Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.

Sign In

Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

You must login to ask a question.

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Share & grow the world's knowledge!

We want to connect the people who have knowledge to the people who need it, to bring together people with different perspectives so they can understand each other better, and to empower everyone to share their knowledge.

Chapter 02 Quiz: Thinking Like an Economist

Quiz/Cengage-Mindtap

1. The scientific method requires that ________.

a. scientists use test tubes and have clean labs
b. scientists be objective
c. scientists use precision equipment
d. only incorrect theories are tested
e. only correct theories are tested

2. Which of the following is most likely to produce scientific evidence about a theory?

a. A lawyer employed by Toyota addressing the impact of air bags on passenger safety
b. A radio talk show host collecting data on how capital markets respond to taxation
c. An economist employed by the AFL/CIO doing research on the impact of trade restrictions on workers’ wages
d. A tenured economist employed at a leading university analyzing the impact of bank regulations on rural lending

3. Which of the following statements regarding the circular-flow diagram is true?

a. The factors of production are owned by households.
b. If Alicia works for Apple and receives a paycheck, the transaction takes place in the market for goods and services.
c. If Apple sells a computer, the transaction takes place in the market for factors of production.
d. The factors of production are owned by firms.
e. None of the answer choices are correct

4. In which of the following cases is the assumption most reasonable?

a. To estimate the speed at which a beach ball falls, a physicist assumes that it falls in a vacuum.
b. To address the benefits of international trade, an economist assumes that there are two countries, each producing two goods.
c. To address the impact of taxes on income distribution, an economist assumes that everyone earns the same income.
d. To address the impact of money growth on inflation, an economist assumes that money is strictly coins.

5. Economic models are ________.

a. built with assumptions
b. usually made of wood and plastic
c. useless if they are simple
d. created to duplicate reality

6. Which of the following is not a factor of production?

a. Land
b. Labor
c. Capital
d. Money
e. All of the answer choices are factors of production.

7. Points on the production possibilities frontier are ________.

a. unattainable
b. normative
c. none of the answer choices
d. efficient
e. inefficient

8. Which of the following will not shift a country’s production possibilities frontier outward?

a. A reduction in unemployment
b. An increase in the labor force
c. An increase in the capital stock
d. An advance in technology

9. Economic growth is depicted by ________.

a. a movement from inside the production possibilities frontier toward the frontier
b. a movement along a production possibilities frontier toward consumption goods
c. a shift in the production possibilities frontier inward
d. a shift in the production possibilities frontier outward

10. Use the Exhibit to answer the question.

Chapter 02 Quiz: Thinking Like an Economist
If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is ________.

If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is ________.

a. 10 units of eggs
b. 20 units of eggs 
c. 30 units of eggs
d. 40 units of eggs
e. 50 units of eggs

11. Use the Exhibit to answer the question.

Chapter 02 Quiz: Thinking Like an Economist
If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is ________.

If the economy were operating at point E, ________.

a. the opportunity cost of 20 additional units of eggs is 30 units of bacon
b. 20 additional units of eggs can be produced with no impact on bacon production
c. the opportunity cost of 20 additional units of eggs is 20 units of bacon
d. the opportunity cost of 20 additional units of eggs is 10 units of bacon

12. Use the Exhibit image to answer the question.

Chapter 02 Quiz: Thinking Like an Economist
If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is ________.

Point F represents ________.

a. a combination of production that can be reached if we reduce the production of eggs by 20 units
b. a combination of production that is inefficient because there are unemployed resources
c. a combination of production that can be reached if there is a sufficient advance in technology
d. none of the answer choices

13. Use the Exhibit image to answer the question.

Chapter 02 Quiz: Thinking Like an Economist
If the economy is operating at point C, the opportunity cost of producing an additional 15 units of bacon is ________.

As we move from point A to point D, ________.

a. the opportunity cost of eggs in terms of bacon is constant
b. the opportunity cost of eggs in terms of bacon falls
c. the opportunity cost of eggs in terms of bacon rises
d. the economy becomes more efficient
e. the economy becomes less efficient

14. Which of the following issues is related to microeconomics?

a. The impact of the deficit on saving
b. The impact of the quantity of money on inflation
c. The impact of technology on economic growth
d. The impact of oil prices on auto production

15. Which of the following statements about microeconomics and macroeconomics is not true?

a. Microeconomics is a building block for macroeconomics.
b. Macroeconomics is concerned with economy-wide phenomena.
c. Microeconomics and macroeconomics cannot be entirely separated.
d. The study of very large industries is a topic within macroeconomics.

16. Which of the following statements is normative?

a. The unemployment rate should be lower.
b. Printing too much money causes inflation.
c. People work harder if the wage is higher.
d. Large government deficits cause an economy to grow more slowly.

17. In making which of the following statements is an economist acting more like a scientist?

a. The unemployment rate should be reduced because unemployment robs individuals of their dignity.
b. A reduction in unemployment benefits will reduce the unemployment rate.
c. The rate of inflation should be reduced because it robs the elderly of their savings.
d. The state should increase subsidies to universities because the future of our country depends on education.

18. Positive statements are ________.

a. microeconomic
b. macroeconomic
c. statements of prescription that involve value judgments
d. statements of description that can be tested

19. Suppose two economists are arguing about policies that deal with unemployment. One economist says, “The government should fight unemployment because it is the greatest social evil.” The other economist responds, “That’s ridiculous. Inflation is the greatest social evil.” These economists ________.

a. disagree because they have different scientific judgments
b. disagree because they have different values
c. really don’t disagree at all. It just looks that way
d. do none of the answer choices

20. Suppose two economists are arguing about policies that deal with unemployment. One economist says, “The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars.” The other economist responds, “That’s ridiculous. If the government spent an additional 50 billion dollars, it would reduce unemployment by only one-tenth of 1 percent, and that effect would only be temporary!” These economists ________.

a. disagree because they have different scientific judgments
b. disagree because they have different values
c. really don’t disagree at all. It just looks that way
d. do none of the answer choices

Related Posts

Leave a comment

Latest News & Updates

QuizlyPro Latest Articles

McMann Solutions Inc. knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river

McMann Solutions, Inc., knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river. McMann Solutions is subject to a. neither a fine or imprisonment. b. fines but no criminal charges or imprisonment because a corporation cannot ...

Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse

Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse. Farm and Ranch repackages the product, relabeling it as “Farmer’s Friend” and stating on the label and in advertisements that it ...

Tiger Stripe owns and operates gasoline filling stations. Patrick’s Trucking delivers fuel to Tiger Stripe’s storage facility on a regular basis

Tiger Stripe owns and operates gasoline filling stations. Patrick’s Trucking delivers fuel to Tiger Stripe’s storage facility on a regular basis. On one occasion, Patrick fails to pay proper attention to his truck when he is unloading fuel into Tiger ...

Explore Our Blog