Exam 2: Thinking Like an Economist

In the circular-flow diagram, which of the following items does not flow from firms to households?

Which of the following is an example of a normative, as opposed to positive, statement?

When an economy is operating at a point on its production possibilities frontier, then

When economists are trying to help improve the world, they are

Microeconomics is the study of

Figure 2-22 -Refer to Figure 2-22. Is a move from point A to point R considered a shift of the curve or a movement along the curve?

Which of the following trade-offs does the production possibilities frontier illustrate?

Points outside the production possibilities frontier represent infeasible levels of production.

An ordered pair is

In the simple circular-flow diagram, who buys the factors of production?

In the ordered pair (3, 6), 3 is the

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point A to point B?

While the production possibilities frontier is a useful model, it cannot be used to illustrate economic growth.

Figure 2-7 -Refer to Figure 2-7. What is the opportunity cost of moving from point L to point M?

When economists disagree about whether a policy is fair, they are expressing a difference in

The institution that sets the nation's monetary policy is called the

Microeconomics and macroeconomics are closely intertwined.

Figure 2-14 -Refer to Figure 2-14. Points A, B, and D represent feasible outcomes for this economy.

In the circular-flow diagram, firms consume all the goods and services that they produce.

Economists at which administrative department help design tax policy?