Question 1

Wilbur and Orville Wright's testing of wing designs in a wind tunnel is an example of using

Accepted Answer

A)  observations to construct models. 
B)  hypotheses to test observations. 
C)  a theory to formulate hypotheses. 
D)  models to collect data. 
E)  data to make predictions. 
A)  observations to construct models. 
B)  hypotheses to test observations. 
C)  a theory to formulate hypotheses. 
D)  models to collect data. 
E)  data to make predictions.

Question 2

Why might Shaquille O'Neal, a 7'1'' former National Basketball Association NBA) player, hire professional movers to help him move, even though his size and strength likely make him more proficient better) at furniture moving than the professionals he may hire?

Accepted Answer

Even today, Shaquille O'Neal has certain

Question 3

Economic growth is, by definition, an increase in the

Accepted Answer

A)  ability to produce goods. 
B)  number of participants in the workforce. 
C)  demand for goods. 
D)  average citizen's standard of living. 
E)  average worker's salary. 
A)  ability to produce goods. 
B)  number of participants in the workforce. 
C)  demand for goods. 
D)  average citizen's standard of living. 
E)  average worker's salary.

Question 4

Refer to the accompanying figure to answer the next  questions.
  
-The inefficient points) is/are

Accepted Answer

A)  point A. 
B)  points C and D. 
C)  point C. 
D)  point D. 
E)  points B, C, and E. 
A)  point A. 
B)  points C and D. 
C)  point C. 
D)  point D. 
E)  points B, C, and E.

Question 5

What assumptions do economists make when developing a production possibilities frontier PPF)?

Accepted Answer

To simplify the complexity of the real w

Question 6

When economists use models to make predictions, faulty assumptions can have disastrous consequences. Why is "avoid making assumptions" not the solution to this problem? Use the concepts of endogenous and exogenous factors to explain.

Accepted Answer

Economics studies human behavior, which

Question 7

What does it mean when society is operating inside the production possibilities frontier PPF)?

Accepted Answer

The society is not fully utilizing all o

Question 8

Refer to the following figure to answer the next  questions.
  
-Which of the following represents an inefficient point?

Accepted Answer

A)  point A 
B)  point B 
C)  point C 
D)  point D 
E)  point F 
A)  point A 
B)  point B 
C)  point C 
D)  point D 
E)  point F

Question 9

Which faulty assumption by banks led to the Great Recession that began in 2007?

Accepted Answer

A)  that inflation would always remain low 
B)  that the U.S. government would always pay its debts 
C)  that stock prices would never drop 
D)  that the dollar would always be strong against other currencies 
E)  that real estate prices would always rise 
A)  that inflation would always remain low 
B)  that the U.S. government would always pay its debts 
C)  that stock prices would never drop 
D)  that the dollar would always be strong against other currencies 
E)  that real estate prices would always rise

Question 10

The scientific method and the tools of economics are useful in examining

Accepted Answer

A)  only how individuals make decisions. 
B)  only how business firms make decisions. 
C)  only how government policies affect macroeconomic outcomes. 
D)  only the trade-offs evident in the production possibilities frontier PPF). 
E)  anything; economists will use their tools to study anything in the world around them. 
A)  only how individuals make decisions. 
B)  only how business firms make decisions. 
C)  only how government policies affect macroeconomic outcomes. 
D)  only the trade-offs evident in the production possibilities frontier PPF). 
E)  anything; economists will use their tools to study anything in the world around them.

Question 11

Refer to the following figures to answer the next  questions.
  
-Which allocation point in the short-run production possibilities frontier PPF) will lead to the most significant growth in the long-run PPF?

Accepted Answer

A)  point A 
B)  point B 
C)  point C 
D)  point D 
E)  point E 
A)  point A 
B)  point B 
C)  point C 
D)  point D 
E)  point E

Question 12

Which of the following is a positive statement?

