possibilities frontier are similar in that

Accepted Answer

A)  neither allows economic analysis to occur.
B)  neither can be represented visually on a graph.
C)  both make use of assumptions.
D)  both make use of complex equations to arrive at solutions.E) B) and C)
F) A) and D)

Question 9

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Accepted Answer

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

Question 10

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Accepted Answer

The answer of Is the following a positive or normative...

Question 11

Economists make assumptions to

Accepted Answer

A)  provide issues for political discussion.
B)  make a complex world easier to understand.
C)  make it easier to teach economic concepts and analysis.
D)  create policy alternatives that are incomplete or subject to criticism.E) A) and D)
F) None of the above

Question 12

Figure 2-19
In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.
Commuter Rail Passengers by Frequency of Service 
-Refer to Figure 2-19. Which of the following conclusions should not be drawn from observing this graph?

Accepted Answer

A)  There is a positive correlation between the frequency of service and the number of passengers.
B)  When there are 5 stops per hour, there are approximately 200 passengers.
C)  More stops per hour is associated with more passengers per hour.
D)  No other factors besides the frequency of service affect the number of passengers.E) A) and B)
F) All of the above

Question 13

Which of the following is not an assumption of the productions possibilities frontier?

Accepted Answer

A)  A country produces only two goods or types of goods.
B)  Technology does not change.
C)  The amount of available resources does not change.
D)  There is a fixed quantity of money.E) B) and D)
F) A) and B)

Question 14

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

Question 15

Figure 2-4 
-Refer to Figure 2-4. Efficient production is represented by which point(s) ?

Accepted Answer

A)  Q, R, U
B)  R, T, U
C)  R, U
D)  S, TE) A) and B)
F) All of the above

Question 16

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 17

In the circular-flow diagram, firms produce goods and services using the factors of production.

Accepted Answer

A) True 
 B)False

Question 18

The scientific method is

Accepted Answer

A)  the use of modern technology to understand the way the world works.
B)  the use of controlled laboratory experiments to understand the way the world works.
C)  the dispassionate development and testing of theories about how the world works.
D)  the search for evidence to support preconceived theories about how the world works.E) B) and C)
F) A) and D)

Question 19

Which of the following statements is correct?

Accepted Answer

A)  Economists almost always find it easy to conduct experiments in order to test their theories.
B)  Economics is not a true science because economists are not usually allowed to conduct experiments to test their theories.
C)  Economics is a social science rather than a true science because it cannot employ the scientific method.
D)  Economists are usually not able to conduct experiments, so they must rely on natural experiments offered by history.E) B) and D)
F) None of the above

Question 20

In the circular-flow diagram, firms produce

Accepted Answer

A)  goods and services using factors of production.
B)  output using inputs.
C)  factors of production using goods and services.
D)  Both (a)  and (b)  are correct.E) None of the above
F) All of the above

Exam 2: Thinking Like an Economist

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use a(n)

Correct Answer
verified

Economists make assumptions to

Correct Answer
verified

Correct Answer
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Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a) and Panel (b) . A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Correct Answer
verified

In the ordered pair (5, 3) , 3 is the

Correct Answer
verified

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Correct Answer
verified

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . Production at point K is

Correct Answer
verified

Which of the following is an example of using the scientific method with a natural experiment?

Correct Answer
verified

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

Correct Answer
verified

In the circular-flow diagram, firms produce goods and services using the factors of production.

Correct Answer
verified

A circular-flow model and production possibilities frontier are similar in that

Correct Answer
verified

When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the second good is produced.

Correct Answer
verified

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Correct Answer
verified

Which of the following is not an assumption of the productions possibilities frontier?

Correct Answer
verified

The scientific method is

Correct Answer
verified

In the circular-flow diagram, firms produce

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
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Figure 2-3 -Refer to Figure 2-3. What do the ovals represent in the figure?

Correct Answer
verified
Market for Goods and...
View Answer

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct Answer
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Figure 2-4 -Refer to Figure 2-4. Efficient production is represented by which point(s) ?

Correct Answer
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Exam 2: Thinking Like an Economist

Eva wants to create a graph containing the prices of concert tickets and the corresponding quantities of concert tickets demanded by customers. She should use a(n)

Correct AnswerverifiedShow Answer

Economists make assumptions to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a) and Panel (b) . A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Correct AnswerverifiedShow Answer

In the ordered pair (5, 3) , 3 is the

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) . Production at point K is

Correct AnswerverifiedShow Answer

Which of the following is an example of using the scientific method with a natural experiment?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular-flow diagram, firms produce goods and services using the factors of production.

Correct AnswerverifiedShow Answer

A circular-flow model and production possibilities frontier are similar in that

Correct AnswerverifiedShow Answer

When a production possibilities frontier is bowed outward, the opportunity cost of the first good in terms of the second good increases as more of the second good is produced.

Correct AnswerverifiedShow Answer

Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Which of the following is not an assumption of the productions possibilities frontier?

Correct AnswerverifiedShow Answer

The scientific method is

Correct AnswerverifiedShow Answer

In the circular-flow diagram, firms produce

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. What do the ovals represent in the figure?

Correct AnswerverifiedMarket for Goods and...View AnswerShow Answer

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. Efficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

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Market for Goods and...
View Answer

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