Question 3 (1 point) Figure 2-4 25 20 15 10 20 30 40 50 so zo Refer to Figure 2-4. Suppose the economy is at point A. What is the opportunity cost of increasing the production of toothbashes by 20 units? ( a) 10 toasters b) 20 toastersFirms Households Markets for D Factors of Production Refer to Figure 2-1. Which arrow shows the flow of goods and services? a ) arrow A O b) arrow B O c) arrow C O d ) arrow D Page 5 of 15 Previous Page Next Page OLD PrtSc Insert F11 F12 Impr Ecr Ins X FA C Led F6 F7 F8 F9 F10 % O 3 O 1/4 1/2 314 C 5 P T G H KNext Page Page 7 Question 7 (1 point) What happens when two variables have a negative correlation? O a) They tend to move in the same direction. b) The movement of the two variables is unpredictable. O C) They tend to move in opposite directions. (d) one variable will move while the other remains constant. Next Page Page 7 of 15 Previous Page OLD LOL PrtSc Insert De F12 Impr Ecr. Ins X F11 F4 F7 F8 F9 F10 % O 1/4 1 12 314 C 5 P L L G H KQuestion 2 (1 point) What happens in the markets for factors of production? O a) Households provide firms with labour, land, and capital. The government provides firms with inputs for the production process. c) Firms provide households with goods and services d) Households provide firms with savings for investment. Previous Page Next PageTubas Refer to Figure 2-3. Which point or points are inefficient? O a) points A and C Ob) points B and C c) point C Od) point D OLD -COLON PrtSc nsert Dele Ins Sur Impr Ecr. F10 F11 F12 F7 F8 F9 FA F5 F6 1 12 314 O 1/4 2 C 5 O P G H KPage 10 Question 10 (1 point) What are economists who try to explain economic phenomena considered? O a) policy advisors b ) statisticians c) teachers O d) scientists Page 10 of 15 Previous Page Next Page OLDECBLOG CM nsent Del PrtSc Ins SU O-- F11 F12 Impr Ecr. F8 F9 F10 FA C F5 F6 F7 1/2 314 2 3 O 1/4 C 5 P G H K10 10 20 90 40 50 60 70 Toothbrushes Refer to Figure 2-4. Suppose the economy is at point A. What is the opportunity cost of increasing the production of toothbrushes by 20 units? ( a) 10 toasters O b) 20 toasters O 30 toasters O d) 40 toastersQuestion 1 (1 point) In the simple circular-flow diagram, who are the decision makers? O a ) households, individuals, and foreign nations O b ) households and government d households and firms d ) individuals and governmentQuestion 4 (1 point) What does a relatively steep demand curve mean? a) quantity demand will adjust slightly to a price change (b) the change in quantity demand will exactly equal a change in price (c) quantity demand will not adjust to a price change Od) quantity demand will adjust greatly to a price change Previous Page Next Page Page 4 of 15Previous Page Next Page Page 12 of 15 Question 12 (1 point) What would unemployment cause an economy to do? a) produce outside its production possibilities frontier (b) shift its production possibilities frontier inwards C) produce on its production possibilities frontier d) produce inside its production possibilities frontier Page 12 of 15 Previous Page Next Page O PrtSc Insert Delete Ins supp F12 Impr Ecr. F5 F7 F8 F9 F10 F11 F6 1/4 1/2 314 O C 5 T G H KPage 9 Next Page Question 9 (1 point) What happens when scientists make good assumptions? O a) They further complicate an already complicated subject ( b) They are capable of eliminating invalid causations. O C) They can leave out necessary variables that may result in incorrect answers. O d) They greatly simplify the problem without substantially affecting the answer. Page 9 of 15 Previous Page Next Page L O Del PrtSc Insert SU O- Impr Ecr. Ins F10 F11 F12 FA C F6 F7 F8 F9 1/2 314 3 O 1/4 2 O O C G H KQuestion 13 (1 point) Figure 2-3 Tractors B Tubes Refer to Figure 2-3. Which point or points are inefficient? a) points A and C (b) points B and C OLD-CO L O PrtSc Insert Delet Ins Sup F12 Impr ECT. F10 F11 F8 F9 FA F5 F6 F7 O 1/4 1/2 3/4 9 5 P T L G H KQuestion 11 (1 point) Suppose there are two countries, Freedonia and Sylvania, which have identical amounts of resources, identical technologies, and identical populations. Both produce two types of goods, consumer goods and capital goods, and they both always operate on their production possibilities frontiers. The only difference is that this year Sylvania chooses to produce relatively more capital goods than Freedonia. What will happen as a result? a) Freedonia will have a lower living standard this year and will grow slower than Sylvania. b) Freedonia will have a lower living standard this year but will grow faster than Sylvania. c) Sylvania will have a lower living standard this year but will grow faster than Freedonia. (d) sylvania will have a lower living standard this year and will grow slower than Freedonia. Previous Page Next Page Page 11 of 15 OLD L O PrtSc Insert Delete F12 Impr Ecr. Ins Sup F4 C F5 F8 F9 F10 F11 O 1/4 1/2 314 C 5 2 3 O P L G H KPrevious Page Next Page Page 6 0 Question 6 (1 point) What does The Bank of Canada do? O a) designs tax policy b) sets the country's monetary policy O ) analyzes the data on workers O d) enforces the country's antitrust laws Page 6 of 15 Previous Page Next Page PrtSc Insert De Ins F9 F10 F11 F12 Impr ECT. FA C F5 F6 F7 S 2 O O 1/4 1/2 = 314 C 5 O L G H KQuestion 5 (1 point) Figure 2-1 A Markets for B Goods and Services Firms Households C Markets for Factors of Production Refer to Figure 2-1. Which arrow shows the flow of goods and services? a) arrow A (b) arrow B OLDECBLOGO PrtSc Insert Impr Ecr. Ins X C F7 F8 F9 F10 F11 F12 F4 F5 S 1/4 1/2 = 3/4 C 5 P T S CL G H KNext Page Page 15 of 15 Question 15 (1 point) Which statement is the best explanation for why policies such as rent control and import quotas persist in spite of the fact that experts are united in their opposition to such policies? O a) Economists are simply wrong about the economic impact of these policies. Ob) Economists are usually of a different political party than are lawmakers. C) Economists have not yet convinced the general public that the policies are undesirable. Economists have different values than do most people. Next Plee Page 15 of 15 Previous Page ENG OLDECBLOU US PrtSc Insert Delete Impr Ecr. Ins Suppr. F11 F12 F5 F6 F7 F8 F9 F10 % 2 3 O 1/4 1/2 314 5 P G H KNext Page Page 8 Question 8 (1 point) For economists, what are the two types of statements about the world? O a ) true statements and normative statements O b ) true statements and false statements O C) positive statements and false statements O d) positive statements and normative statements Previous Page Next Page Page 8 of 15 OLD ECOLOU PrtSc Insert De Impr Ecr. Ins S F6 F7 F8 F9 F10 F11 F12 S % 9 O 1/4 1/2 3/4 C 5 L L G H KPage 14 c Question 14 (1 point) What are the foundation stones from which economic models are built? O a ) statistical forecasts O b ) assumptions C ) economic policies O d) legal systems Page 14 of 15 Previous Page Next Page OLD-COLO Insert Delet PrtSc Sup O.- F12 Impr Ecr. Ins F8 F9 F10 F11 F5 F6 F7 O 1/4 12 = 314 2 3 C 5 P T S G H K