Question 1

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

Question 2

Select the microeconomic statement from the following:

Accepted Answer

A)   real domestic output was $100 billion last year
B)   employment levels grew by two per cent in the last six months
C)   fish prices rose in response to increases in fuel costs
D)   the inflation rate was 1.8 per cent in the last quarterE) A) and B)
F) A) and C)

Question 3

For economists, statements about the world are of two types:

Accepted Answer

A)   assumptions and theories
B)   true statements and false statements
C)   specific statements and general statements
D)   positive statements and normative statementsE) C) and D)
F) B) and D)

Question 4

A model:

Accepted Answer

A)   simplifies reality
B)   can explain how the economy is organised
C)   assumes away irrelevant details
D)   does all of the aboveE) A) and C)
F) B) and D)

Question 5

Scientific models are designed to simplify reality because they are built with simplifying assumptions.

Accepted Answer

A) True 
 B)False

Question 6

In the circular-flow diagram:

Accepted Answer

A)   firms are sellers in the resource market and the product market
B)   households are sellers in the resource market
C)   firms are buyers in the product market
D)   spending on goods and services flow from firms to householdsE) None of the above
F) A) and B)

Question 7

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 10 units of concrete.

Accepted Answer

A) True 
 B)False

Question 8

Macroeconomics approaches the study of economics from the viewpoint of:

Accepted Answer

A)   consumer behaviour
B)   the labour market
C)   government taxation and spending policies
D)   the entire economyE) A) and C)
F) B) and C)

Question 9

Which is the best statement about the roles of economists?

Accepted Answer

A)   economists are best viewed as policymakers
B)   economists are best viewed as scientists
C)   in trying to explain the world, economists are scientists; in trying to improve the world, they are policymakers
D)   in trying to explain the world, economists are policymakers; in trying to improve the world, they are scientistsE) A) and B)
F) B) and C)

Question 10

Graph 2-3
 
-Refer to Graph 2-3. On the production possibilities frontier shown, at which point or points is the economy efficient?

Accepted Answer

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

Question 11

In a circular-flow diagram, the relationships shown are only those that involve the flow of real goods and services.

Accepted Answer

A) True 
 B)False

Question 12

The circular-flow diagram has two loops to illustrate the flows of:

Accepted Answer

A)   goods and the flow of dollars
B)   energy and wastes
C)   dollars and the flow of services
D)   dollars and the flow of goods and servicesE) All of the above
F) A) and B)

Question 13

Use the demand curve below to answer the following questions.
Graph 2-15
  a. How would point A be represented as an ordered pair?
b. What type of curve is this?
c. Does this curve show a positive or negative correlation between price and quantity?
d. Compute the slope of the curve between points A and 
B.

Accepted Answer

a. (15, 8).
b. a dem...

Question 14

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 C)
F) B) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Normative statements are:

Accepted Answer

A)   descriptive, making a claim about how the world is
B)   statements about the normal condition of the world
C)   prescriptive, making a claim about how the world ought to be
D)   statements which establish production goals for the economyE) None of the above
F) A) and C)

Question 17

Economic models are generally constructed with:

Accepted Answer

A)   tubes and valves
B)   assumptions only
C)   plastic pieces
D)   diagrams and equationsE) A) and B)
F) C) and D)

Question 18

Graph 2-3
 
-Refer to Graph 2-3. On the production possibilities frontier shown, at which point or points is the economy inefficient?

Accepted Answer

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

Question 19

Graph 2-1
 
-Refer to Graph 2-1. In the graph shown, points A, B and D represent efficient outcomes for society.

Accepted Answer

A) True 
 B)False

Question 20

Most economic theories have been developed and tested by using controlled experiments.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

Macroeconomics approaches the study of economics from the viewpoint of:

Correct Answer
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For economists, statements about the world are of two types:

Correct Answer
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Most economic theories have been developed and tested by using controlled experiments.

Correct Answer
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Graph 2-1 -Refer to Graph 2-1. In the graph shown, points A, B and D represent efficient outcomes for society.

Correct Answer
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Select the microeconomic statement from the following:

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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Graph 2-3 -Refer to Graph 2-3. On the production possibilities frontier shown, at which point or points is the economy efficient?

Correct Answer
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Graph 2-3 -Refer to Graph 2-3. On the production possibilities frontier shown, at which point or points is the economy inefficient?

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 10 units of concrete.

Correct Answer
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Normative statements are:

Correct Answer
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Which is the best statement about the roles of economists?

Correct Answer
verified

The circular-flow diagram has two loops to illustrate the flows of:

Correct Answer
verified

In a circular-flow diagram, the relationships shown are only those that involve the flow of real goods and services.

Correct Answer
verified

In the circular-flow diagram:

Correct Answer
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An ordered pair is:

Correct Answer
verified

Scientific models are designed to simplify reality because they are built with simplifying assumptions.

Correct Answer
verified

Economic models are generally constructed with:

Correct Answer
verified

Correct Answer
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a. (15, 8).
b. a dem...
View Answer

A model:

Correct Answer
verified

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
verified

Exam 2: Thinking Like an Economist

Macroeconomics approaches the study of economics from the viewpoint of:

Correct AnswerverifiedShow Answer

For economists, statements about the world are of two types:

Correct AnswerverifiedShow Answer

Most economic theories have been developed and tested by using controlled experiments.

Correct AnswerverifiedShow Answer

Graph 2-1 -Refer to Graph 2-1. In the graph shown, points A, B and D represent efficient outcomes for society.

Correct AnswerverifiedShow Answer

Select the microeconomic statement from the following:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Graph 2-3 -Refer to Graph 2-3. On the production possibilities frontier shown, at which point or points is the economy efficient?

Correct AnswerverifiedShow Answer

Graph 2-3 -Refer to Graph 2-3. On the production possibilities frontier shown, at which point or points is the economy inefficient?

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 10 units of concrete.

Correct AnswerverifiedShow Answer

Normative statements are:

Correct AnswerverifiedShow Answer

Which is the best statement about the roles of economists?

Correct AnswerverifiedShow Answer

The circular-flow diagram has two loops to illustrate the flows of:

Correct AnswerverifiedShow Answer

In a circular-flow diagram, the relationships shown are only those that involve the flow of real goods and services.

Correct AnswerverifiedShow Answer

In the circular-flow diagram:

Correct AnswerverifiedShow Answer

An ordered pair is:

Correct AnswerverifiedShow Answer

Scientific models are designed to simplify reality because they are built with simplifying assumptions.

Correct AnswerverifiedShow Answer

Economic models are generally constructed with:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. (15, 8).b. a dem...View AnswerShow Answer

A model:

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

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a. (15, 8).
b. a dem...
View Answer

Correct Answer
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Correct Answer
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