Question 1

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Accepted Answer

A) True 
 B)False

Question 2

Figure 2-23 
-Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

Accepted Answer

A) True 
 B)False

Question 3

In the circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 4

Figure 2-23 
-Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Accepted Answer

A) True 
 B)False

Question 5

When two variables have a positive correlation,

Accepted Answer

A)   when the x-variable increases, 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) All of the above
F) B) and C)

Question 6

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Accepted Answer

A)   performing an experiment in an economic system.
B)   applying mathematical methods to economic analysis.
C)   analyzing available data.
D)   formulating theories about economic events.E) All of the above
F) C) and D)

Question 7

Factors of production are

Accepted Answer

A)   used to produce goods and services.
B)   also called output.
C)   abundant in most economies.
D)   assumed to be owned by firms in the circular-flow diagram.E) None of the above
F) A) and B)

Question 8

In the simple circular-flow diagram, who buys the factors of production?

Accepted Answer

A)   households only
B)   firms only
C)   both households and firms
D)   neither households nor firmsE) A) and B)
F) B) and C)

Question 9

Economists try to address their subject with a scientist's objectivity.

Accepted Answer

A) True 
 B)False

Question 10

When income increases the slope of an individual's demand curve, the demand curve

Accepted Answer

A)   turns positive.
B)   becomes undefined.
C)   remains negative.
D)   becomes infinite.E) A) and D)
F) A) and C)

Question 11

In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services?

Accepted Answer

A)   goods and services
B)   dollars paid to land, labor, and capital
C)   dollars spent on goods and services
D)   wages, rent, and profitE) B) and C)
F) A) and D)

Question 12

John Maynard Keynes believed the ideas of economists to be

Accepted Answer

A)   generally incorrect.
B)   powerful.
C)   academic and without practical application.
D)   rantings of madmen.E) B) and C)
F) A) and D)

Question 13

The slope of a line that passes through the points (5, 8)  and (12, 12)  is

Accepted Answer

A)   -4/7.
B)   -7/4.
C)   4/7.
D)   7/4.E) All of the above
F) A) and D)

Question 14

Economists use one standard set of assumptions to answer all economic questions.

Accepted Answer

A) True 
 B)False

Question 15

Table 2-1
The following table contains some production possibilities for an economy for a given month.
 
-Refer to Table 2-1. If the production possibilities frontier is bowed outward, then "?" could be

Accepted Answer

A)   400.
B)   450.
C)   600.
D)   750.E) B) and C)
F) A) and B)

Question 16

One difference between a hypothetical benevolent king implementing the best policy and the president implementing the best policy in the real world is the president has to be concerned about

Accepted Answer

A)   any misunderstandings in communicating the policy to the public.
B)   whether the policy will affect his standing among different groups in the electorate.
C)   what amendments will be suggested by members of Congress.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 17

As a substitute for laboratory experiments, economists use evidence available through history's

Accepted Answer

natural ex...

Question 18

The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative.

Accepted Answer

A) True 
 B)False

Question 19

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Accepted Answer

A)   spending.
B)   revenue.
C)   income.
D)   wages, rent, and profit.E) A) and B)
F) A) and C)

Question 20

In the circular-flow diagram,

Accepted Answer

A)   firms are buyers in the markets for goods and services.
B)   households are sellers in the markets for the factors of production.
C)   firms are sellers in the markets for factors of production and in the markets for goods and services.
D)   dollars that are spent on goods and services flow directly from firms to households.E) B) and C)
F) C) and D)

Exam 2: Thinking Like an Economist

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Correct AnswerverifiedShow Answer

The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative.

Correct AnswerverifiedShow Answer

In the circular-flow diagram,

Correct AnswerverifiedShow Answer

In the circular-flow diagram, which of the following items flows from firms to households through the markets for goods and services?

Correct AnswerverifiedShow Answer

In the circular-flow diagram, firms own the factors of production and use them to produce goods and services.

Correct AnswerverifiedShow Answer

John Maynard Keynes believed the ideas of economists to be

Correct AnswerverifiedShow Answer

The slope of a line is equal to the change in the x-variable divided by the change in the y-variable.

Correct AnswerverifiedShow Answer

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

Correct AnswerverifiedShow Answer

One difference between a hypothetical benevolent king implementing the best policy and the president implementing the best policy in the real world is the president has to be concerned about

Correct AnswerverifiedShow Answer

The slope of a line that passes through the points (5, 8) and (12, 12) is

Correct AnswerverifiedShow Answer

Factors of production are

Correct AnswerverifiedShow Answer

Table 2-1 The following table contains some production possibilities for an economy for a given month. -Refer to Table 2-1. If the production possibilities frontier is bowed outward, then "?" could be

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of an additional doghouse increases as more doghouses are produced.

Correct AnswerverifiedShow Answer

Figure 2-23 -Refer to Figure 2-23. The opportunity cost of moving from point A to point D is 10 dishwashers.

Correct AnswerverifiedShow Answer

Economists use one standard set of assumptions to answer all economic questions.

Correct AnswerverifiedShow Answer

In the simple circular-flow diagram, who buys the factors of production?

Correct AnswerverifiedShow Answer

Economists try to address their subject with a scientist's objectivity.

Correct AnswerverifiedShow Answer

As a substitute for laboratory experiments, economists use evidence available through history's

Correct Answerverifiednatural ex...View AnswerShow Answer

When two variables have a positive correlation,

Correct AnswerverifiedShow Answer

When income increases the slope of an individual's demand curve, the demand curve

Correct AnswerverifiedShow Answer

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