Question 1

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-22 
-Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Accepted Answer

movement a...

Question 3

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.E) A) and D)
F) All of the above

Question 4

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)  Home experienced increased unemployment.
B)  Home experienced a decline in pear-producing technology.
C)  Home experienced an improvement in cellular phone-making technology.
D)  Home experienced a reduction in resources.E) C) and D)
F) A) and B)

Question 5

The difference between economists speaking as scientists or policy advisers boil down to the difference between

Accepted Answer

A)  assumptions and theories.
B)  true statements and false statements.
C)  specific statements and general statements.
D)  positive statements and normative statements.E) A) and D)
F) All of the above

Question 6

Table 2-4
Production Possibilities for Picnicland 
-Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Accepted Answer

A)  150 burgers
B)  225 burgers
C)  300 burgers
D)  450 burgersE) C) and D)
F) A) and D)

Question 7

Figure 2-2 
-Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram, then Juan's income is represented by a flow of dollars

Accepted Answer

A)  from Box A to Box C.
B)  from Box C to Box A.
C)  from Box B to Box D.
D)  from Box D to Box B.E) A) and D)
F) A) and C)

Question 8

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Accepted Answer

A)  amount of the other good that must be given up.
B)  market price of the additional amount produced.
C)  amount of resources that must be devoted to its production.
D)  number of dollars that must be spent to produce it.E) A) and D)
F) B) and C)

Question 9

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Accepted Answer

scientific...

Question 10

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two.
-Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Accepted Answer

The answer of Figure 2-14  Consider the production possibilities...

Question 11

Figure 2-10
Panel (a) 
Panel (b)   
-Refer to Figure 2-10, Panel (a) . Production is

Accepted Answer

A)  possible at points V, W, Y, and Z, but efficient only at points V, W, and Z.
B)  possible at points V, W, Y, and Z, but efficient only at point Y.
C)  possible at points U, V, W, and Z, but efficient only at points V, W, and Z.
D)  possible at points U, V, W, and Z, but efficient only at point U.E) All of the above
F) None of the above

Question 12

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Accepted Answer

A)  Gerance experienced a reduction in unemployment.
B)  Gerance experienced an improvement in car-making technology.
C)  Gerance acquired more resources.
D)  Any of these events could explain the change.E) A) and B)
F) A) and C)

Question 13

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Accepted Answer

A) True 
 B)False

Question 14

Figure 2-17​ 
-Refer to Figure 2-17. Point B represents an inefficient outcome for this economy.

Accepted Answer

A) True 
 B)False

Question 15

When a government program is justified not on its merits but on the number of jobs it will create,

Accepted Answer

A)  the program is an efficient use of taxpayer dollars.
B)  it should be approved only if the unemployment rate is low.
C)  taxes should be raised to fund the program.
D)  it is known as the "broken window fallacy."E) A) and B)
F) A) and C)

Question 16

Figure 2-16​ 
-Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

Accepted Answer

A)  The economy does not have enough resources to produce more of either product.
B)  The economy's available technology prevents it from producing more of either product.
C)  There is widespread unemployment in the economy.
D)  The economy is getting all it can from the scarce resources available.E) None of the above
F) B) and D)

Question 17

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Accepted Answer

The answer of When economists are trying to explain the...

Question 18

A duty of economists at the Department of Labor is to

Accepted Answer

A)  analyze data on workers.
B)  schedule federal holidays.
C)  enforce the nation's antitrust laws.
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 19

Which of the following is not correct?

Accepted Answer

A)  The slope of a line will be a small positive number for a fairly flat upward-sloping line.
B)  The slope of a line will be a large positive number for a steep upward-sloping line.
C)  The slope of a line will be a negative number for a downward-sloping line.
D)  The slope of a line will be infinite for a horizontal line.E) A) and B)
F) A) and C)

Question 20

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Correct Answer
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Figure 2-17 -Refer to Figure 2-17. Point B represents an inefficient outcome for this economy.

Correct Answer
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When two variables have a negative correlation,

Correct Answer
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A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Correct Answer
verified

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Correct Answer
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The difference between economists speaking as scientists or policy advisers boil down to the difference between

Correct Answer
verified

Figure 2-16 -Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

Correct Answer
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Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Correct Answer
verified

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

Correct Answer
verified

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Correct Answer
verified

Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a) . Production is

Correct Answer
verified

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answer
verified
scientific...
View Answer

A duty of economists at the Department of Labor is to

Correct Answer
verified

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Correct Answer
verified

When a government program is justified not on its merits but on the number of jobs it will create,

Correct Answer
verified

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Correct Answer
verified

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Correct Answer
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Correct Answer
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Figure 2-22 -Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answer
verified
movement a...
View Answer

Which of the following is not correct?

Correct Answer
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Exam 2: Thinking Like an Economist

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Correct AnswerverifiedShow Answer

Figure 2-17​ -Refer to Figure 2-17. Point B represents an inefficient outcome for this economy.

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

Correct AnswerverifiedShow Answer

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Correct AnswerverifiedShow Answer

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Correct AnswerverifiedShow Answer

The difference between economists speaking as scientists or policy advisers boil down to the difference between

Correct AnswerverifiedShow Answer

Figure 2-16​ -Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

Correct AnswerverifiedShow Answer

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Correct AnswerverifiedShow Answer

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Correct AnswerverifiedShow Answer

Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a) . Production is

Correct AnswerverifiedShow Answer

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answerverifiedscientific...View AnswerShow Answer

A duty of economists at the Department of Labor is to

Correct AnswerverifiedShow Answer

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two. -Refer to Figure 2-14. What is the opportunity cost of moving from point T to point R?

Correct AnswerverifiedShow Answer

When a government program is justified not on its merits but on the number of jobs it will create,

Correct AnswerverifiedShow Answer

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

Correct AnswerverifiedShow Answer

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-22 -Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Correct Answerverifiedmovement a...View AnswerShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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Figure 2-17 -Refer to Figure 2-17. Point B represents an inefficient outcome for this economy.

Correct Answer
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Figure 2-16 -Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

Correct Answer
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scientific...
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movement a...
View Answer

Correct Answer
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