Question 1

An economy will always operate at some point on its production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 2

The art in scientific thinking is in deciding which assumptions to make.

Accepted Answer

A) True 
 B)False

Question 3

Graph 2-2 
-Refer to Graph 2-2.In the circular-flow diagram shown, which arrow shows the flow of income payments?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) All of the above
F) A) and B)

Question 4

Graph 2-1 
-Refer to Graph 2-1.In the graph shown, the opportunity cost to the economy of moving from point A to point B is 20 units of concrete.

Accepted Answer

A) True 
 B)False

Question 5

Graph 2-1 
-Refer to Graph 2-1.In the graph shown, points A, B and C represent feasible or attainable outcomes for society.

Accepted Answer

A) True 
 B)False

Question 6

Graph 2-1 
-Refer to Graph 2-1.In the graph shown, the opportunity cost of moving from point D to point B is 20 pieces of art.

Accepted Answer

A) True 
 B)False

Question 7

The production possibilities frontier is a:

Accepted Answer

A)  graph that shows the various combinations of output the economy can possibly produce, given the available resources and technology
B)  graph that shows the various combinations of resources the economy can possibly produce, given the available output
C)  graph that shows the various combinations of concrete the economy can possibly produce, given the available agricultural land
D)  graph that shows the various combinations of wheat the economy can possibly produce, given the available cementE) A) and D)
F) None of the above

Question 8

Economic analysis can generate different outputs as:

Accepted Answer

A)  All of the above
B)  There is a great deal of valid data that can enable a number of conclusions
C)  Differing opinions exists on the validity of certain parameters chosen
D)  Different variables are taken into consideration in the modelE) All of the above
F) B) and C)

Question 9

Graph 2-1 
-Refer to Graph 2-1.In the graph shown, the opportunity cost of more art increases as more art is produced.

Accepted Answer

A) True 
 B)False

Question 10

Graph 2-9 
-Refer to Graph 2-9.In the graph shown, the movement from point A to point B is:

Accepted Answer

A)  a shift of the curve
B)  a change in preferences
C)  a movement along the curve
D)  all of the aboveE) A) and B)
F) A) and D)

Question 11

An ordered pair is:

Accepted Answer

A)  the process of checking calculations twice before placing them on a graph
B)  two numbers that can be represented by a point on a graph
C)  the inventory system used to keep track of right and left shoes, etc.
D)  two halves of a wholeE) C) and D)
F) All of the above

Question 12

Graph 2-7 
-Refer to Graph 2-7.What is the opportunity cost to society of the movement from point C to point B, given the production possibilities frontier shown?

Accepted Answer

A)  650 pretzels
B)  500 pretzels
C)  300 pretzels
D)  150 pretzelsE) A) and B)
F) C) and D)

Question 13

Which of the following is the most accurate statement about economic models?

Accepted Answer

A)  economic models attempt to mirror reality exactly
B)  economic models are useful, but should not be used for policymaking
C)  economic models cannot be used in the real world because they omit details
D)  economic models omit many details to allow us to see what is truly importantE) All of the above
F) None of the above

Exam 2: Thinking Like an Economist

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost of moving from point D to point B is 20 pieces of art.

Correct Answer
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Graph 2-2 -Refer to Graph 2-2.In the circular-flow diagram shown, which arrow shows the flow of income payments?

Correct Answer
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Graph 2-9 -Refer to Graph 2-9.In the graph shown, the movement from point A to point B is:

Correct Answer
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Economic analysis can generate different outputs as:

Correct Answer
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The production possibilities frontier is a:

Correct Answer
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Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost to the economy of moving from point A to point B is 20 units of concrete.

Correct Answer
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The art in scientific thinking is in deciding which assumptions to make.

Correct Answer
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Graph 2-7 -Refer to Graph 2-7.What is the opportunity cost to society of the movement from point C to point B, given the production possibilities frontier shown?

Correct Answer
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Graph 2-1 -Refer to Graph 2-1.In the graph shown, points A, B and C represent feasible or attainable outcomes for society.

Correct Answer
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Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost of more art increases as more art is produced.

Correct Answer
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Which of the following is the most accurate statement about economic models?

Correct Answer
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An economy will always operate at some point on its production possibilities curve.

Correct Answer
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An ordered pair is:

Correct Answer
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Exam 2: Thinking Like an Economist

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost of moving from point D to point B is 20 pieces of art.

Correct AnswerverifiedShow Answer

Graph 2-2 -Refer to Graph 2-2.In the circular-flow diagram shown, which arrow shows the flow of income payments?

Correct AnswerverifiedShow Answer

Graph 2-9 -Refer to Graph 2-9.In the graph shown, the movement from point A to point B is:

Correct AnswerverifiedShow Answer

Economic analysis can generate different outputs as:

Correct AnswerverifiedShow Answer

The production possibilities frontier is a:

Correct AnswerverifiedShow Answer

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost to the economy of moving from point A to point B is 20 units of concrete.

Correct AnswerverifiedShow Answer

The art in scientific thinking is in deciding which assumptions to make.

Correct AnswerverifiedShow Answer

Graph 2-7 -Refer to Graph 2-7.What is the opportunity cost to society of the movement from point C to point B, given the production possibilities frontier shown?

Correct AnswerverifiedShow Answer

Graph 2-1 -Refer to Graph 2-1.In the graph shown, points A, B and C represent feasible or attainable outcomes for society.

Correct AnswerverifiedShow Answer

Graph 2-1 -Refer to Graph 2-1.In the graph shown, the opportunity cost of more art increases as more art is produced.

Correct AnswerverifiedShow Answer

Which of the following is the most accurate statement about economic models?

Correct AnswerverifiedShow Answer

An economy will always operate at some point on its production possibilities curve.

Correct AnswerverifiedShow Answer

An ordered pair is:

Correct AnswerverifiedShow Answer

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