Question 1

Figure 2-22 
-Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

Accepted Answer

The answer of Figure 2-22 
-Refer to Figure 2-22. What...

Question 2

The x-coordinate of an ordered pair specifies the

Accepted Answer

A)   diagonal location of the point.
B)   vertical location of the point.
C)   horizontal location of the point.
D)   quadrant location in which the point is located.

Question 3

When two variables move in opposite directions, the curve relating them is

Accepted Answer

A)   upward sloping, and we say the variables are positively related.
B)   upward sloping, and we say the variables are negatively related.
C)   downward sloping, and we say the variables are positively related.
D)   downward sloping, and we say the variables are negatively related.

Question 4

Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Accepted Answer

A)   zero.
B)   50 blankets.
C)   60 pillows.
D)   50 blankets and 60 pillows.

Question 5

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

Accepted Answer

A)   increases as more of the good is produced.
B)   decreases as more of the good is produced.
C)   does not change as more of the good is produced.
D)   may increase, decrease, or not change as more of the good is produced.

Question 6

Different values are not a reason for disagreement among economists.

Accepted Answer

A) True 
 B)False

Question 7

Table 2-4
Production Possibilities for Picnicland
 
-Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Accepted Answer

A)   150 hotdogs
B)   225 hotdogs
C)   300 hotdogs
D)   450 hotdogs

Question 8

The use of the coordinate system allows

Accepted Answer

A)   for the display of the flows of dollars, goods and services, and factors of production in an economic system.
B)   for the display of how labor and other resources are organized in the production process.
C)   for the display of two variables on a single graph.
D)   for the creation of pie charts and bar graphs.

Question 9

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases, the y-variable decreases.
B)   when the x-variable decreases, the y-variable increases.
C)   when the x-variable increases, the y-variable increases.
D)   More than one of the above is correct.

Question 10

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.

Question 11

Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

Accepted Answer

A) True 
 B)False

Question 12

In building economic models, economists often omit

Accepted Answer

A)   assumptions.
B)   theories.
C)   details.
D)   equations.

Question 13

In the markets for goods and services in the circular-flow diagram,

Accepted Answer

A)   households and firms are both buyers.
B)   households and firms are both sellers.
C)   households are buyers and firms are sellers.
D)   households are sellers and firms are buyers.

Question 14

What you must give up to get something else is called the

Accepted Answer

The answer of What you must give up to get...

Question 15

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

Accepted Answer

The answer of Suppose a war in the Middle East...

Question 16

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.

Question 17

Unemployment would cause an economy to

Accepted Answer

A)   produce inside its production possibilities frontier.
B)   produce on its production possibilities frontier.
C)   produce outside its production possibilities frontier.
D)   experience an inward shift of its production possibilities frontier.

Question 18

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 19

Figure 2-13 
-Refer to Figure 2-13. Which of the following statements is true about point G for this economy?

Accepted Answer

A)   Point G is currently unattainable.
B)   Point G is efficient.
C)   At point G, more cakes are produced than cookies.
D)   There is unemployment at point G.

Question 20

Normative statements describe how the world is, while positive statements prescribe how the world should be.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

When two variables move in opposite directions, the curve relating them is

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Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

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Which of the following statements is correct?

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The x-coordinate of an ordered pair specifies the

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The scientific method is

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Economists at the U.S. Department of Justice help enforce the nation's antitrust laws.

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When two variables have a negative correlation,

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Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world. For economists, this historical episode serves as a

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The use of the coordinate system allows

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Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

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In the markets for goods and services in the circular-flow diagram,

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Figure 2-22 -Refer to Figure 2-22. What is the slope of the line with points A, B, and C?

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Normative statements describe how the world is, while positive statements prescribe how the world should be.

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In building economic models, economists often omit

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When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

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Unemployment would cause an economy to

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What you must give up to get something else is called the

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Different values are not a reason for disagreement among economists.

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

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Figure 2-13 -Refer to Figure 2-13. Which of the following statements is true about point G for this economy?

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