Question 1

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Accepted Answer

The answer of Which type of statement - positive or...

Question 2

Economists at which administrative department help formulate spending plans and regulatory policies?

Accepted Answer

Office of ...

Question 3

The president of the United States receives tax policy advice from economists in the

Accepted Answer

A)   Federal Reserve.
B)   Department of Justice.
C)   Department of the Treasury.
D)   Congressional Budget Office.E) A) and C)
F) C) and D)

Question 4

Figure 2-23 
-Refer to Figure 2-23. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Accepted Answer

A) True 
 B)False

Question 5

The Council of Economic Advisers consists of thirty members and a staff of several dozen economists.

Accepted Answer

A) True 
 B)False

Question 6

In the circular-flow diagram,

Accepted Answer

A)   factors of production flow from government to firms.
B)   goods and services flow from households to firms.
C)   income paid to the factors of production flows from firms to households.
D)   spending on goods and services flows from firms to households.E) B) and C)
F) All of the above

Question 7

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

Accepted Answer

A)   less than 0.
B)   between zero and 1.
C)   between one and infinity.
D)   undefined.E) C) and D)
F) B) and C)

Question 8

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases, the y-variable decreases.
B)   when the x-variable decreases, the y-variable increases.
C)   when the x-variable increases, the y-variable increases.
D)   More than one of the above is correct.E) A) and D)
F) B) and C)

Question 9

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

Accepted Answer

A)   The United States should not restrict employers from outsourcing work to foreign countries.
B)   The United States should withdraw from the North American Free Trade Agreement (NAFT
A)  .
C)   The United States should eliminate agricultural subsidies.
D)   Local and state governments should eliminate subsidies to professional sports franchises.E) A) and D)
F) B) and D)

Question 10

Figure 2-11 
-Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Accepted Answer

A)   The economy's citizens developed an enhanced taste for books.
B)   The economy experienced a technological advance in the production of books.
C)   More capital became available in the economy.
D)   More labor became available in the economy.E) A) and D)
F) A) and B)

Question 11

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Accepted Answer

A)   will never be able to produce.
B)   can produce using all available resources and technology.
C)   can produce using some portion, but not all, of its resources and technology.
D)   may be able to produce in the future with more resources and/or superior technology.E) B) and D)
F) All of the above

Question 12

When a variable that is not named on either axis of a graph changes, we read the change as a movement along the curve.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-23 
-Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Accepted Answer

A) True 
 B)False

Question 14

Figure 2-18
Relationship between Price and Restaurant Meals 
-Refer to Figure 2-18. In the ordered pair (8, 24)

Accepted Answer

A)   the x-coordinate is 8 and the y-coordinate is 24.
B)   the x-coordinate is 24 and the y-coordinate is 8.
C)   the numbers tell the location of the origin.
D)   the 8 represents the price and the 24 represents the number of restaurant meals.E) B) and C)
F) A) and D)

Question 15

Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

Accepted Answer

Council of...

Question 16

Figure 2-3 
-Refer to Figure 2-3. What do the rectangles represent in the figure?

Accepted Answer

The answer of Figure 2-3 
-Refer to Figure 2-3. What...

Question 17

Figure 2-5 
-Refer to Figure 2-5. It is not possible for this economy to produce at point

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   D.E) All of the above
F) A) and D)

Question 18

Figure 2-23 
-Refer to Figure 2-23. Points A, B, and D represent efficient outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 19

Suppose an economist advises a city's mayor to begin charging drivers a fee to drive on a busy highway during congested times. The mayor does not implement the policy because it would not be popular with voters. Which of the following statements best describes the scenario?

Accepted Answer

A)   This is a common occurrence. The policymaker knows the best policy but chooses not to institute it for other reasons.
B)   This is a common occurrence. The policymaker usually disregards an economist's advice because they do not believe it is the most efficient policy.
C)   This is an unlikely occurrence. Most of the time, policymakers follow the advice of economists and institute the most efficient policies.
D)   This would never happen. Policymakers always follow the advice of economists.E) None of the above
F) A) and C)

Question 20

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier. Last year, it produced 1000 units of food and 47 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 1050 units of food and 47 machines. Which of the following statements is correct?

Accepted Answer

A)   Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 47.
B)   Because the technological advance occurred in the machine-making industry, increases in output can only occur in the machine industry.
C)   In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies.
D)   The technological advance reduced the amount of resources needed to produce 47 machines, so these resources could be used to produce more food.E) C) and D)
F) B) and C)

Exam 2: Thinking Like an Economist

In the circular-flow diagram,

Correct Answer
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The president of the United States receives tax policy advice from economists in the

Correct Answer
verified

Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

Correct Answer
verified
Council of...
View Answer

Figure 2-11 -Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Correct Answer
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A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

Correct Answer
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A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

Correct Answer
verified

Correct Answer
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Figure 2-23 -Refer to Figure 2-23. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Correct Answer
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When a variable that is not named on either axis of a graph changes, we read the change as a movement along the curve.

Correct Answer
verified

Suppose an economist advises a city's mayor to begin charging drivers a fee to drive on a busy highway during congested times. The mayor does not implement the policy because it would not be popular with voters. Which of the following statements best describes the scenario?

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3. What do the rectangles represent in the figure?

Correct Answer
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Figure 2-23 -Refer to Figure 2-23. Points A, B, and D represent efficient outcomes for this economy.

Correct Answer
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Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Correct Answer
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When two variables have a negative correlation,

Correct Answer
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Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. In the ordered pair (8, 24)

Correct Answer
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The Council of Economic Advisers consists of thirty members and a staff of several dozen economists.

Correct Answer
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Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Correct Answer
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Economists at which administrative department help formulate spending plans and regulatory policies?

Correct Answer
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Office of ...
View Answer

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5. It is not possible for this economy to produce at point

Correct Answer
verified

Exam 2: Thinking Like an Economist

In the circular-flow diagram,

Correct AnswerverifiedShow Answer

The president of the United States receives tax policy advice from economists in the

Correct AnswerverifiedShow Answer

Since 1946, the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

Correct AnswerverifiedCouncil of...View AnswerShow Answer

Figure 2-11 -Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Correct AnswerverifiedShow Answer

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

Correct AnswerverifiedShow Answer

A demand curve displaying the relationship between the price of cars and the quantity demanded of cars should have a slope that is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Correct AnswerverifiedShow Answer

When a variable that is not named on either axis of a graph changes, we read the change as a movement along the curve.

Correct AnswerverifiedShow Answer

Suppose an economist advises a city's mayor to begin charging drivers a fee to drive on a busy highway during congested times. The mayor does not implement the policy because it would not be popular with voters. Which of the following statements best describes the scenario?

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. What do the rectangles represent in the figure?

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. Points A, B, and D represent efficient outcomes for this economy.

Correct AnswerverifiedShow Answer

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

Correct AnswerverifiedShow Answer

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. In the ordered pair (8, 24)

Correct AnswerverifiedShow Answer

The Council of Economic Advisers consists of thirty members and a staff of several dozen economists.

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point B to point A is zero.

Correct AnswerverifiedShow Answer

Economists at which administrative department help formulate spending plans and regulatory policies?

Correct AnswerverifiedOffice of ...View AnswerShow Answer

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5. It is not possible for this economy to produce at point

Correct AnswerverifiedShow Answer

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Council of...
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Office of ...
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