Question 1

In the ordered pair 5, 3), 3 is the

Accepted Answer

A)  horizontal location of the point. 
B)  the slope. 
C)  the x-coordinate. 
D)  the y-coordinate. 
A)  horizontal location of the point. 
B)  the slope. 
C)  the x-coordinate. 
D)  the y-coordinate. D

Question 2

According to economist John Maynard Keynes, a great economist must also be an)

Accepted Answer

A)  mathematician. 
B)  historian. 
C)  philosopher. 
D)  All of the above are correct. 
A)  mathematician. 
B)  historian. 
C)  philosopher. 
D)  All of the above are correct. D

Question 3

Which of the following is not an example of a positive, as opposed to normative, statement?

Accepted Answer

A)  Higher gasoline prices will reduce gasoline consumption. 
B)  Equality is more important than efficiency. 
C)  Trade restrictions lower our standard of living. 
D)  If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money. 
A)  Higher gasoline prices will reduce gasoline consumption. 
B)  Equality is more important than efficiency. 
C)  Trade restrictions lower our standard of living. 
D)  If a nation wants to avoid inflation, it will restrict the growth rate of the quantity of money. B

Question 4

A relatively flat demand curve indicates that

Accepted Answer

A)  quantity demanded will adjust only slightly to a price change. 
B)  quantity demanded will adjust significantly to a price change. 
C)  quantity demanded will not adjust to a price change. 
D)  the change in quantity demanded will exactly equal a change in price. 
A)  quantity demanded will adjust only slightly to a price change. 
B)  quantity demanded will adjust significantly to a price change. 
C)  quantity demanded will not adjust to a price change. 
D)  the change in quantity demanded will exactly equal a change in price.

Question 5

Use the following Figure to answer the question :  Figure 2-9
Panel a)
  
Panel b)  
-Refer to Figure 2-9, Panel a). The opportunity cost of moving from point M to point L is

Accepted Answer

A)  2 donuts. 
B)  2 donuts and 4 cups of coffee. 
C)  4 donuts. 
D)  4 cups of coffee. 
A)  2 donuts. 
B)  2 donuts and 4 cups of coffee. 
C)  4 donuts. 
D)  4 cups of coffee.

Question 6

Duties of the Council of Economic Advisers include

Accepted Answer

A)  advising the president and writing the annual Economic Report of the President. 
B)  implementing the president's tax policies. 
C)  tracking the behavior of the nation's money supply. 
D)  All of the above are correct. 
A)  advising the president and writing the annual Economic Report of the President. 
B)  implementing the president's tax policies. 
C)  tracking the behavior of the nation's money supply. 
D)  All of the above are correct.

Question 7

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

Accepted Answer

A)  Inflation is more harmful to the economy than unemployment is. 
B)  If welfare payments increase, the world will be a better place. 
C)  Prices rise when the government prints too much money. 
D)  When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency. 
A)  Inflation is more harmful to the economy than unemployment is. 
B)  If welfare payments increase, the world will be a better place. 
C)  Prices rise when the government prints too much money. 
D)  When public policies are evaluated, the benefits to the economy of improved equality should be considered more important than the costs of reduced efficiency.

Question 8

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. 
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.

Question 9

In the circular-flow diagram, which of the following is not a factor of production?

Accepted Answer

A)  labor 
B)  land 
C)  capital 
D)  money 
A)  labor 
B)  land 
C)  capital 
D)  money

Question 10

In the markets for the factors of production in the circular-flow diagram,

Accepted Answer

A)  households are sellers and firms are buyers. 
B)  households are buyers and firms are sellers. 
C)  households and firms are both buyers. 
D)  households and firms are both sellers. 
A)  households are sellers and firms are buyers. 
B)  households are buyers and firms are sellers. 
C)  households and firms are both buyers. 
D)  households and firms are both sellers.

Question 11

Use the following Figure to answer the question Figure: 2-1  
-Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Accepted Answer

A)  B only 
B)  A and B 
C)  C only 
D)  C and D 
A)  B only 
B)  A and B 
C)  C only 
D)  C and D

Question 12

Use the following Figure to answer the question : 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. 
A)  0 engines and 40 tvs. 
B)  10 engines and 35 tvs. 
C)  40 engines and 0 tvs. 
D)  40 engines and 40 tvs.

Question 13

Which of the following statements is correct about the extent of disagreement among economists?

Accepted Answer

A)  There is a great deal of agreement among economists on virtually every economic issue. 
B)  There is a great deal of agreement among economists on many important economic issues. 
C)  All disagreements among economists are attributable to differences in their values. 
D)  All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories. 
A)  There is a great deal of agreement among economists on virtually every economic issue. 
B)  There is a great deal of agreement among economists on many important economic issues. 
C)  All disagreements among economists are attributable to differences in their values. 
D)  All disagreements among economists are attributable to the fact that different economists have different degrees of faith in the validity of alternative economic theories.

