Principles of Microeconomics

N. GREGORY MANKIW

Chapter 2

Thinking Like an Economist - all with Video Answers

Educators

Chapter Questions

Problem 1

An economic model is
a. a mechanical machine that replicates the functioning of the economy.
b. a fully detailed, realistic description of the
c. a simplified representation of some aspect of the
d. a a computer program that predicts the future of the economy.

Crystal Wang

Crystal Wang

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Problem 2

The circular-flow diagram illustrates that, in markets
for the factors of production,
a. households are sellers, and firms are buyers.
b. households are buyers, and firms are sellers.
c. households and firms are both buyers.
d. households and firms are both sellers.

Bryan Kim

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Problem 3

A point inside the production possibilities frontier is
a. efficient but not feasible.
b. feasible but not efficient.
c. both efficient and feasible.
d. neither efficient nor feasible.

Wendi Zhao

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Problem 4

An economy produces hot dogs and hamburgers. If
a discovery of the remarkable health benefits of hot
dogs were to change consumers' preferences, it would
a. expand the production possibilities frontier.
b. contract the production possibilities frontier.
c. move the economy along the production
possibilities frontier.
d. move the economy inside the production
possibilities frontier.

Bryan Kim

Numerade Educator

Problem 5

All of the following topics fall within the study of
microeconomics EXCEPT
a. the impact of cigarette taxes on the smoking
behavior of teenagers.
b. the role of Microsoft's market power in the pricing
of software.
c. the effectiveness of antipoverty programs in
reducing homelessness.
d. the influence of the government budget deficit on
economic growth.

Maria Titova

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Problem 6

Which of the following is a positive, rather than a
normative, statement?
a. Law X will reduce national income.
b. Law $X$ is a good piece of legislation.
c. Congress ought to pass law X.
d. The president should veto law $X$ .

Bryan Kim

Numerade Educator