Question 1

In the early 19th century,the Russian government sent doctors to southern Russian villages to provide assistance during a cholera epidemic.The villagers noticed that wherever doctors appeared,people died.Therefore,many doctors were chased away from villages,and some were even killed.This reaction to the correlation between doctors and deaths is most likely a problem of

Accepted Answer

A)   omitted variables.
B)   reverse causality.
C)   government propaganda.
D)   medical incompetence.E) A) and C)
F) A) and B)

Question 2

Figure 2-8
Panel (a) Panel (b)   
-Refer to Figure 2-8,Panel (a) .Production at point K is

Accepted Answer

A)   possible and efficient.
B)   possible but inefficient.
C)   impossible but efficient.
D)   impossible and inefficient.E) B) and D)
F) B) and C)

Question 3

Which two groups of decision makers are included in the simple circular-flow diagram?

Accepted Answer

A)   markets and government
B)   households and government
C)   firms and government
D)   households and firmsE) B) and D)
F) All of the above

Question 4

Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram?

Accepted Answer

A)   Kosuke provides plumbing services for a plumbing company and receives an hourly wage from the company for his services.
B)   Alfonso works as a marriage counselor and his clients pay him on a per-hour basis for his services.
C)   Geovany owns several shopping malls and receives rent payments from the companies that operate those malls.
D)   Carlos sells advertising for a newspaper and receives a commission from the newspaper company for each advertisement that he sells.E) C) and D)
F) A) and C)

Question 5

Congress relies on economists at the Congressional Budget Office to

Accepted Answer

A)   enforce the nation's antitrust laws.
B)   set the nation's monetary policy.
C)   provide evidence that incumbent members of Congress are performing well in their jobs.
D)   provide independent evaluations of policy proposals.E) None of the above
F) A) and B)

Question 6

Figure 2-5 
-Refer to Figure 2-5.If this economy devotes one-half of its available resources to the production of baseballs and the other half to the production of bananas,it could produce

Accepted Answer

A)   150 bananas and 100 baseballs.
B)   150 bananas and 150 baseballs.
C)   300 bananas and 200 baseballs.
D)   We would have to know the details of this economy's technology in order to determine this.E) A) and C)
F) C) and D)

Question 7

Economists believe that production possibilities frontiers

Accepted Answer

A)   never have a bowed shape.
B)   rarely have a bowed shape.
C)   often have a bowed shape.
D)   always have a bowed shape.E) A) and C)
F) A) and D)

Question 8

Figure 2-2 
-Refer to Figure 2-2.Malika works as an attorney for a corporation and is paid a salary in exchange for the legal services she performs.Jarel owns office buildings and rents his buildings to companies in exchange for rent payments.If Malika's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram,then Jarel's income is represented by a flow of dollars

Accepted Answer

A)   from Box A to Box C.
B)   from Box C to Box A.
C)   from Box B to Box D.
D)   from Box D to Box B.E) B) and C)
F) C) and D)

Question 9

A circular-flow diagram is a model that

Accepted Answer

A)   helps to explain how participants in the economy interact with one another.
B)   helps to explain how the economy is organized.
C)   incorporates all aspects of the real economy.
D)   Both (a) and (b) are correct.E) B) and D)
F) C) and D)

Question 10

Figure 2-7 
-Refer to Figure 2-7.Point B represents an outcome in which

Accepted Answer

A)   production is inefficient.
B)   some of the economy's resources are unemployed.
C)   the economy is using all of its resources to produce books.
D)   the economy is using all of its ribeye steaks to produce books.E) A) and B)
F) A) and C)

Question 11

Figure 2-9
Panel (a) Panel (b)   
-Refer to Figure 2-9,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 television production technology.
C)   an improvement in radio production technology.
D)   an improvement in both television and radio production technology.E) A) and C)
F) B) and C)

Question 12

Figure 2-9
Panel (a) Panel (b)   
-Refer to Figure 2-9,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

Accepted Answer

A)   the tradeoff between the production of radios and televisions changes
B)   production of 2 radios and 5 televisions becomes efficient
C)   production of 6 radios and 7 televisions becomes possible
D)   the opportunity cost of a television is higher at all levels of television productionE) A) and C)
F) None of the above

Question 13

Economic growth causes a production possibilities frontier to shift outward.

