Question 1

Figure 2-6 
-Refer to Figure 2-6.Inefficient production is represented by which point(s) ?

Accepted Answer

A)   A,B
B)   C,D,F,G
C)   C,F,G
D)   DE) C) and D)
F) None of the above

Question 2

A statement describing how the world is

Accepted Answer

A)   is a normative statement.
B)   is a positive statement.
C)   would only be made by an economist speaking as a policy adviser.
D)   would only be made by an economist employed by the government.E) A) and B)
F) B) and D)

Question 3

Figure 2-12 
-Refer to Figure 2-12.Which of the following statements is true about point B for this economy?

Accepted Answer

A)   Point B is currently unattainable.
B)   Point B is efficient.
C)   At point B,more pillows are produced than blankets.
D)   There is unemployment at point B.E) A) and D)
F) A) and B)

Question 4

Figure 2-2  Consider the production possibilities curve for a country that can produce cars,corn (in bushels) ,or a combination of the two.
-Refer to Figure 2-2.If this economy devotes all of its available resources to producing corn,then it will produce

Accepted Answer

A)   0 bushels of corn and 10 cars.
B)   135 bushels of corn and 3 cars
C)   160 bushels of corn and 10 cars.
D)   160 bushels of corn and 0 cars.E) C) and D)
F) A) and B)

Question 5

Analysis of data on workers and those looking for work is conducted by economists at the

Accepted Answer

A)   Office of Management and Budget.
B)   Department of Labor.
C)   Congressional Budget Office.
D)   Department of the Treasury.E) A) and B)
F) None of the above

Question 6

In the simple circular-flow diagram,who consumes the goods and services that firms produce?

Accepted Answer

A)   households only
B)   firms only
C)   both households and firms
D)   neither households nor firmsE) A) and D)
F) A) and C)

Question 7

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) A) and D)

Question 8

Figure 2-8

-Refer to Figure 2-8,Panel (a) .Production is

Accepted Answer

A)   possible at points J,K,L,and M,but efficient only at points J,L,and M.
B)   possible at points J,K,L,and M,but efficient only at point K.
C)   possible at points J,L,M,and N,but efficient only at points J,L,and M.
D)   possible at points J,L,M,and N,but efficient only at point N.E) A) and B)
F) B) and C)

Question 9

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

Accepted Answer

A) True 
 B)False

Question 10

Historical episodes are

Accepted Answer

A)   valuable to economists because they allow economists to see how the science of economics has evolved.
B)   valuable to economists because they allow economists to evaluate economic theories.
C)   not of concern to economists because economics is about predicting the future,not dwelling on the past.
D)   not of concern to economists because the exact circumstances of historical episodes are unlikely to be observed again.E) B) and C)
F) C) and D)

Question 11

Which of the following allows you to provide information about the relationship between two variables?

Accepted Answer

A)   coordinate system.
B)   pie chart
C)   bar graph
D)   time-series graphE) A) and B)
F) A) and C)

Question 12

Figure 2-8

-Refer to Figure 2-8,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

Accepted Answer

A)   the tradeoff between the production of donuts and coffee changes
B)   the opportunity cost of a cup of coffee is higher at all levels of coffee production
C)   production of 4 donuts and 2 cups of coffee becomes possible
D)   production of 1 donut and 4 cups of coffee becomes efficientE) All of the above
F) A) and D)

Question 13

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 D)
F) All of the above

Question 14

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Accepted Answer

A) True 
 B)False

Question 15

In the circular-flow diagram,which of the following is not a factor of production?

Accepted Answer

A)   labor
B)   land
C)   capital
D)   moneyE) None of the above
F) All of the above

Question 16

Which of the following is a correct statement about production possibilities frontiers?

Accepted Answer

A)   An economy can produce only on the production possibilities frontier.
B)   An economy can produce at any point inside or outside a production possibilities frontier.
C)   An economy can produce at any point on or inside the production possibilities frontier,but not outside the frontier.
D)   An economy can produce at any point inside the production possibilities frontier,but not on or outside the frontier.E) None of the above
F) A) and B)

Question 17

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Accepted Answer

A)   For the most part,microeconomists are unconcerned with macroeconomics,and macroeconomists are unconcerned with microeconomics.
B)   Microeconomists study markets for small products,whereas macroeconomists study markets for large products.
C)   Microeconomics and macroeconomics are distinct from one another,yet they are closely related.
D)   Microeconomics is oriented toward policy studies,whereas macroeconomics is oriented toward theoretical studies.E) B) and C)
F) C) and D)

Question 18

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

Accepted Answer

A)   opinions and education.
B)   opinions and values.
C)   scientific judgments and education.
D)   scientific judgments and values.E) A) and C)
F) None of the above

Question 19

In the circular-flow diagram,which of the following items flows from households to firms through the markets for goods and services?

Accepted Answer

A)   goods and services
B)   dollars paid to land,labor,and capital
C)   dollars spent on goods and services
D)   wages,rent,and profitE) A) and B)
F) C) and D)

Question 20

Figure 2-12 
-Refer to Figure 2-12.Which of the following combinations of points are both efficient and attainable for this economy?

Accepted Answer

A)   B,C
B)   A,D,H
C)   A,B,C,D,H
D)   F,GE) A) and D)
F) B) and D)

Exam 2: Thinking Like an Economist

In the simple circular-flow diagram,who consumes the goods and services that firms produce?

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Historical episodes are

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Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

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The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

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The first number in any ordered pair is

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Which of the following statements best captures the relationship between microeconomics and macroeconomics?

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Analysis of data on workers and those looking for work is conducted by economists at the

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

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Which of the following is a correct statement about production possibilities frontiers?

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A statement describing how the world is

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Figure 2-8 -Refer to Figure 2-8,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

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The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

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Figure 2-12 -Refer to Figure 2-12.Which of the following combinations of points are both efficient and attainable for this economy?

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In the circular-flow diagram,which of the following items flows from households to firms through the markets for goods and services?

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In the circular-flow diagram,which of the following is not a factor of production?

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Figure 2-6 -Refer to Figure 2-6.Inefficient production is represented by which point(s) ?

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Figure 2-2 Consider the production possibilities curve for a country that can produce cars,corn (in bushels) ,or a combination of the two. -Refer to Figure 2-2.If this economy devotes all of its available resources to producing corn,then it will produce

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Figure 2-12 -Refer to Figure 2-12.Which of the following statements is true about point B for this economy?

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Figure 2-8 -Refer to Figure 2-8,Panel (a) .Production is

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Which of the following allows you to provide information about the relationship between two variables?

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