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Thinking Like an Economist
Multiple Choice – Section 00: Introduction
1. Whichofthefollowingisnotcorrect?a. Economistsusesomefamiliarwordsinspecializedways.b. Economicshasitsownlanguageanditsownwayofthinking,butfewotherfieldsofstudydo.c. Suppl
y,demand,elasticity,comparativeadvantage,consumersurplus,anddeadweightlossarealltermsthatarepartoftheeconomist’slanguage.
d. Thevalueoftheeconomist’slanguageliesinitsabilitytoprovideyouwithanewandusefulwayofthinkingaboutthe worldinwhichyoulive.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.5-LO:2-0NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
2. Economistsusesomefamiliartermsinspecializedwaysa. tomakethesubjectsoundmorecomplexthanitis.b. becauseeveryrespectablefieldofstudyhasitsownlanguage.c. toprovideanewandusefulwayofthinkingabouttheworld.d. becauseitwastoodifficulttocomeupwithnewterms.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.5-LO:2-0NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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204 Thinking Like an Economist
3. Thelanguageofeconomicsisa. needlesslyarcane.b. valuablebecauseitprovidesanewandusefulwayoflearningabouttheworld.c. easytolearnwithinaday.d. unnecessarytolearnforathoroughunderstandingofeconomics.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.5-LO:2-0NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
Multiple Choice – Section 01: The Economist as Scientist
1. Economists,likemathematicians,physicists,andbiologists,a. makeuseofthescientificmethod.b. trytoaddresstheirsubjectwithascientist’sobjectivity.c. devisetheories,collectdata,andthenanalyzethesedatainanattempttoverifyorrefutetheirtheories.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
2. Theessenceofscienceisa. thelaboratoryexperiment.b. thescientificmethod.c. thestudyofnature,butnotthestudyofsociety.d. Alloftheabovearecorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
3. Thescientificmethodisa. theuseofmoderntechnologytounderstandthewaytheworldworks.b. theuseofcontrolledlaboratoryexperimentstounderstandthewaytheworldworks.c. thedispassionatedevelopmentandtestingoftheoriesabouthowtheworldworks.d. thesearchforevidencetosupportpreconceivedtheoriesabouthowtheworldworks.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
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206 Thinking Like an Economist
4. Thescientificmethodisapplicabletostudyinga. naturalsciences,butnotsocialsciences.b. socialsciences,butnotnaturalsciences.c. bothnaturalsciencesandsocialsciences.d. Noneoftheaboveiscorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
5. Whosaid,"Thewholeofscienceisnothingmorethantherefinementofeverydaythinking"?a. IsaacNewtonb. AlbertEinsteinc. AdamSmithd. BenjaminFranklin
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
6. AlbertEinsteinoncemadethefollowingobservationaboutscience:a. "Thewholeofscienceisnothingmorethantherefinementofeverydaythinking."b. "Thewholeofscienceisnothingmorethananinterestingintellectualexercise."c. "Inordertounderstandscience,onemustrelysolelyonabstraction."d. "Inordertounderstandscience,onemusttranscendeverydaythinking."
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
7. SirIsaacNewton'sdevelopmentofthetheoryofgravityafterobservinganapplefallfromatreeisanexampleofa. acontrolledexperimentthatleadtotheformulationofascientifictheory.b. beingintherightplaceattherighttime.c. anideawhosetimehadcome.d. theinterplaybetweenobservationandtheoryinscience.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralPrinciplesKEYWORDS: BLOOM'S:Comprehension
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208 Thinking Like an Economist
8. Whichofthefollowingstepsdoesaneconomisttakewhenstudyingtheeconomy?a. devisetheoriesb. collectdatac. analyzedatad. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
9. Whichofthefollowingisanexampleofusingthescientificmethodwithanaturalexperiment?a. measuringhowlongittakesamarbletofallfromatenstorybuildingb. comparingplantgrowthwithandwithoutasoiladditivec. trackingthepriceofoilwhenawarintheMiddleEastinterruptstheflowofcrudeoild. observingthereactionwhentwochemicalsaremixedtogether
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:ApplicationNOTES: s
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10. Thegoalofaneconomistwhoformulatesnewtheoriesistoa. provi
deaninterestingframeworkofanalysis,whetherornottheframeworkturnsouttobeofmuchuseinunderstandinghowtheworldworks.
b. provokestimulatingdebateinscientificjournals.c. contributetoanunderstandingofhowtheworldworks.d. demonstratethateconomists,likeotherscientists,canformulatetestabletheories.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
11. Supposeaneconomistdevelopsatheorythathigherfoodpricesarisefromhighergasprices.Accordingtothescientificmethod,whichofthefollowingistheeconomist’snextstep?a. Collectandanalyzedata.b. Gotoalaboratoryandgeneratedatatotestthetheory.c. Publishthetheorywithouttestingit.d. Consultwithothereconomiststoseetheyagreewiththetheory.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Application
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210 Thinking Like an Economist
12. Whichofthefollowingstatementsappliestoeconomics,aswellastoothersciencessuchasphysics?a. Experimentsareconsideredvalidonlywhentheyareconductedinalaboratory.b. Goodtheoriesdonotneedtobetested.c. Real-worldobservationsoftenleadtotheories.d. Economics,aswellasothersciences,isconcernedprimarilywithabstractconcepts.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
13. Withrespecttohoweconomistsstudytheeconomy,whichofthefollowingstatementsismostaccurate?a. Economistsstudythepast,buttheydonottrytopredictthefuture.b. Economistsuse“rulesofthumb”topredictthefuture.c. Economistsdevisetheories,collectdata,andanalyzethedatatotestthetheories.d. Economistsusecontrolledexperimentsinmuchthesamewaythatbiologistsandphysicistsdo.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
14. Economistsfaceanobstaclethatmanyotherscientistsdonotface.Whatisthatobstacle?a. Itisoftendifficulttoformulatetheoriesineconomics.b. Itisoftenimpracticaltoperformexperimentsineconomics.c. Economicscannotbeaddressedobjectively;itmustbeaddressedsubjectively.d. Thescientificmethodcannotbeappliedtothestudyofeconomics.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralPrinciplesKEYWORDS: BLOOM'S:ComprehensionNOTES: s
15. Inconductingtheirresearch,economistsfaceanobstaclethatnotallscientistsface;specifically,ineconomics,itisoftenimpracticaltoa. makeuseoftheoryandobservation.b. relyuponthescientificmethod.c. conductlaboratoryexperiments.d. findarticlesorbooksthatwerewrittenbefore1900.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:ComprehensionNOTES: s
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212 Thinking Like an Economist
16. Theuseoftheoryandobservationismoredifficultineconomicsthaninsciencessuchasphysicsduetothedifficultyina. performinganexperimentinaneconomicsystem.b. applyingmathematicalmethodstoeconomicanalysis.c. analyzingavailabledata.d. formulatingtheoriesabouteconomicevents.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
17. Whichofthefollowingstatementsis(are)correct?a. Relativetosomeotherscientists,economistsfinditmoredifficulttoconductexperiments.b. Theoryandobservationareimportantineconomicsaswellasinothersciences.c. Toobtaindata,economistsoftenrelyuponthenaturalexperimentsofferedbyhistory.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
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18. Becauseitisdifficultforeconomiststouseexperimentstogeneratedata,theygenerallymusta. dowithoutdata.b. substituteassumptionsfordatawhendataareunavailable.c. relyuponhypotheticaldatathatwerepreviouslyconcoctedbyothereconomists.d. usewhateverdatatheworldgivesthem.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
19. Whichofthefollowingstatementsiscorrect?a. Economistsalmostalwaysfinditeasytoconductexperimentsinordertotesttheirtheories.b. Economi
csisnotatruesciencebecauseeconomistsarenotusuallyallowedtoconductexperimentstotesttheirtheories.
c. Economicsisasocialscienceratherthanatruesciencebecauseitcannotemploythescientificmethod.d. Economis
tsareusuallynotabletoconductexperiments,sotheymustrelyonnaturalexperimentsofferedbyhistory.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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214 Thinking Like an Economist
20. Insteadofconductinglaboratoryexperimentstogeneratedatatotesttheirtheories,economistsoftena. askwinnersoftheNobelPrizeinEconomicstoevaluatetheirtheories.b. arguethatdataisimpossibletocollectineconomics.c. gatherdatafromhistoricalepisodesofeconomicchange.d. assumethatdatawouldsupporttheirtheories.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
21. Themostcommondatafortestingeconomictheoriescomefroma. carefullycontrolledandconductedlaboratoryexperiments.b. computermodelsofeconomies.c. historicalepisodesofeconomicchange.d. centrallyplannedeconomies.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
22. Inconductingtheirresearch,economistsoftensubstitutehistoricaleventsandhistoricalepisodesfora. theoriesandobservations.b. laboratoryexperiments.c. models.d. assumptions.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
23. Foreconomists,substitutesforlaboratoryexperimentsoftencomeintheformofa. naturalexperimentsofferedbyhistory.b. untestedtheories.c. “rulesofthumb”andothersuchconveniences.d. relianceuponthewisdomofeldersintheeconomicsprofession.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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216 Thinking Like an Economist
24. Economistsregardeventsfromthepastasa. irrelevant,sincehistoryisunlikelytorepeatitself.b. oflimitedinterest,sincethoseeventsseldomprovideanyusefuleconomicdata.c. interestingbutnotparticularlyvaluable,sincethoseeventscannotbeusedtoevaluatepresent-
dayeconomictheories.d. interesti
ngandvaluable,sincethoseeventsarecapableofhelpingustounderstandthepast,thepresent,andthefuture.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
25. Foreconomists,historicalepisodesa. arenotworthyofstudybecausetheyofferfewinsightsintocurrenteconomiceventsandproblems.b. arenotworthyofstudybecauselaboratoryexperimentsprovidemorereliabledata.c. areworthyofstudybecauseeconomistsrelyentirelyonobservation,ratherthanontheory.d. areworthyofstudybecausetheyserveasvaluablesubstitutesforlaboratoryexperiments.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
26. Historicalepisodesarea. valuabletoeconomistsbecausetheyalloweconomiststoseehowthescienceofeconomicshasevolved.b. valuabletoeconomistsbecausetheyalloweconomiststoevaluateeconomictheories.c. notofconcerntoeconomistsbecauseeconomicsisaboutpredictingthefuture,notdwellingonthepast.d. n
otofconcerntoeconomistsbecausetheexactcircumstancesofhistoricalepisodesareunlikelytobeobservedagain.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
27. Onethingeconomistsdotohelpthemunderstandhowtherealworldworksisa. makeassumptions.b. ignorethepast.c. trytocaptureeveryaspectoftherealworldinthemodelstheyconstruct.d. Alloftheabovearecorrect.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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218 Thinking Like an Economist
28. Whichofthe followingisnotanexampleofanaturalexperimentaneconomistmightusetoevaluateatheory?a. TransitridershipincreasedinAtlantafollowinganincreaseingasprices.b. Federaltaxrevenueincreasedfollowingadecreaseinthetaxrate.c. Studen
tsinaprinciplesofmicroeconomicscourseareaskedtoplayagamewithclassmatestodeterminewhatdecisionstheymakeundercertaincircumstances.
d. Followingtheimpositionofausteritymeasures,thegrowthrateoftheeconomyinGreeceslowed.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
29. Economistsmakeassumptionstoa. mimicthemethodologiesemployedbyotherscientists.b. minimizethenumberofexperimentsthatyieldnousefuldata.c. minimizethelikelihoodthatsomeaspectoftheproblemathandisbeingoverlooked.d. focustheirthinkingontheessenceoftheproblemathand.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ComprehensionNOTES: s
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
30. Economistsmakeuseofassumptions,someofwhichareunrealistic,forthepurposeofa. teachingeconomicstopeoplewhohaveneverbeforestudiedeconomics.b. advancingtheirpoliticalagendas.c. developingmodelswhenthescientificmethodcannotbeused.d. focusingtheirthinking.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
31. Foraneconomist,theideaofmakingassumptionsisregardedgenerallyasaa. badidea,sincedoingsoleadstotheomissionofimportantideasandvariablesfromeconomicmodels.b. badidea,sincedoingsoinvariablyleadstodata-collectionproblems.c. goodidea,sincedoingsohelpstosimplifythecomplexworldandmakeiteasiertounderstand.d. go
odidea,sinceeconomicanalysiswithoutassumptionsleadstocomplicatedresultsthatthegeneralpublicfindshardtounderstand.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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220 Thinking Like an Economist
32. Economistsmakeassumptionstoa. provideissuesforpoliticaldiscussion.b. makeacomplexworldeasiertounderstand.c. makeiteasiertoteacheconomicconceptsandanalysis.d. createpolicyalternativesthatareincompleteorsubjecttocriticism.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
33. Acircular-flowmodelandproductionpossibilitiesfrontieraresimilarinthata. neitherallowseconomicanalysistooccur.b. neithercanberepresentedvisuallyonagraph.c. bothmakeuseofassumptions.d. bothmakeuseofcomplexequationstoarriveatsolutions.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
34. Aneconomictheoryaboutinternationaltradethatisbasedontheassumptionthatthereareonlytwocountriestradingtwogoodsa. isuseless,sincetherealworldhasmanycountriestradingmanygoods.b. canbeusefulonlyinsituationsinvolvingtwocountriesandtwogoods.c. canbeusefulintheclassroom,butisuselessintherealworld.d. c
anbeusefulinhelpingeconomistsunderstandthecomplexworldofinternationaltradeinvolvingmanycountriesandmanygoods.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
35. Theartinscientificthinking--whetherinchemistry,economics,orbiology--isa. thedesignandimplementationoflaboratoryexperiments.b. knowingwhentostopcollectingdataandwhentostartanalyzingthedata.c. decidingwhichassumptionstomake.d. beingabletomathematicallymodelnaturalphenomena.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
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222 Thinking Like an Economist
36. Theartinscientificthinkingisa. findingtherightproblemtostudy.b. decidingwhichassumptionstomake.c. theabilitytomakeanabstractsubjecteasytounderstand.d. notsomethinginwhicheconomistshavetobeskilled.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
37. Thedecisionofwhichassumptionstomakeisa. aneasydecisionforaneconomist,butadifficultdecisionforaphysicistorachemist.b. notaparticularlyimportantdecisionforaneconomist.c. usuallyregardedasanartinscientificthinking.d. usuallyregardedastheeasiestpartofthescientificmethod.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
38. Anexampleofapricethatchangesonlyinfrequentlyisthepriceofa. stocksontheNewYorkStockExchange.b. crudeoil.c. residentialrealestate.d. magazinessoldatnewsstands.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
39. Whenstudyingtheeffectsofpublicpolicychanges,economistsa. alwaysrefrainfrommakingassumptions.b. sometimesmakedifferentassumptionsabouttheshortrunandthelongrun.c. consideronlythedirecteffectsofthosepolicychangesandnottheindirecteffects.d. consideronlytheshort-runeffectsofthosepolicychangesandnotthelong-runeffects.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
224 Thinking Like an Economist
40. Whenstudyingtheeffectsofchangesinpublicpolicy,economistsbelievethata. itisimportanttodistinguishbetweentheshortrunandthelongrun.b. theassumptionsusedinstudyingthoseeffectsshouldbethesamefortheshortrunasforthelongrun.c. theshort-runeffectsofthosechangesarealwaysmorebeneficialtosocietythanarethelong-runeffects.d. thelong-runeffectsofthosechangesarealwaysmorebeneficialtosocietythanaretheshort-runeffects.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
41. Amodelcanbeaccuratelydescribedasaa. theoreticalabstractionwithverylittlevalue.b. devicethatisusefulonlytothepeoplewhocreatedit.c. realisticandcarefullyconstructedtheory.d. simplificationofreality.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
42. Whichofthefollowingstatementsaboutmodelsiscorrect?a. Themoredetailsamodelincludes,thebetterthemodel.b. Modelsassumeawayirrelevantdetails.c. Modelscannotbeusedtoexplainhowtheeconomyfunctions.d. Modelscannotbeusedtomakepredictions.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
43. Inbuildingeconomicmodels,economistsoftenomita. assumptions.b. theories.c. details.d. equations.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
226 Thinking Like an Economist
44. Whichofthefollowingstatementsabouteconomicmodelsiscorrect?a. Economicmodelsarebuilttomirrorrealityexactly.b. Economicmodelsareuseful,buttheyshouldnotbeusedforthepurposeofimprovingpublicpolicies.c. Becauseeconomicmodelsomitmanydetails,theyallowustoseewhatistrulyimportant.d. Economicmodelsseldomincorporateequationsordiagrams.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
45. Economicmodelsa. cannotbeusefuliftheyarebasedonfalseassumptions.b. wereoncethoughttobeuseful,butthatisnolongertrue.c. mustincorporateallaspectsoftheeconomyiftheyaretobeuseful.d. canbeuseful,eveniftheyarenotparticularlyrealistic.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
46. Whichofthefollowingisnotcorrectaboutmosteconomicmodels?a. Theyarecomposedofequationsanddiagrams.b. Theycontributeverylittletoeconomists’understandingoftherealworld.c. Theyomitmanyfeaturesofthereal-worldeconomy.d. Inconstructingmodels,economistsmakeassumptions.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
47. Economicmodelsa. a
reconstructedtomirrorrealityascloselyaspossible,andinthisrespecteconomicmodelsarenodifferentfromotherscientificmodels.
b. areconstructedtomirrorrealityascloselyaspossible,andinthisrespecteconomicmodelsareverydifferentfromotherscientificmodels.
c. aresimplificationsofreality,andinthisrespecteconomicmodelsarenodifferentfromotherscientificmodels.
d. aresimplificationsofreality,andinthisrespecteconomicmodelsareverydifferentfromotherscientificmodels.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
228 Thinking Like an Economist
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
48. Economicmodelsa. arenotusefulbecausetheyomitmanyreal-worlddetails.b. areusuallycomposedofdiagramsandequations.c. areusefulbecausetheydonotomitanyreal-worlddetails.d. areusuallyplasticrepresentationsoftheeconomy.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
49. Justlikemodelsconstructedinotherareasofscience,economicmodelsa. incorporateassumptionsthatcontradictreality.b. incorporatealldetailsoftherealworld.c. complicatereality.d. avoidtheuseofdiagramsandequations.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
230 Thinking Like an Economist
50. Whichtypesofmodelsarebuiltwithassumptions?a. economicmodels,butnotmodelsinotherdisciplinessuchasphysicsandbiologyb. economicmodelsaswellasmodelsinotherdisciplinessuchasphysicsandbiologyc. modelsthatarebuiltforteachingpurposesbutnotforresearchpurposesd. badmodels
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
51. Anassumptionaneconomistmightmakewhilestudyinginternationaltradeisa. thereareonlytwocountries.b. countriesonlyproducetwogoods.c. technologydoesnotchange.d. Alloftheabovearepossibleassumptions.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
52. Economistsbuildeconomicmodelsbya. generatingdata.b. conductingcontrolledexperimentsinalab.c. makingassumptions.d. reviewingstatisticalforecasts.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
53. Economicmodelsarebuiltwitha. recommendationsconcerningpublicpolicies.b. factsaboutthelegalsystem.c. assumptions.d. statisticalforecasts.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
232 Thinking Like an Economist
54. Inconstructingmodels,economistsa. leaveoutequations,sinceequationsandmodelstendtocontradictoneanother.b. ignorethelongrun,sincemodelsareusefulonlyforshort-runanalysis.c. sometimesmakeassumptionsthatarecontrarytofeaturesoftherealworld.d. trytoincludeeveryfeatureoftheeconomy.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
55. Economicmodelsa. arepeoplewhoactoutthebehavioroffirmsandhouseholdssothateconomistscanstudythisbehavior.b. areusuallydetailedreplicationsofreality.c. incorpora
tesimplifyingassumptionsthatoftencontradictreality,butalsohelpeconomistsbetterunderstandreality.
d. areusefultoresearchersbutnottoteachersbecauseeconomicmodelsomitmanydetailsofthereal-worldeconomy.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
56. Whichofthefollowingstatementsiscorrect?a. Feweconomicmodelsincorporateassumptions.b. Differenteconomicmodelsemploydifferentsetsofassumptions.c. Goodeconomicmodelsattempttomimicrealityascloselyaspossible.d. Economicmodels,tobeaccepted,mustbetestedbyconductingexperiments.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
57. Whichofthesestatementsabouteconomicmodelsiscorrect?a. Foreconomists,economicmodelsprovideinsightsabouttheworld.b. Economicmodelsarebuiltwithassumptions.c. Economicmodelsareoftencomposedofequationsanddiagrams.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
234 Thinking Like an Economist
58. Thecircular-flowdiagramisanexampleofa. alaboratoryexperiment.b. aneconomicmodel.c. amathematicalmodel.d. Alloftheabovearecorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
59. Thecircular-flowdiagramisaa. visualmodeloftheeconomy.b. visualmodeloftherelationshipsamongmoney,prices,andbusinesses.c. modelthatshowstheeffectsofgovernmentontheeconomy.d. mathematicalmodelofhowtheeconomyworks.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
60. Acircular-flowdiagramisamodelthata. helpstoexplainhowparticipantsintheeconomyinteractwithoneanother.b. helpstoexplainhowtheeconomyisorganized.c. incorporatesallaspectsoftherealeconomy.d. Both(a)and(b)arecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
61. Thecircular-flowdiagrama. isaneconomicmodel.b. incorporatestwotypesofdecisionmakers:householdsandfirms.c. representstheflowsofinputs,outputs,anddollars.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
236 Thinking Like an Economist
62. Whichofthefollowingstatementsaboutthecircular-flowdiagramiscorrect?a. Onemustimaginethattheeconomyoperateswithoutmoneyinordertomakesenseofthediagram.b. T
hediagramleavesoutdetailsthatarenotessentialforunderstandingtheeconomictransactionsthatoccurbetweenhouseholdsandfirms.
