Question 1

According to John Maynard Keynes, an economist must possess a rare combination of skills including being a mathematician, historian, statesman, and philosopher.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

Use the following Figure to answer the question : Figure 2-16 
-Refer to Figure 2-16. The graph shown is known as a

Accepted Answer

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

Question 5

Economists make assumptions to

Accepted Answer

A)   mimic the methodologies employed by other scientists.
B)   minimize the number of experiments that yield no useful data.
C)   minimize the likelihood that some aspect of the problem at hand is being overlooked.
D)   focus their thinking on the essence of the problem at hand.E) B) and C)
F) A) and D)

Question 6

Use the following Table to answer the question : Table 2-1
The following table contains some production possibilities for an economy for a given month.
 
-Refer to Table 2-1. If the production possibilities frontier is bowed outward, then "?" could be

Accepted Answer

A)   400.
B)   450.
C)   600.
D)   750.E) None of the above
F) B) and C)

Question 7

The slope of a steep upward-sloping line will be a

Accepted Answer

A)   small positive number.
B)   large positive number.
C)   small negative number.
D)   large negative number.E) A) and B)
F) A) and C)

Question 8

It is possible for an economy to increase its production of both goods if the economy

Accepted Answer

A)   moves downward and to the right along its production possibilities frontier and the frontier is bowed outward.
B)   moves upward and to the left along its production possibilities frontier and the frontier is bowed outward.
C)   moves in either direction along its production possibilities frontier and the frontier is a straight line.
D)   moves from a situation of inefficient production to a situation of efficient production.E) B) and D)
F) B) and C)

Question 9

Economists believe that production possibilities frontiers are often bowed because

Accepted Answer

A)   trade-offs inevitably create unemployment.
B)   resources are not completely adaptable.
C)   opportunity costs are constant.
D)   of improvements in technology.E) A) and B)
F) All of the above

Question 10

The slope of a line that passes through the points 20, 30)  and 40, 14)  is

Accepted Answer

A)   -5/4.
B)   -4/5.
C)   4/5.
D)   5/4.E) C) and D)
F) None of the above

Question 11

Use the following Figure to answer the question : Figure 2-15 
-Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car is

Accepted Answer

A)   the slope of the production possibilities frontier.
B)   3/2 sofas.
C)   2/3 of a sofa.
D)   Both a and b are correct.E) B) and D)
F) None of the above

Question 12

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Accepted Answer

The answer of In the circular flow diagram, who owns...

Question 13

Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> This diagram should duplicate the essen...

Question 14

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

Accepted Answer

A)   When the minimum wage is increased, unemployment is a predictable consequence.
B)   The income tax rate should be increased to offset the budget deficit.
C)   Increasing government spending is the best way to help the economy move out of a recession.
D)   More than one of the above are positive statements.E) A) and B)
F) A) and C)

Question 15

Use the following Figure to answer the question : Figure 2-3 : 
-Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Accepted Answer

goods and ...

Question 16

In the circular-flow diagram, one loop represents the flow of goods and services, and the other loop represents the flow of factors of production.

Accepted Answer

A) True 
 B)False

Question 17

If a line passes through the points 20,5) and 10,10), then the slope of the line is -2.

Accepted Answer

A) True 
 B)False

Question 18

In addition to advising the president, one duty of the Council of Economic Advisers is to

Accepted Answer

A)   prepare the federal budget.
B)   write government regulations.
C)   advise Congress on economic matters.
D)   write the annual Economic Report of the President.E) None of the above
F) A) and D)

Question 19

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

Question 20

Use the following Figure to answer the question : Figure 2-5:  
-Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce

Accepted Answer

A)   0 dryers and 100 washers.
B)   60 dryers and 50 washers.
C)   80 dryers and 0 washers.
D)   80 dryers and 50 washers.E) A) and B)
F) B) and D)

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-5: -Refer to Figure 2-5. If this economy devotes all of its resources to the production of dryers, then it will produce

Correct AnswerverifiedShow Answer

To display information on two variables, an economist must use

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-3 : -Refer to Figure 2-3. What does the arrow going from oval A to rectangle 2 represent in the figure?

Correct Answerverifiedgoods and ...View AnswerShow Answer

It is possible for an economy to increase its production of both goods if the economy

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of each car 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

In the circular-flow diagram, one loop represents the flow of goods and services, and the other loop represents the flow of factors of production.

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers are often bowed because

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

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

Correct AnswerverifiedShow Answer

If a line passes through the points 20,5) and 10,10), then the slope of the line is -2.

Correct AnswerverifiedShow Answer

In addition to advising the president, one duty of the Council of Economic Advisers is to

Correct AnswerverifiedShow Answer

The slope of a steep upward-sloping line will be a

Correct AnswerverifiedShow Answer

Economists make assumptions to

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-16 -Refer to Figure 2-16. The graph shown is known as a

Correct AnswerverifiedShow Answer

Using the outline below, draw a circular-flow diagram representing the interactions between households and firms in a simple economy. Explain briefly the various parts of the diagram.

Correct Answerverified This diagram should duplicate the essen...View AnswerShow Answer

Use the following Table to answer the question : Table 2-1 The following table contains some production possibilities for an economy for a given month. -Refer to Table 2-1. If the production possibilities frontier is bowed outward, then "?" could be

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points 20, 30) and 40, 14) is

Correct AnswerverifiedShow Answer

According to John Maynard Keynes, an economist must possess a rare combination of skills including being a mathematician, historian, statesman, and philosopher.

Correct AnswerverifiedShow Answer

In the circular flow diagram, who owns the factors of production and consumes all of the goods and services produced?

Correct AnswerverifiedShow Answer

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goods and ...
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This diagram should duplicate the essen...
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