Question 1

Figure 2-1 
-Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) A) and B)
F) None of the above

Question 2

The Federal Reserve

Accepted Answer

A)  designs tax policy.
B)  enforces the nation's antitrust laws.
C)  sets the nation's monetary policy.
D)  analyzes data on workers.E) A) and B)
F) B) and C)

Question 3

In a certain economy, toys and greeting cards are produced, and the economy currently operates on its production possibilities frontier. Which of the following events would allow the economy to produce more toys and more greeting cards, relative to the quantities of those goods that are being produced now?

Accepted Answer

A)  The economy experiences economic growth.
B)  There is a technological advance in the toy industry, but the greeting card industry experiences no such advance.
C)  There is a technological advance in the greeting card industry, but the toy industry experiences no such advance.
D)  All of the above are correct.E) C) and D)
F) A) and B)

Question 4

In building economic models, economists often omit

Accepted Answer

A)  assumptions.
B)  theories.
C)  details.
D)  equations.E) A) and B)
F) A) and C)

Question 5

Which of the following allows you to provide information about the relationship between two variables?

Accepted Answer

A)  coordinate system.
B)  pie chart
C)  bar graph
D)  time-series graphE) A) and B)
F) A) and C)

Question 6

Figure 2-14 
-Refer to Figure 2-14. Unemployment could cause this economy to produce at point B.

Accepted Answer

A) True 
 B)False

Question 7

John Maynard Keynes referred to economics as an easy subject,

Accepted Answer

A)  at which very few excel.
B)  but not as easy as philosophy or the pure sciences.
C)  which very few can enjoy.
D)  which deals primarily with common sense.E) C) and D)
F) B) and D)

Question 8

Among economic models, the circular-flow diagram is unusual in that it

Accepted Answer

A)  drastically simplifies the real world.
B)  features more than one type of market.
C)  features flows of dollars.
D)  does not involve mathematics.E) A) and C)
F) B) and D)

Question 9

In the simple circular-flow diagram, the participants in the economy are

Accepted Answer

A)  firms and government.
B)  households and firms.
C)  households and government.
D)  households, firms, and government.E) B) and C)
F) A) and D)

Question 10

Figure 2-7 
-Refer to Figure 2-7. In order to reach point L, the economy would have to

Accepted Answer

A)  acquire more resources or experience a technological advance.
B)  begin using its available resources more efficiently than it is currently using them.
C)  shift resources away from the production of nails and toward production of hammers.
D)  None of the above are correct; the economy will never be able to reach point L.E) None of the above
F) C) and D)

Question 11

Figure 2-14 
-Refer to Figure 2-14. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Accepted Answer

A) True 
 B)False

Question 12

In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is (are)  correct?

Accepted Answer

A)  Relative to some other scientists, economists find it more difficult to conduct experiments.
B)  Theory and observation are important in economics as well as in other sciences.
C)  To obtain data, economists often rely upon the natural experiments offered by history.
D)  All of the above are correct.E) A) and C)
F) B) and D)

Question 14

In the circular-flow diagram, which of the following items does not flow from firms to households?

Accepted Answer

A)  goods
B)  services
C)  capital
D)  profitE) B) and D)
F) A) and B)

Question 15

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

Accepted Answer

A) True 
 B)False

Question 16

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Accepted Answer

A) True 
 B)False

Question 17

A statement describing how the world should be

Accepted Answer

A)  is a normative statement.
B)  is a positive statement.
C)  would only be made by an economist speaking as a scientist.
D)  would only be made by an economist employed by the government.E) B) and D)
F) C) and D)

Question 18

Macroeconomics is the study of

Accepted Answer

A)  individual decision makers.
B)  international trade.
C)  economy-wide phenomena.
D)  markets for large products.E) B) and D)
F) A) and B)

Question 19

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

Accepted Answer

A)  the impact of minimum-wage laws on employment in the fast food industry
B)  the effect of changes in household saving rates on the growth rate of national income
C)  the impact of faster money growth on the rate of inflation
D)  a comparison of alternative tax policies and their respective impacts on the rate of the nation's economic growthE) B) and C)
F) None of the above

Exam 2: Thinking Like an Economist

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Correct Answer
verified

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

Correct Answer
verified

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

Correct Answer
verified

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Correct Answer
verified

Which of the following allows you to provide information about the relationship between two variables?

Correct Answer
verified

Which of the following statements is (are) correct?

Correct Answer
verified

Figure 2-7 -Refer to Figure 2-7. In order to reach point L, the economy would have to

Correct Answer
verified

In building economic models, economists often omit

Correct Answer
verified

Macroeconomics is the study of

Correct Answer
verified

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Correct Answer
verified

The Federal Reserve

Correct Answer
verified

In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data.

Correct Answer
verified

Among economic models, the circular-flow diagram is unusual in that it

Correct Answer
verified

In the simple circular-flow diagram, the participants in the economy are

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct Answer
verified

In the circular-flow diagram, which of the following items does not flow from firms to households?

Correct Answer
verified

John Maynard Keynes referred to economics as an easy subject,

Correct Answer
verified

Figure 2-14 -Refer to Figure 2-14. Unemployment could cause this economy to produce at point B.

Correct Answer
verified

A statement describing how the world should be

Correct Answer
verified

Correct Answer
verified

Exam 2: Thinking Like an Economist

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

Correct AnswerverifiedShow Answer

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

Correct AnswerverifiedShow Answer

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

Correct AnswerverifiedShow Answer

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

Correct AnswerverifiedShow Answer

Which of the following allows you to provide information about the relationship between two variables?

Correct AnswerverifiedShow Answer

Which of the following statements is (are) correct?

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7. In order to reach point L, the economy would have to

Correct AnswerverifiedShow Answer

In building economic models, economists often omit

Correct AnswerverifiedShow Answer

Macroeconomics is the study of

Correct AnswerverifiedShow Answer

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Correct AnswerverifiedShow Answer

The Federal Reserve

Correct AnswerverifiedShow Answer

In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data.

Correct AnswerverifiedShow Answer

Among economic models, the circular-flow diagram is unusual in that it

Correct AnswerverifiedShow Answer

In the simple circular-flow diagram, the participants in the economy are

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Correct AnswerverifiedShow Answer

In the circular-flow diagram, which of the following items does not flow from firms to households?

Correct AnswerverifiedShow Answer

John Maynard Keynes referred to economics as an easy subject,

Correct AnswerverifiedShow Answer

Figure 2-14 -Refer to Figure 2-14. Unemployment could cause this economy to produce at point B.

Correct AnswerverifiedShow Answer

A statement describing how the world should be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified