1. Economists .try .to .address .their .subject .with .a .scientist’s
.objectivity. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
2. Economists .devise .theories, .collect .data, .and .then .analyze .these .data .in .an .attempt .to .verify .or .refute
.their .theories.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: . . The .study .of .economics .and .definitions .of
.economics
TOP: Economists MSC: . Definitional
3. The .scientific .method .is .the .dispassionate .development .and .testing .of .theories .about .how .the .world
.works. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Scientific .method MSC: . Definitional
4. The .scientific .method .can .be .applied .to .the .study .of
.economics. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Scientific .method MSC: . Interpretive
5. While .the .scientific .method .is .applicable .to .studying .natural .sciences, .it .is .not .applicable .to
.studying .a .nation’s .economy.
ANS: . . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Scientific .method MSC: . Interpretive
6. For .economists, .conducting .experiments .is .often .difficult .and .sometimes
.impossible. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
7. Economists .usually .have .to .make .do .with .whatever .data .the .world .happens .to .give
.them. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
8. It .is .difficult .for .economists .to .make .observations .and .develop .theories, .but .it .is .easy .for .economists
.to .run .experiments .to .generate .data .to .test .their .theories.
ANS: F DIF: 2 REF: 2-1
NAT: Analytic LOC: . . The .study .of .economics .and .definitions .of
.economics
TOP: Economists MSC: . Interpretive
9. Since .economists .cannot .use .natural .experiments .offered .by .history, .they .must .use .carefully
.constructed .laboratory .experiments .instead.
ANS: F DIF: 2 REF: 2-1
NAT: Analytic LOC: . . The .study .of .economics .and .definitions .of
.economics
TOP: Economists MSC: . Interpretive
10. Historical .episodes .are .not .valuable .to .economists.
.ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Interpretive
49
Visit .TestBankDeal.com .to .get .complete .for .all .chapters
,50 . . Chapter .2/Thinking .Like .An
.Economist
11. Historical .episodes .allow .economists .to .illustrate .and .evaluate .economic .theories .of .the
.present. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
12. Good .assumptions .simplify .a .problem .without .substantially .affecting .the
.answer. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Assumptions MSC: . Interpretive
13. Assumptions .can .simplify .the .complex .world .and .make .it .easier .to
.understand. .ANS: . T DIF: 1 REF: 2-1
NAT: . . Analytic LOC: . . The .study .of .economics .and .definitions .of .economics
TOP: . . Assumptions MSC: . Definitional
14. Economists .often .find .it .worthwhile .to .make .assumptions .that .do .not .necessarily .describe .the .real
.world. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Interpretive
15. Economists .use .one .standard .set .of .assumptions .to .answer .all .economic
.questions. .ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Interpretive
16. Economic .models .are .most .often .composed .of .diagrams .and
.equations. .ANS: . T DIF: 1 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Economic .models MSC: . Definitional
17. Economic .models .omit .many .details .to .allow .us .to .see .what .is .truly
.important. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Economic .models MSC: . Definitional
18. Economic .models .can .help .us .understand .reality .only .when .they .include .all .details .of .the
.economy. .ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Economic .models MSC: . Interpretive
19. An .economic .model .can .accurately .explain .how .the .economy .is .organized .because .it .is .designed .to
.include, .to .the .extent .possible, .all .features .of .the .real .world.
ANS: . . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Economic .models MSC: . Interpretive
20. All .scientific .models, .including .economic .models, .simplify .reality .in .order .to .improve .our .understanding
.of .it. .ANS: . T DIF: 1 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Economic .models MSC: . Definitional
21. The .circular-flow .diagram .explains, .in .general .terms, .how .the .economy .is .organized .and .how
.participants .in .the .economy .interact .with .one .another.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
22. A .circular-flow .diagram .is .a .visual .model .of .the
.economy. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
, Chapter .2/Thinking .Like .An .Economist .
. 51
23. In .the .circular-flow .diagram, .households .and .firms .are .the .decision
.makers. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
24. In .the .circular-flow .diagram, .firms .produce .goods .and .services .using .the .factors .of
.production. .ANS: . T DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
25. In .the .circular-flow .diagram, .factors .of .production .are .the .goods .and .services .produced .by
.firms. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
26. In .the .circular-flow .diagram, .factors .of .production .include .land, .labor, .and
.capital. .ANS: . T DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
27. In .the .circular-flow .diagram, .firms .own .the .factors .of .production .and .use .them .to .produce .goods .and
.services. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
28. In .the .circular-flow .diagram, .firms .consume .all .the .goods .and .services .that .they
.produce. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram . . MSC: Interpretive
29. In .the .circular-flow .diagram, .the .two .types .of .markets .in .which .households .and .firms .interact .are .the
.markets .for .goods .and .services .and .the .markets .for .factors .of .production.