c. Thegovernmentcannotbeexcludedasadecisionmakerinacircular-flowdiagram.d. Alloftheabovearecorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowDiagram
KEYWORDS: BLOOM'S:Comprehension
63. Inthesimplecircular-flowdiagram,theparticipantsintheeconomyarea. firmsandgovernment.b. householdsandfirms.c. householdsandgovernment.d. households,firms,andgovernment.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
64. Whichtwogroupsofdecisionmakersareincludedinthesimplecircular-flowdiagram?a. marketsandgovernmentb. householdsandgovernmentc. firmsandgovernmentd. householdsandfirms
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
65. Inthecircular-flowdiagram,firmsproducea. goodsandservicesusingfactorsofproduction.b. outputusinginputs.c. factorsofproductionusinggoodsandservices.d. Both(a)and(b)arecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowDiagram
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
238 Thinking Like an Economist
66. Factorsofproductionarea. themathematicalcalculationsfirmsmakeindeterminingtheiroptimalproductionlevels.b. socialandpoliticalconditionsthataffectproduction.c. thephysicalrelationshipsbetweeneconomicinputsandoutputs.d. inputsintotheproductionprocess.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:FactorsofProductionKEYWORDS: BLOOM'S:Knowledge
67. Factorsofproductionarea. usedtoproducegoodsandservices.b. alsocalledoutput.c. abundantinmosteconomies.d. assumedtobeownedbyfirmsinthecircular-flowdiagram.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:FactorsofProductionKEYWORDS: BLOOM'S:Comprehension
68. Inthecircular-flowdiagram,whichofthefollowingisnotafactorofproduction?a. laborb. landc. capitald. money
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DIS
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
C:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
69. Inthecircular-flowdiagram,a. firmsownthefactorsofproduction.b. thefactorsofproductionarelabor,land,andcapital.c. thefactorsofproductionarealsocalled“output.”d. Alloftheabovearecorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
70. Whichofthesetermsareusedinterchangeably?a. "goodsandservices"and"inputs"b. "goodsandservices"and"factorsofproduction"c. "inputs"and"factorsofproduction"d. "land,labor,andcapital"and"goodsandservices"
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:FactorsofProductionKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
240 Thinking Like an Economist
71. Anothertermforfactorsofproductionisa. inputs.b. output.c. goods.d. services.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:FactorsofProductionKEYWORDS: BLOOM'S:Knowledge
72. Ineconomics,capitalreferstoa. thefinancesnecessaryforfirmstoproducetheirproducts.b. buildingsandmachinesusedintheproductionprocess.c. themoneyhouseholdsusetopurchasefirms'output.d. stocksandbonds.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:FactorsofProductionCapital
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
73. Whichofthefollowingisanexampleofacapitalinput?a. acomputerb. ashareofstockc. anhourofaworker’stimed.$50,000
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:FactorsofProductionCapital
KEYWORDS: BLOOM'S:ApplicationNOTES: n
74. Amodelthatshowshowdollarsflowthroughmarketsamonghouseholdsandfirmsiscalledthea. productionpossibilitiesfrontier.b. circular-flowdiagram.c. demandandsupplydiagram.d. comparativeadvantagemodel.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
242 Thinking Like an Economist
75. Inthesimplecircular-flowdiagram,householdsa. aretheonlydecisionmakers.b. ownthefactorsofproduction.c. arebuyersofinputs.d. consumeonlysomeofthegoodsandservicesthatfirmsproduce.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
76. Inthesimplecircular-flowdiagram,a. householdsownthefactorsofproduction.b. householdsbuyallthegoodsandservicesthatfirmsproduce.c. land,labor,andcapitalflowfromhouseholdstofirms.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
77. Inthesimplecircular-flowdiagram,whobuysthefactorsofproduction?a. householdsonlyb. firmsonlyc. bothhouseholdsandfirmsd. neitherhouseholdsnorfirms
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ComprehensionNOTES: r
78. Thesimplecircular-flowdiagramisamodelthatincludesonlysomekeyplayersintherealeconomy.Whichofthefollowingkeyplayersareomittedfromthesimplecircular-flowmodel?a. householdsb. firmsc. governmentd. marketsforfactorsofproduction
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:KnowledgeNOTES: s
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
244 Thinking Like an Economist
79. Inthecircular-flowdiagram,anothernameforgoodsandservicesproducedbyfirmsisa. factorsofproduction.b. output.c. inputs.d. resources.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
80. Whichmarketsarerepresentedinthesimplecircular-flowdiagram?a. marketsforgoodsandservicesandmarketsforfinancialassetsb. marketsforfactorsofproductionandmarketsforfinancialassetsc. marketsforgoodsandservicesandmarketsforfactorsofproductiond. marketsforgoodsandservicesandmarketsforimportsandexports
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
81. Inthemarketsforgoodsandservicesinthecircular-flowdiagram,a. householdsandfirmsarebothbuyers.b. householdsandfirmsarebothsellers.c. householdsarebuyersandfirmsaresellers.d. householdsaresellersandfirmsarebuyers.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
82. Inthecircular-flowdiagram,inthemarketsfora. goodsandservices,householdsandfirmsarebothsellers.b. goodsandservices,householdsarebuyersandfirmsaresellers.c. thefactorsofproduction,householdsarebuyersandfirmsaresellers.d. thefactorsofproduction,householdsandfirmsarebothbuyers.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
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246 Thinking Like an Economist
83. Inthecircular-flowdiagram,inthemarketsfora. goodsandservices,householdsandfirmsarebothsellers.b. goodsandservices,householdsaresellersandfirmsarebuyers.c. thefactorsofproduction,householdsaresellersandfirmsarebuyers.d. thefactorsofproduction,householdsandfirmsarebothbuyers.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
84. Inthemarketsforgoodsandservicesinthecircular-flowdiagram,a. householdsprovidefirmswithsavingsforinvestment.b. householdsprovidefirmswithlabor,land,andcapital.c. firmsprovidehouseholdswithoutput.d. firmsprovidehouseholdswithprofit.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
85. Inthemarketsforthefactorsofproductioninthecircular-flowdiagram,a. householdsaresellersandfirmsarebuyers.b. householdsarebuyersandfirmsaresellers.c. householdsandfirmsarebothbuyers.d. householdsandfirmsarebothsellers.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
86. Inthemarketsforfactorsofproductioninthecircular-flowdiagram,a. householdsprovidefirmswithlabor,land,andcapital.b. householdsprovidefirmswithsavingsforinvestment.c. firmsprovidehouseholdswithgoodsandservices.d. firmsprovidehouseholdswithrevenue.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ComprehensionNOTES: s
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248 Thinking Like an Economist
87. Whichofthefollowingtransactionsdoesnottakeplaceinthemarketsforfactorsofproductioninthecircular-flowdiagram?a. alandownerleaseslandtoafarmerb. afarmerhiresateenagertohelpwithharvestc. aconstructioncompanyrentstrucksforitsbusinessd. awomanbuyscornfordinner
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
88. Whichofthefollowingtransactionstakesplaceinthemarketsforthefactorsofproductioninthecircular-flowdiagram?a. Dylanreceivesasalaryforhisworkasafinancialanalystforaninvestmentfirm.b. KristinbuystwobusinesssuitstoweartoherjobasaChiefInformationOfficer.c. Jimreceivescleanwaterinhishomeinexchangeforpayinghiswaterbill.d. Carolineownsanailsalonandreceivespaymentsfromherclientsforherservices.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
89. Inthecircular-flowdiagram,a. firmsarebuyersinthemarketsforgoodsandservices.b. householdsaresellersinthemarketsforthefactorsofproduction.c. firmsaresellersinthemarketsforfactorsofproductionandinthemarketsforgoodsandservices.d. dollarsthatarespentongoodsandservicesflowdirectlyfromfirmstohouseholds.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
90. Thetwoloopsinthecircular-flowdiagramrepresenta. theflowofgoodsandtheflowofservices.b. theflowofdollarsandtheflowoffinancialassets.c. theflowofinputsintoproductionprocessesandtheflowofoutputsfromproductionprocesses.d. theflowsofinputsandoutputsandtheflowofdollars.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
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250 Thinking Like an Economist
91. Theouterloopofthecircular-flowdiagramrepresentstheflowsofdollarsintheeconomy.Whichofthefollowingdoesnotappearontheouterloop?a. wagesb. incomec. capitald. rent
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ComprehensionNOTES: s
92. Theinnerloopofthecircular-flowdiagramrepresentstheflowsofinputsandoutputs.Whichofthefollowingdoesnotappearontheinnerloop?a. wagesb. landc. capitald. goodsandservicessold
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ComprehensionNOTES: s
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
252 Thinking Like an Economist
93. Inthecircular-flowdiagram,a. profitflowsfromhouseholdstofirms.b. laborflowsfromhouseholdstofirms.c. servicesflowfromhouseholdstofirms.d. Alloftheabovearecorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
94. Inthecircular-flowdiagram,a. taxesflowfromhouseholdstofirms,andtransferpaymentsflowfromfirmstohouseholds.b. incomepaymentsflowfromfirmstohouseholds,andsalesrevenueflowsfromhouseholdstofirms.c. resourcesflowfromfirmstohouseholds,andgoodsandservicesflowfromhouseholdstofirms.d. inputsandoutputsflowinthesamedirectionastheflowofdollars,fromfirmstohouseholds.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
95. Inthecircular-flowdiagram,a. factorsofproductionflowfromgovernmenttofirms.b. goodsandservicesflowfromhouseholdstofirms.c. incomepaidtothefactorsofproductionflowsfromfirmstohouseholds.d. spendingongoodsandservicesflowsfromfirmstohouseholds.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
96. Inthecircular-flowdiagram,whichofthefollowingitemsdoesnotflowfromhouseholdstofirms?a. revenueb. land,labor,andcapitalc. factorsofproductiond. profit
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
254 Thinking Like an Economist
97. Inthecircular-flowdiagram,whichofthefollowingitemsdoesnotflowfromfirmstohouseholds?a. goodsb. servicesc. capitald. profit
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
98. Inthecircular-flowdiagram,whichofthefollowingitemsflowsfromhouseholdstofirmsthroughthemarketsforgoodsandservices?a. goodsandservicesb. dollarspaidtoland,labor,andcapitalc. dollarsspentongoodsandservicesd. wages,rent,andprofit
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
99. Inthecircular-flowdiagram,whichofthefollowingitemsflowsfromfirmstohouseholdsthroughthemarketsforgoodsandservices?
a. goodsandservicesb. dollarspaidtoland,labor,andcapitalc. dollarsspentongoodsandservicesd. wages,rent,andprofit
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
100. Inthecircular-flowdiagram,whichofthefollowingitemsflowsfromfirmstohouseholdsthroughthemarketsforthefactorsofproduction?
a. goodsandservicesb. land,labor,andcapitalc. dollarsspentongoodsandservicesd. wages,rent,andprofit
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
256 Thinking Like an Economist
101. Inthecircular-flowdiagram,whichofthefollowingitemsflowsfromhouseholdstofirmsthroughthemarketsforthefactorsofproduction?
a. goodsandservicesb. land,labor,andcapitalc. dollarsspentongoodsandservicesd. wages,rent,andprofit
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
102. Inthecircular-flowdiagram,whichofthefollowingitemsrepresentsapaymentforafactorofproduction?a. interestb. capitalc. spendingbyhouseholdsongoodsd. spendingbyhouseholdsonservices
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
103. Inthesimplecircularflowdiagram,theflowofmoneyfromthefirmstothemarketsforfactorsofproductioniscalled
a. spending.b. revenue.c. income.d. wages,rent,andprofit.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
104. Inthesimplecircularflowdiagram,theflowofmoneyfromthemarketsforgoodsandservicestothefirmsiscalled
a. spending.b. revenue.c. income.d. wages,rent,andprofit.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
258 Thinking Like an Economist
105. Amongeconomicmodels,thecircular-flowdiagramisunusualinthatita. drasticallysimplifiestherealworld.b. featuresmorethanonetypeofmarket.c. featuresflowsofdollars.d. doesnotinvolvemathematics.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
106. Accordingtothecircularflowdiagram,ifSuzyisaworkerwhodeliversflowersforHappyDayFlowerCompany,sheparticipates
a. inthemarketsforfactorsofproductionexchanginglaborforincome.b. inthemarketsforfactorsofproductionexchangingflowersforrevenue.c. inthemarketsforgoodsandservicesexchangingflowersforwages,rent,andprofit.d. inthemarketsforgoodsandservicesexchanginglaborforincome.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
107. Accordingtothecircularflowdiagram,ifDennyistheownerofalandscapingbusinessandhejustreceived$50formowingMrs.Pendleton’slawn,
a. the$50representsacostofproductionforDenny’sfirm.b. the$50representswages,rent,andprofittoDenny’sfirm.c. DennyactsasafirmwhointeractedinthemarketsforfactorsofproductionwithMrs.Pendleton.
d. DennyactsasafirmwhointeractedinthemarketsforgoodsandserviceswithMrs.Pendleton.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
Figure2-1
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260 Thinking Like an Economist
108. RefertoFigure2-1.Whicharrowrepresentstheflowofgoodsandservices?a. Ab. Bc. Cd. D
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
109. RefertoFigure2-1.Whicharrowrepresentstheflowofspendingbyhouseholds?a. Ab. Bc. Cd. D
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
110. RefertoFigure2-1.Whicharrowrepresentstheflowofland,labor,andcapital?a. Ab. Bc. Cd. D
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
111. RefertoFigure2-1.Whicharrowrepresentstheflowofincomepayments?a. Ab. Bc. Cd. D
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
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262 Thinking Like an Economist
112. RefertoFigure2-1.Raymondbuysarefrigeratorforhisnewhome.Towhichofthearrowsdoesthistransactiondirectlycontribute?
a. Aonlyb. AandBc. Conlyd. CandD
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ApplicationNOTES: r
113. RefertoFigure2-1.Harveyreceiveshisfirstpaycheckforworkingasanicecreamvendor.Towhichofthearrowsdoesthistransactiondirectlycontribute?
a. Bonlyb. AandBc. Conlyd. CandD
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
264 Thinking Like an Economist
Figure2-2
114. RefertoFigure2-2.BoxesAandBofthiscircular-flowdiagramrepresenta. firmsandhouseholds.b. householdsandgovernment.c. themarketsforgoodsandservicesandthemarketsforfinancialassets.d. themarketsforgoodsandthemarketsforservices.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
115. RefertoFigure2-2.BoxesCandDofthiscircular-flowdiagramrepresenta. householdsandgovernment.b. firmsandgovernment.c. themarketsforgoodsandservicesandthemarketsforfinancialassets.d. themarketsforgoodsandservicesandthemarketsforfactorsofproduction.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
TOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
116. RefertoFigure2-2.IfBoxAofthiscircular-flowdiagramrepresentsfirms,thenwhichboxrepresentshouseholds?
a. BoxBb. BoxCc. BoxDd. Anyoneoftheotherboxes(B,C,orD)couldrepresenthouseholds.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
117. RefertoFigure2-2.IfhouseholdsaresellersinthemarketsrepresentedbyBoxDofthiscircular-flowdiagram,then
a. BoxDmustrepresentthemarketsforfactorsofproduction.b. BoxCmustrepresentthemarketsforgoodsandservices.c. firmsarebuyersinthemarketsrepresentedbyBoxD.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
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266 Thinking Like an Economist
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
118. RefertoFigure2-2.IfhouseholdsarebuyersinthemarketsrepresentedbyBoxCofthiscircular-flowdiagram,then
a. BoxCmustrepresentthemarketsforthefactorsofproduction.b. BoxDmustrepresentthemarketsforgoodsandservices.c. firmsaresellersinthemarketsrepresentedbyBoxC.d. Alloftheabovearecorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
119. RefertoFigure2-2.Iftheownersofland,labor,andcapitalarerepresentedbyBoxBofthiscircular-flowdiagram,then
a. householdsarerepresentedbyBoxA.b. firmsarerepresentedbyBoxC.c. firmsarerepresentedbyBoxA.d. firmsaresellersinBoxB.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
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268 Thinking Like an Economist
120. RefertoFigure2-2.Iftheouterloopofthiscircular-flowdiagramrepresentsflowsofdollars,thentheinnerloopincludes
a. flowsofgoodsandservicesfromhouseholdstofirms.b. flowsofinputsfromhouseholdstofirms.c. flowsofrentpaymentspaidtoownersofland.d. flowsofwagesandsalariespaidtoworkers.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
121. RefertoFigure2-2.Iftheflowofgoodsandservicesispartofwhatisrepresentedbytheinnerloopofthiscircular-flowdiagram,then
a. theflowoffactorsofproductionisalsopartofwhatisrepresentedbytheinnerloop.b. theflowofincomepaidtohouseholdsisalsopartofwhatisrepresentedbytheinnerloop.c. theflowofrevenuetofirmsisalsopartofwhatisrepresentedbytheinnerloop.d. householdsmustbesellersofoutput.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
122. RefertoFigure2-2.Devinworksasanattorneyforacorporationandispaidasalaryinexchangeforthelegalservicesheperforms.Juanownsofficebuildingsandrentshisbuildingstocompaniesinexchangeforrentpayments.IfDevin’sincomeisrepresentedbyaflowofdollarsfromBoxDtoBoxBofthiscircular-flowdiagram,thenJuan’sincomeisrepresentedbyaflowofdollars
a. fromBoxAtoBoxC.b. fromBoxCtoBoxA.c. fromBoxBtoBoxD.d. fromBoxDtoBoxB.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Analysis
123. RefertoFigure2-2.Carlaregularlybuysfruitsandvegetablesatagrocerystore.Robertoregularlypaysalawn-carecompanytomowhislawn.IftheflowoffruitsandvegetablesfromthegrocerystoretoCarlaisrepresentedbyanarrowfromBoxCtoBoxBofthiscircular-flowdiagram,thenthemoneypaidbyRobertotothelawn-carecompanyisrepresentedbyanarrow
a. fromBoxAtoBoxD.b. fromBoxBtoBoxC.c. fromBoxCtoBoxB.d. fromBoxDtoBoxA.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
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270 Thinking Like an Economist
KEYWORDS: BLOOM'S:Analysis
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Figure2-3
124. RefertoFigure2-3.Whichshapereferstothemarketsforgoodsandservices?a. ovalAb. ovalBc. rectangle1d. rectangle2
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
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272 Thinking Like an Economist
125. RefertoFigure2-3.Whatisflowingfromrectangle1toovalA?a. revenueb. goodsandservicessoldc. factorsofproductiond. labor,land,andcapital
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
126. RefertoFigure2-3.Whichofthefollowingisanactivityundertakenbytheactorsinrectangle2?a. produceandsellgoodsandservicesb. hireandusefactorsofproductionc. ownandsellfactorsofproductiond. exchangegoodsandservicesbetweenfirmsandhouseholds
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
127. Theproductionpossibilitiesfrontierisagraphthatshowsthevariouscombinationsofoutputthataneconomycanpossiblyproducegiventheavailablefactorsofproductionand
a. society’spreferences.b. theavailableproductiontechnology.c. afairdistributionoftheoutput.d. theavailabledemandfortheoutput.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Knowledge
128. Theproductionpossibilitiesfrontierisagraphthatshowsthevariouscombinationsofoutputthataneconomy
a. shouldproduce.b. wantstoproduce.c. canproduce.d. demands.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Knowledge
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274 Thinking Like an Economist
129. Whenconstructingaproductionpossibilitiesfrontier,whichofthefollowingassumptionsisnotmade?a. Theeconomyproducesonlytwogoodsortwotypesofgoods.b. Firmsproducegoodsusingfactorsofproduction.c. Thetechnologyavailabletofirmsisgiven.
d. Thequantitiesofthefactorsofproductionthatareavailableareincreasingovertherelevanttimeperiod.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
130. Anypointonacountry'sproductionpossibilitiesfrontierrepresentsacombinationoftwogoodsthataneconomy
a. willneverbeabletoproduce.b. canproduceusingallavailableresourcesandtechnology.c. canproduceusingsomeportion,butnotall,ofitsresourcesandtechnology.d. maybeabletoproduceinthefuturewithmoreresourcesand/orsuperiortechnology.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
131. Whichofthefollowingisnotanassumptionoftheproductionspossibilitiesfrontier?a. Acountryproducesonlytwogoodsortypesofgoods.b. Technologydoesnotchange.c. Theamountofavailableresourcesdoesnotchange.d. Thereisafixedquantityofmoney.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
132. Whichofthefollowingisacorrectstatementaboutproductionpossibilitiesfrontiers?a. Aneconomycanproduceonlyontheproductionpossibilitiesfrontier.b. Aneconomycanproduceatanypointinsideoroutsideaproductionpossibilitiesfrontier.
c. Aneconomycanproduceatanypointonorinsidetheproductionpossibilitiesfrontier,butnotoutsidethefrontier.