Accepted Answer

A) True 
 B)False

Question 14

A demand curve shows the relationship

Accepted Answer

A)   between income and quantity demanded.
B)   between price and income.
C)   between price and quantity demanded.
D)   among income,price,and quantity demanded.E) B) and C)
F) None of the above

Question 15

When two variables move in the same direction,the curve relating them is downward sloping,and we say the variables are negatively related.

Accepted Answer

A) True 
 B)False

Question 16

In the circular-flow diagram,firms produce goods and services using the factors of production.

Accepted Answer

A) True 
 B)False

Question 17

Economic models

Accepted Answer

A)   cannot be useful if they are based on false assumptions.
B)   were once thought to be useful,but that is no longer true.
C)   must incorporate all aspects of the economy if they are to be useful.
D)   can be useful,even if they are not particularly realistic.E) None of the above
F) B) and C)

Question 18

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

Question 19

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 B)
F) A) and C)

Question 20

Which of the following is an example of a normative,as opposed to positive,statement?

Accepted Answer

A)   If the price of a product decreases,people's willingness to buy that product will increase.
B)   Reducing tax rates on the wealthy would benefit the nation.
C)   If the national saving rate were to increase,so would the rate of economic growth.
D)   The elimination of trade restrictions would increase an economy's standard of living.E) A) and B)
F) A) and C)

Exam 2: Thinking Like an Economist

Factors of production are

Correct Answer
verified

A demand curve shows the relationship

Correct Answer
verified

Correct Answer
verified

A circular-flow diagram is a model that

Correct Answer
verified

Figure 2-5 -Refer to Figure 2-5.If this economy devotes one-half of its available resources to the production of baseballs and the other half to the production of bananas,it could produce

Correct Answer
verified

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

Correct Answer
verified

Which of the following is an example of a normative,as opposed to positive,statement?

Correct Answer
verified

Congress relies on economists at the Congressional Budget Office to

Correct Answer
verified

Figure 2-7 -Refer to Figure 2-7.Point B represents an outcome in which

Correct Answer
verified

Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram?

Correct Answer
verified

Which two groups of decision makers are included in the simple circular-flow diagram?

Correct Answer
verified

Correct Answer
verified

Factors of production are

Correct Answer
verified

Figure 2-8 Panel (a) Panel (b) -Refer to Figure 2-8,Panel (a) .Production at point K is

Correct Answer
verified

In the circular-flow diagram,firms produce goods and services using the factors of production.

Correct Answer
verified

Economists believe that production possibilities frontiers

Correct Answer
verified

Economic models

Correct Answer
verified

Economic growth causes a production possibilities frontier to shift outward.

Correct Answer
verified

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Correct Answer
verified

When two variables move in the same direction,the curve relating them is downward sloping,and we say the variables are negatively related.

Correct Answer
verified

Exam 2: Thinking Like an Economist

Factors of production are

Correct AnswerverifiedShow Answer

A demand curve shows the relationship

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A circular-flow diagram is a model that

Correct AnswerverifiedShow Answer

Figure 2-5 -Refer to Figure 2-5.If this economy devotes one-half of its available resources to the production of baseballs and the other half to the production of bananas,it could produce

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9,Panel (a) and Panel (b) .Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b) ?

Correct AnswerverifiedShow Answer

Which of the following is an example of a normative,as opposed to positive,statement?

Correct AnswerverifiedShow Answer

Congress relies on economists at the Congressional Budget Office to

Correct AnswerverifiedShow Answer

Figure 2-7 -Refer to Figure 2-7.Point B represents an outcome in which

Correct AnswerverifiedShow Answer

Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram?

Correct AnswerverifiedShow Answer

Which two groups of decision makers are included in the simple circular-flow diagram?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Factors of production are

Correct AnswerverifiedShow Answer

Figure 2-8 Panel (a) Panel (b) -Refer to Figure 2-8,Panel (a) .Production at point K is

Correct AnswerverifiedShow Answer

In the circular-flow diagram,firms produce goods and services using the factors of production.

Correct AnswerverifiedShow Answer

Economists believe that production possibilities frontiers

Correct AnswerverifiedShow Answer

Economic models

Correct AnswerverifiedShow Answer

Economic growth causes a production possibilities frontier to shift outward.

Correct AnswerverifiedShow Answer

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9,Panel (a) and Panel (b) .A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Correct AnswerverifiedShow Answer

When two variables move in the same direction,the curve relating them is downward sloping,and we say the variables are negatively related.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified