Question 1

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-3 
-Refer to Figure 2-3. At which point is this economy producing its maximum possible quantity of pans?

Accepted Answer

A)  J
B)  L
C)  M
D)  NE) All of the above
F) A) and C)

Question 3

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Accepted Answer

A)  society's preferences.
B)  the available production technology.
C)  a fair distribution of the output.
D)  the available demand for the output.E) A) and C)
F) B) and D)

Question 4

In the ordered pair (17, 75) , 17 is the

Accepted Answer

A)  vertical location of the point.
B)  the slope.
C)  the x-coordinate.
D)  the y-coordinate.E) C) and D)
F) All of the above

Question 5

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Accepted Answer

A)  It is often difficult to formulate theories in economics.
B)  It is often difficult and sometimes impossible to perform experiments in economics.
C)  Economics cannot be addressed objectively; it must be addressed subjectively.
D)  The scientific method cannot be applied to the study of economics.E) B) and C)
F) A) and B)

Question 6

A relatively flat demand curve indicates that

Accepted Answer

A)  quantity demanded will adjust only slightly to a price change.
B)  quantity demanded will adjust significantly to a price change.
C)  quantity demanded will not adjust to a price change.
D)  the change in quantity demanded will exactly equal a change in price.E) A) and D)
F) All of the above

Question 7

Points on the production possibilities frontier represent efficient levels of production.

Accepted Answer

A) True 
 B)False

Question 8

Economic models

Accepted Answer

A)  are constructed to mirror reality as closely as possible, and in this respect economic models are no different from other scientific models.
B)  are constructed to mirror reality as closely as possible, and in this respect economic models are very different from other scientific models.
C)  are simplifications of reality, and in this respect economic models are no different from other scientific models.
D)  are simplifications of reality, and in this respect economic models are very different from other scientific models.E) None of the above
F) A) and D)

Question 9

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 10

Figure 2-9
 
-Refer to Figure 2-9, Panel (a) . Production at point B is

Accepted Answer

A)  impossible and inefficient.
B)  impossible but efficient.
C)  possible but inefficient.
D)  possible and efficient.E) B) and D)
F) None of the above

Question 11

Figure 2-13 
-Refer to Figure 2-13. Cups of coffee per day and the hours that someone can go without sleep appear to have

Accepted Answer

A)  a positive correlation.
B)  a negative correlation.
C)  a random correlation.
D)  no correlation.E) None of the above
F) C) and D)

Question 12

The two loops in the circular-flow diagram represent

Accepted Answer

A)  the flow of goods and the flow of services.
B)  the flow of dollars and the flow of financial assets.
C)  the flow of inputs into production processes and the flow of outputs from production processes.
D)  the flows of inputs and outputs and the flow of dollars.E) None of the above
F) C) and D)

Question 13

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) A) and B)
F) A) and C)

Question 14

Figure 2-4 
-Refer to Figure 2-4. Inefficient production is represented by which point(s) ?

Accepted Answer

A)  Y, Z
B)  V
C)  V, W
D)  WE) A) and B)
F) A) and C)

Question 15

Which of these terms are used interchangeably?

Accepted Answer

A)  "goods and services" and "inputs"
B)  "goods and services" and "factors of production"
C)  "inputs" and "factors of production"
D)  "land, labor, and capital" and "goods and services"E) None of the above
F) All of the above

Exam 2: Thinking Like an Economist

Which of these terms are used interchangeably?

Correct Answer
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A relatively flat demand curve indicates that

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

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Correct Answer
verified

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Correct Answer
verified

Figure 2-13 -Refer to Figure 2-13. Cups of coffee per day and the hours that someone can go without sleep appear to have

Correct Answer
verified

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4. Inefficient production is represented by which point(s) ?

Correct Answer
verified

Figure 2-9 -Refer to Figure 2-9, Panel (a) . Production at point B is

Correct Answer
verified

Economic models

Correct Answer
verified

The two loops in the circular-flow diagram represent

Correct Answer
verified

Points on the production possibilities frontier represent efficient levels of production.

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3. At which point is this economy producing its maximum possible quantity of pans?

Correct Answer
verified

In the ordered pair (17, 75) , 17 is the

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

Exam 2: Thinking Like an Economist

Which of these terms are used interchangeably?

Correct AnswerverifiedShow Answer

A relatively flat demand curve indicates that

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

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Correct AnswerverifiedShow Answer

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Correct AnswerverifiedShow Answer

Figure 2-13 -Refer to Figure 2-13. Cups of coffee per day and the hours that someone can go without sleep appear to have

Correct AnswerverifiedShow Answer

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. Inefficient production is represented by which point(s) ?

Correct AnswerverifiedShow Answer

Figure 2-9 -Refer to Figure 2-9, Panel (a) . Production at point B is

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

The two loops in the circular-flow diagram represent

Correct AnswerverifiedShow Answer

Points on the production possibilities frontier represent efficient levels of production.

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. At which point is this economy producing its maximum possible quantity of pans?

Correct AnswerverifiedShow Answer

In the ordered pair (17, 75) , 17 is the

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

Correct Answer
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