d. Aneconomycanproduceatanypointinsidetheproductionpossibilitiesfrontier,butnotonoroutsidethefrontier.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
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276 Thinking Like an Economist
133. Wherecananeconomynotproduce?a. insideitsproductionpossibilitiesfrontierb. onitsproductionpossibilitiesfrontierc. outsideitsproductionpossibilitiesfrontierd. attheendpointsofitsproductionpossibilitiesfrontier
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
134. Aneconomicoutcomeissaidtobeefficientiftheeconomyisa. usingallofthescarceresourcesithasavailable.b. conservingonresources,ratherthanusingallavailableresources.c. gettingallitcangetfromthescarceresourcesithasavailable.d. abletoproducemorethanwhatiscurrentlybeingproducedwithoutadditionalresources.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
135. Productionisefficientiftheeconomyisproducingatapointa. ontheproductionpossibilitiesfrontier.b. outsidetheproductionpossibilitiesfrontier.c. onorinsidetheproductionpossibilitiesfrontier.d. insidetheproductionpossibilitiesfrontier.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:Comprehension
136. Ifaneconomyisproducingefficiently,thena. thereisnowaytoproducemoreofonegoodwithoutproducinglessofanothergood.
b. itispossibletoproducemoreofbothgoodswithoutincreasingthequantitiesofinputsthatarebeingused.c. itispossibletoproducemoreofonegoodwithoutproducinglessofanothergood.d. itisnotpossibletoproducemoreofanygoodatanycost.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
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278 Thinking Like an Economist
137. Aneconomy’sproductionoftwogoodsisefficientifa. allmembersofsocietyconsumeequalportionsofthegoods.b. thegoodsareproducedusingonlysomeofsociety’savailableresources.c. itisimpossibletoproducemoreofonegoodwithoutproducinglessoftheother.d. theopportunitycostofproducingmoreofonegoodiszero.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
138. Whenaneconomyisoperatingatapointonitsproductionpossibilitiesfrontier,thena. consumersarecontentwiththemixofgoodsandservicesthatisbeingproduced.b. thereisnowaytoproducemoreofonegoodwithoutproducinglessoftheother.c. equalamountsofthetwogoodsarebeingproduced.d. Alloftheabovearecorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
139. Efficiencyisillustratedbya. boththeproductionpossibilitiesfrontierandthecircular-flowdiagram.b. neithertheproductionpossibilitiesfrontiernorthecircular-flowdiagram.c. theproductionpossibilitiesfrontieronly.d. thecircular-flowdiagramonly.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
140. Supposeanationiscurrentlyproducingatapointinsideitsproductionpossibilitiesfrontier.Weknowthata. thenationisproducingbeyonditscapacity,soinflationwilloccur.b. thenationisnotusingallavailableresourcesorisusinginferiortechnologyorboth.c. thenationisproducinganefficientcombinationofgoods.d. therewillbealargeopportunitycostifthenationtriestoincreaseproductionofanygood.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
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280 Thinking Like an Economist
141. Whenaneconomyisoperatinginsideitsproductionpossibilitiesfrontier,weknowthata. thereareunusedresourcesorinefficienciesintheeconomy.b. alloftheeconomy’sresourcesarefullyemployed.
c. economicgrowthwouldhavetooccurinorderfortheeconomytomovetoapointonthefrontier.d. inordertoproducemoreofonegood,theeconomywouldhavetogiveupsomeoftheothergood.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
142. Itispossibleforaneconomytoincreaseitsproductionofbothgoodsiftheeconomya. mov
esdownwardandtotherightalongitsproductionpossibilitiesfrontierandthefrontierisbowedoutward.b. movesupwardandtotheleftalongitsproductionpossibilitiesfrontierandthefrontierisbowedoutward.c. movesineitherdirectionalongitsproductionpossibilitiesfrontierandthefrontierisastraightline.d. movesfromasituationofinefficientproductiontoasituationofefficientproduction.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
143. Unemploymentwouldcauseaneconomytoa. produceinsideitsproductionpossibilitiesfrontier.b. produceonitsproductionpossibilitiesfrontier.c. produceoutsideitsproductionpossibilitiesfrontier.d. experienceaninwardshiftofitsproductionpossibilitiesfrontier.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
144. Theproductionpossibilitiesfrontierprovidesanillustrationoftheprinciplethata. tradecanmakeeveryonebetteroff.b. governmentscansometimesimprovemarketoutcomes.c. peoplefacetrade-offs.d. peoplerespondtoincentives.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelTradeoffs
KEYWORDS: BLOOM'S:Knowledge
145. Theproductionpossibilitiesfrontierillustratesa. thetrade-offbetweenefficiencyandequality.b. thecombinationofoutputthataneconomyshouldproduce.c. thecombinationofoutputthateachmemberofsocietyshouldconsume.d. Noneoftheaboveiscorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
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282 Thinking Like an Economist
TOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
146. Whichofthefollowingtrade-offsdoestheproductionpossibilitiesfrontierillustrate?a. Ifaneconomywantstoincreaseefficiencyinproduction,thenitmustsacrificeequalityinconsumption.b. On
ceaneconomyhasreachedtheefficientpointsonitsproductionpossibilitiesfrontier,theonlywayofgettingmoreofonegoodistogetlessoftheother.
c. Foraneconomytoconsumemoreofonegood,itmuststopconsumingtheothergoodentirely.d. Foraneconomytoproduceandconsumegoods,itmustsacrificeenvironmentalquality.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelTradeoffs
KEYWORDS: BLOOM'S:ComprehensionNOTES: s
147. Whichofthefollowingconceptscannotbeillustratedbytheproductionpossibilitiesfrontier?a. efficiencyb. opportunitycostc. equalityd. trade-offs
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
148. Theopportunitycostofobtainingmoreofonegoodisshownontheproductionpossibilitiesfrontierasthea. amountoftheothergoodthatmustbegivenup.b. marketpriceoftheadditionalamountproduced.c. amountofresourcesthatmustbedevotedtoitsproduction.d. numberofdollarsthatmustbespenttoproduceit.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
149. Thebowedshapeoftheproductionpossibilitiesfrontiercanbeexplainedbythefactthata. allresourcesarescarce.b. economicgrowthisalwaysoccurring.
c. theopportunitycostofonegoodintermsoftheotherdependsonhowmuchofeachgoodtheeconomyisproducing.
d. theonlywaytogetmoreofonegoodistogetlessoftheother.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
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284 Thinking Like an Economist
150. Economistsbelievethatproductionpossibilitiesfrontiersareoftenbowedbecausea. trade-offsinevitablycreateunemployment.b. resourcesarenotcompletelyadaptable.c. opportunitycostsareconstant.d. ofimprovementsintechnology.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
151. Onabowedproductionpossibilitiesfrontier,asyoumovedownalongthecurvea. moreofonegoodmustbegivenuptoreceiveoneunitoftheothergood.b. theavailableproductiontechnologydoesnotchange.c. theopportunitycostincreases.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
152. Whenaproductionpossibilitiesfrontierisbowedoutward,theopportunitycostofproducinganadditionalunitofagood
a. increasesasmoreofthegoodisproduced.b. decreasesasmoreofthegoodisproduced.c. doesnotchangeasmoreofthegoodisproduced.d. mayincrease,decrease,ornotchangeasmoreofthegoodisproduced.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
153. Productionpossibilitiesfrontiersareusuallybowedoutward.Thisisbecausea. t
hemoreresourcesasocietyusestoproduceonegood,thefewerresourcesithasavailabletoproduceanothergood.
b. theopportunitycostofproducingagooddecreasesasmoreandmoreofthatgoodisproduced.c. oftheeffectsoftechnologicalchange.d. resourcesarespecialized;thatis,somearebetteratproducingparticulargoodsratherthanothergoods.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelTradeoff
KEYWORDS: BLOOM'S:ComprehensionNOTES: s
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286 Thinking Like an Economist
154. Economistsbelievethatproductionpossibilitiesfrontiersa. neverhaveabowedshape.b. rarelyhaveabowedshape.c. oftenhaveabowedshape.d. alwayshaveabowedshape.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
Table2-1
Thefollowingtablecontainssomeproductionpossibilitiesforaneconomyforagivenmonth.
Hammers Nails3 9006 ?9 300
155. RefertoTable2-1.Iftheproductionpossibilitiesfrontierisbowedoutward,then“?”couldbea. 400.b. 450.c. 600.d. 750.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
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288 Thinking Like an Economist
Table2-2
Thefollowingtablecontainssomeproductionpossibilitiesforaneconomyforagivenyear:
TennisRackets TennisBalls100 8000200 6500300 ?
156. RefertoTable2-2.Iftheproductionpossibilitiesfrontierisbowedoutward,then"?"couldbea.6000.b.5500.c.5000.d.4500.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
157. Aproductionpossibilitiesfrontiercanshiftoutwardifa. governmentincreasestheamountofmoneyintheeconomy.b. thereisatechnologicalimprovement.c. resourcesareshiftedfromtheproductionofonegoodtotheproductionoftheothergood.d. theeconomyabandonsinefficientproductionmethodsinfavorofefficientproductionmethods.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
158. Aproductionpossibilitiesfrontiershiftsoutwardwhena. theeconomyexperienceseconomicgrowth.b. thedesiresoftheeconomy’scitizenschange.c. atleastoneofthebasicprinciplesofeconomicsisviolated.d. opportunitycostsarelessened.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Comprehension
159. Inacertaineconomy,jamandbreadareproduced,andtheeconomycurrentlyoperatesonitsproductionpossibilities frontier.Whichofthefollowingeventswouldallowtheeconomytoproducemorejamandmorebread,relativetothequantitiesofthosegoodsthatarebeingproducednow?
a. Unemployedlaborisputtoworkproducingjamandbread.b. Theeconomyputsitsidlecapitaltoworkproducingjamandbread.c. Theeconomyexperienceseconomicgrowth.d. Alloftheabovearecorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
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290 Thinking Like an Economist
160. Inacertaineconomy,toysandgreetingcardsareproduced,andtheeconomycurrentlyoperatesonitsproductionpossibilities frontier.Whichofthefollowingeventswouldallowtheeconomytoproducemoretoysandmoregreetingcards,relativetothequantitiesofthosegoodsthatarebeingproducednow?a. Theeconomyexperienceseconomicgrowth.b. The
reisatechnologicaladvanceinthetoyindustry,butthegreetingcardindustryexperiencesnosuchadvance.
c. Thereisatechnologicaladvanceinthegreetingcardindustry,butthetoyindustryexperiencesnosuchadvance.
d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
161. ThecountryofGeranceproducestwogoods,carsandwine.Lastyear,itproduced1,000carsand15,000casesofwine.Thisyear,itproduced1,300carsand20,000casesofwine.Givennootherinformation,whichof thefollowingeventscouldnotexplainthischange?
a. Geranceexperiencedareductioninunemployment.b. Geranceexperiencedanimprovementincar-makingtechnology.c. Geranceacquiredmoreresources.d. Anyoftheseeventscouldexplainthechange.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
292 Thinking Like an Economist
162. Supposeaneconomyproducestwogoods,foodandmachines.Thiseconomyalwaysoperatesonitsproductionpossibilitiesfrontier.Lastyear,itproduced1000unitsoffoodand47machines.Thisyear,itisproducing1050unitsoffoodand52machines.Whichofthefollowingeventscouldnotexplaintheincreaseinoutput?
a. areductioninunemploymentb. anincreaseinavailablelaborc. animprovementintechnologyd. Anyoftheseeventscouldexplaintheincreaseinoutput.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
163. Supposeaneconomyproducestwogoods,foodandmachines.Thiseconomyalwaysoperatesonitsproductionpossibilitiesfrontier.Lastyear,itproduced1000unitsoffoodand47machines.Thisyearitexperiencedatechnologicaladvanceinitsmachine-makingindustry.Asaresult,thisyearthesocietywantstoproduce1050unitsoffoodand47machines.Whichofthefollowingstatementsiscorrect?a. Becausethetechnologicaladvanceoccurredinthemachine-
makingindustry,itwillnotbepossibletoincreasefoodproductionwithoutreducingmachineproductionbelow47.
b. Becausethetechnologicaladvanceoccurredinthemachine-makingindustry,increasesinoutputcanonlyoccurinthemachineindustry.
c. Inordertoincreasefoodproductioninthesecircumstanceswithoutreducingmachineproduction,theeconomymustreduceinefficiencies.
d. Thetechnologicaladvancereducedtheamountofresourcesneededtoproduce47machines,sotheseresourcescouldbeusedtoproducemorefood.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Analysis
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
294 Thinking Like an Economist
164. Supposeaneconomyonlyproducestwogoods,robotsandicecream.Lastmonth,theeconomyproduced10robotsand200gallonsoficecream.Thismonth,thesameeconomyproduced15robotsand240gallonsoficecream.Whichofthefollowingstatementscouldexplainthischange?
a. Thismonth,theeconomyreducedtheunemploymentofitsresources.b. Thismonth,theeconomyexperiencedanimprovementintechnology.c. Thismonth,theeconomyexperiencedanincreaseinresourcesd. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
165. Acertainproductionpossibilitiesfrontiershowsproductionpossibilitiesfortwogoods,jewelryandclothing.Whichofthefollowingconceptscannotbeillustratedbythismodel?
a. theflowofdollarsbetweensellersofjewelryandclothingandbuyersofjewelryandclothingb. thetradeoffbetweenproductionofjewelryandproductionofclothingc. theopportunitycostofclothingintermsofjewelryd. theeffectofeconomicgrowthonproductionpossibilitiesinvolvingjewelryandclothing
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
166. Theproductionpossibilitiesfrontierisusedtoillustratesomebasiceconomicideas,includinga. scarcity.b. opportunitycost.c. economicgrowth.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Knowledge
Table2-3
ProductionPossibilitiesforFootville
Shoes Socks800 0600 400400 700200 9000 1000
167. RefertoTable2-3.WhatistheopportunitycosttoFootvilleofincreasingtheproductionofshoesfrom400to600?
a. 400socksb. 300socksc. 200socksd. 100socks
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
296 Thinking Like an Economist
NOTES: r
168. RefertoTable2-3.Whichofthefollowingstatementsiscorrect?a. Theopportunitycostofanadditional200shoesisconstantat200socks.b. Theopportunitycostofanadditional200shoesisconstantat300socks.c. Footville’sproductionpossibilitiesfrontierisastraight,downwardslopingline.d. Theopportunitycostofanadditional200shoesincreasesasmoresocksareproduced.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
Table2-4
ProductionPossibilitiesforPicnicland
Hotdogs Burgers1800 01350 450900 750450 9750 1125
169. RefertoTable2-4.WhatistheopportunitycosttoPicniclandofincreasingtheproductionofhotdogsfrom450to900?
a. 150burgersb. 225burgersc. 300burgersd. 450burgers
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ComprehensionNOTES: r
170. RefertoTable2-4.WhatistheopportunitycosttoPicniclandofincreasingtheproductionofburgersfrom450to750?
a. 150hotdogsb. 225hotdogsc. 300hotdogsd. 450hotdogs
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ComprehensionNOTES: n
Figure2-4
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298 Thinking Like an Economist
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
171. RefertoFigure2-4.Atwhichpointisthiseconomyproducingitsmaximumpossiblequantityofdoors?a. Rb. Sc. Td. U
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
172. RefertoFigure2-4.Thiseconomyhastheabilitytoproduceatwhichpoint(s)?a. Q,R,T,Ub. R,T,Uc. R,Ud. T
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
300 Thinking Like an Economist
173. RefertoFigure2-4.Thiseconomycannotproduceatwhichpoint(s)?a. Qb. Q, Sc. Q,S,Td. S
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
174. RefertoFigure2-4.Efficientproductionisrepresentedbywhichpoint(s)?a. Q,R,Ub. R,T,Uc. R,Ud. S,T
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProduction
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
175. RefertoFigure2-4.Inefficientproductionisrepresentedbywhichpoint(s)?a. Q, Sb. Q,S,Tc. R,Ud. T
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
176. RefertoFigure2-4.Unemploymentcouldcausethiseconomytoproduceatwhichpoint(s)?a. Q, Sb. Q,S,Tc. R,Ud. T
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
302 Thinking Like an Economist
Figure2-5
177. RefertoFigure2-5.Ifthiseconomydevotesallofitsresourcestotheproductionofdryers,thenitwillproduce
a. 0dryersand100washers.b. 60dryersand50washers.c. 80dryersand0washers.d. 80dryersand50washers.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
178. RefertoFigure2-5.Itispossibleforthiseconomytoproducea. 60dryersand50washers.b. 60dryersand60washers.c. 80dryersand50washers.d. Alloftheabove.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
179. RefertoFigure2-5.Itisnotpossibleforthiseconomytoproduceatpointa. A.b. B.c. C.d. D.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
304 Thinking Like an Economist
180. RefertoFigure2-5.Thiseconomycannotcurrentlyproduce70washersand70dryersbecausea. itisnotusingallofitsresources.b. itisnotusingthemostefficientproductionprocess.c. itdoesnothavetheresourcesandtechnologytoproducethatlevelofoutput.d. Alloftheabovearecorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
181. RefertoFigure2-5.SupposethiseconomyisproducingatpointD.Whichofthefollowingstatementswouldbestexplainthissituation?
a. Theeconomyhasinsufficientresourcestoproduceatamoredesirablepoint.b. Theeconomy’savailabletechnologypreventsitfromproducingatamoredesirablepoint.c. Thereiswidespreadunemploymentintheeconomy.d. Anyoftheabovestatementswouldbealegitimateexplanationforthissituation.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
182. RefertoFigure2-5.Efficientproductionisrepresentedbywhichpoint(s)?a. A,Bb. A,B,Dc. A,B,Cd. C
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
183. RefertoFigure2-5.Inefficientproductionisrepresentedbywhichpoint(s)?a. A,Bb. Cc. C,Dd. D
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
306 Thinking Like an Economist
184. RefertoFigure2-5.TheopportunitycostofthiseconomymovingfrompointAtopointBisa. 20dryers.b. 20washers.c. 20dryersand20washers.d. 60dryers.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
185. RefertoFigure2-5.Theopportunitycostofobtaining40 additionaldryersbymovingfrompointDtopointCis
a. 0washers.b. 20washers.c. 40washers.d. Noneoftheabove;theeconomycannotmovefrompointDtopointC.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
186. RefertoFigure2-5.Theopportunitycostofobtaining20additionaldryers bymovingfrompointDtopointAis
a. 0washers.b. 20washers.c. 40washers.d. Noneoftheabove;theeconomycannotmovefrompointDtopointA.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
Figure2-6
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308 Thinking Like an Economist
187. RefertoFigure2-6.Ifthiseconomydevotesallofitsresourcestotheproductionofblankets,thenitwillproduce
a. 0blanketsand360pillows.b. 200blanketsand240pillows.c. 320blanketsand120pillows.d. 360blanketsand0pillows.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:ApplicationNOTES: r
188. RefertoFigure2-6.Ifthiseconomydevotesone-halfofitsavailableresourcestotheproductionofblanketsandtheotherhalftotheproductionofpillows,itcouldproduce
a. 120pillowsand320blankets.b. 180pillowsand180blankets.c. 240pillowsand200blankets.d. Wewouldhavetoknowthedetailsofthiseconomy’stechnologyinordertodeterminethis.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:AnalysisNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
189. RefertoFigure2-6.AmovementfrompointHtopointKcouldbecausedbya. unemployment.b. adecreaseinsociety'spreferenceforpillows.c. fewerresourcesavailableforproductionofpillows.d. Alloftheabovearecorrect.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
190. RefertoFigure2-6.IfthiseconomymovesfrompointFtopointG,thenwhichofthefollowingstatementsiscorrect?a. Thiseconomyhasmovedfromapointofinefficientproductiontoapointofefficientproduction.
b. Thiseconomyhasexperiencedeconomicgrowth.c. Thiseconomyhasexperiencedanincreaseinemployment.d. Noneoftheaboveiscorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
310 Thinking Like an Economist
191. RefertoFigure2-6.TheopportunitycostofthiseconomymovingfrompointItopointHisa. 120pillows.b. 120blankets.c. 120blanketsand120pillows.d. 200blankets.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
192. RefertoFigure2-6.The opportunitycostof thiseconomy movingfrom pointI topointF isa. zero.b. 40blankets.c. 120pillows.d. 360blankets.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: n
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
193. RefertoFigure2-6.TheopportunitycostofthiseconomymovingfrompointKtopointHisa. zero.b. 50blankets.c. 60pillows.d. 50blanketsand60pillows.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
Figure2-7
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312 Thinking Like an Economist
194. RefertoFigure2-7.Ifthiseconomydevotesallofitsresourcestotheproductionofengines,thenitwillproduce
a. 0enginesand40tvs.b. 10enginesand35tvs.c. 40enginesand0tvs.d. 40enginesand40tvs.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:ApplicationNOTES: r
195. RefertoFigure2-7.Thiseconomyhastheabilitytoproduceatwhichpoint(s)?a. N,O,Pb. L,Mc. L,M,N,O,Pd. L, M,Q
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
196. RefertoFigure2-7.Thiseconomycannotproduceatwhichpoint(s)?a. L,Mb. N,O,P,Qc. N,O,Pd. Q
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
197. RefertoFigure2-7.Efficientproductionisrepresentedbywhichpoint(s)?a. L,Mb. L,M,N,P,Qc. N,O,Pd. Q
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
314 Thinking Like an Economist
198. RefertoFigure2-7.Inefficientproductionisrepresentedbywhichpoint(s)?a. L,Mb. N,O,P,Qc. N,O,Pd. Q
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
199. RefertoFigure2-7.Unemploymentcouldcausethiseconomytoproduceatwhichpoint(s)?a. L,Mb. N,O,P,Qc. N,O,Pd. Q
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
200. RefertoFigure2-7.IfthiseconomymovedfrompointPtopointN,thena. itstillwouldnotbeproducingefficiently.b. therewouldbenogainineitherenginesortvs.c. itwouldbeproducingmoreenginesandmoretvsthanatpointP.d. ItisnotpossibleforthiseconomytomovefrompointPtopointNwithoutadditionalresources.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
201. RefertoFigure2-7.WhatistheopportunitycostofmovingfrompointLtopointM?a. zerob. 15tvsc. 20enginesand15tvsd. 20engines
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelopportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: r
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316 Thinking Like an Economist
202. RefertoFigure2-7.WhatistheopportunitycostofmovingfrompointMtopointL?a. zerob. 15tvsc. 20enginesand15tvsd. 20engines
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: n
Figure2-8
203. RefertoFigure2-8.PointKrepresentsanoutcomeinwhicha. productionisinefficient.b. someoftheeconomy’sresourcesareunemployed.c. theeconomyisusingallofitsresourcestoproducehammers.d. theeconomyisusingallofitsnailstoproducehammers.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:Application
204. RefertoFigure2-8.Whichpointonthegraphbestrepresentsthefactthat,becauseresourcesarescarce,noteveryconceivableoutcomeisfeasible?
