Question 1

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 2

Economists at which administrative department help design tax policy?

Accepted Answer

Department...

Question 3

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Accepted Answer

A) True 
 B)False

Question 4

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

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

Question 7

Table 2-4
 $$\begin{array} { | l | l | } 
\hline \text { Mobile Phones } & \text { Pizzas } \
\hline 0 & 10,000 \
\hline 200 & 8,000 \
\hline 500 & 6,000 \
\hline 900 & 4,000 \
\hline 1400 & 2,000 \
\hline 2000 & 0 \
\hline
\end{array}$$
-Refer to Table 2-4. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of mobile phones from 200 to 500?

Accepted Answer

The answer of Table 2-4
 \[\begin{array} { | l |...

Question 8

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for

Accepted Answer

The answer of In the circular flow diagram, when Daphne...

Question 9

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Accepted Answer

A) True 
 B)False

Question 10

Figure 2-15
​
  ​
-Refer to Figure 2-15. What is the slope of the line with points A, B, and C?

Accepted Answer

The answer of Figure 2-15
​
  ​
-Refer to Figure 2-15....

Question 11

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 12

Which of the following steps does an economist not take when studying the economy?

Accepted Answer

A)  Devise theories
B)  Collect data
C)  Analyze data
D)  Model the economy without any assumptionsE) All of the above
F) B) and D)

Question 13

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

Accepted Answer

A)  One economist believes everyone should pay the same percentage of their income in taxes; another economist believes that wealthier citizens should pay a higher percentage of their income in taxes.
B)  One economist believes that manufacturing firms should face greater regulation to preserve the environment; another economist believes the government should not intervene in free markets.
C)  One economist believes that equality should be valued over efficiency in policy decisions; another economist believes that efficiency should be valued over equality in policy decisions.
D)  One economist believes the government should tax a household's income; another economist believes the government should tax a household's consumption because it will cause households to save more.E) B) and C)
F) C) and D)

Question 14

"Society would be better off if the welfare system were abolished" is a normative statement, not a positive statement.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-4
Graph (a) 
Graph (b) 
  
-Refer to Figure 2-4, Graph (a) . Production is

Accepted Answer

A)  possible at points P, Q, R, and S, but efficient only at points P, R, and S.
B)  possible at points P, Q, R, and S, but efficient only at point Q.
C)  possible at points P, R, S, and T, but efficient only at points P, R, and S.
D)  possible at points P, R, S, and T, but efficient only at point T.E) C) and D)
F) None of the above

Question 16

Figure 2-10
​
  ​
​
​
​
-Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

Accepted Answer

A) True 
 B)False

Question 17

Historical episodes allow economists to illustrate and evaluate current economic theories.

Accepted Answer

A) True 
 B)False

Question 18

The art in scientific thinking-whether in chemistry, economics, or engineering-is

Accepted Answer

A)  the design and implementation of laboratory experiments.
B)  the ability to make an abstract subject easy to understand.
C)  deciding which assumptions to make.
D)  not something in which scientists have to be skilled.E) All of the above
F) B) and D)

Question 19

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Accepted Answer

A) True 
 B)False

Question 20

How are economists not like mathematicians, physicists, and biologists?

Accepted Answer

A)  Economists do not use models to represent the real world.
B)  Economists do not try to address their subject with a scientist's objectivity.
C)  Economists do not devise theories and collect and analyze data in an attempt to verify or refute their theories.
D)  Economists cannot run lab experiments in the same way that other scientists can.E) All of the above
F) C) and D)

Exam 2: Thinking Like an Economist

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct Answer
verified

Figure 2-15 -Refer to Figure 2-15. What is the slope of the line with points A, B, and C?

Correct Answer
verified

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

Correct Answer
verified

"Society would be better off if the welfare system were abolished" is a normative statement, not a positive statement.

Correct Answer
verified

Which of the following steps does an economist not take when studying the economy?

Correct Answer
verified

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for

Correct Answer
verified

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Correct Answer
verified

Correct Answer
verified

The art in scientific thinking-whether in chemistry, economics, or engineering-is

Correct Answer
verified

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

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Correct Answer
verified

Economists at which administrative department help design tax policy?

Correct Answer
verified
Department...
View Answer

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

Correct Answer
verified

How are economists not like mathematicians, physicists, and biologists?

Correct Answer
verified

Figure 2-10 -Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

Correct Answer
verified

Historical episodes allow economists to illustrate and evaluate current economic theories.

Correct Answer
verified

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

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

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct Answer
verified

Figure 2-4 Graph (a) Graph (b) -Refer to Figure 2-4, Graph (a) . Production is

Correct Answer
verified

Exam 2: Thinking Like an Economist

The circular-flow diagram explains, in general terms, how the economy is organized and how participants in the economy interact with one another.

Correct AnswerverifiedShow Answer

Figure 2-15 ​ ​ -Refer to Figure 2-15. What is the slope of the line with points A, B, and C?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

"Society would be better off if the welfare system were abolished" is a normative statement, not a positive statement.

Correct AnswerverifiedShow Answer

Which of the following steps does an economist not take when studying the economy?

Correct AnswerverifiedShow Answer

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for

Correct AnswerverifiedShow Answer

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The art in scientific thinking-whether in chemistry, economics, or engineering-is

Correct AnswerverifiedShow Answer

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

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

Correct AnswerverifiedShow Answer

Economists at which administrative department help design tax policy?

Correct AnswerverifiedDepartment...View AnswerShow 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

How are economists not like mathematicians, physicists, and biologists?

Correct AnswerverifiedShow Answer

Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

Correct AnswerverifiedShow Answer

Historical episodes allow economists to illustrate and evaluate current economic theories.

Correct AnswerverifiedShow Answer

Sometimes economists disagree because their scientific judgments differ. Which of the following instances best reflects this source of disagreement?

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

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Correct AnswerverifiedShow Answer

Figure 2-4 Graph (a) Graph (b) -Refer to Figure 2-4, Graph (a) . Production is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Figure 2-15 -Refer to Figure 2-15. What is the slope of the line with points A, B, and C?

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Department...
View Answer

Correct Answer
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Correct Answer
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Figure 2-10 -Refer to Figure 2-10. The opportunity cost of moving from point B to point D is 15 doghouses.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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