Exam 2: Thinking Like an Economist

What happens when a relevant variable that is not named on either axis changes?

What have economists often observed while studying the effects of public policy changes?

Why did George Bernard Shaw, among others, criticize economists?

Figure 2-9 -Refer to Figure 2-9. What would you say about the relationship between coffee and hours without sleep?

What do economists at the Bank of Canada do?

What happens in the markets for goods and services?

What did a survey that asked the opinion of academic, business, and government economists on ten propositions about economic policy find?

What is the ordered pair that represents the origin on a graph?

Figure 2-1 -Refer to Figure 2-1. Which arrow shows the flow of spending by households?

In which department do economists help enforce competition laws?

How do economists view normative statements?

In the goods and services market, how do households and firms interact?

Figure 2-7 -Refer to Figure 2-7. What would most likely have caused the production possibilities frontier to shift outward from A to B?

Figure 2-2 -Refer to Figure 2-2. What does the outer loop represent?

What makes a model compelling?

In the simple circular-flow diagram, who are the decision makers?

What revenue is received by firms from sales that is NOT used to pay for factors of production?

What is the goal of theories?

What is a circular-flow diagram?

Figure 2-11 -Refer to Figure 2-11. The opportunity cost of more doghouses decreases as more doghouses are produced.