a. pointJb. pointKc. pointLd. pointM
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
205. RefertoFigure2-8.Efficientproductionisrepresentedbywhichpoint(s)?a. Jb. J,Kc. J,K,Ld. J,K,M
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
318 Thinking Like an Economist
206. RefertoFigure2-8.Inefficientproductionisrepresentedbywhichpoint(s)?a. K,Mb. Lc. L,Md. M
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Application
207. RefertoFigure2-8.ToreachpointL,theeconomywouldhavetoa. acquiremoreresourcesorexperienceatechnologicaladvance.b. beginusingitsavailableresourcesmoreefficientlythanitiscurrentlyusingthem.c. shiftresourcesawayfromtheproductionofnailsandtowardtheproductionofhammers.d. Noneoftheabovearecorrect;theeconomywillneverbeabletoreachpointL.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:ApplicationNOTES: s
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
208. RefertoFigure2-8.Forthiseconomy,asmoreandmorehammersareproduced,theopportunitycostofanadditionalhammerproduced,intermsofnails,
a. remainsconstant.b. increases.c. decreases.d. Thisanswercannotbedeterminedfromthegraph.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: s
Figure2-9
Panel (a) Panel(b)
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320 Thinking Like an Economist
209. RefertoFigure2-9,Panel(a).ProductionatpointKisa. possibleandefficient.b. possiblebutinefficient.c. impossiblebutefficient.d. impossibleandinefficient.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:Application
210. RefertoFigure2-9,Panel(a).Productionisa. possible atpointsJ,K,L,andM,butefficientonlyat pointsJ,L,andM.b. possibleatpointsJ,K,L,andM,butefficientonlyatpointK.c. possible atpointsJ,L,M,andN,butefficientonlyat pointsJ,L,andM.d. possibleatpointsJ,L,M,andN,butefficientonlyatpointN.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
211. RefertoFigure2-9,Panel(a).ThemovementfrompointMtopointKcouldbecausedbya. anadvanceinproductiontechnology.b. animprovementinefficiency.c. economicgrowth.d. unemployment.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
212. RefertoFigure2-9,Panel(a).The opportunitycostof movingfrom pointJ topoint Lisa. 2donuts.b. 2donutsand2cupsofcoffee.c. 2cupsofcoffee.d. 6cupsofcoffee.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
213. RefertoFigure2-9,Panel(a).The opportunitycostof movingfrompoint Mtopoint Lisa. 2donuts.b. 2donutsand4cupsofcoffee.c. 4donuts.d. 4cupsofcoffee.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
322 Thinking Like an Economist
214. RefertoFigure2-9,Panel(a).The opportunitycost ofmovingfrom pointK topointL isa. 0cupsofcoffee.b. 1donut.c. 2donuts.d. 4cupsofcoffee.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
215. RefertoFigure2-9,Panel(a).Theopportunitycostofonecupofcoffeeishighestwhentheeconomyproduces
a. 0cupsofcoffee.b. 2cupsofcoffee.c. 4cupsofcoffee.d. 6cupsofcoffee.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Analysis
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
216. RefertoFigure2-9,Panel(a).Togain2donutsbymovingfrompointLtopointM,societymustsacrificea. efficiency.b. employment.c. 4cupsofcoffee.d. Morethanoneoftheaboveiscorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: s
217. RefertoFigure2-9,Panel(a)andPanel(b).Ashiftoftheeconomy’sproductionpossibilitiesfrontierfromPanel(a)toPanel(b)couldbecausedby
a. unemployment.b. animprovementindonutproductiontechnology.c. animprovementincoffeeproductiontechnology.d. animprovementinbothdonutandcoffeeproductiontechnology.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
324 Thinking Like an Economist
218. RefertoFigure2-9,Panel(a)andPanel(b).Whichofthefollowingisnotaresultoftheshiftoftheeconomy’sproductionpossibilitiesfrontierfromPanel(a)toPanel(b)?
a. thetradeoffbetweentheproductionofdonutsandcoffeechangesb. theopportunitycostofacupofcoffeeishigheratalllevelsofcoffeeproductionc. productionof4donutsand2cupsofcoffeebecomespossibled. productionof1donutand4cupsofcoffeebecomesefficient
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Analysis
Figure2-10
Panel (a) Panel(b)
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
219. RefertoFigure2-10,Panel(a).ProductionatpointYisa. impossibleandinefficient.b. impossiblebutefficient.c. possiblebutinefficient.d. possibleandefficient.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
220. RefertoFigure2-10,Panel(a).Productionisa. possibleatpointsV,W,Y,andZ,butefficientonlyatpointsV,W,andZ.b. possibleatpointsV,W,Y,andZ,butefficientonlyatpointY.c. possibleatpointsU,V,W,andZ,butefficientonlyatpointsV,W,andZ.d. possibleatpointsU,V,W,andZ,butefficientonlyatpointU.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
326 Thinking Like an Economist
221. RefertoFigure2-10,Panel(a).ThemovementfrompointWtopointYcouldbecausedbya. economicgrowth.b. unemployment.c. animprovementinefficiency.d. anadvanceinproductiontechnology.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
222. RefertoFigure2-10,Panel(a).Theopportunitycostofonesofaishighestwhentheeconomyproducesa. 0sofas.b. 12sofas.c. 20sofas.d. 24sofas.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
223. RefertoFigure2-10,Panel(a).Togain2tractorsbymovingfrompointWtopointV,societymustsacrificea. 12sofas.b. employment.c. efficiency.d. Morethanoneoftheaboveiscorrect.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
224. RefertoFigure2-10,Panel(a)andPanel(b).Ashiftoftheeconomy’sproductionpossibilitiesfrontierfromPanel(a)toPanel(b)couldbecausedby
a. unemployment.b. animprovementinsofaproductiontechnology.c. animprovementintractorproductiontechnology.d. animprovementinbothsofaandtractorproductiontechnology.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
328 Thinking Like an Economist
225. RefertoFigure2-10,Panel(a)andPanel(b).Whichofthefollowingisnotaresultoftheshiftoftheeconomy’sproductionpossibilitiesfrontierfromPanel(a)toPanel(b)?
a. Thetradeoffbetweentheproductionoftractorsandsofaschanges.b. Productionof2tractorsand10sofasbecomesefficient.c. Productionof6tractorsand14sofasbecomespossible.d. Theopportunitycostofasofaishigheratalllevelsofsofaproduction.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:AnalysisNOTES: r
Figure2-11
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
226. RefertoFigure2-11.WhichofthefollowingeventswouldexplaintheshiftoftheproductionpossibilitiesfrontierfromAtoB?
a. Theeconomy’scitizensdevelopedanenhancedtasteforbooks.b. Theeconomyexperiencedatechnologicaladvanceintheproductionofbooks.c. Morecapitalbecameavailableintheeconomy.d. Morelaborbecameavailableintheeconomy.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
227. RefertoFigure2-11.TheshiftoftheproductionpossibilitiesfrontierfromAtoBillustratesa. simultaneoustechnologicaladvancesinthebookandDVDindustries.b. areallocationofresourcesawayfromtheproductionofDVDsandtowardtheproductionofbooks.c. economicgrowth.d. Alloftheabovearecorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
330 Thinking Like an Economist
Figure2-12
228. RefertoFigure2-12.WhichofthefollowingwouldmostlikelyhavecausedtheproductionpossibilitiesfrontiertoshiftoutwardfromAtoB?
a. adecreaseinunemploymentb. atechnologicaladvanceintheconsumergoodsindustriesc. ageneraltechnologicaladvanced. anincreaseintheavailabilityofcapital-producingresources
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
229. RefertoFigure2-12.TheshiftoftheproductionpossibilitiesfrontierfromAtoBcanbestbedescribedasa. adownturnintheeconomy.b. economicgrowth.c. anenhancementofequality.d. animprovementintheallocationofresources.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEconomicGrowth
KEYWORDS: BLOOM'S:Application
Figure2-13
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332 Thinking Like an Economist
230. RefertoFigure2-13.Whichofthefollowingcombinationsofpointsarebothefficientandattainableforthiseconomy?
a. G,Hb. F,I,Lc. F,G,H,I,Ld. J,K
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:ApplicationNOTES: r
231. RefertoFigure2-13.WhichofthefollowingstatementsistrueaboutpointGforthiseconomy?a. PointGiscurrentlyunattainable.b. PointGisefficient.c. AtpointG,morecakesareproducedthancookies.d. ThereisunemploymentatpointG.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
232. RefertoFigure2-13.Whichpointsarenotcurrentlyattainablebutcouldbecomeachievableforthiseconomyifthereisanimprovementintechnology?
a. I,Lb. G,Hc. J,Kd. F,G
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:ApplicationNOTES: r
233. RefertoFigure2-13.OnedifferencebetweenpointsFandGisthata. PointGisunattainablewithcurrentresources,butpointFisattainable.b. AllresourcesarefullyemployedatpointFbutthereisunemploymentatpointG.c. MoreoutputcanbeproducedatpointFbutnoadditionaloutputcanbeproducedatpointG.d. ThiseconomyproducesmorecookiesatpointGthanatpointF.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
Table2-5
Corn(inbushels) Wheat(inbushels)2000 01600 7001200 1300
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334 Thinking Like an Economist
800 1800400 22000 2500
234. RefertoTable2-5.Table2-5showsonesetofproductionpossibilities.Whatistheopportunitycostofincreasingtheproductionofcornfrom400bushelsto800bushels?
a. 200bushelsofwheatb. 400bushelsofwheatc. 600bushelsofwheatd. 800bushelsofwheat
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
235. RefertoTable2-5.Table2-5showsonesetofproductionpossibilities.Whatistheopportunitycostofanincreaseintheproductionofwheatfrom700bushelsto1300bushels?
a. 800bushelsofcornb. 600bushelsofcornc. 400bushelsofcornd. 400bushelsofwheat
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DIS
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
C:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
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336 Thinking Like an Economist
236. RefertoTable2-5.Table2-5showsonesetofproductionpossibilities.Whichofthefollowingstatementsiscorrect?a. T
heopportunitycostofabushelofcorndoesnotdependonhowmanybushelsofwheatarebeingproduced.
b. Theopportunitycostofabushelofcornincreasesasmorecornisproduced.c. Theopportunitycostofabushelofcorndecreasesasmorecornisproduced.d. Theopportunitycostofabushelofwheatdecreasesasmorewheatisproduced.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
237. RefertoTable2-5.Table2-5showsonesetofproductionpossibilities.Basedonthevaluesinthetable,theproductionpossibilitiesfrontieris
a. bowedoutwardindicatingincreasingopportunitycosts.b. bowedoutwardindicatingdecreasingopportunitycosts.c. astraightlineindicatingconstantopportunitycosts.d. bowedinwardindicatingincreasingopportunitycosts.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
338 Thinking Like an Economist
238. RefertoTable2-5.Table2-5showsonesetofproductionpossibilities.Whichofthefollowingcombinationsofcornandwheatisnotcurrentlyattainablebutwouldbeattainableiftherewasanimprovementinoverallproductiontechnology?
a. 1600bushelsofcornand300bushelsofwheatb. 1400bushelsofcornand800bushelsofwheatc. 1000bushelsofcornand2000bushelsofwheatd. 600bushelsofcornand1800bushelsofwheat
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:AnalysisNOTES: r
239. Homeisacountrythatproducestwogoods,pearsandcellularphones.Lastyear,Homeproduced450bushelsofpearsand1050cellularphones.Thisyearitproduced450bushelsofpearsand2000cellularphones.Givennootherinformation,whichofthefollowingeventscouldexplainthischange?
a. Homeexperiencedincreasedunemployment.b. Homeexperiencedadeclineinpear-producingtechnology.c. Homeexperiencedanimprovementincellularphone-makingtechnology.d. Homeexperiencedareductioninresources.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
240. Indiadeshisacountrythatproducestwogoods,textilesandcomputers.Lastyear,Indiadeshproduced50,000textilesand1300computers.Thisyearitproduced45,000textilesand1100computers.Givennofurtherinformation,whichofthefollowingeventscouldexplainthischange?
a. Indiadeshdecreasedunemployment.b. Indiadeshexperiencedanimprovementintextile-makingtechnology.c. Indiadeshexperiencedanimprovementincomputer-makingtechnology.d. Indiadeshexperiencedareductioninresources.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
Figure2-14
Considertheproductionpossibilitiescurveforacountrythatcanproducesweaters,apples(inbushels),oracombinationofthetwo.
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340 Thinking Like an Economist
241. RefertoFigure2-14.Ifthiseconomydevotesallofitsavailableresourcestoproducingapples,thenitwillproduce
a. 0bushelsofapplesand200sweaters.b. 80bushelsofapplesand160sweatersc. 180bushelsofapplesand200sweaters.d. 180bushelsofapplesand0sweaters.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:ApplicationNOTES: r
242. RefertoFigure2-14.Whichcombinationofpointsshowproductionpossibilitiesonlyachievablewithimprovementsintechnologyorincreasesinresources?
a. Q,R,U,andVb. S andXc. TandWd. Noneoftheaboveiscorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
243. RefertoFigure2-14.IfthissocietymovesfrompointUtopointV,a. itgivesup40bushelsofapplestoget80sweaters.b. itgivesup140bushelsofapplestoget80sweaters.c. itgivesup80sweaterstoget140bushelsofapples.d. itgivesup80sweaterstoget40bushelsofapples.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:ApplicationNOTES: r
244. RefertoFigure2-14.IfthissocietyisproducingatpointT,a. thereisunemployment.b. productionisefficient.c. growthcanonlybeachievedthroughanadvancementintechnology.d. theopportunitycostofproducingonemoresweaterisapproximately40bushelsofapples.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:ApplicationNOTES: r
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342 Thinking Like an Economist
245. RefertoFigure2-14.TheopportunitycostofmovingfrompointUtopointRisa. 60bushelsofapples.b. 80bushelsofapples.c. 80sweaters.d. 160sweaters.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:ApplicationNOTES: n
Figure2-15
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
246. RefertoFigure2-15.Considertheproductionpossibilitiesfrontierforaneconomythatproducesonlysofasandcars.Theopportunitycostofeachcaris
a. theslopeoftheproductionpossibilitiesfrontier.b. 3/2sofas.c. 2/3ofasofa.d. Bothaandbarecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Application
247. RefertoFigure2-15.Considertheproductionpossibilitiesfrontierforaneconomythatproducesonlysofasandcars.WhensocietymovesfrompointAtopointB,
a. theopportunitycostisthesameaswhensocietymovesfrompointBtopointC.b. itisgivingupcarstogetsofas.c. theopportunitycostisincreasing.d. itmovesfromaninefficientpointtoanefficientpoint.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
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344 Thinking Like an Economist
Multiple Choice – Section 01A: The Economist as Scientist
1. Thefieldofeconomicsistraditionallydividedintotwobroadsubfields,a. nationaleconomicsandinternationaleconomics.b. consumereconomicsandproducereconomics.c. privatesectoreconomicsandpublicsectoreconomics.d. microeconomicsandmacroeconomics.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
2. Microeconomicsisthestudyofa. howmoneyaffectstheeconomy.b. howindividualhouseholdsandfirmsmakedecisions.c. howgovernmentaffectstheeconomy.d. howtheeconomyasawholeworks.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMicro
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
3. Macroeconomicsisthestudyofa. individualdecisionmakers.b. internationaltrade.c. economy-widephenomena.d. marketsforlargeproducts.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMacro
KEYWORDS: BLOOM'S:Knowledge
4. Amicroeconomist—asopposedtoamacroeconomist—mightstudya. theeffectofanationalhealthcareprogramonthenation’sunemploymentrate.b. theeffectofnewregulationsonproductioninthepulpandpaperindustry.c. theeffectofchangesininterestratesongrossdomesticproduct.d. thegrowthrateofproductionintheeconomy.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMicro
KEYWORDS: BLOOM'S:ApplicationNOTES: r
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346 Thinking Like an Economist
5. Whichofthefollowingareasofstudytypifiesmicroeconomicsasopposedtomacroeconomics?a. theimpactofminimum-wagelawsonemploymentinthefastfoodindustryb. theeffectofchangesinhouseholdsavingratesonthegrowthrateofnationalincomec. theimpactoffastermoneygrowthontherateofinflationd. a
comparisonofalternativetaxpoliciesandtheirrespectiveimpactsontherateofthenation’seconomicgrowth
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMicro
KEYWORDS: BLOOM'S:Application
6. Whichofthefollowingwouldlikelybestudiedbyamicroeconomistratherthanamacroeconomist?a. theeffectofforeigndirectinvestmentoneconomicgrowthb. theeffectofasalestaxonthecigaretteindustryc. theeffectofaninvestmenttaxcreditontheeconomy’scapitalstockd. theeffectofawarongovernmentspending
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMicro
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
7. Amacroeconomist—asopposedtoamicroeconomist—mightstudytheeffectofa. changesinthemoneysupplyontheinflationrate.b. anincreaseinthegastaxonfuelconsumption.c. atechnologicaladvanceonthenaturalgasindustry.d. ahurricaneonpricesintheorangeindustry.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMacro
KEYWORDS: BLOOM'S:ApplicationNOTES: r
8. Amacroeconomist-asopposedtoamicroeconomist-wouldstudya. theeffectsofrentcontrolonhousinginNewYorkCity.b. theeffectsofforeigncompetitionontheUSautoindustry.c. theeffectsofborrowingbythefederalgovernment.d. theeffectsofraisingthegasolinetaxontransitridership.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMacro
KEYWORDS: BLOOM'S:Application
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348 Thinking Like an Economist
9. Whichofthefollowingareasofstudytypifiesmacroeconomicsasopposedtomicroeconomics?a. theeffectsofrentcontrolontheavailabilityofhousinginNewYorkCityb. theeconomicimpactoftornadoesoncitiesandtownsinOklahomac. howtariffsonshoesaffectstheshoeindustryd. theeffectontheeconomyofchangesinthenation’sunemploymentrate
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMacro
KEYWORDS: BLOOM'S:Application
10. Whichofthefollowingwouldlikelybestudiedbyamacroeconomistratherthanamicroeconomist?a. theeffectofanincreaseinthealcoholtaxonthemarketforbeerb. theeffectofforeigncompetitiononthedomesticautoindustryc. theeffectofapricewarintheairlineindustryd. theeffectofanincreaseintheminimumwageonaneconomy’soverallrateofunemployment
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMacroKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
11. Whichofthefollowingstatementsbestcapturestherelationshipbetweenmicroeconomicsandmacroeconomics?a. F
orthemostpart,microeconomistsareunconcernedwithmacroeconomics,andmacroeconomistsareunconcernedwithmicroeconomics.
b. Microeconomistsstudymarketsforsmallproducts,whereasmacroeconomistsstudymarketsforlargeproducts.
c. Microeconomicsandmacroeconomicsaredistinctfromoneanother,yettheyarecloselyrelated.d. Microeconomi
csisorientedtowardpolicystudies,whereasmacroeconomicsisorientedtowardtheoreticalstudies.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
Multiple Choice – Section 02: The Economist as Policy Adviser
1. Wheneconomistsaretryingtoexplaintheworld,theyarea. scientists.b. policyadvisers.c. intherealmofmicroeconomicsratherthanmacroeconomics.d. intherealmofnormativeeconomicsratherthanpositiveeconomics.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
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350 Thinking Like an Economist
2. Wheneconomistsaretryingtohelpimprovetheworld,theyarea. intherealmofpositiveeconomicsratherthannormativeeconomics.b. intherealmofmacroeconomicsratherthanmicroeconomics.c. scientists.d. policyadvisers.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
3. Whichofthefollowingstatementsiscorrectabouttherolesofeconomists?a. Economistsarebestviewedaspolicyadvisers.b. Economistsarebestviewedasscientists.c. I
ntryingtoexplaintheworld,economistsarepolicyadvisers;intryingtoimprovetheworld,theyarescientists.d. I
ntryingtoexplaintheworld,economistsarescientists;intryingtoimprovetheworld,theyarepolicyadvisers.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
4. Whenaneconomistisaskedaquestionlike“whyisunemploymenthigherforteenagersthanforolderworkers?”theeconomista. isaskedtoexplainthecauseofaneconomicevent.b. isaskedtorecommendapolicytoimproveeconomicoutcomes.c. isaskedasapolicyadviser.d. doesnothaveenoughinformationtorespond.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
5. Foreconomists,statementsabouttheworldareoftwotypes:a. assumptionsandtheories.b. truestatementsandfalsestatements.c. specificstatementsandgeneralstatements.d. positivestatementsandnormativestatements.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
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352 Thinking Like an Economist
6. Normativestatementsarea. prescriptive,whereaspositivestatementsaredescriptive.b. descriptive,whereaspositivestatementsareprescriptive.c. backward-looking,whereaspositivestatementsareforward-looking.d. forward-looking,whereaspositivestatementsarebackward-looking.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralPrinciplesKEYWORDS: BLOOM'S:Knowledge
7. Positivestatementsarea. prescriptive.b. claimsabouthowtheworldshouldbe.c. claimsabouthowtheworldis.d. madebyeconomistsspeakingaspolicyadvisers.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
8. Normativestatementsarea. notusuallymadebyeconomists.b. claimsabouthowtheworldshouldbe.c. claimsabouthowvariablesintheeconomynormallybehave.d. pessimisticinterpretationsoftheeconomy.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:KnowledgeNOTES: r
9. Positivestatementsarenota. descriptive.b. prescriptive.c. claimsabouthowtheworldis.d. madebyeconomistsspeakingasscientists.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
354 Thinking Like an Economist
10. Normativestatementsarenota. descriptive.b. prescriptive.c. claimsabouthowtheworldshouldbe.d. madebyeconomistsspeakingaspolicyadvisers.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
11. Astatementdescribinghowtheworldisa. isanormativestatement.b. isapositivestatement.c. wouldonlybemadebyaneconomistspeakingasapolicyadviser.d. wouldonlybemadebyaneconomistemployedbythegovernment.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
12. Astatementdescribinghowtheworldshouldbea. isanormativestatement.b. isapositivestatement.c. wouldonlybemadebyaneconomistspeakingasascientist.d. wouldonlybemadebyaneconomistemployedbythegovernment.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
13. Onewaytocharacterizethedifferencebetweenpositivestatementsandnormativestatementsisasfollows:a. Positi
vestatementstendtoreflectoptimismabouttheeconomyanditsfuture,whereasnormativestatementstendtoreflectpessimismabouttheeconomyanditsfuture.
