Question 1

When two variables have a negative correlation,

Accepted Answer

A)   when the x-variable decreases, 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.

Question 2

Figure 2-17 
-Refer to Figure 2-17. The movement from point B to point C is an)

Accepted Answer

A)   shift of the demand curve.
B)   movement along the demand curve.
C)   indication that the price of grapes has changed.
D)   indication that the costs incurred by firms that produce grapes have changed.

Question 3

When two variables have a negative correlation and the x-variable decreases,

Accepted Answer

A)   the y-variable increases.
B)   the y-variable decreases.
C)   the y-variable stays the same.
D)   the x-variable can never be positive.

Question 4

When two variables have a positive correlation,

Accepted Answer

A)   they tend to move in opposite directions.
B)   they tend to move in the same direction.
C)   one variable will move while the other remains constant.
D)   the variables' values are never negative.

Question 5

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

Question 6

Most economists agree that a large federal budget deficit has what type of effect on the economy?

Accepted Answer

The answer of Most economists agree that a large federal...

Question 7

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 donuts and coffee changes
B)   the opportunity cost of a cup of coffee is higher at all levels of coffee production
C)   production of 4 donuts and 2 cups of coffee becomes possible
D)   production of 1 donut and 4 cups of coffee becomes efficient

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

Accepted Answer

A) True 
 B)False

Question 10

Figure 2-4 
-Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Accepted Answer

A)   R
B)   S
C)   T
D)   U

Question 11

Figure 2-6 
-Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Accepted Answer

A)   120 pillows and 320 blankets.
B)   180 pillows and 180 blankets.
C)   240 pillows and 200 blankets.
D)   We would have to know the details of this economy's technology in order to determine this.

Question 12

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Accepted Answer

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

Question 13

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Accepted Answer

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

Question 14

Figure 2-14  Consider the production possibilities curve for a country that can produce sweaters, apples in bushels) , or a combination of the two.
-Refer to Figure 2-14. If this society is producing at point T,

Accepted Answer

A)   there is unemployment.
B)   production is efficient.
C)   growth can only be achieved through an advancement in technology.
D)   the opportunity cost of producing one more sweater is approximately 40 bushels of apples.

Question 15

Figure 2-16 
-Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Accepted Answer

A)   a positive correlation.
B)   a negative correlation.
C)   a random correlation.
D)   no correlation.

Question 16

The two loops in the circular-flow diagram represent

Accepted Answer

A)   the flow of goods and the flow of services.
B)   the flow of dollars and the flow of financial assets.
C)   the flow of inputs into production processes and the flow of outputs from production processes.
D)   the flows of inputs and outputs and the flow of dollars.

Question 17

Figure 2-3 
-Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Accepted Answer

A)   revenue
B)   goods and services sold
C)   factors of production
D)   labor, land, and capital

Question 18

You know an economist has crossed the line from policy adviser to scientist when he or she

Accepted Answer

A)   claims that the problem at hand is widely misunderstood by non-economists.
B)   makes positive statements.
C)   talks about values.
D)   makes a claim about how the world should be.

Question 19

Table 2-4
Production Possibilities for Picnicland
 
-Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Accepted Answer

A)   150 hotdogs
B)   225 hotdogs
C)   300 hotdogs
D)   450 hotdogs

Question 20

Figure 2-15 
-Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Accepted Answer

The answer of Figure 2-15 
-Refer to Figure 2-15. Consider...

Exam 2: Thinking Like an Economist

You know an economist has crossed the line from policy adviser to scientist when he or she

Correct Answer
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Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Correct Answer
verified

When two variables have a negative correlation and the x-variable decreases,

Correct Answer
verified

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Correct Answer
verified

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

Correct Answer
verified

When two variables have a negative correlation,

Correct Answer
verified

The two loops in the circular-flow diagram represent

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

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Correct Answer
verified

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels) , or a combination of the two. -Refer to Figure 2-14. If this society is producing at point T,

Correct Answer
verified

Figure 2-16 -Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Correct Answer
verified

Correct Answer
verified

If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

Correct Answer
verified

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Correct Answer
verified

Most economists agree that a large federal budget deficit has what type of effect on the economy?

Correct Answer
verified

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is an)

Correct Answer
verified

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Correct Answer
verified

When two variables have a positive correlation,

Correct Answer
verified

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Correct Answer
verified

Figure 2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Correct Answer
verified

Exam 2: Thinking Like an Economist

You know an economist has crossed the line from policy adviser to scientist when he or she

Correct AnswerverifiedShow Answer

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Correct AnswerverifiedShow Answer

When two variables have a negative correlation and the x-variable decreases,

Correct AnswerverifiedShow Answer

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. The opportunity cost of one sofa is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When two variables have a negative correlation,

Correct AnswerverifiedShow Answer

The two loops in the circular-flow diagram represent

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

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Correct AnswerverifiedShow Answer

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples in bushels) , or a combination of the two. -Refer to Figure 2-14. If this society is producing at point T,

Correct AnswerverifiedShow Answer

Figure 2-16 -Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

Correct AnswerverifiedShow Answer

Figure 2-6 -Refer to Figure 2-6. If this economy devotes one-half of its available resources to the production of blankets and the other half to the production of pillows, it could produce

Correct AnswerverifiedShow Answer

Most economists agree that a large federal budget deficit has what type of effect on the economy?

Correct AnswerverifiedShow Answer

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is an)

Correct AnswerverifiedShow Answer

In the simple circular flow diagram, the flow of money from the markets for goods and services to the firms is called

Correct AnswerverifiedShow Answer

When two variables have a positive correlation,

Correct AnswerverifiedShow Answer

Figure 2-4 -Refer to Figure 2-4. At which point is this economy producing its maximum possible quantity of doors?

Correct AnswerverifiedShow Answer

Figure 2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Correct AnswerverifiedShow Answer

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