Accepted Answer

A)  Individuals should make good long-term decisions. 
B)  Corporations should maximize shareholder value. 
C)  The government should reduce the level of unemployment. 
D)  The most important effects of policy happen in the short term. 
E)  The unemployment rate is 8 percent. 
A)  Individuals should make good long-term decisions. 
B)  Corporations should maximize shareholder value. 
C)  The government should reduce the level of unemployment. 
D)  The most important effects of policy happen in the short term. 
E)  The unemployment rate is 8 percent.

Question 13

Economic growth can be depicted on a production possibilities frontier PPF) as an

Accepted Answer

A)  inward shift of the PPF. 
B)  outward shift of the PPF. 
C)  inward rotation along the x axis. 
D)  inward rotation along the y axis. 
E)  increase in opportunity cost. 
A)  inward shift of the PPF. 
B)  outward shift of the PPF. 
C)  inward rotation along the x axis. 
D)  inward rotation along the y axis. 
E)  increase in opportunity cost.

Question 14

Suppose someone is studying a production possibilities frontier PPF) that has a bowed-out shape relative to the origin. What causes this shape?

Accepted Answer

A)  economic growth 
B)  the law of increasing relative cost 
C)  absolute advantage 
D)  normative economics 
E)  more resources 
A)  economic growth 
B)  the law of increasing relative cost 
C)  absolute advantage 
D)  normative economics 
E)  more resources

Question 15

Which of the following is a positive statement?

Accepted Answer

A)  Winters in Arkansas are too cold. 
B)  Everyone should work in a bank to understand the true value of money. 
C)  Harvard University is the top education institution in the country. 
D)  On average, people save 15 percent when they switch to GEICO. 
E)  Everyone ought to have a life insurance policy. 
A)  Winters in Arkansas are too cold. 
B)  Everyone should work in a bank to understand the true value of money. 
C)  Harvard University is the top education institution in the country. 
D)  On average, people save 15 percent when they switch to GEICO. 
E)  Everyone ought to have a life insurance policy.

Question 16

Is it always better to forgo current consumption in order to invest more in capital goods that will provide more growth in society's production possibilities frontier PPF) and make us better off in the future?

Accepted Answer

No, it is not always better to forgo cur

Question 17

The_______ states that the opportunity cost of producing a good always rises as one produces more of it.

Accepted Answer

A)  law of increasing relative cost 
B)  law of positive economics 
C)  law of demand 
D)  production possibilities frontier PPF) model 
E)  zero-sum game 
A)  law of increasing relative cost 
B)  law of positive economics 
C)  law of demand 
D)  production possibilities frontier PPF) model 
E)  zero-sum game

Question 18

Refer to the accompanying figure to answer the next  questions.
  
-Given the current resources, one would need even more hours in each day in order to attain

Accepted Answer

A)  point A. 
B)  point B. 
C)  point C. 
D)  point D. 
E)  point E. 
A)  point A. 
B)  point B. 
C)  point C. 
D)  point D. 
E)  point E.

Question 19

Mikhail and Stefan are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the next  questions  
-What is Stefan's opportunity cost of a sculpture?

Accepted Answer

A)  1/2 painting 
B)  1/3 painting 
C)  3 paintings 
D)  1/3 sculpture 
E)  3/5 sculpture 
A)  1/2 painting 
B)  1/3 painting 
C)  3 paintings 
D)  1/3 sculpture 
E)  3/5 sculpture

Question 20

The figures below depict the production possibilities frontiers PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the next  questions.
  
-What is Gibbs's opportunity cost of making a wooden boat?

Accepted Answer

A)  20 solved crimes 
B)  30 solved crimes 
C)  10 solved crimes 
D)  1/20 of a boat 
E)  1/10 of a boat 
A)  20 solved crimes 
B)  30 solved crimes 
C)  10 solved crimes 
D)  1/20 of a boat 
E)  1/10 of a boat

Wilbur and Orville Wright's testing of wing designs in a wind tunnel is an example of using

Why might Shaquille O'Neal, a 7'1'' former National Basketball Association NBA) player, hire professional movers to help him move, even though his size and strength likely make him more proficient better) at furniture moving than the professionals he may hire?