b. Positivestatementsofferdescriptionsofthewaythingsare,whereasnormativestatementsofferopinionsonhowthingsoughttobe.
c. Positivestatementsinvolveadviceonpolicymatters,whereasnormativestatementsaresupportedbyscientifictheoryandobservation.
d. Economistsoutsideofgovernmenttendtomakenormativestatements,whereasgovernment-employedeconomiststendtomakepositivestatements.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
356 Thinking Like an Economist
14. Economistsviewpositivestatementsasa. affirmative,justifyingexistingeconomicpolicy.b. optimistic,puttingthebestpossibleinterpretationonthings.c. descriptive,makingaclaimabouthowtheworldis.d. prescriptive,makingaclaimabouthowtheworldoughttobe.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
15. Economistsviewnormativestatementsasa. prescriptive,makingaclaimabouthowtheworldoughttobe.b. descriptive,makingaclaimabouthowtheworldis.c. statementsaboutthenormalconditionoftheworld.d. pessimistic,puttingtheworstpossibleinterpretationonthings.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
16. Economistsspeakinglikescientistsmakea. normativestatements.b. prescriptivestatements.c. claimsabouthowtheworldis.d. claimsabouthowtheworldshouldbe.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
17. Economistsspeakinglikepolicyadvisersmakea. positivestatements.b. descriptivestatements.c. claimsabouthowtheworldis.d. claimsabouthowtheworldshouldbe.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
18. Economistsspeakinglikescientistsmakea. positivestatements.b. prescriptivestatements.c. claimsabouthowtheworldshouldbe.d. Morethanoneoftheaboveiscorrect.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
19. Economistsspeakinglikepolicyadvisersmakea. claimsabouthowtheworldis.b. descriptivestatements.c. normativestatements.d. Morethanoneoftheaboveiscorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
358 Thinking Like an Economist
20. Wheneconomistsmakepositivestatements,theyarea. speakingasscientists.b. speakingaspolicyadvisers.c. makingclaimsabouthowtheworldshouldbe.d. revealingthattheyareveryconservativeintheirviewsofhowtheworldworks.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
21. Wheneconomistsmakenormativestatements,theyarea. speakingasscientists.b. speakingaspolicyadvisers.c. makingclaimsabouthowtheworldis.d. revealingthattheyareveryliberalintheirviewsofhowtheworldworks.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
22. Wheneconomistsmakea. positivestatements,theyarespeakingnotaspolicyadvisersbutasscientists.b. positivestatements,theyarespeakingnotasscientistsbutasforecasters.c. normativestatements,theyarespeakingnotaspolicyadvisersbutasscientists.d. normativestatements,theyarespeakingnotaspolicyadvisersbutasmodel-builders.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
23. Wheneconomistsmakea. positivestatements,theyarespeakingnotasscientistsbutaspolicyadvisers.b. positivestatements,theyarespeakingnotasscientistsbutasforecasters.c. normativestatements,theyarespeakingnotasscientistsbutaspolicyadvisers.d. normativestatements,theyarespeakingnotaspolicyadvisersbutasmodel-builders.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
360 Thinking Like an Economist
24. Youknowaneconomisthascrossedthelinefrompolicyadvisertoscientistwhenheorshea. claimsthattheproblemathandiswidelymisunderstoodbynon-economists.b. makespositivestatements.c. talksaboutvalues.d. makesaclaimabouthowtheworldshouldbe.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
25. Youknowaneconomisthascrossedthelinefromscientisttopolicyadviserwhenheorshea. claimsthattheproblemathandiswidelymisunderstoodbynon-economists.b. talksabouttheevidence.c. makesnormativestatements.d. makesaclaimabouthowtheworldis.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
26. Apositiveeconomicstatementsuchas“Pollutiontaxesdecreasethequantityofpollutiongeneratedbyfirms”a. wouldlikelybemadebyaneconomistactingasapolicyadvisor.b. wouldrequirevaluesanddatatobeevaluated.c. wouldrequiredatabutnotvaluestobeevaluated.d. couldnotbeevaluatedbyeconomistsactingasscientists.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
27. Anormativeeconomicstatementsuchas“Theminimumwageshouldbeabolished”a. wouldlikelybemadebyaneconomistactingasascientist.b. wouldrequirevaluesanddatatobeevaluated.c. wouldrequiredatabutnotvaluestobeevaluated.d. couldnotbeevaluatedbyeconomistsactingaspolicyadvisers.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
362 Thinking Like an Economist
28. Inprinciple,wecana. ignorepositivestatementswhenchoosingamongvariouspublicpolicyalternatives.b. ignorenormativestatementswhenchoosingamongvariouspublicpolicyalternatives.c. confirmorrefutepositivestatementsbyexaminingevidence.d. confirmorrefutenormativestatementsbyexaminingevidence.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
29. Whichofthefollowingisnotcorrect?a. Evaluatingstatementsabouthowtheworldshouldbeinvolvesvaluesaswellasfacts.b. Positivestatementscan,inprinciple,beconfirmedorrefutedbyexaminingevidence.c. Normativestatementscanbejudgedusingdataalone.d. Decidingwhatisgoodorbadpolicyisnotjustamatterofscience.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
30. Whenaneconomistevaluatesapositivestatement,heorsheisprimarilya. examiningevidence.b. actingasascientist.c. concernedwithverifyinghowtheworldis.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:ComprehensionNOTES: r
31. Normativeconclusionsa. comefrompositiveanalysisalone.b. arebasedonignoranceofpositiveanalysis.c. involvevaluejudgments.d. reflecttheeconomist’sroleasscientist.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
364 Thinking Like an Economist
32. Whichofthefollowingisanexampleofapositive,asopposedtonormative,statement?a. Inflationismoreharmfultotheeconomythanunemploymentis.b. Ifwelfarepaymentsincrease,theworldwillbeabetterplace.c. Pricesrisewhenthegovernmentprintstoomuchmoney.d. Wh
enpublicpoliciesareevaluated,thebenefitstotheeconomyofimprovedequalityshouldbeconsideredmoreimportantthanthecostsofreducedefficiency.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
33. Whichofthefollowingisanexampleofapositive,asopposedtonormative,statement?a. Whentheminimumwageisincreased,unemploymentisapredictableconsequence.b. Theincometaxrateshouldbeincreasedtooffsetthebudgetdeficit.c. Increasinggovernmentspendingisthebestwaytohelptheeconomymoveoutofarecession.d. Morethanoneoftheabovearepositivestatements.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
34. Whichofthefollowingisapositive,asopposedtoanormative,statement?a. TheUSDepartmentofJusticeshouldallowamergerbetweenAT&TandT-
Mobilebecauseitwouldhavelittleeffectonconsumers.b. Antitrustlawsshouldbeusedtopreventfurtherconcentrationinthewirelesstelephoneservicemarket.c. TheUSDepartmentofJusticesuedAT&TtoblockitsmergerwithT-Mobile.d. Thewirelesstelephoneservicemarketistoohighlyconcentrated.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
35. Whichofthefollowingstatementsisanexampleofapositive,asopposedtonormative,statement?a. Americansdeserveacleanerenvironment.b. Reducingemissionsreducesdaysmissedfromschoolduetoasthma.c. AllAmericansareentitledtoqualityhealthcare.d. Economicpoliciesshouldfocusonimprovingequality.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Analysis
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
366 Thinking Like an Economist
36. “EnsuringthatSocialSecurityisfinanciallysoundforfuturegenerationsisanimportantuseoftaxpayerdollars”isanexampleofaa. normativeeconomicstatement.b. positiveeconomicstatement.c. statementmadebyaneconomistworkingasascientist.d. judgmentbasedonevaluationofevidence,notvalues.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
37. “Pricesrisewhenthequantityofmoneyrisesrapidly”isanexampleofaa. negativeeconomicstatement.b. positiveeconomicstatement.c. normativeeconomicstatement.d. statementthatcontradictsoneofthebasicprinciplesofeconomics.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
38. Which of the following isnotanexampleofapositive,asopposedtonormative,statement?a. Highergasolinepriceswillreducegasolineconsumption.b. Equalityismoreimportantthanefficiency.c. Traderestrictionslowerourstandardofliving.d. Ifanationwantstoavoidinflation,itwillrestrictthegrowthrateofthequantityofmoney.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
39. Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?a. UniversalhealthcarewouldbegoodforU.S.citizens.b. Anincreaseinthecigarettetaxwouldcauseadecreaseinthenumberofsmokers.c. Adecreaseintheminimumwagewoulddecreaseunemployment.d. Alawrequiringthefederalgovernmenttobalanceitsbudgetwouldincreaseeconomicgrowth.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
40. Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?a. Gasolinepricesoughttobelowerthantheyarenow.b. Thefederalgovernmentshouldraisetaxesonwealthypeople.c. Thesocialsecuritysystemisagoodsystemanditdeservestobepreservedasitis.d. Alloftheabovearenormativestatements.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
368 Thinking Like an Economist
41. Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?a. Ifthepriceofaproductdecreases,people’swillingnesstobuythatproductwillincrease.b. Reducingtaxratesonthewealthywouldbenefitthenation.c. Ifthenationalsavingrateweretoincrease,sowouldtherateofeconomicgrowth.d. Theeliminationoftraderestrictionswouldincreaseaneconomy’sstandardofliving.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
42. Whichofthefollowingisanexampleofanormative,asopposedtopositive,statement?a. Followingthemostrecentrecession,theeconomyisrecoveringataslowerthanusualpace.b. Tostimulatetheeconomyduringthemostrecentrecession,thefederalgovernmentincreasedspending.c. I
nresponsetothemostrecentrecession,thefederalgovernmentextendedthedurationofunemploymentbenefits.
d. Thefederalgovernment’sresponsestothemostrecentrecessionwereinsufficient.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
43. Whichofthefollowingisanexampleofanormative-asopposedtoapositive-statement?a. ThediscountrateistheinterestratetheFederalReservechargesbankstoborrowfunds.b. TheUSincometaxrateincreaseswiththeamountofincomeearned.c. Thegovernmentshouldincreasethetaxongasoline.d. TheUSunemploymentrateincreasedto10percentin2009.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
44. PresidentTrumanoncesaidhewantedtofindaone-armedeconomistbecausewhenheaskedhiseconomistsforadvice,theyalwaysanswered,“Ontheonehand,...Ontheotherhand,...”Truman’sobservationthateconomists’adviceisnotalwaysstraightforwarda. isrootedintheprinciplethatpeoplefacetradeoffs.b. indicatesthateconomistsrecognizethatthereareopportunitycostsassociatedwithpolicydecisions.c. confirmsthateconomistsarenotsuitedtobepresidentialadvisers.d. Morethanoneoftheaboveiscorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
370 Thinking Like an Economist
45. WhichofthefollowingisthebestexplanationforwhyPresidentHarryTrumanoncesaidthathewantedtofindaone-armedeconomist?a. PresidentTrumanreceivedinputfromsomanyeconomiststhatheonlywantedoneviewfromeach.b. PresidentTrumanthoughteconomistsshouldanalyzepoliciesbutnotmakeorenforcethem.c. Economistsunderstandthatmostpolicydecisionsinvolvetrade-
offssotheyarelikelytopresentmultipleviewsofpolicies.d. Aone-armedeconomistwouldconductonlypositiveanalysisandnonormativeanalysis.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
46. TheCouncilofEconomicAdvisersa. wascreatedin1776andconsistsofthreemembersandastaffofseveraldozeneconomists.b. wascreatedin1776andconsistsofthirtymembersandastaffofadozeneconomists.c. wascreatedin1946andconsistsofthreemembersandastaffofseveraldozeneconomists.d. wascreatedin1946andconsistsofthirtymembersandastaffofadozeneconomists.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
47. TheCouncilofEconomicAdvisersa. wascreatedin1946.b. advisesthepresidentoftheUnitedStatesoneconomicpolicymatters.c. writestheannualEconomicReportofthePresident.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
48. DutiesoftheCouncilofEconomicAdvisersincludea. advisingthepresidentandwritingtheannualEconomicReportofthePresident.b. implementingthepresident’staxpolicies.c. trackingthebehaviorofthenation’smoneysupply.d. Alloftheabovearecorrect.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
372 Thinking Like an Economist
49. Inadditiontoadvisingthepresident,onedutyoftheCouncilofEconomicAdvisersistoa. preparethefederalbudget.b. writegovernmentregulations.c. adviseCongressoneconomicmatters.d. writetheannualEconomicReportofthePresident.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
50. TheEconomicReportofthePresidenta. discussesrecentdevelopmentsintheeconomyandpresentsanalysisofcurrentpolicyissues.b. iswrittenbytheCouncilofEconomicAdvisers.c. istheresponsibilityoftheeconomistsattheOfficeofManagementandBudget.d. Bothaandbarecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
51. Economistsatwhichofthefollowingofficeshelpformulatespendingplansandregulatorypolicies?a. OfficeofManagementandBudgetb. DepartmentoftheTreasuryc. CongressionalBudgetOfficed. TheFederalReserve
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
52. EconomistsattheDepartmentoftheTreasurya. designU.S.currencyandcoins.b. provideCongresswiththeannualbudget.c. enforcetheU.S.antitrustlaws.d. provideadviceontaxpolicytothePresident.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
374 Thinking Like an Economist
53. ThepresidentoftheUnitedStatesreceivestaxpolicyadvicefromeconomistsinthea. FederalReserve.b. DepartmentofJustice.c. DepartmentoftheTreasury.d. CongressionalBudgetOffice.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
54. Thedesignoftaxpolicyisoneoftheresponsibilitiesofeconomistswhoworkatthea. CouncilofEconomicAdvisers.b. FederalReserve.c. DepartmentoftheTreasury.d. CongressionalBudgetOffice.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
55. AdutyofeconomistsattheDepartmentofLaboristoa. analyzedataonworkers.b. schedulefederalholidays.c. enforcethenation'santitrustlaws.d. Alloftheabovearecorrect.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
56. Analysisofdataonworkersandthoselookingforworkisconductedbyeconomistsatthea. OfficeofManagementandBudget.b. DepartmentofLabor.c. CongressionalBudgetOffice.d. DepartmentoftheTreasury.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
376 Thinking Like an Economist
57. EconomistsattheDepartmentofJusticea. trackthebehaviorofthenation’smoneysupply.b. adviseCongressoneconomicmatters.c. helpenforcethenation’santitrustlaws.d. preparethefederalbudget.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
58. Thenation'santitrustlawsareenforcedbyeconomistsattheDepartmentofa. Labor.b. HealthandHumanServices.c. Justice.d. Treasury.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
59. Some,butnotall,governmenteconomistsareemployedwithintheadministrativebranchofgovernment.Whichofthefollowinggovernmentagenciesemployseconomistsoutsideoftheadministrativebranch?a. theDepartmentofLaborb. theDepartmentoftheTreasuryc. theCongressionalBudgetOfficed. theCouncilofEconomicAdvisers
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
60. EconomistswhoareprimarilyresponsibleforadvisingCongressoneconomicmattersworkinwhichagency?a. theFederalReserveb. theCongressionalBudgetOfficec. theDepartmentoftheTreasuryd. theDepartmentofCommerce
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
378 Thinking Like an Economist
61. CongressreliesoneconomistsattheCongressionalBudgetOfficetoa. enforcethenation'santitrustlaws.b. setthenation’smonetarypolicy.c. provideevidencethatincumbentmembersofCongressareperformingwellintheirjobs.d. provideindependentevaluationsofpolicyproposals.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
62. ThePresidentreceiveseconomicpolicyadvicefromeconomistsateachofthefollowingexcepta. theCouncilofEconomicAdvisors.b. theDepartmentoftheTreasury.c. theCongressionalBudgetoffice.d. theDepartmentofLabor.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
63. TheFederalReservea. designstaxpolicy.b. enforcesthenation'santitrustlaws.c. setsthenation'smonetarypolicy.d. analyzesdataonworkers.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
64. EconomistsholdmanypositionsadvisingthepresidentandCongressincludinga. beingamemberoftheCouncilofEconomicAdvisers.b. helpingtoenforceantitrustlawsattheDepartmentofJustice.c. conductingresearchattheCongressionalBudgetOffice.d. Allofthesearepossiblepositionsthateconomistshold.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Application
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380 Thinking Like an Economist
65. JohnMaynardKeynesbelievedtheideasofeconomiststobea. generallyincorrect.b. powerful.c. academicandwithoutpracticalapplication.d. rantingsofmadmen.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
66. Onedifferencebetweenahypotheticalbenevolentkingimplementingthebestpolicyandthepresidentimplementingthebestpolicyintherealworldisthepresidenthastobeconcernedabouta. anymisunderstandingsincommunicatingthepolicytothepublic.b. whetherthepolicywillaffecthisstandingamongdifferentgroupsintheelectorate.c. whatamendmentswillbesuggestedbymembersofCongress.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistEconomicSystems
KEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
67. Policymakinginarepresentativedemocracya. isstraightforwardanddoesnotinvolveanydisagreement.b. benefitsfromtheinputofeconomists,eveniftheiradviceisnotalwaysfollowed.c. isconductedwithouttheinputofeconomists.d. isalwaysbasedexclusivelyontheresultsofeconomicanalysis.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistEconomicSystems
KEYWORDS: BLOOM'S:Application
68. Supposeaneconomistadvisesacity’smayortobeginchargingdriversafeetodriveonabusyhighwayduringcongestedtimes.Themayordoesnotimplementthepolicybecauseitwouldnotbepopularwithvoters.Which ofthefollowingstatementsbestdescribesthescenario?a. Th
isisacommonoccurrence.Thepolicymakerknowsthebestpolicybutchoosesnottoinstituteitforotherreasons.
b. Thisisacommonoccurrence.Thepolicymakerusuallydisregardsaneconomist’sadvicebecausetheydonotbelieveitisthemostefficientpolicy.
c. Thisisanunlikelyoccurrence.Mostofthetime,policymakersfollowtheadviceofeconomistsandinstitutethemostefficientpolicies.
d. Thiswouldneverhappen.Policymakersalwaysfollowtheadviceofeconomists.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistEconomicSystems
KEYWORDS: BLOOM'S:Comprehension
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382 Thinking Like an Economist
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
Multiple Choice – Section 03: Why Economists Disagree
1. “Ifalleconomistswerelaidendtoend,theywouldnotreachaconclusion.”Whomadethiswhimsicalobservation?a. HarryTrumanb. GeorgeBernardShawc. JohnMaynardKeynesd. RonaldReagan
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
2. PresidentRonaldReaganoncejokedthataTrivialPursuitgamedesignedforeconomistswoulda. havenoquestionsbuthundredsofanswers.b. have100questionsand3,000answers.c. have1,000questionsbutnoanswers.d. neverproduceawinner.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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384 Thinking Like an Economist
3. Economistssometimesgiveconflictingadvicebecausea. graduatestudentsineconomicsareencouragedtoarguewitheachother.b. economistshavedifferentvaluesandscientificjudgment.c. economistsactingasscientistsdonotliketoagreewitheconomistsactingaspolicyadvisers.d. economicsismoreofabeliefsystemthanascience.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
4. Thetwobasicreasonswhyeconomistsoftenappeartogiveconflictingadvicetopolicymakersaredifferencesina. opinionsandeducation.b. opinionsandvalues.c. scientificjudgmentsandeducation.d. scientificjudgmentsandvalues.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
5. Sometimeseconomistsdisagreebecausetheirscientificjudgmentsdiffer.Whichofthefollowinginstancesbestreflectsthissourceofdisagreement?a. O
neeconomistbelieveseveryoneshouldpaythesamepercentageoftheirincomeintaxes;anothereconomistbelievesthatwealthiercitizensshouldpayahigherpercentageoftheirincomeintaxes.
b. Oneeconomistbelievesthatmanufacturingfirmsshouldfacegreaterregulationtopreservetheenvironment;anothereconomistbelievesthegovernmentshouldnotinterveneinfreemarkets.
c. Oneeconomistbelievesthatequalityshouldbevaluedoverefficiencyinpolicydecisions;anothereconomistbelievesthatefficiencyshouldbevaluedoverequalityinpolicydecisions.
