Deck 2: Essay

Question 1

Figure 2-3
Refer to Figure 2-3.What do the ovals represent in the figure?

Answer 1

flow of dollars

Question 2

As a substitute for laboratory experiments,economists use evidence available through history's

Answer 2

assumptions.

Question 3

Figure 2-3
Refer to Figure 2-3.What do the outer arrows represent in the figure?

Answer 3

goods and services bought

Question 4

What you must give up to get something else is called the

Question 5

Just like other scientific models,economic models simplify reality using

Question 6

Figure 2-3
Refer to Figure 2-3.What do the rectangles represent in the figure?

Question 7

The three main factors of production,or categories of inputs,used by firms to produce goods and services are

Question 8

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.Which point(s)on the graph is(are)efficient production possibilities?

Question 9

Figure 2-3
Refer to Figure 2-3.What does the arrow going from oval A to rectangle 2 represent in the figure?

Question 10

Figure 2-3
Refer to Figure 2-3.What are two elements not included in this figure that could be included in a more complex model?

Question 11

In the circular flow diagram,when Daphne purchases a new mobile phone,she participates in the markets for

Question 12

Figure 2-3
Refer to Figure 2-3.What is the name of the model depicted in the figure?

Question 13

Like biologists and physicists,economists use the dispassionate development and testing of how the world works known as the

Question 14

Figure 2-3
Refer to Figure 2-3.What does the arrow going from oval B to rectangle 2 represent in the figure?

Question 15

Suppose a war in the Middle East interrupts the flow of crude oil and oil prices skyrocket around the world.For economists,this historical episode serves as a

Question 16

In the markets for goods and services in the circular flow diagram,households act as

Question 17

Figure 2-3
Refer to Figure 2-3.What do the inner arrows represent in the figure?

Question 18

In the circular flow diagram,when Brian provides labor through the markets for factors of production to ABC Company,the flow of money he receives in exchange is called

Question 19

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.The bowed outward shape of the production possibilities curve indicates that opportunity cost of apples in terms of sweaters is

Question 20

In the circular flow diagram,who owns the factors of production and consumes all of the goods and services produced?

Question 21

Who would be more likely to study the effects of government spending on the unemployment rate,a macroeconomist or a microeconomist?

Question 22

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

Question 23

Which type of statement - positive or negative - can be evaluated by analyzing data alone?

Question 24

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.Which point(s)on the graph show unemployment of resources?

Question 25

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.What is the opportunity cost of moving from point T to point R?

Question 26

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 car is

Question 27

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

Question 28

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.Which point(s)on the graph is(are)unattainable given current resources and technology?

Question 29

Who would be more likely to study the effects of foreign competition on the accounting industry,a macroeconomist or a microeconomist?

Question 30

Is the following a positive or normative statement? The United States government should mandate that every citizen purchases health insurance.

Question 31

Is the following a positive or normative statement? The unemployment rate in Nevada is higher than the unemployment rate in New York.

Question 32

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

Question 33

What type of statement is a prescriptive statement about how the world ought to be?

Question 34

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.What is the opportunity cost of moving from point R to point Q?

Question 35

Figure 2-15
Refer to Figure 2-15.Consider the production possibilities frontier for an economy that produces only sofas and cars.As the economy moves from point A to point D,is the opportunity cost of cars increasing,constant,or decreasing?

Question 36

What type of statement is a descriptive statement about how the world is?

Question 37

Since 1946,the president of the United States has received guidance from a group comprised of three members and a staff of a few dozen economists known as the

Question 38

When economists are trying to explain the world,they are scientists.When they are trying to improve it,they are

Question 39

Who would be more likely to study the inflation rate in the United States,a macroeconomist or a microeconomist?

Question 40

Who would be more likely to study the effects of rent control on housing in New York City,a macroeconomist or a microeconomist?

Question 41

Figure 2-22
Refer to Figure 2-22.What is the x-coordinate of point R?

Question 42

Figure 2-22
Refer to Figure 2-22.Given that price is measured on the vertical axis,quantity is measured on the horizontal axis,and that the curves are downward-sloping,what type of curves are depicted here?

Question 43

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

Question 44

Figure 2-22
Refer to Figure 2-22.Is a move from point A to point B considered a shift of the curve or a movement along the curve?

Question 45

Economists at which administrative department analyze data on workers and those looking for work to help formulate labor-market policies?

Question 46

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

Question 47

The institution that sets the nation's monetary policy is called the

Question 48

Figure 2-22
Refer to Figure 2-22.What is the slope of the line with points A,B,and C?

Question 49

Figure 2-22
Refer to Figure 2-22.Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Question 50

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

Question 51

When economists disagree about whether a policy is fair,they are expressing a difference in

Question 52

Economists at which administrative department help design tax policy?

Question 53

Figure 2-22
Refer to Figure 2-22.What are the coordinates of point C?

Question 54

Economists at which administrative department help enforce the nation's antitrust laws?

Question 55

Using the outline below,draw a circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.

Question 56

Figure 2-22
Refer to Figure 2-22.How are price and quantity related in this graph?