Question 1

Refer to Figure 2-13.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

Accepted Answer

A)  I,L
B)  G,H
C)  J,K
D)  F,GE) A) and B)
F) A) and C)

Question 2

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

Accepted Answer

A)  Q,R,U
B)  R,T,U
C)  R,U
D)  S,TE) A) and B)
F) All of the above

Question 3

Which of the following is not correct about most economic models?

Accepted Answer

A)  They are composed of equations and diagrams.
B)  They contribute very little to economists' understanding of the real world.
C)  They omit many features of the real-world economy.
D)  In constructing models,economists make assumptions.E) All of the above
F) A) and C)

Question 4

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 B)
F) All of the above

Question 5

Figure 2-7 
-Refer to Figure 2-7.If this economy devotes all of its resources to the production of engines,then it will produce

Accepted Answer

A)  0 engines and 40 tvs.
B)  10 engines and 35 tvs.
C)  40 engines and 0 tvs.
D)  40 engines and 40 tvs.E) A) and B)
F) C) and D)

Question 6

Factors of production are

Accepted Answer

A)  the mathematical calculations firms make in determining their optimal production levels.
B)  social and political conditions that affect production.
C)  the physical relationships between economic inputs and outputs.
D)  inputs into the production process.E) A) and D)
F) B) and C)

Question 7

The decision of which assumptions to make is

Accepted Answer

A)  an easy decision for an economist,but a difficult decision for a physicist or a chemist.
B)  not a particularly important decision for an economist.
C)  usually regarded as an art in scientific thinking.
D)  usually regarded as the easiest part of the scientific method.E) C) and D)
F) B) and C)

Question 8

Figure 2-6 
-Refer to Figure 2-6.The opportunity cost of this economy moving from point I to point F is

Accepted Answer

A)  zero.
B)  40 blankets.
C)  120 pillows.
D)  360 blankets.E) A) and B)
F) C) and D)

Question 9

Figure 2-2 
-Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

Accepted Answer

A)  Box B
B)  Box C
C)  Box D
D)  Any one of the other boxes (B,C,or 
D)  could represent households.E) B) and D)
F) A) and C)

Question 10

Figure 2-16​ 
-Refer to Figure 2-16.The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

Accepted Answer

A)  10 gadgets.
B)  30 widgets
C)  10 gadgets and 30 widgets.
D)  0 gadgets.E) B) and C)
F) C) and D)

Question 11

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) None of the above
F) B) and D)

Question 12

Figure 2-10

-Refer to Figure 2-10,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Accepted Answer

A)  unemployment.
B)  an improvement in sofa production technology.
C)  an improvement in tractor production technology.
D)  an improvement in both sofa and tractor production technology.E) None of the above
F) A) and B)

Question 13

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

Accepted Answer

A)  For the most part,microeconomists are unconcerned with macroeconomics,and macroeconomists are unconcerned with microeconomics.
B)  Microeconomists study markets for small products,whereas macroeconomists study markets for large products.
C)  Microeconomics and macroeconomics are distinct from one another,yet they are closely related.
D)  Microeconomics is oriented toward policy studies,whereas macroeconomics is oriented toward theoretical studies.E) A) and B)
F) None of the above

Question 14

Figure 2-4 
-Refer to Figure 2-4.Unemployment could cause this economy to produce at which point(s) ?

Accepted Answer

A)  Q,S
B)  Q,S,T
C)  R,U
D)  TE) None of the above
F) B) and D)

Question 15

With respect to how economists study the economy,which of the following statements is most accurate?

Accepted Answer

A)  Economists study the past,but they do not try to predict the future.
B)  Economists use "rules of thumb" to predict the future.
C)  Economists devise theories,collect data,and analyze the data to test the theories.
D)  Economists use controlled experiments in much the same way that biologists and physicists do.E) C) and D)
F) A) and C)

Question 16

Figure 2-1 
-Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

Accepted Answer

A)  A
B)  B
C)  C
D)  DE) B) and D)
F) A) and B)

Question 17

Because it is difficult for economists to use experiments to generate data,they generally must

Accepted Answer

A)  do without data.
B)  substitute assumptions for data when data are unavailable.
C)  rely upon hypothetical data that were previously concocted by other economists.
D)  use whatever data the world gives them.E) B) and C)
F) B) and D)

Question 18

Figure 2-7 
-Refer to Figure 2-7.If this economy moved from point P to point N,then

Accepted Answer

A)  it still would not be producing efficiently.
B)  there would be no gain in either engines or tvs.
C)  it would be producing more engines and more tvs than at point P.
D)  It is not possible for this economy to move from point P to point N without additional resources.E) A) and B)
F) All of the above

Question 19

One thing economists do to help them understand how the real world works is

Accepted Answer

A)  make assumptions.
B)  ignore the past.
C)  try to capture every aspect of the real world in the models they construct.
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 20

Figure 2-7 
-Refer to Figure 2-7.What is the opportunity cost of moving from point L to point M?

Accepted Answer

A)  zero
B)  15 tvs
C)  20 engines and 15 tvs
D)  20 enginesE) C) and D)
F) B) and C)

Exam 2: Thinking Like an Economist: The Economist As Scientist

Figure 2-6 -Refer to Figure 2-6.The opportunity cost of this economy moving from point I to point F is

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Figure 2-16​ -Refer to Figure 2-16.The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

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Which of the following statements best captures the relationship between microeconomics and macroeconomics?

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Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of land,labor,and capital?

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Refer to Figure 2-13.Which points are not currently attainable but could become achievable for this economy if there is an improvement in technology?

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Which of the following is not correct about most economic models?

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Figure 2-10 -Refer to Figure 2-10,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

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Because it is difficult for economists to use experiments to generate data,they generally must

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Figure 2-4 -Refer to Figure 2-4.Unemployment could cause this economy to produce at which point(s) ?

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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

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Figure 2-7 -Refer to Figure 2-7.What is the opportunity cost of moving from point L to point M?

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Which of the following statements is (are) correct?

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Factors of production are

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One thing economists do to help them understand how the real world works is

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Figure 2-7 -Refer to Figure 2-7.If this economy moved from point P to point N,then

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The decision of which assumptions to make is

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

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Figure 2-2 -Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

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Figure 2-7 -Refer to Figure 2-7.If this economy devotes all of its resources to the production of engines,then it will produce

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With respect to how economists study the economy,which of the following statements is most accurate?

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Figure 2-16 -Refer to Figure 2-16.The opportunity cost of obtaining approximately 10 additional gadgets by moving from point C to point A is

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