d. Oneeconomistbelievesthegovernmentshouldtaxahousehold’sincome;anothereconomistbelievesthegovernmentshouldtaxahousehold’sconsumption.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ComprehensionNOTES: r
6. Differencesinscientificjudgementbetweeneconomistsaresimilartoallofthefollowingexcepta. astronomersdebatingwhetherthesunorearthwasatthecenterofthesolarsystem.b. meteorologistsdebatingtheexistenceofglobalwarming.c. twopoliticiansarguingaboutthefairnessofthetaxcode.d. explorersdebatingwhetherornottheearthwasflatbeforethetimeofChristopherColumbus.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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386 Thinking Like an Economist
7. Sometimeseconomistsdisagreebecausetheirvaluesdiffer.Whichofthefollowinginstancesbestreflectsthissourceofdisagreement?a. O
neeconomistbelievestheNorthAmericanFreeTradeAgreement(NAFTA)hasledtoalossofAmericanjobs;anothereconomistdisputesthisclaim.
b. Oneeconomistbelievesthatwhenincometaxesarecut,peoplewillincreasetheirspending;anothereconomistbelievesthatwhenincometaxesarecut,peoplewillincreasetheirsaving.
c. Oneeconomistadvisesagainstincreasesinsalestaxesbecauseshethinkssuchincreasesareunfairtolow-incomepeople;anothereconomistdisputestheideathatincreasesinsalestaxesareunfairtolow-incomepeople.
d. Oneeconomistbelievesthat,priortotheCivilWar,slaverycontributedtoeconomicgrowthintheSouth;anothereconomistbelievesthatslaveryheldbacktheSouth'seconomicgrowth.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
8. JoeandFredareeconomists.Joethinksthatthewealthiest10%oftheUSpopulationshouldbetaxedaratehigherthantherestofsocietybecausetheycanbetteraffordit.Fredthinksthateveryoneshouldbetaxedatthesameratebecausethatisthefairestscenarioandthewealthyshouldnotbepenalizedfortheirsuccess.Inthisexample,JoeandFreda. disagreeaboutthevalidityofapositivetheory.b. havedifferentnormativeviewsabouttaxpolicy.c. mustbothbeincorrectbecausetaxpolicyisneverthatsimple.d. Noneoftheaboveiscorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
9. Whichofthefollowingisoneofthebasicreasonswhyeconomistsoftenappeartogiveconflictingadvicetopolicymakers?a. similaropinionsaboutthevalidityofeconomictheoriesb. significantdifferencesineducationc. differencesinpersonalvaluesd. arelianceonnormativestatementforresearchtheories
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
10. YiandAvikarebotheconomists.Yithinksthattaxingconsumption,ratherthanincome,wouldresultinhigherhouseholdsavingbecauseincomethatissavedwouldnotbetaxed.Avikdoesnotthinkthathouseholdsavingwouldrespondmuchtoachangeinthetaxlaws.In thisexample, Yiand Avika. holddifferentnormativeviewsaboutthetaxsystem.b. disagreeaboutthevalidityofapositivetheory.c. haveafundamentalmisunderstandingofthetaxsystem.d. Morethanoneoftheaboveiscorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
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388 Thinking Like an Economist
11. Whichofthefollowingstatementsiscorrectabouttheextentofdisagreementamongeconomists?a. Thereisagreatdealofagreementamongeconomistsonvirtuallyeveryeconomicissue.b. Thereisagreatdealofagreementamongeconomistsonmanyimportanteconomicissues.c. Alldisagreementsamongeconomistsareattributabletodifferencesintheirvalues.d. A
lldisagreementsamongeconomistsareattributabletothefactthatdifferenteconomistshavedifferentdegreesoffaithinthevalidityofalternativeeconomictheories.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
12. Asurveywhichsoughttheopinionofprofessionaleconomistsonfourteenpropositionsabouteconomicpolicyfoundthata. therespondentswerealmostequallydividedonthepropositions.b. therespondentsfavoredthepropositionsbyaslightmargin.c. therespondentsdisagreedwiththepropositionsbyaslightmargin.d. therewasoverwhelmingendorsementofthepropositionsamongtherespondents.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
13. Asurveyofprofessionaleconomistsrevealedthatmorethanthree-fourthsofthemagreedwithanumberofstatements,includingwhichofthefollowing?a. Tariffsandimportquotasusuallyreducegeneraleconomicwelfare.b. Alargefederalbudgetdeficithasanadverseeffectontheeconomy.c. Minimumwageincreasesunemploymentamongyoungandunskilledworkers.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
14. Asurveyofprofessionaleconomistsrevealedthatmorethanthree-fourthsofthemagreedwithfourteeneconomicpropositions.Whichofthefollowingisnotoneofthosepropositions?a. TheUnitedStatesshouldnotrestrictemployersfromoutsourcingworktoforeigncountries.b. TheUnitedStatesshouldwithdrawfromtheNorthAmericanFreeTradeAgreement(NAFTA).c. TheUnitedStatesshouldeliminateagriculturalsubsidies.d. Localandstategovernmentsshouldeliminatesubsidiestoprofessionalsportsfranchises.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
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390 Thinking Like an Economist
15. Asurveyofprofessionaleconomistsrevealedthatmorethanthree-fourthsofthemagreedwithfourteeneconomicpropositions.Whichofthefollowingisnotoneofthosepropositions?a. Aceilingonrentsreducesthequantityandqualityofhousingavailable.b. Fiscalpolicyhasasignificantstimulativeimpactonalessthanfullyemployedeconomy.c. T
hegapbetweenSocialSecurityfundsandexpenditureswillbecomeunsustainablylargewithinthenextfiftyyearsifcurrentpoliciesremainunchanged.
d. TheUnitedStatesshouldimplementuniversalhealthcareforitscitizens.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
16. Almostalleconomistsagreethatrentcontrola. hasnoeffectontherentalincomeoflandlords.b. allowsthemarketforhousingtoworkmoreefficiently.c. adverselyaffectstheavailabilityandqualityofhousing.d. isaveryinexpensivewaytohelpthemostneedymembersofsociety.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
17. Policiessuchasrentcontrolandtradebarrierspersistinspiteofthefactthateconomistsarevirtuallyunitedintheiroppositiontosuchpolicies,probablybecausea. economistshavenotyetconvincedthegeneralpublicthatthepoliciesareundesirable.b. economistsengageinpositiveanalysis,notnormativeanalysis.c. economistshavevaluesthataredifferentfromthevaluesofmostnon-economists.d. economists’theoriesarenoteasilyconfirmedorrefutedinlaboratoryanalysis.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
18. Policiessuchasrentcontrolandtradebarrierspersista. becauseeconomistsareaboutevenlydividedastothemeritsofthosepolicies.b. becausealmostalleconomistsagreethatthosepolicieshavenodiscernibleeconomiceffects.c. becausealmostalleconomistsagreethatthosepoliciesaredesirable.d. despitethefactthatalmostalleconomistsagreethatthosepoliciesareundesirable.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
19. Almostalleconomistsagreethattariffsandimportquotasa. reducesgeneraleconomicwelfare.b. increasesgeneraleconomicwelfare.c. havenoeffectongeneraleconomicwelfare.d. stimulatealessthanfullyemployedeconomy.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomist
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392 Thinking Like an Economist
KEYWORDS: BLOOM'S:Knowledge
20. Almostalleconomistsagreethatlocalandstategovernmentsshoulda. eliminatesubsidiestoprofessionalsportsfranchises.b. increasesubsidiestoprofessionalsportsfranchises.c. copyeconomicpolicyfromWashington,D.C.d. preventcompaniesfromoutsourcingwork.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
Multiple Choice – Section 04: Let’s Get Going
1. JohnMaynardKeynesreferredtoeconomicsasaneasysubject,a. atwhichveryfewexcel.b. butnotaseasyasphilosophyorthepuresciences.c. whichveryfewcanenjoy.d. whichdealsprimarilywithcommonsense.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.9-LO:2-4NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
2. HowdidtheinfluentialeconomistJohnMaynardKeynesexplainhisremarkthatthougheconomicsisaneasysubjectcomparedwiththehigherbranchesofphilosophyorpurescience,itisasubjectatwhichfewexcel?a. Mostpeoplewhostudyeconomicsarenotverybright.b. Goodeconomistsmustpossessararecombinationofgifts.c. Economicsisquiteboring;hence,peopletendtoloseinterestinitbeforemasteringit.d. Goodthinkersbecomefrustratedwitheconomicsbecauseitdoesnotmakeuseofthescientificmethod.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.9-LO:2-4NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
3. AccordingtoeconomistJohnMaynardKeynes,agreateconomistmustalsobea(n)a. mathematician.b. historian.c. philosopher.d. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.9-LO:2-4NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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394 Thinking Like an Economist
4. JohnMaynardKeynesdescribedeconomicsasaneasysubjectatwhichveryfewexcel.Which of thefollowing isnotoneofthereasonsKeynesgaveforwhysofewpeopleexcelatthestudyofeconomics?a. Aneconomistmustalsobeamathematician,historian,statesman,andphilosopherinsomedegree.b. Aneconomistmustunderstandsymbolsandspeakinwords.c. Aneconomistmustbepurposefulanddisinterestedinasimultaneousmood.d. Aneconomistmustunderstandenvironmentalscience,regulation,andpoliticalscience.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.9-LO:2-4NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
Multiple Choice – Section 05: APPENDIX: Graphing: A Brief Review
1. Whichofthefollowingisnotcorrect?a. Wh
endevelopingeconomictheories,graphsofferawaytovisuallyexpressideasthatmightbelessclearifdescribedwithequationsorwords.
b. Graphsareonewayofexpressingtherelationshipsamongvariables.c. Wh
enstudyingtherelationshipbetweentwoeconomicvariables,graphsalloweconomiststodrawindisputableconclusionsaboutcausesandeffects.
d. Whenanalyzingeconomicdata,graphsprovideapowerfulwayoffindingandinterpretingpatterns.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
2. Whichofthefollowingisnotanexampleofagraphofasinglevariable?a. apiechartb. abargraphc. atime-seriesgraphd. ascatterplot
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
3. Graphssuchasbargraphsandpiechartsarelimitedinthattheya. canonlyshowvariablesthatarepositivelyrelated.b. canonlyshowvariablesthathaveanegativecorrelation.c. provideinformationononlyonevariable.d. provideinformationonnomorethantwovariables.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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396 Thinking Like an Economist
4. Evawantstocreateagraphcontainingthepricesofconcertticketsandthecorrespondingquantitiesofconcertticketsdemandedbycustomers.Sheshouldusea(n)a. piechart.b. bargraph.c. time-seriesgraphd. coordinatesystem.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ComprehensionNOTES: r
5. Theuseofthecoordinatesystemallowsa. forthedisplayoftheflowsofdollars,goodsandservices,andfactorsofproductioninaneconomicsystem.b. forthedisplayofhowlaborandotherresourcesareorganizedintheproductionprocess.c. forthedisplayoftwovariablesonasinglegraph.d. forthecreationofpiechartsandbargraphs.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
6. Todisplayinformationontwovariables,aneconomistmustusea. abargraph.b. apiechart.c. thecoordinatesystem.d. atime-seriesgraph.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
7. Whichofthefollowingallowsyoutoprovideinformationabouttherelationshipbetweentwovariables?a. coordinatesystem.b. piechartc. bargraphd. time-seriesgraph
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
8. Anorderedpairisa. theprocessofcheckingcalculationstwicebeforeplacingthemonagraph.b. twonumbersthatcanberepresentedbyasinglepointonagraph.c. twonumbersthatarerepresentedbytwopointsonagraph.d. twopointsonagraphthatareofequaldistancefromtheorigin.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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398 Thinking Like an Economist
9. Thex-coordinateisthea. firstnumberofanorderedpairandrepresentsthepoint'shorizontallocation.b. secondnumberofanorderedpairandrepresentsthepoint'shorizontallocation.c. firstnumberofanorderedpairandrepresentsthepoint'sverticallocation.d. secondnumberofanorderedpairandrepresentsthepoint'sverticallocation.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
10. Thex-coordinateofanorderedpairspecifiesthea. diagonallocationofthepoint.b. verticallocationofthepoint.c. horizontallocationofthepoint.d. quadrantlocationinwhichthepointislocated.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
11. Thefirstnumberinanyorderedpairisa. thex-coordinate.b. they-coordinate.c. theverticallocationofthepoint.d. theslope.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
12. They-coordinateisthea. firstnumberofanorderedpairandrepresentsthepoint'shorizontallocation.b. secondnumberofanorderedpairandrepresentsthepoint'shorizontallocation.c. firstnumberofanorderedpairandrepresentsthepoint'sverticallocation.d. secondnumberofanorderedpairandrepresentsthepoint'sverticallocation.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
13. They-coordinateofanorderedpairspecifiesthea. diagonallocationofthepoint.b. verticallocationofthepoint.c. horizontallocationofthepoint.d. quadrantlocationinwhichthepointislocated.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
14. Thesecondnumberinanyorderedpairisa. thex-coordinate.b. they-coordinate.c. thehorizontallocationofthepoint.d. theslope.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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400 Thinking Like an Economist
15. Intheorderedpair(20,30),20isthea. thex-coordinate.b. thehorizontallocationofthepoint.c. they-coordinate.d. Bothaandbarecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
16. Intheorderedpair(5,3),3isthea. horizontallocationofthepoint.b. theslope.c. thex-coordinate.d. they-coordinate.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
17. Thepointwherebothxandyarezeroisknownasthea. origin.b. null.c. zerocoordinate.d. center.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
18. Theorderedpairthatrepresentstheoriginonagraphis
a. (1,1).b. (0,0).c. (-1, -1).d. (∞, ∞).
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
19. Whentwovariableshaveapositivecorrelation,a. theytendtomoveinoppositedirections.b. theytendtomoveinthesamedirection.c. onevariablewillmovewhiletheotherremainsconstant.d. thevariables’valuesarenevernegative.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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402 Thinking Like an Economist
20. Whentwovariableshaveapositivecorrelation,a. whenthex-variableincreases,they-variabledecreases.b. whenthex-variabledecreases,they-variableincreases.c. whenthex-variableincreases,they-variableincreases.d. Morethanoneoftheaboveiscorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
21. Whentwovariableshaveanegativecorrelation,a. theytendtomoveinoppositedirections.b. theytendtomoveinthesamedirection.c. onevariablewillmovewhiletheotherremainsconstant.d. thevariables’valuesareneverpositive.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
22. Whentwovariableshaveanegativecorrelation,a. whenthex-variabledecreases,they-variabledecreases.b. whenthex-variabledecreases,they-variableincreases.c. whenthex-variableincreases,they-variableincreases.d. Morethanoneoftheaboveiscorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
23. Whentwovariableshaveanegativecorrelationandthex-variabledecreases,a. they-variableincreases.b. they-variabledecreases.c. they-variablestaysthesame.d. thex-variablecanneverbepositive.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
Figure2-16
24. RefertoFigure2-16.Thegraphshownisknownasaa. time-seriesgraph.b. bargraph.c. scatterplot.d. piechart.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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404 Thinking Like an Economist
25. RefertoFigure2-16.Cupsofcoffeeperdayandthehoursthatsomeonecangowithoutsleepappeartohavea. apositivecorrelation.b. anegativecorrelation.c. arandomcorrelation.d. nocorrelation.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
26. RefertoFigure2-16.Takingcauseandeffectintoaccount,whichofthefollowinginterpretationswouldbemostreasonableregardingtherelationshipbetweencoffeeandhourswithoutsleep?a. Thelesscoffeeapersondrinksperday,themoretimehecangowithoutsleep.b. The
reisnorelationshipbetweenhowmuchcoffeeperdayapersondrinksandhowlonghecangowithoutsleep.
c. Themorecoffeeapersondrinksperday,themoretimehecangowithoutsleep.d. Themorecoffeeapersondrinksperday,thelesstimehecangowithoutsleep.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
27. Whentwovariablesmoveinoppositedirections,thecurverelatingthemisa. upwardsloping,andwesaythevariablesarepositivelyrelated.b. upwardsloping,andwesaythevariablesarenegativelyrelated.c. downwardsloping,andwesaythevariablesarepositivelyrelated.d. downwardsloping,andwesaythevariablesarenegativelyrelated.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
28. Whentwovariablesmoveinthesamedirection,thecurverelatingthemisa. upwardsloping,andwesaythevariablesarepositivelyrelated.b. upwardsloping,andwesaythevariablesarenegativelyrelated.c. downwardsloping,andwesaythevariablesarepositivelyrelated.d. downwardsloping,andwesaythevariablesarenegativelyrelated.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
29. Whenarelevantvariablethatisnotnamedoneitheraxischanges,a. therewillbeamovementalongthecurve.b. thecurvewillrotateclockwise.c. thecurvewillbeunaffectedsinceonlythevariablesontheaxisaffectthecurve.d. thecurvewillshift.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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406 Thinking Like an Economist
30. Supposepriceismeasuredalongtheverticalaxisonagraph.Whenpricechanges,therewillbeaa. rotationofthecurve.b. shiftofthecurve.c. movementalongthecurve.d. changeintheslopeofthecurve.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
31. Ademandcurveshowstherelationshipa. betweenincomeandquantitydemanded.b. betweenpriceandincome.c. betweenpriceandquantitydemanded.d. amongincome,price,andquantitydemanded.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
32. Ademandcurveshowstherelationshipbetweenpriceanda. income.b. quantitydemanded.c. production.d. incomeandquantitydemanded.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Knowledge
33. Ademandcurvedisplayingtherelationshipbetweenthepriceofcarsandthequantitydemandedofcarsshouldhaveaslopethatisa. lessthan0.b. betweenzeroand1.c. betweenoneandinfinity.d. undefined.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
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408 Thinking Like an Economist
34. Which ofthefollowingisnotheldconstantwhenlookingatanindividual’sdemandcurve?a. incomeb. pricec. preferencesd. theavailabilityofalternativegoods
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
35. IfMartina’sincomeincreasesand,asaresult,shechoosestobuymorelattéspermonthateachprice,thenherdemandcurvewilla. shifttotheright.b. shifttotheleft.c. notshift;instead,Martinawillmovealongherdemandcurvedownwardandtotheright.d. notshift;instead,Martinawillmovealongherdemandcurveupwardandtotheleft.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
Figure2-17
36. RefertoFigure2-17.Thecurvesshownarea. supplycurves.b. demandcurves.c. preferencecurves.d. income-consumptioncurves.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Knowledge
37. RefertoFigure2-17.ThemovementfrompointAtopointBisa(n)a. shiftofthedemandcurve.b. indicationofachangeinpreferencesforgrapes.c. movementalongthedemandcurve.d. indicationofanincreaseinincome.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
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410 Thinking Like an Economist
TOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
38. RefertoFigure2-17.ThemovementfrompointBtopointCisa(n)a. shiftofthedemandcurve.b. movementalongthedemandcurve.c. indicationthatthepriceofgrapeshaschanged.d. indicationthatthecostsincurredbyfirmsthatproducegrapeshavechanged.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
39. RefertoFigure2-17.ThemovementfrompointBtopointCcouldhavebeencausedbya. inflation.b. achangeinincome.c. achangeinthepriceofgrapes.d. achangeinthecostofproducinggrapes.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
40. RefertoFigure2-17.TheslopeofthecurvebetweenpointsAandBisa. -5b. -1/5c. 1/5d. 5
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
41. Theslopeofalineisequaltoa. thechangeinthevalueofxdividedbythechangeinthevalueofy.b. thechangeinthevalueofydividedbythechangeinthevalueofx.c. thehorizontaldistancedividedbytheverticaldistance.d. thevalueofydividedbythevalueofx.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
42. Theslopeofalineisequaltoa. risedividedbyrun.b. rundividedbyrise.c. riseminusrun.d. riseplusrun.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5
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412 Thinking Like an Economist
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
43. Whichofthefollowingisnotcorrect?a. Theslopeofalinewillbeasmallpositivenumberforafairlyflatupward-slopingline.b. Theslopeofalinewillbealargepositivenumberforasteepupward-slopingline.c. Theslopeofalinewillbeanegativenumberforadownward-slopingline.d. Theslope of aline will beinfinite for a horizontalline.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
44. Whichofthefollowingiscorrect?a. Ahorizontallinehasaninfiniteslope,andaverticallinehasazeroslope.b. Ahorizontallinehasaslopeof1,andaverticallinehasaslopeof-1.c. Ahorizontallinehasazeroslope,andaverticallinehasaninfiniteslope.d. Ahorizontallinehasaslopeof-1,andaverticallinehasaslopeof1.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
45. Theslopeofafairlyflatupward-slopinglinewillbeaa. smallpositivenumber.b. largepositivenumber.c. smallnegativenumber.d. largenegativenumber.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
46. Theslopeofasteepupward-slopinglinewillbeaa. smallpositivenumber.b. largepositivenumber.c. smallnegativenumber.d. largenegativenumber.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
47. Theslopeofalinethatpassesthroughthepoints(20,30)and(40,14)is
a. -5/4.b. -4/5.c. 4/5.d. 5/4.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
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414 Thinking Like an Economist
48. Theslopeofalinethatpassesthroughthepoints(5,8)and(12,12)is
a. -7/4.b. -4/7.c. 4/7.d. 7/4.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
49. Theslopeofalinepassingthroughthepoints(15,3)and(10,6)is
a. -3/5.b. 3/5.c. -5/3.d. 5/3.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
50. Arelativelysteepdemandcurveindicatesthata. quantitydemandedwilladjustonlyslightlytoapricechange.b. quantitydemandedwilladjustsignificantlytoapricechange.c. quantitydemandedwillnotadjusttoapricechange.d. thechangeinquantitydemandedwillexactlyequalachangeinprice.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
51. Arelativelyflatdemandcurveindicatesthata. quantitydemandedwilladjustonlyslightlytoapricechange.b. quantitydemandedwilladjustsignificantlytoapricechange.c. quantitydemandedwillnotadjusttoapricechange.d. thechangeinquantitydemandedwillexactlyequalachangeinprice.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
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416 Thinking Like an Economist
52. Whenincomeincreasestheslopeofanindividual’sdemandcurve,thedemandcurvea. turnspositive.b. becomesundefined.c. remainsnegative.d. becomesinfinite.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
Figure2-18
RelationshipbetweenPriceandRestaurantMeals
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
53. RefertoFigure2-18.Intheorderedpair(8,24)a. thex-coordinateis8andthey-coordinateis24.b. thex-coordinateis24andthey-coordinateis8.c. thenumberstellthelocationoftheorigin.d. the8representsthepriceandthe24representsthenumberofrestaurantmeals.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: r
54. RefertoFigure2-18.TheslopeofthelinecontainingpointsYandZisa.-0.5.b. -1.c. -2.d. -4.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: r
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418 Thinking Like an Economist
55. RefertoFigure2-18.TheslopeofthelinecontainingpointsAandBisa.-1/2.b. -2.c. 1/2.d. 2.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: r
56. RefertoFigure2-18.AmovementfrompointAtopointZiscalleda. ashiftindemand.b. amovementalongthedemandcurve.c. a shiftinsupply.d. amovementalongthesupplycurve.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
57. RefertoFigure2-18.AmovementfrompointAtopointBiscalleda. ashiftindemand.b. amovementalongthedemandcurve.c. a shiftinsupply.d. amovementalongthesupplycurve.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:Application
58. RefertoFigure2-18.WhichofthefollowingcouldresultinamovementfrompointAtopointB?a. achangeinincomeb. achangeinthecostofproducingarestaurantmealc. achangeinthepriceofrestaurantmealsd. achangeinthepriceofmovies
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
420 Thinking Like an Economist
59. RefertoFigure2-18.WhichofthefollowingcouldresultinamovementfrompointBtopointZ?a. achangeinthepriceofarestaurantmealb. achangeinthenumberofrestaurantmealsdemandedc. achangeinincomed. Bothaandbarecorrect.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: r
60. Supposethatsomeonemakestheargumentthatbecauseemptyalcoholcontainersarefoundatmanyaccidents,thecontainerscauseaccidents.Thiswouldbeanexampleofa. soundlogic.b. reversecausality.c. omittedvariables.d. bias.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
61. Alfonsohasnoticedthatincreasesinunemploymentinsuranceclaimsareassociatedwithrecessions,andthereforeheadvocateslimitsonunemploymentinsurancesoastopreventrecessions.Maryhasnoticedthatmostdrugaddictsonceattendedschools,andthereforesheadvocatesgettingridofschoolssoastopreventdrugaddiction.a. ThereasoningofbothAlfonsoandMarysuffersfromtheomittedvariableproblem.b. ThereasoningofbothAlfonsoandMarysuffersfromthereversecausalityproblem.c. Alfonso
'sreasoningsuffersfromthereversecausalityproblem,andMary’sreasoningsuffersfromtheomittedvariableproblem.
