Question 1

Economists speaking like scientists make

Accepted Answer

A)   positive statements.
B)   prescriptive statements.
C)   claims about how the world should be.
D)   More than one of the above is correct.E) All of the above
F) B) and D)

Question 2

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

Accepted Answer

A) True 
 B)False

Question 3

When economists are trying to explain the world, they are

Accepted Answer

A)   scientists.
B)   policy advisers.
C)   in the realm of microeconomics rather than macroeconomics.
D)   in the realm of normative economics rather than positive economics.E) All of the above
F) B) and C)

Question 4

The slope of a line passing through the points 15, 3)  and 10, 6)  is

Accepted Answer

A)   -3/5.
B)   3/5.
C)   -5/3.
D)   5/3.E) B) and D)
F) A) and C)

Question 5

The design of tax policy is one of the responsibilities of economists who work at the

Accepted Answer

A)   Council of Economic Advisers.
B)   Federal Reserve.
C)   Department of the Treasury.
D)   Congressional Budget Office.E) B) and D)
F) None of the above

Question 6

The circular-flow diagram

Accepted Answer

A)   is an economic model.
B)   incorporates two types of decision makers: households and firms.
C)   represents the flows of inputs, outputs, and dollars.
D)   All of the above are correct.E) A) and D)
F) C) and D)

Question 7

Use the following Figure to answer the question : Figure 2-7 
-Refer to Figure 2-7. This economy has the ability to produce at which points) ?

Accepted Answer

A)   N, O, P
B)   L, M
C)   L, M, N, O, P
D)   L, M, QE) All of the above
F) B) and C)

Question 8

In the circular-flow diagram, households and firms are the decision makers.

Accepted Answer

A) True 
 B)False

Question 9

In the circular-flow diagram,

Accepted Answer

A)   profit flows from households to firms.
B)   labor flows from households to firms.
C)   services flow from households to firms.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 10

The production possibilities frontier is used to illustrate some basic economic ideas, including

Accepted Answer

A)   scarcity.
B)   opportunity cost.
C)   economic growth.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 11

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Accepted Answer

A) True 
 B)False

Question 12

When studying the effects of public policy changes, economists

Accepted Answer

A)   always refrain from making assumptions.
B)   sometimes make different assumptions about the short run and the long run.
C)   consider only the direct effects of those policy changes and not the indirect effects.
D)   consider only the short-run effects of those policy changes and not the long-run effects.E) All of the above
F) B) and C)

Question 13

Economic models

Accepted Answer

A)   cannot be useful if they are based on false assumptions.
B)   were once thought to be useful, but that is no longer true.
C)   must incorporate all aspects of the economy if they are to be useful.
D)   can be useful, even if they are not particularly realistic.E) B) and C)
F) A) and B)

Question 14

A circular-flow diagram is a visual model of the economy.

Accepted Answer

A) True 
 B)False

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...

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which points) ?

Correct Answer
verified

In the circular-flow diagram, households and firms are the decision makers.

Correct Answer
verified

The slope of a line passing through the points 15, 3) and 10, 6) is

Correct Answer
verified

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

Correct Answer
verified

Economists speaking like scientists make

Correct Answer
verified

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Correct Answer
verified

The circular-flow diagram

Correct Answer
verified

When economists are trying to explain the world, they are

Correct Answer
verified

When studying the effects of public policy changes, economists

Correct Answer
verified

The production possibilities frontier is used to illustrate some basic economic ideas, including

Correct Answer
verified

Economic models

Correct Answer
verified

A circular-flow diagram is a visual model of the economy.

Correct Answer
verified

The design of tax policy is one of the responsibilities of economists who work at the

Correct Answer
verified

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

Correct Answer
verified

In the circular-flow diagram,

Correct Answer
verified

Exam 2: Thinking Like an Economist

Use the following Figure to answer the question : Figure 2-7 -Refer to Figure 2-7. This economy has the ability to produce at which points) ?

Correct AnswerverifiedShow Answer

In the circular-flow diagram, households and firms are the decision makers.

Correct AnswerverifiedShow Answer

The slope of a line passing through the points 15, 3) and 10, 6) is

Correct AnswerverifiedShow Answer

In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars.

Correct AnswerverifiedShow Answer

Economists speaking like scientists make

Correct AnswerverifiedShow Answer

In the ordered pair 10,30), 10 is the y-coordinate and 30 is the z-coordinate.

Correct AnswerverifiedShow Answer

The circular-flow diagram

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are

Correct AnswerverifiedShow Answer

When studying the effects of public policy changes, economists

Correct AnswerverifiedShow Answer

The production possibilities frontier is used to illustrate some basic economic ideas, including

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

A circular-flow diagram is a visual model of the economy.

Correct AnswerverifiedShow Answer

The design of tax policy is one of the responsibilities of economists who work at the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the circular-flow diagram,

Correct AnswerverifiedShow Answer

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