Question 1

Figure 2-10
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-Refer to Figure 2-10. Points A, B, and D represent efficient outcomes for this economy.

Accepted Answer

A) True 
 B)False

Question 2

Is the following a positive or normative statement? The Federal Reserve should set an inflation target and employ policies to meet the target.

Accepted Answer

The answer of Is the following a positive or normative...

Question 3

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Accepted Answer

A) True 
 B)False

Question 4

Figure 2-12
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-Refer to Figure 2-12. What do the rectangles represent in the figure?

Accepted Answer

The answer of Figure 2-12
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-Refer to Figure 2-12....

Question 5

Figure 2-10
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-Refer to Figure 2-10. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Accepted Answer

A) True 
 B)False

Question 6

Points inside the production possibilities frontier represent inefficient levels of production.

Accepted Answer

A) True 
 B)False

Question 7

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Accepted Answer

scientific...

Question 8

Which of the following is correct?

Accepted Answer

A)  The slope of a line will be infinite for a horizontal line.
B)  The slope of a fairly flat upward-sloping line will be a large negative number.
C)  The slope of a line will be a negative number for a downward-sloping line.
D)  The slope of a steep upward-sloping line will be a small negative number.E) A) and D)
F) All of the above

Question 9

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) B) and C)
F) All of the above

Question 10

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Accepted Answer

A) True 
 B)False

Question 11

Figure 2-11
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-Refer to Figure 2-11. This economy fully employs its resources when it produces 4000 shoes and zero t-shirts.

Accepted Answer

A) True 
 B)False

Question 12

Figure 2-4
Graph (a) 
Graph (b) 
  
-Refer to Figure 2-4, Graph (a) . The opportunity cost of moving from point S to point R is

Accepted Answer

A)  2 books.
B)  2 DVDs and 2 books.
C)  2 DVDs.
D)  4 DVDs.E) A) and C)
F) All of the above

Question 13

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

Accepted Answer

Office of ...

Question 14

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Accepted Answer

A) True 
 B)False

Question 15

Trade-offs are involved in most policy decisions.

Accepted Answer

A) True 
 B)False

Question 16

The inner loop of the circular-flow diagram represents the flow of inputs and outputs. Which of the following does not appear on the inner loop?

Accepted Answer

A)  Land
B)  Capital
C)  Wages
D)  Goods and services soldE) A) and B)
F) A) and D)

Question 17

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 18

The point where both x and y are zero is known as the

Accepted Answer

A)  origin.
B)  null.
C)  zero coordinate.
D)  center.E) A) and B)
F) B) and C)

Question 19

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Accepted Answer

A) True 
 B)False

Question 20

Figure 2-11
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-Refer to Figure 2-11. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Accepted Answer

A) True 
 B)False

Exam 2: Thinking Like an Economist

All scientific models, including economic models, simplify reality in order to improve our understanding of it.

Correct AnswerverifiedShow Answer

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

Correct AnswerverifiedShow Answer

Figure 2-4 Graph (a) Graph (b) -Refer to Figure 2-4, Graph (a) . The opportunity cost of moving from point S to point R is

Correct AnswerverifiedShow Answer

The inner loop of the circular-flow diagram represents the flow of inputs and outputs. Which of the following does not appear on the inner loop?

Correct AnswerverifiedShow Answer

Points inside the production possibilities frontier represent inefficient levels of production.

Correct AnswerverifiedShow Answer

Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Correct AnswerverifiedShow Answer

Figure 2-11 ​ -Refer to Figure 2-11. This economy fully employs its resources when it produces 4000 shoes and zero t-shirts.

Correct AnswerverifiedShow Answer

Is the following a positive or normative statement? The Federal Reserve should set an inflation target and employ policies to meet the target.

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

The slope of a line is the ratio of the vertical distance covered to the horizontal distance covered along the line.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedOffice of ...View AnswerShow Answer

Trade-offs are involved in most policy decisions.

Correct AnswerverifiedShow Answer

Which of the following is correct?

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

The point where both x and y are zero is known as the

Correct AnswerverifiedShow Answer

Figure 2-10 ​ ​ ​ ​ ​ -Refer to Figure 2-10. Points A, B, and D represent efficient outcomes for this economy.

Correct AnswerverifiedShow Answer

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

Correct Answerverifiedscientific...View AnswerShow Answer

Figure 2-11 ​ -Refer to Figure 2-11. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Correct AnswerverifiedShow Answer

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

Correct AnswerverifiedShow Answer

Figure 2-12 ​ ​ ​ ​ ​ ​ -Refer to Figure 2-12. What do the rectangles represent in the figure?

Correct AnswerverifiedShow Answer

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Figure 2-10 -Refer to Figure 2-10. When this economy produces 30 doghouses and 25 dishwashers there is full employment.

Correct Answer
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Figure 2-11 -Refer to Figure 2-11. This economy fully employs its resources when it produces 4000 shoes and zero t-shirts.

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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Office of ...
View Answer

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Correct Answer
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Correct Answer
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Figure 2-10 -Refer to Figure 2-10. Points A, B, and D represent efficient outcomes for this economy.

Correct Answer
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Correct Answer
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scientific...
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Figure 2-11 -Refer to Figure 2-11. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

Correct Answer
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Correct Answer
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Figure 2-12 -Refer to Figure 2-12. What do the rectangles represent in the figure?

Correct Answer
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