d. Mary'sreasoningsuffersfromthereversecausalityproblem,andAlfonso'sreasoningsuffersfromtheomittedvariableproblem.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
62. Intheearly19thcentury,theRussiangovernmentsentdoctorstosouthernRussianvillagestoprovideassistanceduringacholeraepidemic.Thevillagersnoticedthatwhereverdoctorsappeared,peopledied.Therefore,manydoctorswerechasedawayfromvillages,andsomewereevenkilled.Thisreactiontothecorrelationbetweendoctorsanddeathsismostlikelyaproblemofa. omittedvariables.b. reversecausality.c. governmentpropaganda.d. medicalincompetence.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
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422 Thinking Like an Economist
63. Theargumentthatpurchasesofminivanscauselargefamiliesisanexampleofa. omittedvariables.b. normativestatements.c. reversecausality.d. bias.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
Figure2-19
Inthefollowinggraphthex-axisshowsthenumberoftimesacommuterrailtrainstopsatastationperhourandthey-axisshowsthenumberofcommuterrailpassengersperhour.
CommuterRailPassengersbyFrequencyofService
64. RefertoFigure2-19.Whichofthefollowingconclusionsshouldnotbedrawnfromobservingthisgraph?a. Thereisapositivecorrelationbetweenthefrequencyofserviceandthenumberofpassengers.b. Whenthereare5stopsperhour,thereareapproximately200passengers.c. Morestopsperhourisassociatedwithmorepassengersperhour.d. Nootherfactorsbesidesthefrequencyofserviceaffectthenumberofpassengers.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
65. RefertoFigure2-19.Apolicymakerobservesthisgraphandconcludesthatincreasingthefrequencyofcommuterrailserviceisacertainwaytogetmorecommuterstochoosethecommuterrailinsteadofdrivingtheirowncars.Youwarnthepolicymakeraboutmakingareversecausalitymistakewithwhichofthefollowingstatements?a. Highergaspricesarecausingmorepeopletochoosethecommuterrailoverdriving.b. Theservicefrequencywasincreasedinresponsetoanincreaseinthenumberofpassengersperhour.c. Thereisapositiverelationshipbetweenfrequencyofstopsandnumberofpassengers.d. Noneoftheaboveiscorrect.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
Figure2-20
RelationshipBetweenYearsofEducationandAnnualIncome
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
424 Thinking Like an Economist
66. RefertoFigure2-20.Thegraphaboveisaa. bargraphb. scatterplotc. piechartd. timeseriesanalysis
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
67. RefertoFigure2-20.Accordingtothegraph,thecorrelationbetweenyearsofeducationandannualincomeisa. positiveb. negativec. inversed. normative
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
68. RefertoFigure2-20.SenatorSmithobservesthegraphandconcludesthatpeoplewhoearnhigherincomesattendschoolformoreyears.SenatorJonesobservesthegraphandconcludesthatpeoplewhoattendschoolformoreyearsearnhigherincomes.Whoiscorrect?a. SenatorSmithiscorrect.b. SenatorJonesiscorrect.c. Itisdifficulttosaywhichsenatormightbecorrectduetothereversecausalityproblem.d. Itisdifficulttosaywhichsenatormightbecorrectduetoomittedvariablebias.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
69. Intheorderedpair(3,6),3isthea. x-coordinate.b. y-coordinate.c. origin.d. slope.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
426 Thinking Like an Economist
70. Betweenthetwoorderedpairs(3,6)and(7,18),theslopeisa.1/3b.-1/3.c. 3.d. -3.
ANSWER: cPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: r
Figure2-21
71. RefertoFigure2-21.Accordingtothegraph,snowstormsa. andsnowblowerssoldarepositivelycorrelated.b. andsnowblowerssoldarenegativelycorrelatedc. andsnowblowerssoldareuncorrelated.d. arecausedbymoresnowblowersbeingsold.
ANSWER: aPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
72. RefertoFigure2-21.YourfriendJohncreatedthegraphabovetoillustratethatsnowstormsarecausedbymoresnowblowersbeingsold.Youinformhimthathisinterpretationisincorrectduetoa. omittedvariablebias.b. reversecausality.c. slopemismatch.d. shiftingversusmovingalongacurve.
ANSWER: bPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
73. RefertoFigure2-21.Whichofthefollowingcouldbeanomittedvariableinthegraph?a. thepriceofsnowblowersb. achangeinconsumers’incomesc. achangeintheseasonsd. Alloftheabovearecorrect.
ANSWER: dPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
428 Thinking Like an Economist
True/False and Short Answer
1. Economiststrytoaddresstheirsubjectwithascientist’sobjectivity.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
2. Economistsdevisetheories,collectdata,andthenanalyzethesedatainanattempttoverifyorrefutetheirtheories.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
3. Thescientificmethodisthedispassionatedevelopmentandtestingoftheoriesabouthowtheworldworks.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralPrinciplesKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
4. Thescientificmethodcanbeappliedtothestudyofeconomics.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
5. Whilethescientificmethodisapplicabletostudyingnaturalsciences,itisnotapplicabletostudyinganation’seconomy.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
6. Foreconomists,conductingexperimentsisoftendifficultandsometimesimpossible.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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430 Thinking Like an Economist
7. Economistsusuallyhavetomakedowithwhateverdatatheworldhappenstogivethem.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
8. Itisdifficultforeconomiststomakeobservationsanddeveloptheories,butitiseasyforeconomiststorunexperimentstogeneratedatatotesttheirtheories.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
9. Sinceeconomistscannotusenaturalexperimentsofferedbyhistory,theymustusecarefullyconstructedlaboratoryexperimentsinstead.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
10. Historicalepisodesarenotvaluabletoeconomists.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
11. Historicalepisodesalloweconomiststoillustrateandevaluatecurrenteconomictheories.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
12. Goodassumptionssimplifyaproblemwithoutsubstantiallyaffectingtheanswer.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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432 Thinking Like an Economist
13. Assumptionscansimplifythecomplexworldandmakeiteasiertounderstand.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
14. Economistsoftenfinditworthwhiletomakeassumptionsthatdonotnecessarilydescribetherealworld.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
15. Economistsuseonestandardsetofassumptionstoansweralleconomicquestions.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
16. Economicmodelsaremostoftencomposedofdiagramsandequations.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
17. Economicmodelsomitmanydetailstoallowustoseewhatistrulyimportant.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
18. Economicmodelscanhelpusunderstandrealityonlywhentheyincludealldetailsoftheeconomy.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
434 Thinking Like an Economist
19. Aneconomicmodelcanaccuratelyexplainhowtheeconomyisorganizedbecauseitisdesignedtoinclude,totheextentpossible,allfeaturesoftherealworld.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
20. Allscientificmodels,includingeconomicmodels,simplifyrealityinordertoimproveourunderstandingofit.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
21. Thecircular-flowdiagramexplains,ingeneralterms,howtheeconomyisorganizedandhowparticipantsintheeconomyinteractwithoneanother.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
22. Acircular-flowdiagramisavisualmodeloftheeconomy.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
23. Thecircularflowmodelisnotusedanymorebecauseitfailstoperfectlyreplicaterealworldsituations.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
24. Inthecircular-flowdiagram,householdsandfirmsarethedecisionmakers.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
436 Thinking Like an Economist
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
25. Inthecircular-flowdiagram,firmsproducegoodsandservicesusingthefactorsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
26. Inthecircular-flowdiagram,factorsofproductionarethegoodsandservicesproducedbyfirms.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
27. Inthecircular-flowdiagram,factorsofproductionincludeland,labor,andcapital.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
438 Thinking Like an Economist
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
28. Inthecircular-flowdiagram,firmsownthefactorsofproductionandusethemtoproducegoodsandservices.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
29. Inthecircular-flowdiagram,firmsconsumeallthegoodsandservicesthattheyproduce.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
30. Inthecircular-flowdiagram,thetwotypesofmarketsinwhichhouseholdsandfirmsinteractarethemarketsforgoodsandservicesandthemarketsforfactorsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
440 Thinking Like an Economist
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
31. Inthemarketsforgoodsandservicesinthecircular-flowdiagram,householdsarebuyersandfirmsaresellers.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
32. Inthemarketsforthefactorsofproductioninthecircular-flowdiagram,householdsarebuyersandfirmsaresellers.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
33. Inthecircular-flowdiagram,onelooprepresentstheflowofgoods,services,andfactorsofproduction,andtheotherlooprepresentsthecorrespondingflowofdollars.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:Moderate
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
442 Thinking Like an Economist
LEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
34. Inthecircular-flowdiagram,onelooprepresentstheflowofgoodsandservices,andtheotherlooprepresentstheflowoffactorsofproduction.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
35. Inthecircular-flowdiagram,paymentsforlabor,land,andcapitalflowfromfirmstohouseholdsthroughthemarketsforthefactorsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
36. Theproductionpossibilitiesfrontierisagraphthatshowsthevariouscombinationsofoutputsthattheeconomycanpossiblyproducegiventheavailablefactorsofproductionandtheavailableproductiontechnology.a. Trueb. False
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
444 Thinking Like an Economist
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
Figure2-23
37. RefertoFigure2-23.Ifthiseconomyusesallitsresourcesinthedishwasherindustry,itproduces35dishwashersandnodoghouses.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelSpecialization
KEYWORDS: BLOOM'S:Application
38. RefertoFigure2-23.Itispossibleforthiseconomytoproduce75doghouses.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModel
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
446 Thinking Like an Economist
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
39. RefertoFigure2-23.Itispossibleforthiseconomytoproduce30doghousesand20dishwashers.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
40. RefertoFigure2-23.Itispossibleforthiseconomytoproduce45doghousesand30dishwashers.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
41. RefertoFigure2-23.Whenthiseconomyproduces30doghousesand25dishwashersthereisfullemployment.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
448 Thinking Like an Economist
42. RefertoFigure2-23.Thiseconomyfullyemploysitsresourceswhenitproduces35dishwashersandzerodoghouses.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelAllocativeEfficiency
KEYWORDS: BLOOM'S:Application
43. RefertoFigure2-23.Giventhetechnologyavailableformanufacturingdoghousesanddishwashers,thiseconomydoesnothaveenoughofthefactorsofproductiontosupportthelevelofoutputrepresentedbypointC.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
44. RefertoFigure2-23.PointsA,B,andDrepresentfeasibleoutcomesforthiseconomy.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
450 Thinking Like an Economist
45. RefertoFigure2-23.PointsBandCrepresentinfeasibleoutcomesforthiseconomy.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
46. RefertoFigure2-23.PointsA,B,andDrepresentefficientoutcomesforthiseconomy.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Application
47. RefertoFigure2-23.PointBrepresentsaninefficientoutcomeforthiseconomy.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
452 Thinking Like an Economist
48. RefertoFigure2-23.UnemploymentcouldcausethiseconomytoproduceatpointB.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
49. RefertoFigure2-23.TheopportunitycostofmovingfrompointAtopointDis10dishwashers.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Application
50. RefertoFigure2-23.TheopportunitycostofmovingfrompointBtopointDis15doghouses.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
454 Thinking Like an Economist
51. RefertoFigure2-23.TheopportunitycostofmovingfrompointBtopointAiszero.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Application
52. RefertoFigure2-23.Theopportunitycostofanadditionaldoghouseincreasesasmoredoghousesareproduced.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Application
53. Withtheresourcesithas,aneconomycanproduceatanypointonoroutsidetheproductionpossibilitiesfrontier,butitcannotproduceatpointsinsidethefrontier.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
456 Thinking Like an Economist
54. Pointsinsidetheproductionpossibilitiesfrontierrepresentfeasiblelevelsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
55. Pointsinsidetheproductionpossibilitiesfrontierrepresentinefficientlevelsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
56. Pointsontheproductionpossibilitiesfrontierrepresentefficientlevelsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
458 Thinking Like an Economist
57. Pointsoutsidetheproductionpossibilitiesfrontierrepresentinfeasiblelevelsofproduction.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelEfficiency
KEYWORDS: BLOOM'S:Comprehension
58. Ifamajoruniongoesonstrike,thenthecountrywouldbeoperatinginsideitsproductionpossibilitiesfrontier.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
59. Anoutcomeissaidtobeefficientifaneconomyisgettingallitcanfromthescarceresourcesithasavailable.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
460 Thinking Like an Economist
60. Anoutcomeissaidtobeefficientifaneconomyisconservingthelargestpossiblequantityofitsscarceresourceswhilestillmeetingthebasicneedsofsociety.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
61. Aproductionpointissaidtobeefficientifthereisnowayfortheeconomytoproducemoreofonegoodwithoutproducinglessofanother.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
62. Ifaneconomycanproducemoreofonegoodwithoutgivingupanyofanothergood,thentheeconomy’scurrentproductionpointisinefficient.a. Trueb. False
ANSWER: TruePOINTS: 1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
462 Thinking Like an Economist
63. Unemploymentcausesproductionlevelstobeinefficient.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:Comprehension
64. Theopportunitycostofsomethingiswhatyougiveuptogetit.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Knowledge
65. Theproductionpossibilitiesfrontiershowstheopportunitycostofonegoodasmeasuredintermsoftheothergood.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
TOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
464 Thinking Like an Economist
66. Whenaproductionpossibilitiesfrontierisbowedoutward,theopportunitycostofonegoodintermsoftheotherisconstant.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
67. Whenaproductionpossibilitiesfrontierisbowedoutward,theopportunitycostofonegoodintermsoftheotherdependsonhowmuchofeachgoodisbeingproduced.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
68. Whenaproductionpossibilitiesfrontierisbowedoutward,theopportunitycostofthefirstgoodintermsofthesecondgoodincreasesasmoreofthesecondgoodisproduced.a. Trueb. False
ANSWER: FalsePOINTS: 1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
466 Thinking Like an Economist
69. Whenaproductionpossibilitiesfrontierisbowedoutward,theopportunitycostofthesecondgoodintermsofthefirstgoodincreasesasmoreofthesecondgoodisproduced.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
70. Aproductionpossibilitiesfrontierhasabowedshapeiftheopportunitycostisconstantatalllevelsofoutput.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Comprehension
71. Economistsbelievethatproductionpossibilitiesfrontiersrarelyhaveabowedshape.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
TOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
468 Thinking Like an Economist
72. Aproductionpossibilitiesfrontierwillbebowedoutwardifsomeoftheeconomy’sresourcesarebettersuitedtoproducingonegoodthananother.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Comprehension
73. Thetrade-offbetweentheproductionofonegoodandtheproductionofanothergoodcanchangeovertimebecauseoftechnologicaladvances.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelTradeoffs
KEYWORDS: BLOOM'S:Comprehension
74. Atechnologicaladvanceintheproductionofthefirstgoodincreasestheopportunitycostofthefirstgoodintermsofthesecondgood.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
TOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Analysis
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
470 Thinking Like an Economist
75. Whiletheproductionpossibilitiesfrontierisausefulmodel,itcannotbeusedtoillustrateeconomicgrowth.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Comprehension
76. Economicgrowthcausesaproductionpossibilitiesfrontiertoshiftoutward.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelGrowth
KEYWORDS: BLOOM'S:Comprehension
77. Ifnewgovernmentregulationsdesignedtoprotectwetlandsremoveveryproductivefarmlandfromproduction,thentheproductionpossibilitiesfrontierwillshiftinward.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
TOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
472 Thinking Like an Economist
78. Productionpossibilitiesfrontierscanbeusedtoillustratescarcity,trade-offs,opportunitycost,efficiency,unemployment,technologicaladvances,andeconomicgrowth.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Analysis
79. Microeconomicsisthestudyofhowhouseholdsandfirmsmakedecisionsandhowtheyinteractinspecificmarkets.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMicroKEYWORDS: BLOOM'S:Knowledge
80. Macroeconomicsisthestudyofeconomy-widephenomena.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralMacro
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
81. Theeffectsofborrowingbythefederalgovernmentwouldbestudiedbyamicroeconomistratherthanamacroeconomist.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMacroKEYWORDS: BLOOM'S:Application
82. TheeffectsofforeigncompetitionontheU.S.textileindustrywouldbestudiedbyamicroeconomistratherthanamacroeconomist.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMicroKEYWORDS: BLOOM'S:Application
83. Amacroeconomist,ratherthanamicroeconomist,wouldstudytheeffectsonamarketfromtwofirmsmerging.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMicroKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
474 Thinking Like an Economist
84. Microeconomicsandmacroeconomicsarecloselyintertwined.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralKEYWORDS: BLOOM'S:Knowledge
85. Wheneconomistsaretryingtoexplaintheworld,theyarescientists,andwhentheyaretryingtohelpimprovetheworld,theyarepolicyadvisers.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
86. Economistsactingasscientistsmakepositivestatements,whileeconomistsactingaspolicyadvisersmakenormativestatements.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
87. Normativestatementsdescribehowtheworldis,whilepositivestatementsprescribehowtheworldshouldbe.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
88. Positivestatementsaredescriptive,whilenormativestatementsareprescriptive.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
89. Positivestatementscanbeevaluatedusingdataalone,butnormativestatementscannot.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
476 Thinking Like an Economist
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
90. Evaluatingnormativestatementsinvolvesvaluesaswellasfacts.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Knowledge
91. "Societywouldbebetteroffifthewelfaresystemwereabolished"isanormativestatement,notapositivestatement.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
KEYWORDS: BLOOM'S:Application
92. "Otherthingsequal,anincreaseinsupplycausesadecreaseinprice"isanormativestatement,notapositivestatement.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
478 Thinking Like an Economist
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
93. "Minimumwagelawsresultinunemployment”isanormativestatement,while“theminimumwageshouldbehigher”isapositivestatement.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
94. “TheUSshouldnotrestrictemployersfromoutsourcingworktoforeigncountries”isanormativestatement.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
95. Trade-offsareinvolvedinmostpolicydecisions.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistTradeoffs
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
480 Thinking Like an Economist
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
96. Since1946,thepresidentoftheUnitedStateshasreceivedguidancefromtheCouncilofEconomicAdvisers.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
97. TheCouncilofEconomicAdvisersconsistsofthirtymembersandastaffofseveraldozeneconomists.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
98. ThedutiesoftheCouncilofEconomicAdvisersaretoadvisethepresidentoftheUnitedStatesandtodetermineU.S.monetarypolicy.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
482 Thinking Like an Economist
TOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
99. TheCouncilofEconomicAdvisers’EconomicReportofthePresidentdiscussesrecentdevelopmentsintheeconomyandpresentsthecouncil’sanalysisofcurrentpolicyissues.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
100. ThePresidentcountsamonghiseconomicadvisorstheCongressionalBudgetOffice.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
101. EconomistsattheU.S.DepartmentoftheTreasuryhelpdesignU.S.coinsandpapermoney.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
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484 Thinking Like an Economist
TOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
102. EconomistsattheU.S.DepartmentofJusticehelpenforcethenation’santitrustlaws.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
103. EconomistsworkbothinsideandoutsidetheadministrativebranchoftheU.S.government.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
104. TheCongressionalBudgetOffice,whichisstaffedbyeconomists,providesCongresswithindependentevaluationsofpolicyproposals.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
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486 Thinking Like an Economist
TOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
105. Thereisonlyoneexplanationforwhyeconomistsgiveconflictingadviceonpolicyissues,anditisthattheyhavedifferentvaluesaboutwhatpolicyshouldtrytoaccomplish.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
106. Economistsmaydisagreeaboutthevalidityofalternativepositivetheoriesabouthowtheworldworks.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
107. Differentvaluesarenotareasonfordisagreementamongeconomists.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
488 Thinking Like an Economist
108. Insurveysofprofessionaleconomists,fourteenpropositionswereendorsedbyanoverwhelmingmajorityofrespondents.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
109. Becausealmostalleconomistsopposepoliciesthatrestricttradeamongnations,policymakersdonotrestrictimportsofcertaingoods.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
110. AccordingtoJohnMaynardKeynes,aneconomistmustpossessararecombinationofskillsincludingbeingamathematician,historian,statesman,andphilosopher.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.9-LO:2-4NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
TOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
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490 Thinking Like an Economist
111. Ineconomics,graphsservetwopurposes:theyofferawaytovisuallyexpressideas,andtheyprovideawayoffindingandinterpretingpatternswhenanalyzingeconomicdata.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
112. Examplesofgraphsofasinglevariableincludepiecharts,bargraphs,andtime-seriesgraphs.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
113. Apiechartisawaytodisplayinformationregardingtwovariables.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
114. Intheorderedpair(10,30),10isthey-coordinateand30isthez-coordinate.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
115. Intheorderedpair(10,30),10isthehorizontallocationofthepointand30istheverticallocationofthepoint.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
116. Twovariablesthathaveapositivecorrelationmoveinthesamedirection.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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492 Thinking Like an Economist
117. Twovariablesthathaveanegativecorrelationmoveinoppositedirections.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
118. Whentwovariablesmoveinoppositedirections,thecurverelatingthemisupwardsloping,andwesaythevariablesarepositivelyrelated.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
119. Whentwovariablesmoveinthesamedirection,thecurverelatingthemisdownwardsloping,andwesaythevariablesarenegativelyrelated.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
120. Whenavariablethatisnamedonanaxisofagraphchanges,thecurveshifts.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
121. Whenavariablethatisnotnamedoneitheraxisofagraphchanges,wereadthechangeasamovementalongthecurve.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
122. Theconceptofslopecanbeusedtoanswerquestionsabouthowmuchonevariablerespondstochangesinanothervariable.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
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494 Thinking Like an Economist
123. Theslopeofalineisequaltothechangeinthex-variabledividedbythechangeinthey-variable.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
124. Theslopeofanupward-slopinglineispositive,andtheslopeofadownward-slopinglineisnegative.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
125. The slopeof ahorizontal lineis infinite,andthe slopeof avertical lineis zero.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
126. Theslopeofalineistheratiooftheverticaldistancecoveredtothehorizontaldistancecoveredalongtheline.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
127. Ifalinepassesthroughthepoints(20,5)and(10,10),thentheslopeofthelineis1/2.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
128. Ifalinepassesthroughthepoints(20,5)and(10,10),thentheslopeofthelineis-2.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
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496 Thinking Like an Economist
129. Changesinonevariableonagraphmightbecausedbytheothervariableonthegraphorbyathirdomittedvariable.a. Trueb. False
ANSWER: TruePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
130. DecidingthatAcausesBwheninfactBcausesAisamistakecalledomittedvariablebias.a. Trueb. False
ANSWER: FalsePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
131. Usingtheoutlinebelow,drawacircular-flowdiagramrepresentingtheinteractionsbetweenhouseholdsandfirmsinasimpleeconomy.Explainbrieflythevariouspartsofthediagram.
