Question 1

The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues.

Accepted Answer

A) True 
 B)False

Question 2

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Accepted Answer

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

Question 3

Figure 2-13
​
  Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
​
​
​
-Refer to Figure 2-13. Which point(s) on the graph show unemployment of resources?

Accepted Answer

The answer of Figure 2-13
​
  Consider the production possibilities...

Question 4

Figure 2-15
​
  ​
-Refer to Figure 2-15. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Accepted Answer

The answer of Figure 2-15
​
  ​
-Refer to Figure 2-15....

Question 5

Figure 2-4
Graph (a) 
Graph (b) 
  
-Refer to Figure 2-4, Graph (a)  and Graph (b) . Which of the following is not a result of the shift of the economy's production possibilities frontier from Graph (a)  to Graph (b) ?

Accepted Answer

A)  The trade-off between the production of DVDs and books changes.
B)  The opportunity cost of a book is higher at all levels of book production.
C)  Production of 4 DVDs and 2 books becomes possible.
D)  Production of 2 DVDs and 2 books becomes efficient.E) All of the above
F) A) and D)

Question 6

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

Accepted Answer

A)  Gasoline prices ought to be lower than they are now.
B)  A decrease in the minimum wage would decrease unemployment.
C)  The elimination of trade restrictions would increase an economy's standard of living.
D)  In response to the most recent recession, the federal government extended the duration of unemployment benefits.E) A) and B)
F) B) and D)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

Accepted Answer

A) True 
 B)False

Question 9

Figure 2-15
​
  ​
-Refer to Figure 2-15. What are the coordinates of point C?

Accepted Answer

The answer of Figure 2-15
​
  ​
-Refer to Figure 2-15....

Question 10

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Accepted Answer

The answer of Economists at which administrative department analyze data...

Question 11

In the circular-flow diagram,

Accepted Answer

A)  factors of production flow from government to firms.
B)  income paid to the factors of production flows from firms to households.
C)  goods and services flow from households to firms.
D)  inputs and outputs flow in the same direction as the flow of dollars, from households to firms.E) A) and B)
F) A) and C)

Question 12

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-15
​
  ​
-Refer to Figure 2-15. How are price and quantity related in this graph?

Accepted Answer

negatively...

Question 14

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-8
 
-Refer to Figure 2-8. The movement from point B to point C is

Accepted Answer

A)  a movement along the demand curve.
B)  an indication that the price of bananas has changed.
C)  a shift of the demand curve.
D)  an indication that the costs incurred by firms that produce bananas have changed.E) All of the above
F) A) and B)

Question 16

What type of statement is a descriptive statement about how the world is?

Accepted Answer

The answer of What type of statement is a descriptive...

Question 17

Figure 2-11
  ​
-Refer to Figure 2-11. Point B represents an inefficient outcome for this economy.

Accepted Answer

A) True 
 B)False

Question 18

Figure 2-10
​
  ​
​
​
​
-Refer to Figure 2-10. The opportunity cost of moving from point A to point D is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 19

A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output.

Accepted Answer

A) True 
 B)False

Question 20

In the markets for the factors of production in the circular-flow diagram, households are buyers and firms are sellers.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Figure 2-15 ​ ​ -Refer to Figure 2-15. How are price and quantity related in this graph?

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

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Figure 2-11 ​ -Refer to Figure 2-11. Point B represents an inefficient outcome for this economy.

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

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Figure 2-8 -Refer to Figure 2-8. The movement from point B to point C is

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The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Correct AnswerverifiedShow Answer

What type of statement is a descriptive statement about how the world is?

Correct AnswerverifiedShow Answer

Since 1946, the president of the United States has received guidance from the Council of Economic Advisers.

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Figure 2-4 Graph (a) Graph (b) -Refer to Figure 2-4, Graph (a) and Graph (b) . Which of the following is not a result of the shift of the economy's production possibilities frontier from Graph (a) to Graph (b) ?

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A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output.

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In the circular-flow diagram,

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In the markets for the factors of production in the circular-flow diagram, households are buyers and firms are sellers.

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Figure 2-15 ​ ​ -Refer to Figure 2-15. What are the coordinates of point C?

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Figure 2-13 ​ Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. ​ ​ ​ -Refer to Figure 2-13. Which point(s) on the graph show unemployment of resources?

Correct AnswerverifiedShow Answer

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Correct AnswerverifiedShow Answer

The Council of Economic Advisers' Economic Report of the President discusses recent developments in the economy and presents the council's analysis of current policy issues.

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Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. The opportunity cost of moving from point A to point D is 10 dishwashers.

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Figure 2-15 ​ ​ -Refer to Figure 2-15. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Correct AnswerverifiedShow Answer

Who would be more likely to study the inflation rate in the United States, a macroeconomist or a microeconomist?

Correct AnswerverifiedShow Answer

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Correct AnswerverifiedShow Answer

Figure 2-15 -Refer to Figure 2-15. How are price and quantity related in this graph?

Correct Answer
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negatively...
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Figure 2-11 -Refer to Figure 2-11. Point B represents an inefficient outcome for this economy.

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Figure 2-15 -Refer to Figure 2-15. What are the coordinates of point C?

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Figure 2-13 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-13. Which point(s) on the graph show unemployment of resources?

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Figure 2-10 -Refer to Figure 2-10. The opportunity cost of moving from point A to point D is 10 dishwashers.

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Figure 2-15 -Refer to Figure 2-15. Given that price is measured on the vertical axis, quantity is measured on the horizontal axis, and that the curves are downward-sloping, what type of curves are depicted here?

Correct Answer
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