Exam 2: Thinking Like an Economist

The tradeoff between the production of different goods can change because of technological improvement over time.

Figure 2-1 -Refer to Figure 2-1. Which arrow shows the flow of the factors of production?

Figure 2-2 -Refer to Figure 2-2. In which market are households sellers?

Which of the following is a one-variable graph?

Figure 2-10 -Refer to Figure 2-10. What could have caused the movement from point B to point C?

Which of the following is an example of a product that experiences infrequent price changes?

Which of the following is NOT a problem associated with graphing in economics?

Figure 2-8 -Refer to Figure 2-8. Which combination is NOT possible for this economy to produce?

The field of economics is divided into two subfields: microeconomics and macroeconomics.

When economists are speaking as policy advisors, which statements are they more likely to use?

Why is the use of theory and observation more difficult in economics than in sciences, such as physics?

Figure 2-4 -Refer to Figure 2-4. Suppose the economy is at point A. What is the opportunity cost of increasing the production of toothbrushes by 10 units?

What do good economic models do?

What do almost all economists agree on about rent control?

When economists are trying to explain the world they are acting as scientists, and when they are trying to improve it, they are policymakers.

In a circular-flow diagram, which flows are involved?

Which terms are used by an economist?

When a production possibilities frontier is linear, what does it show?

Figure 2-8 -Refer to Figure 2-8. What would be an efficient combination of bathtubs and barrels?

What happens when economists test theories?