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ANSWER:
Thisdiagramshouldduplicatetheessentialcharacteristicsofthediagraminthetext,withanexplanationofthemeaningofeachflowandeachmarket.Itisimportantthatthestudentunderstandsthattheinnerlooprepresentstheflowofrealgoodsandservicesandthattheouterlooprepresentsthecorrespondingflowofpayments.
POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
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498 Thinking Like an Economist
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
132. The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as high as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle.
Drawarancher’sproductionpossibilitiesfrontiershowingincreasingopportunitycostofcattleproductionintermsofprairiedogproduction.Usingaseparategraphforeachsituation,showwhatwouldhappentotheinitialproductionpossibilitiesfrontierineachofthefollowingsituations:a. Theoutcomeisefficient,withrancherschoosingtoproduceequalnumbersofcattleandprairiedogs.b. A
saprotestagainstthegovernmentintroducingthegraywolfbackintothewildintheirstate,ranchersdecidetowithhold25percentoftheavailablegrasslandforgrazing.
c. Thepriceofprairiedogsincreasesto$200each,soranchersdecidetoallotadditionallandforprairiedogs.d. T
hegovernmentgrantsnewleasestoranchers,givingthem10,000newacresofgrasslandeachforgrazing.e. A
droughtdestroysmostoftheavailablegrassforgrazingofcattle,butnotforprairiedogssincetheyalsoeatplantroots.
ANSWER:(a) (b)
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500 Thinking Like an Economist
(c) (d)
(e)
POINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Analysis
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
133. Drawaproductionpossibilitiesfrontiershowingincreasingopportunitycostofhammersintermsofhorseshoes.a. Onthegraph,identifytheareaoffeasibleoutcomesandtheareaofinfeasibleoutcomes.b. Onthegraph,labelapointthatisefficientandapointthatisinefficient.c. O
nthegraph,illustratetheeffectofthediscoveryofanewveinofironore,aresourceneededtomakebothhorseshoesandhammers,onthiseconomy.
d. Onasecondgraph,illustratetheeffectofanewcomputerizedassemblylineintheproductionofhammersonthiseconomy.
ANSWER:(a-c) (d)
POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:Application
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502 Thinking Like an Economist
134. Identifyeachofthefollowingtopicsasbeingpartofmicroeconomicsormacroeconomics:a. theimpactofachangeinconsumerincomeonthepurchaseofluxuryautomobilesb. theeffectofachangeinthepriceofCokeonthepurchaseofPepsic. theimpactofawarintheMiddleEastontherateofinflationintheUnitedStatesd. factorsinfluencingtherateofeconomicgrowthe. factorsinfluencingthedemandfortractorsf. theimpactoftaxpolicyonnationalsavingg. theeffectofpollutiontaxesontheU.S.copperindustryh. thedegreeofcompetitioninthecabletelevisionindustryi. theeffectofabalanced-budgetamendmentoneconomicstabilityj. theimpactofderegulationonthesavingsandloanindustry
ANSWER:
a,b,e,g,h,andjaremicroeconomictopics.c,d,f,andiaremacroeconomictopics.
POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralKEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
135. Whichofthefollowingstatementsarepositiveandwhicharenormative?a. Theminimumwagecreatesunemploymentamongyoungandunskilledworkers.b. Theminimumwageoughttobeabolished.c. I
fthepriceofaproductinamarketdecreases,then,otherthingsequal,quantitydemandedwillincrease.
d. Alittlebitofinflationisworseforsocietythanalittlebitofunemployment.e. Thereisatradeoffbetweeninflationandunemploymentintheshortrun.f. Ifconsumerincomeincreases,then,otherthingsequal,thedemandforautomobileswillincrease.g. TheU.S.incomedistributionisnotfair.h. U.S.workersdeservemoreliberalunemploymentbenefits.i. Ifinterestratesincrease,theninvestmentwilldecrease.j. Ifwelfarebenefitswerereduced,thenthecountrywouldbebetteroff.
ANSWER:
a,c,e,f,andiarepositivestatements.b,d,g,h,andjarenormativestatements.
POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
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504 Thinking Like an Economist
136. Usethefollowinggraphtoanswerthefollowingquestions.a. HowwouldpointJberepresentedasanorderedpair?b. Whattypeofcurveisthis?c. Doesthiscurveshowapositiveornegativecorrelationbetweenpriceandquantity?d. ComputetheslopeofD1betweenpointsJandL.
e. WhatistheslopeofD1betweenpointsLandN?Whywouldyounothavetocalculatethisanswer?
f. WhatisitcalledifwemovefromD1toD2?
g. HowdoyouknowthattheslopeofD2isthesameastheslopeofD1?
ANSWER: a. (20,24)b. ademandcurvec. anegativecorrelationbetweenpriceandquantityd. -8/20or-2/5e. -2/5;becausetheslopeofastraightlineisconstantf. anincreaseindemand.g. becausethe2linesareparallel
POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:SupplyandDemandDemandKEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
Problems
1. Likebiologistsandphysicists,economistsusethedispassionatedevelopmentandtestingofhowtheworldworksknownasthe
ANSWER: scientificmethod.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
2. Asasubstituteforlaboratoryexperiments,economistsuseevidenceavailablethroughhistory’s
ANSWER: naturalexperiments.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
3. SupposeawarintheMiddleEastinterruptstheflowofcrudeoilandoilpricesskyrocketaroundtheworld.Foreconomists,thishistoricalepisodeservesasa
ANSWER: naturalexperiment.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
4. Justlikeotherscientificmodels,economicmodelssimplifyrealityusing
ANSWER: assumptions.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
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506 Thinking Like an Economist
TOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Knowledge
5. Thethreemainfactorsofproduction,orcategoriesofinputs,usedbyfirmstoproducegoodsandservicesare
ANSWER: land,labor,andcapital.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:FactorsofProductionKEYWORDS: BLOOM'S:Knowledge
6. Inthecircularflowdiagram,whoownsthefactorsofproductionandconsumesallofthegoodsandservicesproduced?
ANSWER: householdsPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Knowledge
7. Inthecircularflowdiagram,whenBrianprovideslaborthroughthemarketsforfactorsofproductiontoABCCompany,theflowofmoneyhereceivesinexchangeiscalled
ANSWER: income.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
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508 Thinking Like an Economist
8. Inthemarketsforgoodsandservicesinthecircularflowdiagram,householdsactas
ANSWER: buyers.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Comprehension
9. Inthecircularflowdiagram,whenDaphnepurchasesanewmobilephone,sheparticipatesinthemarketsfor
ANSWER: goodsandservices.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:ApplicationNOTES: r
Figure2-3
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510 Thinking Like an Economist
10. RefertoFigure2-3.Whatisthenameofthemodeldepictedinthefigure?
ANSWER: CircularFlowModelPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
11. RefertoFigure2-3.Whatdotheovalsrepresentinthefigure?
ANSWER:
MarketforGoodsandServicesMarketforFactorsofProduction
POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
12. RefertoFigure2-3.Whatdotherectanglesrepresentinthefigure?
ANSWER: FirmsHouseholds
POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
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KEYWORDS: BLOOM'S:Application
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512 Thinking Like an Economist
13. RefertoFigure2-3.Whatdotheouterarrowsrepresentinthefigure?
ANSWER: flowofdollarsPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
14. RefertoFigure2-3.Whatdotheinnerarrowsrepresentinthefigure?
ANSWER: flowofinputsandoutputsPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
15. RefertoFigure2-3.WhatdoesthearrowgoingfromovalAtorectangle2representinthefigure?
ANSWER: goodsandservicesboughtPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
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16. RefertoFigure2-3.WhatdoesthearrowgoingfromovalBtorectangle2representinthefigure?
ANSWER: incomePOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
17. RefertoFigure2-3.Whataretwoelementsnotincludedinthisfigurethatcouldbeincludedinamorecomplexmodel?
ANSWER:
governmentinternationaltrade
POINTS: 1DIFFICULTY: Difficulty:ChallengingLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistCircularFlowModel
KEYWORDS: BLOOM'S:Application
18. Whatyoumustgiveuptogetsomethingelseiscalledthe
ANSWER: opportunitycost.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOpportunityCost
KEYWORDS: BLOOM'S:Knowledge
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514 Thinking Like an Economist
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
Figure2-14
Considertheproductionpossibilitiescurveforacountrythatcanproducesweaters,apples(inbushels),oracombinationofthetwo.
19. RefertoFigure2-14.Thebowedoutwardshapeoftheproductionpossibilitiescurveindicatesthatopportunitycostofapplesintermsofsweatersis
ANSWER: increasing.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: r
20. RefertoFigure2-14.Whichpoint(s)onthegraphis(are)efficientproductionpossibilities?
ANSWER: Q,R,U,andVPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:Analytic
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516 Thinking Like an Economist
TOPICS:
DISC:ProductionPossibilitiesModelProductiveEfficiency
KEYWORDS: BLOOM'S:AnalysisNOTES: r
21. RefertoFigure2-14.Whichpoint(s)onthegraphshowunemploymentofresources?
ANSWER: TandWPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:AnalysisNOTES: r
22. RefertoFigure2-14.Whichpoint(s)onthegraphis(are)unattainablegivencurrentresourcesandtechnology?
ANSWER: S andXPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:AnalysisNOTES: r
23. RefertoFigure2-14.WhatistheopportunitycostofmovingfrompointTtopointR?
ANSWER: zeroPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Analysis
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
NOTES: n
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518 Thinking Like an Economist
24. RefertoFigure2-14.WhatistheopportunitycostofmovingfrompointRtopointQ?
ANSWER: 80bushelsofapplesPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: n
Figure2-15
25. RefertoFigure2-15.Considertheproductionpossibilitiesfrontierforaneconomythatproducesonlysofasandcars.AstheeconomymovesfrompointAtopointD,istheopportunitycostofcarsincreasing,constant,ordecreasing?
ANSWER: constantPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
KEYWORDS: BLOOM'S:Application
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520 Thinking Like an Economist
26. RefertoFigure2-15.Considertheproductionpossibilitiesfrontierforaneconomythatproducesonlysofasandcars.Theopportunitycostofonesofais
ANSWER: 2/3ofacar.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Analysis
27. RefertoFigure2-15.Considertheproductionpossibilitiesfrontierforaneconomythatproducesonlysofasandcars.Theopportunitycostofonecaris
ANSWER: 3/2sofas.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:Analysis
Table2-6
MobilePhones Pizzas0 10,000200 8,000500 6,000900 4,0001400 2,0002000 0
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
28. RefertoTable2-6.Considertheproductionpossibilitiestableforaneconomythatproducesonlymobilephonesandpizzas.Whatistheopportunitycostofincreasingproductionofmobilephonesfrom200to500?
ANSWER: 2,000pizzas.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: n
29. RefertoTable2-6.Considertheproductionpossibilitiestableforaneconomythatproducesonlymobilephonesandpizzas.Whatistheopportunitycostofincreasingproductionofpizzasfrom4,000to6,000?
ANSWER: 400mobilephones.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ProductionPossibilitiesModelOpportunityCost
KEYWORDS: BLOOM'S:AnalysisNOTES: n
30. RefertoTable2-6.Considertheproductionpossibilitiestableforaneconomythatproducesonlymobilephonesandpizzas.Describetheshapeoftheproductionpossibilitiesfrontier.
ANSWER: bowedoutwardPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1
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522 Thinking Like an Economist
NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ProductionPossibilitiesModelKEYWORDS: BLOOM'S:AnalysisNOTES: n
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
31. Whowouldbemorelikelytostudytheeffectsofgovernmentspendingontheunemploymentrate,amacroeconomistoramicroeconomist?
ANSWER: macroeconomistPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMacroKEYWORDS: BLOOM'S:Comprehension
32. Whowouldbemorelikelytostudytheeffectsofforeigncompetitionontheaccountingindustry,amacroeconomistoramicroeconomist?
ANSWER: microeconomistPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMicroKEYWORDS: BLOOM'S:Comprehension
33. WhowouldbemorelikelytostudytheeffectsofrentcontrolonhousinginNewYorkCity,amacroeconomistoramicroeconomist?
ANSWER: microeconomistPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMicroKEYWORDS: BLOOM'S:Comprehension
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524 Thinking Like an Economist
34. WhowouldbemorelikelytostudytheinflationrateintheUnitedStates,amacroeconomistoramicroeconomist?
ANSWER: macroeconomistPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.6-LO:2-1NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralMacroKEYWORDS: BLOOM'S:Comprehension
35. Wheneconomistsaretryingtoexplaintheworld,theyarescientists.Whentheyaretryingtoimproveit,theyare
ANSWER: policyadvisers.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
36. Whattypeofstatementisadescriptivestatementabouthowtheworldis?
ANSWER: positivestatementPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralPrinciplesKEYWORDS: BLOOM'S:Knowledge
37. Whattypeofstatementisaprescriptivestatementabouthowtheworldoughttobe?
ANSWER: normativestatementPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:GeneralPrinciples
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
KEYWORDS: BLOOM'S:Knowledge
38. Whichtypeofstatement-positiveornegative-canbeevaluatedbyanalyzingdataalone?
ANSWER: positivePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:GeneralPrinciplesKEYWORDS: BLOOM'S:Comprehension
39. Isthefollowingapositiveornormativestatement?Thefederalminimumwageislowerthanmanystateminimumwages.
ANSWER: positivePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
40. Isthefollowingapositiveornormativestatement?TheFederalReserveshouldsetaninflationtargetandemploypoliciestomeetthetarget.
ANSWER: normativePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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526 Thinking Like an Economist
41. Isthefollowingapositiveornormativestatement?TheUnitedStatesgovernmentshouldmandatethateverycitizenpurchaseshealthinsurance.
ANSWER: normativePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
42. Isthefollowingapositiveornormativestatement?TheunemploymentrateinNevadaishigherthantheunemploymentrateinNewYork.
ANSWER: positivePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
43. Since1946,thepresidentoftheUnitedStateshasreceivedguidancefromagroupcomprisedofthreemembersandastaffofafewdozeneconomistsknownasthe
ANSWER: CouncilofEconomicAdvisersPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
44. Economistsatwhichadministrativedepartmenthelpformulatespendingplansandregulatorypolicies?
ANSWER: OfficeofManagementandBudgetPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
45. Economistsatwhichadministrativedepartmenthelpdesigntaxpolicy?
ANSWER: DepartmentoftheTreasuryPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
46. Economistsatwhichadministrativedepartmentanalyzedataonworkersandthoselookingforworktohelpformulatelabor-marketpolicies?
ANSWER: DepartmentofLaborPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
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528 Thinking Like an Economist
47. Economistsatwhichadministrativedepartmenthelpenforcethenation’santitrustlaws?
ANSWER: DepartmentofJusticePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
48. Theinstitutionthatsetsthenation’smonetarypolicyiscalledthe
ANSWER: FederalReserve.POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.7-LO:2-2NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Knowledge
49. Wheneconomistsdisagreeaboutwhetherthegovernmentshouldtaxahousehold’sincomeoritsconsumption,theyareexpressingadifferencein
ANSWER: scientificjudgment.POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
50. Wheneconomistsdisagreeaboutwhetherapolicyisfair,theyareexpressingadifferencein
ANSWER: values.POINTS: 1
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Comprehension
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530 Thinking Like an Economist
51. Mosteconomistsagreethatalargefederalbudgetdeficithaswhattypeofeffectontheeconomy?
ANSWER: adversePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.8-LO:2-3NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:ThinkingLikeanEconomistOverviewofUSEconomy
KEYWORDS: BLOOM'S:Comprehension
Figure2-22
52. RefertoFigure2-22.WhatarethecoordinatesofpointC?
ANSWER: (60,3)POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
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From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Microeconomics-7th-Edition-by-Gregory-Mankiw
53. RefertoFigure2-22.Whatisthex-coordinateofpointR?
ANSWER: 20POINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:ApplicationNOTES: n
54. RefertoFigure2-22.Howarepriceandquantityrelatedinthisgraph?
ANSWER: negativelycorrelatedPOINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
55. RefertoFigure2-22.WhatistheslopeofthelinewithpointsA,B,andC?
ANSWER: -0.1POINTS: 1DIFFICULTY: Difficulty:ModerateLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:ThinkingLikeanEconomistKEYWORDS: BLOOM'S:Application
56. RefertoFigure2-22.IsamovefrompointAtopointBconsideredashiftofthecurveoramovementalongthecurve?
ANSWER: movementalongthecurvePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS: DISC:SupplyandDemandDemandKEYWORDS: BLOOM'S:Application
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532 Thinking Like an Economist
57. RefertoFigure2-22.IsamovefrompointAtopointRconsideredashiftofthecurveoramovementalongthecurve?
ANSWER: shiftofthecurvePOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: n
58. RefertoFigure2-22.Giventhatpriceismeasuredontheverticalaxis,quantityismeasuredonthehorizontalaxis,andthatthecurvesaredownward-sloping,whattypeofcurvesaredepictedhere?
ANSWER: demandcurvesPOINTS: 1DIFFICULTY: Difficulty:EasyLEARNINGOBJECTIVES: ECON.MANK.15.10-LO:2-5NATIONALSTANDARDS: UnitedStates-BUSPROG:AnalyticTOPICS:
DISC:SupplyandDemandDemand
KEYWORDS: BLOOM'S:ApplicationNOTES: n
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