ANS: . . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
30. In .the .markets .for .goods .and .services .in .the .circular-flow .diagram, .households .are .buyers .and .firms .are
.sellers. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
31. In .the .markets .for .the .factors .of .production .in .the .circular-flow .diagram, .households .are .buyers .and
.firms .are .sellers.
ANS: . . F DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
32. In .the .circular-flow .diagram, .one .loop .represents .the .flow .of .goods, .services, .and .factors .of
.production, .and .the .other .loop .represents .the .corresponding .flow .of .dollars.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
33. In .the .circular-flow .diagram, .one .loop .represents .the .flow .of .goods .and .services, .and .the .other .loop
.represents .the .flow .of .factors .of .production.
ANS: . . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
, 52 . . Chapter .2/Thinking .Like .An
.Economist
34. In .the .circular-flow .diagram, .payments .for .labor, .land, .and .capital .flow .from .firms .to .households
.through .the .markets .for .the .factors .of .production.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
35. The .production .possibilities .frontier .is .a .graph .that .shows .the .various .combinations .of .outputs
.that .the .economy .can .possibly .produce .given .the .available .factors .of .production .and .the
.available .production .technology.
ANS: . . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Definitional
Figure .2-14
45
40
35
30
25
20
15
10
5
15 . . 30 . . 45 . . 60 . . 75 dog-
houses
36. Refer .to .Figure .2-14. . If .this .economy .uses .all .its .resources .in .the .dishwasher .industry, .it
.produces .35 .dishwashers .and .no .doghouses.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
37. Refer .to .Figure .2-14. . It .is .possible .for .this .economy .to .produce .75
.doghouses. .ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
38. Refer .to .Figure .2-14. . It .is .possible .for .this .economy .to .produce .30 .doghouses .and .20
.dishwashers. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
39. Refer .to .Figure .2-14. . It .is .possible .for .this .economy .to .produce .45 .doghouses .and .30
.dishwashers. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Production .possibilities .frontier MSC: . Applicative
40. Refer .to .Figure .2-14. . Given .the .technology .available .for .manufacturing .doghouses .and .dishwashers,
.this .economy .does .not .have .enough .of .the .factors .of .production .to .support .the .level .of .output
.represented .by .point .C.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
.objectivity. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
2. Economists .devise .theories, .collect .data, .and .then .analyze .these .data .in .an .attempt .to .verify .or .refute
.their .theories.
ANS: T DIF: 1 REF: 2-1
NAT: Analytic LOC: . . The .study .of .economics .and .definitions .of
.economics
TOP: Economists MSC: . Definitional
3. The .scientific .method .is .the .dispassionate .development .and .testing .of .theories .about .how .the .world
.works. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Scientific .method MSC: . Definitional
4. The .scientific .method .can .be .applied .to .the .study .of
.economics. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Scientific .method MSC: . Interpretive
5. While .the .scientific .method .is .applicable .to .studying .natural .sciences, .it .is .not .applicable .to
.studying .a .nation’s .economy.
ANS: . . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Scientific .method MSC: . Interpretive
6. For .economists, .conducting .experiments .is .often .difficult .and .sometimes
.impossible. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
7. Economists .usually .have .to .make .do .with .whatever .data .the .world .happens .to .give
.them. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
8. It .is .difficult .for .economists .to .make .observations .and .develop .theories, .but .it .is .easy .for .economists
.to .run .experiments .to .generate .data .to .test .their .theories.
ANS: F DIF: 2 REF: 2-1
NAT: Analytic LOC: . . The .study .of .economics .and .definitions .of
.economics
TOP: Economists MSC: . Interpretive
9. Since .economists .cannot .use .natural .experiments .offered .by .history, .they .must .use .carefully
.constructed .laboratory .experiments .instead.
ANS: F DIF: 2 REF: 2-1
NAT: Analytic LOC: . . The .study .of .economics .and .definitions .of
.economics
TOP: Economists MSC: . Interpretive
10. Historical .episodes .are .not .valuable .to .economists.
.ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Interpretive
49
Visit .TestBankDeal.com .to .get .complete .for .all .chapters
,50 . . Chapter .2/Thinking .Like .An
.Economist
11. Historical .episodes .allow .economists .to .illustrate .and .evaluate .economic .theories .of .the
.present. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Definitional
12. Good .assumptions .simplify .a .problem .without .substantially .affecting .the
.answer. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Assumptions MSC: . Interpretive
13. Assumptions .can .simplify .the .complex .world .and .make .it .easier .to
.understand. .ANS: . T DIF: 1 REF: 2-1
NAT: . . Analytic LOC: . . The .study .of .economics .and .definitions .of .economics
TOP: . . Assumptions MSC: . Definitional
14. Economists .often .find .it .worthwhile .to .make .assumptions .that .do .not .necessarily .describe .the .real
.world. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Interpretive
15. Economists .use .one .standard .set .of .assumptions .to .answer .all .economic
.questions. .ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . The .study .of .economics .and .definitions .of
.economics .TOP: . Economists MSC: . Interpretive
16. Economic .models .are .most .often .composed .of .diagrams .and
.equations. .ANS: . T DIF: 1 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Economic .models MSC: . Definitional
17. Economic .models .omit .many .details .to .allow .us .to .see .what .is .truly
.important. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Economic .models MSC: . Definitional
18. Economic .models .can .help .us .understand .reality .only .when .they .include .all .details .of .the
.economy. .ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Economic .models MSC: . Interpretive
19. An .economic .model .can .accurately .explain .how .the .economy .is .organized .because .it .is .designed .to
.include, .to .the .extent .possible, .all .features .of .the .real .world.