Question 14

Normative statements are

Accepted Answer

A)  not usually made by economists. 
B)  claims about how the world should be. 
C)  claims about how variables in the economy normally behave. 
D)  pessimistic interpretations of the economy. 
A)  not usually made by economists. 
B)  claims about how the world should be. 
C)  claims about how variables in the economy normally behave. 
D)  pessimistic interpretations of the economy.

Question 15

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 firms 
A)  markets and government 
B)  households and government 
C)  firms and government 
D)  households and firms

Question 16

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Accepted Answer

A)  Home experienced increased unemployment. 
B)  Home experienced a decline in pear-producing technology. 
C)  Home experienced an improvement in cellular phone-making technology. 
D)  Home experienced a reduction in resources. 
A)  Home experienced increased unemployment. 
B)  Home experienced a decline in pear-producing technology. 
C)  Home experienced an improvement in cellular phone-making technology. 
D)  Home experienced a reduction in resources.

Question 17

Use the following Figure to answer the question Figure: 2-2  
-Refer to Figure 2-2. Boxes A and B of this circular-flow diagram represent

Accepted Answer

A)  firms and households. 
B)  households and government. 
C)  the markets for goods and services and the markets for financial assets. 
D)  the markets for goods and the markets for services. 
A)  firms and households. 
B)  households and government. 
C)  the markets for goods and services and the markets for financial assets. 
D)  the markets for goods and the markets for services.

Question 18

A production possibilities frontier can shift outward if

Accepted Answer

A)  government increases the amount of money in the economy. 
B)  there is a technological improvement. 
C)  resources are shifted from the production of one good to the production of the other good. 
D)  the economy abandons inefficient production methods in favor of efficient production methods. 
A)  government increases the amount of money in the economy. 
B)  there is a technological improvement. 
C)  resources are shifted from the production of one good to the production of the other good. 
D)  the economy abandons inefficient production methods in favor of efficient production methods.

Question 19

In the circular-flow diagram, another name for goods and services produced by firms is

Accepted Answer

A)  factors of production. 
B)  output. 
C)  inputs. 
D)  resources. 
A)  factors of production. 
B)  output. 
C)  inputs. 
D)  resources.

Question 20

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Accepted Answer

A)  economists have not yet convinced the general public that the policies are undesirable. 
B)  economists engage in positive analysis, not normative analysis. 
C)  economists have values that are different from the values of most non-economists. 
D)  economists' theories are not easily confirmed or refuted in laboratory analysis. 
A)  economists have not yet convinced the general public that the policies are undesirable. 
B)  economists engage in positive analysis, not normative analysis. 
C)  economists have values that are different from the values of most non-economists. 
D)  economists' theories are not easily confirmed or refuted in laboratory analysis.

In the ordered pair 5, 3), 3 is the

According to economist John Maynard Keynes, a great economist must also be an)

Which of the following is not an example of a positive, as opposed to normative, statement?

A relatively flat demand curve indicates that

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). The opportunity cost of moving from point M to point L is

Duties of the Council of Economic Advisers include

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

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

In the circular-flow diagram, which of the following is not a factor of production?

In the markets for the factors of production in the circular-flow diagram,

Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Use the following Figure to answer the question : 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

Which of the following statements is correct about the extent of disagreement among economists?

Normative statements are

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

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. Boxes A and B of this circular-flow diagram represent

A production possibilities frontier can shift outward if

In the circular-flow diagram, another name for goods and services produced by firms is

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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Exam 2: Thinking Like an Economist

In the ordered pair 5, 3), 3 is the

According to economist John Maynard Keynes, a great economist must also be an)

Which of the following is not an example of a positive, as opposed to normative, statement?

A relatively flat demand curve indicates that

Use the following Figure to answer the question : Figure 2-9 Panel a) Panel b) -Refer to Figure 2-9, Panel a). The opportunity cost of moving from point M to point L is

Duties of the Council of Economic Advisers include

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

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

In the circular-flow diagram, which of the following is not a factor of production?

In the markets for the factors of production in the circular-flow diagram,

Use the following Figure to answer the question Figure: 2-1 -Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Use the following Figure to answer the question : 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

Which of the following statements is correct about the extent of disagreement among economists?

Normative statements are

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

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Use the following Figure to answer the question Figure: 2-2 -Refer to Figure 2-2. Boxes A and B of this circular-flow diagram represent

A production possibilities frontier can shift outward if

In the circular-flow diagram, another name for goods and services produced by firms is

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Ten Principles of Economics

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters