Exam 2: Thinking Like an Economist

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

How did John Maynard Keynes refer to economics?

Which statement best characterizes the money held by households in the circular-flow diagram?

What two broad subfields is the field of economics traditionally divided into?

When a production possibilities frontier shifts outward, what concept is being demonstrated?

Figure 2-11 -Refer to Figure 2-11. The opportunity cost to the economy of moving from point B to point A is 10 dishwashers.

Who designs tax policy?

Figure 2-9 -Refer to Figure 2-9. What is the correct designation of point A?

Figure 2-7 -Refer to Figure 2-7. Which of the following would best describe the movement from frontier A to B?

Figure 2-8 -Refer to Figure 2-8. What is the opportunity cost of moving from point A to point B?

How is the slope of a straight line calculated?

What does the x-coordinate give?

Figure 2-3 -Refer to Figure 2-3. At which point or points can the economy NOT produce?

What might a microeconomist NOT study?

What does Human Resources and Skills Development Canada do?

What is the point where both x and y are zero called?

-Refer to Table 2-1. What is the opportunity cost to Toyland of increasing the production of toy cars from 100 to 200?

What is the single most important purpose of your textbook?

Which of the following is NOT a positive statement?

What happens when a variable on an axis of a graph changes?