ANS: . . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Economic .models MSC: . Interpretive
20. All .scientific .models, .including .economic .models, .simplify .reality .in .order .to .improve .our .understanding
.of .it. .ANS: . T DIF: 1 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Economic .models MSC: . Definitional
21. The .circular-flow .diagram .explains, .in .general .terms, .how .the .economy .is .organized .and .how
.participants .in .the .economy .interact .with .one .another.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
22. A .circular-flow .diagram .is .a .visual .model .of .the
.economy. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
, Chapter .2/Thinking .Like .An .Economist .
. 51
23. In .the .circular-flow .diagram, .households .and .firms .are .the .decision
.makers. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
24. In .the .circular-flow .diagram, .firms .produce .goods .and .services .using .the .factors .of
.production. .ANS: . T DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
25. In .the .circular-flow .diagram, .factors .of .production .are .the .goods .and .services .produced .by
.firms. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
26. In .the .circular-flow .diagram, .factors .of .production .include .land, .labor, .and
.capital. .ANS: . T DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
27. In .the .circular-flow .diagram, .firms .own .the .factors .of .production .and .use .them .to .produce .goods .and
.services. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram .| .Factors .of .production MSC: Interpretive
28. In .the .circular-flow .diagram, .firms .consume .all .the .goods .and .services .that .they
.produce. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Circular-flow .diagram . . MSC: Interpretive
29. In .the .circular-flow .diagram, .the .two .types .of .markets .in .which .households .and .firms .interact .are .the
.markets .for .goods .and .services .and .the .markets .for .factors .of .production.
ANS: . . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
30. In .the .markets .for .goods .and .services .in .the .circular-flow .diagram, .households .are .buyers .and .firms .are
.sellers. .ANS: . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
31. In .the .markets .for .the .factors .of .production .in .the .circular-flow .diagram, .households .are .buyers .and
.firms .are .sellers.
ANS: . . F DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Definitional
32. In .the .circular-flow .diagram, .one .loop .represents .the .flow .of .goods, .services, .and .factors .of
.production, .and .the .other .loop .represents .the .corresponding .flow .of .dollars.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
33. In .the .circular-flow .diagram, .one .loop .represents .the .flow .of .goods .and .services, .and .the .other .loop
.represents .the .flow .of .factors .of .production.
ANS: . . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
, 52 . . Chapter .2/Thinking .Like .An
.Economist
34. In .the .circular-flow .diagram, .payments .for .labor, .land, .and .capital .flow .from .firms .to .households
.through .the .markets .for .the .factors .of .production.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Circular-flow .diagram . MSC: Interpretive
35. The .production .possibilities .frontier .is .a .graph .that .shows .the .various .combinations .of .outputs
.that .the .economy .can .possibly .produce .given .the .available .factors .of .production .and .the
.available .production .technology.
ANS: . . T DIF: 1 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Definitional
Figure .2-14
45
40
35
30
25
20
15
10
5
15 . . 30 . . 45 . . 60 . . 75 dog-
houses
36. Refer .to .Figure .2-14. . If .this .economy .uses .all .its .resources .in .the .dishwasher .industry, .it
.produces .35 .dishwashers .and .no .doghouses.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
37. Refer .to .Figure .2-14. . It .is .possible .for .this .economy .to .produce .75
.doghouses. .ANS: . F DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
38. Refer .to .Figure .2-14. . It .is .possible .for .this .economy .to .produce .30 .doghouses .and .20
.dishwashers. .ANS: . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
39. Refer .to .Figure .2-14. . It .is .possible .for .this .economy .to .produce .45 .doghouses .and .30
.dishwashers. .ANS: . F DIF: 2 REF: 2-1
NAT: . . Analytic LOC: . . Understanding .and .applying .economic .models
TOP: . . Production .possibilities .frontier MSC: . Applicative
40. Refer .to .Figure .2-14. . Given .the .technology .available .for .manufacturing .doghouses .and .dishwashers,
.this .economy .does .not .have .enough .of .the .factors .of .production .to .support .the .level .of .output
.represented .by .point .C.
ANS: . . T DIF: 2 REF: 2-1
NAT: . Analytic LOC: . Understanding .and .applying .economic
.models .TOP: . Production .possibilities .frontier MSC: . Applicative
