Question 1

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) None of the above
F) B) and D)

Question 2

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)   Home experienced increased unemployment.
B)   Home experienced a decline in pear-producing technology.
C)   Home experienced an improvement in cellular phone-making technology.
D)   Home experienced a reduction in resources.E) All of the above
F) B) and D)

Question 3

Economic models

Accepted Answer

A)   cannot be useful if they are based on false assumptions.
B)   were once thought to be useful, but that is no longer true.
C)   must incorporate all aspects of the economy if they are to be useful.
D)   can be useful, even if they are not particularly realistid.E) A) and D)
F) A) and C)

Question 4

Efficiency is illustrated by

Accepted Answer

A)   both the production possibilities frontier and the circular-flow diagram.
B)   neither the production possibilities frontier nor the circular-flow diagram.
C)   the production possibilities frontier only.
D)   the circular-flow diagram only.E) B) and D)
F) C) and D)

Question 5

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Accepted Answer

A) True 
 B)False

Question 6

For economists, conducting experiments is often difficult and sometimes impossible.

Accepted Answer

A) True 
 B)False

Question 7

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Accepted Answer

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

Question 8

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 experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 1050 units of food and 47 machines. Which of the following statements is correct?

Accepted Answer

A)   Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 47.
B)   Because the technological advance occurred in the machine-making industry, increases in output can only occur in the machine industry.
C)   In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies.
D)   The technological advance reduced the amount of resources needed to produce 47 machines, so these resources could be used to produce more food.E) B) and C)
F) None of the above

Question 9

A duty of economists at the Department of Labor is to

Accepted Answer

A)   analyze data on workers.
B)   schedule federal holidays.
C)   enforce the nation's antitrust laws.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 10

The field of economics is traditionally divided into two broad subfields,

Accepted Answer

A)   national economics and international economics.
B)   consumer economics and producer economics.
C)   private sector economics and public sector economics.
D)   microeconomics and macroeconomics.E) A) and B)
F) A) and C)

Question 11

Figure 2-21 
-Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Accepted Answer

A)   the price of snowblowers
B)   a change in consumers' incomes
C)   a change in the seasons
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 12

Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. The slope of the line containing points A and B is

Accepted Answer

A)   -1/2.
B)   -2.
C)   1/2.
D)   2.E) B) and C)
F) C) and D)

Question 13

What type of statement is a prescriptive statement about how the world ought to be?

Accepted Answer

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

Question 14

Figure 2-20
Relationship Between Years of Education and Annual Income 
-Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Accepted Answer

A)   positive
B)   negative
C)   inverse
D)   normativeE) None of the above
F) A) and C)

Question 15

Draw a production possibilities frontier showing increasing opportunity cost of hammers in terms of horseshoes.
a. On the graph, identify the area of feasible outcomes and the area of infeasible outcomes.
b. On the graph, label a point that is efficient and a point that is inefficient.
c. On the graph, illustrate the effect of the discovery of a new vein of iron ore, a resource needed to make both horseshoes and hammers, on this economy.
d. On a second graph, illustrate the effect of a new computerized assembly line in the production of hammers on this economy.

Accepted Answer

The answer of Draw a production possibilities frontier showing increasing...

Question 16

The President counts among his economic advisors the Congressional Budget Office.

Accepted Answer

A) True 
 B)False

Question 17

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Accepted Answer

A) True 
 B)False

Question 18

Figure 2-1 
-Refer to Figure 2-1. Which arrow represents the flow of goods and services?

Accepted Answer

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

Question 19

The point where both x and y are zero is known as the

Accepted Answer

A)   origin.
B)   null.
C)   zero coordinate.
D)   center.E) A) and B)
F) All of the above

Question 20

The first number in any ordered pair is

Accepted Answer

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

Exam 2: Thinking Like an Economist

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Correct Answer
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Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of goods and services?

Correct Answer
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A duty of economists at the Department of Labor is to

Correct Answer
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Correct Answer
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Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points A and B is

Correct Answer
verified

Efficiency is illustrated by

Correct Answer
verified

Economic models

Correct Answer
verified

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Correct Answer
verified

The first number in any ordered pair is

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
verified

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Correct Answer
verified

For economists, conducting experiments is often difficult and sometimes impossible.

Correct Answer
verified

What type of statement is a prescriptive statement about how the world ought to be?

Correct Answer
verified

The President counts among his economic advisors the Congressional Budget Office.

Correct Answer
verified

The point where both x and y are zero is known as the

Correct Answer
verified

Correct Answer
verified

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Correct Answer
verified

Figure 2-21 -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Correct Answer
verified

The field of economics is traditionally divided into two broad subfields,

Correct Answer
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Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Correct Answer
verified

Exam 2: Thinking Like an Economist

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of goods and services?

Correct AnswerverifiedShow Answer

A duty of economists at the Department of Labor is to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points A and B is

Correct AnswerverifiedShow Answer

Efficiency is illustrated by

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

In the circular-flow diagram, the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Correct AnswerverifiedShow Answer

The first number in any ordered pair is

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

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Correct AnswerverifiedShow Answer

For economists, conducting experiments is often difficult and sometimes impossible.

Correct AnswerverifiedShow Answer

What type of statement is a prescriptive statement about how the world ought to be?

Correct AnswerverifiedShow Answer

The President counts among his economic advisors the Congressional Budget Office.

Correct AnswerverifiedShow Answer

The point where both x and y are zero is known as the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Correct AnswerverifiedShow Answer

Figure 2-21 -Refer to Figure 2-21. Which of the following could be an omitted variable in the graph?

Correct AnswerverifiedShow Answer

The field of economics is traditionally divided into two broad subfields,

Correct AnswerverifiedShow Answer

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Correct AnswerverifiedShow Answer

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