Question 1

Figure 2-6 
-Refer to Figure 2-6.If this economy put all available resources into the production of bananas,how many could it produce?

Accepted Answer

A)   200
B)   300
C)   400
D)   600E) B) and D)
F) All of the above

Question 2

What happens when a relevant variable that is not named on either axis changes?

Accepted Answer

A)   There will be a movement along the curve.
B)   The curve may or may not change depending on how the variables are related.
C)   The curve will be unaffected since only the variables on the axis affect the curve.
D)   The curve will shift.E) All of the above
F) B) and D)

Question 3

Figure 2-10 
-Refer to Figure 2-10.What could have caused the movement from point B to point C?

Accepted Answer

A)   inflation
B)   a change in income
C)   a change in the price of roses
D)   a change in the cost of producing rosesE) A) and B)
F) All of the above

Question 4

Table 2-1
​Production Possibilities for Toyland 
-Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 450 to 500?

Accepted Answer

A)   50 dolls
B)   100 dolls
C)   150 dolls
D)   200 dollsE) C) and D)
F) All of the above

Question 5

In the simple circular-flow diagram,in which market are households sellers?

Accepted Answer

A)   the factors of production market
B)   the goods and services market
C)   both the factors of production market and the goods and services market
D)   neither the factors of production market nor the goods and services marketE) C) and D)
F) A) and B)

Question 6

When is the production possibilities frontier bowed outward?

Accepted Answer

A)   if resources are not perfectly adaptable
B)   if the amount of resources increases
C)   if the level of technology increases
D)   if opportunity costs are constantE) B) and D)
F) A) and C)

Question 7

What do economists do when they attempt to simplify the real world and make it easier to understand?

Accepted Answer

A)   They make assumptions.
B)   They make uninformed judgments.
C)   They make predictions.
D)   They make evaluations.E) A) and D)
F) A) and C)

Question 8

Figure 2-2 
-Refer to Figure 2-2.In which market are households sellers?

Accepted Answer

A)   Box A
B)   Box B
C)   Box C
D)   Box DE) All of the above
F) A) and B)

Question 9

What revenue is received by firms from sales that is NOT used to pay for factors of production?

Accepted Answer

A)   rent
B)   wages
C)   profit
D)   interestE) A) and B)
F) A) and C)

Question 10

How do economists view positive statements?

Accepted Answer

A)   affirmative,justifying existing economic policy
B)   optimistic,putting the best possible interpretation on things
C)   descriptive,making a claim about how the world is
D)   prescriptive,making a claim about how the world ought to beE) A) and D)
F) C) and D)

Question 11

Figure 2-4 
-Refer to Figure 2-4.What is the opportunity cost to the economy of getting 30 additional toothbrushes by moving from point A to point D?

Accepted Answer

A)   10 toasters
B)   15 toasters
C)   20 toasters
D)   25 toastersE) All of the above
F) B) and C)

Question 12

What does a circular-flow diagram do?

Accepted Answer

A)   It illustrates cost-benefit analysis.
B)   It explains how the economy is organized.
C)   It shows the flow of trade in the world.
D)   It explains how banks circulate money in the economy.E) A) and D)
F) A) and C)

Question 13

What would unemployment cause an economy to do?

Accepted Answer

A)   produce inside its production possibilities frontier
B)   produce on its production possibilities frontier
C)   produce outside its production possibilities frontier
D)   shift its production possibilities frontier inwardsE) All of the above
F) A) and B)

Question 14

What is the first number in an ordered pair?

Accepted Answer

A)   the y-coordinate
B)   the x-coordinate
C)   either x or y,depending on the quadrant
D)   not useful to know,since most graphs in economics use p and q,not x and yE) None of the above
F) C) and D)

Exam 2: Thinking Like an Economist

What is the first number in an ordered pair?

Correct Answer
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Figure 2-2 -Refer to Figure 2-2.In which market are households sellers?

Correct Answer
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Figure 2-6 -Refer to Figure 2-6.If this economy put all available resources into the production of bananas,how many could it produce?

Correct Answer
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Figure 2-4 -Refer to Figure 2-4.What is the opportunity cost to the economy of getting 30 additional toothbrushes by moving from point A to point D?

Correct Answer
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What does a circular-flow diagram do?

Correct Answer
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In the simple circular-flow diagram,in which market are households sellers?

Correct Answer
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What happens when a relevant variable that is not named on either axis changes?

Correct Answer
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What would unemployment cause an economy to do?

Correct Answer
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What revenue is received by firms from sales that is NOT used to pay for factors of production?

Correct Answer
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What do economists do when they attempt to simplify the real world and make it easier to understand?

Correct Answer
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When is the production possibilities frontier bowed outward?

Correct Answer
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How do economists view positive statements?

Correct Answer
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Figure 2-10 -Refer to Figure 2-10.What could have caused the movement from point B to point C?

Correct Answer
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Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 450 to 500?

Correct Answer
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Exam 2: Thinking Like an Economist

What is the first number in an ordered pair?

Correct AnswerverifiedShow Answer

Figure 2-2 -Refer to Figure 2-2.In which market are households sellers?

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6.If this economy put all available resources into the production of bananas,how many could it produce?

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4.What is the opportunity cost to the economy of getting 30 additional toothbrushes by moving from point A to point D?

Correct AnswerverifiedShow Answer

What does a circular-flow diagram do?

Correct AnswerverifiedShow Answer

In the simple circular-flow diagram,in which market are households sellers?

Correct AnswerverifiedShow Answer

What happens when a relevant variable that is not named on either axis changes?

Correct AnswerverifiedShow Answer

What would unemployment cause an economy to do?

Correct AnswerverifiedShow Answer

What revenue is received by firms from sales that is NOT used to pay for factors of production?

Correct AnswerverifiedShow Answer

What do economists do when they attempt to simplify the real world and make it easier to understand?

Correct AnswerverifiedShow Answer

When is the production possibilities frontier bowed outward?

Correct AnswerverifiedShow Answer

How do economists view positive statements?

Correct AnswerverifiedShow Answer

Figure 2-10 -Refer to Figure 2-10.What could have caused the movement from point B to point C?

Correct AnswerverifiedShow Answer

Table 2-1 ​Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 450 to 500?

Correct AnswerverifiedShow Answer

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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Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 450 to 500?

Correct Answer
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