Question 1

Use the following Figure to answer the question : Figure 2-23 : 
-Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 2

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Accepted Answer

A) True 
 B)False

Question 3

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Accepted Answer

A) True 
 B)False

Question 4

Suppose price is measured along the vertical axis on a graph. When price changes, there will be a

Accepted Answer

A)   rotation of the curve.
B)   shift of the curve.
C)   movement along the curve.
D)   change in the slope of the curve.E) B) and D)
F) B) and C)

Question 5

Normative statements are

Accepted Answer

A)   prescriptive, whereas positive statements are descriptive.
B)   descriptive, whereas positive statements are prescriptive.
C)   backward-looking, whereas positive statements are forward-looking.
D)   forward-looking, whereas positive statements are backward-looking.E) B) and D)
F) B) and C)

Question 6

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) A) and D)

Question 7

Use the following Figure to answer the question : Figure 2-6 
-Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Accepted Answer

A)   120 pillows.
B)   120 blankets.
C)   120 blankets and 120 pillows.
D)   200 blankets.E) A) and C)
F) B) and C)

Question 8

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 1050 units of food and 47 machines. Which of the following statements is correct?

Accepted Answer

A)   Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 47.
B)   Because the technological advance occurred in the machine-making industry, increases in output can only occur in the machine industry.
C)   In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies.
D)   The technological advance reduced the amount of resources needed to produce 47 machines, so these resources could be used to produce more food.E) A) and D)
F) All of the above

Question 9

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) All of the above
F) B) and D)

Question 10

Use the following Figure to answer the question :  Figure 2-9
Panel a) 
 
Panel b)  
-Refer to Figure 2-9, 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) B) and C)
F) A) and D)

Question 11

Use the following Figure to answer the question : Figure 2-8 :

-Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Accepted Answer

A)   point J
B)   point K
C)   point L
D)   point ME) B) and C)
F) C) and D)

Question 12

"Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement.

Accepted Answer

A) True 
 B)False

Question 13

Use the following Figure to answer the question : Figure 2-17 
-Refer to Figure 2-17. The movement from point B to point C is an)

Accepted Answer

A)   shift of the demand curve.
B)   movement along the demand curve.
C)   indication that the price of grapes has changed.
D)   indication that the costs incurred by firms that produce grapes have changed.E) B) and C)
F) B) and D)

Question 14

Which of the following is not correct about most economic models?

Accepted Answer

A)   They are composed of equations and diagrams.
B)   They contribute very little to economists' understanding of the real world.
C)   They omit many features of the real-world economy.
D)   In constructing models, economists make assumptions.E) A) and D)
F) B) and C)

Question 15

What type of statement is a prescriptive statement about how the world ought to be?

Accepted Answer

The answer of What type of statement is a prescriptive...

Question 16

Use the following Figure to answer the question : Figure 2-11 
-Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Accepted Answer

A)   The economy's citizens developed an enhanced taste for books.
B)   The economy experienced a technological advance in the production of books.
C)   More capital became available in the economy.
D)   More labor became available in the economy.E) C) and D)
F) B) and C)

Question 17

Use the following Figure to answer the question : Figure 2-23 : 
-Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Accepted Answer

A) True 
 B)False

Question 18

Use the following Figure to answer the question : Figure 2-13 
-Refer to Figure 2-13. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Accepted Answer

A)   I, L
B)   G, H
C)   J, K
D)   F, GE) B) and C)
F) A) and D)

Question 19

Use the following Figure to answer the question : 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.E) B) and D)
F) A) and C)

Question 20

Use the following Figure to answer the question : 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. If this society is producing at point T,

Accepted Answer

A)   there is unemployment.
B)   production is efficient.
C)   growth can only be achieved through an advancement in technology.
D)   the opportunity cost of producing one more sweater is approximately 40 bushels of apples.E) A) and B)
F) B) and D)

Exam 2: Thinking Like an Economist

Which of the following is not correct about most economic models?

Correct Answer
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Suppose price is measured along the vertical axis on a graph. When price changes, there will be a

Correct Answer
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The first number in any ordered pair is

Correct Answer
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Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Correct Answer
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Use the following Figure to answer the question : Figure 2-11 -Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Correct Answer
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Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point K to point H is

Correct Answer
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Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Correct Answer
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Normative statements are

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Use the following Figure to answer the question : 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. If this society is producing at point T,

Correct Answer
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Use the following Figure to answer the question : Figure 2-8 : -Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Correct Answer
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"Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement.

Correct Answer
verified

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct Answer
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Use the following Figure to answer the question : Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is an)

Correct Answer
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Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Correct Answer
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Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, 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) ?

Correct Answer
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The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Correct Answer
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A statement describing how the world is

Correct Answer
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An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Correct Answer
verified

What type of statement is a prescriptive statement about how the world ought to be?

Correct Answer
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Exam 2: Thinking Like an Economist

Which of the following is not correct about most economic models?

Correct AnswerverifiedShow Answer

Suppose price is measured along the vertical axis on a graph. When price changes, there will be a

Correct AnswerverifiedShow Answer

The first number in any ordered pair is

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-13 -Refer to Figure 2-13. Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-11 -Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : 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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Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Correct AnswerverifiedShow Answer

Normative statements are

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Use the following Figure to answer the question : 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. If this society is producing at point T,

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-8 : -Refer to Figure 2-8. Which point on the graph best represents the fact that, because resources are scarce, not every conceivable outcome is feasible?

Correct AnswerverifiedShow Answer

"Minimum wage laws result in unemployment" is a normative statement, while "the minimum wage should be higher" is a positive statement.

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-23 : -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is an)

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-6 -Refer to Figure 2-6. The opportunity cost of this economy moving from point I to point H is

Correct AnswerverifiedShow Answer

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, 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) ?

Correct AnswerverifiedShow Answer

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A statement describing how the world is

Correct AnswerverifiedShow Answer

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

Correct AnswerverifiedShow Answer

What type of statement is a prescriptive statement about how the world ought to be?

Correct AnswerverifiedShow Answer

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