Economic growth is, by definition, an increase in the

Refer to the accompanying figure to answer the next questions. -The inefficient points) is/are

What assumptions do economists make when developing a production possibilities frontier PPF)?

When economists use models to make predictions, faulty assumptions can have disastrous consequences. Why is "avoid making assumptions" not the solution to this problem? Use the concepts of endogenous and exogenous factors to explain.

What does it mean when society is operating inside the production possibilities frontier PPF)?

Refer to the following figure to answer the next questions. -Which of the following represents an inefficient point?

Which faulty assumption by banks led to the Great Recession that began in 2007?

The scientific method and the tools of economics are useful in examining

Refer to the following figures to answer the next questions. -Which allocation point in the short-run production possibilities frontier PPF) will lead to the most significant growth in the long-run PPF?

Which of the following is a positive statement?

Economic growth can be depicted on a production possibilities frontier PPF) as an

Suppose someone is studying a production possibilities frontier PPF) that has a bowed-out shape relative to the origin. What causes this shape?

Which of the following is a positive statement?

Is it always better to forgo current consumption in order to invest more in capital goods that will provide more growth in society's production possibilities frontier PPF) and make us better off in the future?

The_______ states that the opportunity cost of producing a good always rises as one produces more of it.

Refer to the accompanying figure to answer the next questions. -Given the current resources, one would need even more hours in each day in order to attain

Mikhail and Stefan are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the next questions -What is Stefan's opportunity cost of a sculpture?

The figures below depict the production possibilities frontiers PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the next questions. -What is Gibbs's opportunity cost of making a wooden boat?

Five Foundations of Economics

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy Learning Objectives

International Trade

International Finance

Filters

Exam 2: Model Building and Gains From Trade

Wilbur and Orville Wright's testing of wing designs in a wind tunnel is an example of using

Why might Shaquille O'Neal, a 7'1'' former National Basketball Association NBA) player, hire professional movers to help him move, even though his size and strength likely make him more proficient better) at furniture moving than the professionals he may hire?

Economic growth is, by definition, an increase in the

Refer to the accompanying figure to answer the next questions. -The inefficient points) is/are

What assumptions do economists make when developing a production possibilities frontier PPF)?

When economists use models to make predictions, faulty assumptions can have disastrous consequences. Why is "avoid making assumptions" not the solution to this problem? Use the concepts of endogenous and exogenous factors to explain.

What does it mean when society is operating inside the production possibilities frontier PPF)?

Refer to the following figure to answer the next questions. -Which of the following represents an inefficient point?

Which faulty assumption by banks led to the Great Recession that began in 2007?

The scientific method and the tools of economics are useful in examining

Refer to the following figures to answer the next questions. -Which allocation point in the short-run production possibilities frontier PPF) will lead to the most significant growth in the long-run PPF?

Which of the following is a positive statement?

Economic growth can be depicted on a production possibilities frontier PPF) as an

Suppose someone is studying a production possibilities frontier PPF) that has a bowed-out shape relative to the origin. What causes this shape?

Which of the following is a positive statement?

Is it always better to forgo current consumption in order to invest more in capital goods that will provide more growth in society's production possibilities frontier PPF) and make us better off in the future?

The_______ states that the opportunity cost of producing a good always rises as one produces more of it.

Refer to the accompanying figure to answer the next questions. -Given the current resources, one would need even more hours in each day in order to attain

Mikhail and Stefan are both artists who can create sculptures or paintings each day. The following table describes their maximum outputs per day. Use this table to answer the next questions -What is Stefan's opportunity cost of a sculpture?

The figures below depict the production possibilities frontiers PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the next questions. -What is Gibbs's opportunity cost of making a wooden boat?

Five Foundations of Economics

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Economic Growth and the Wealth of Nations

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy Learning Objectives

International Trade

International Finance

Filters