Exam 2: Thinking Like an Economist

Economists hold many positions advising the president and Congress including

Figure 2-8 -Refer to Figure 2-8. For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other depends on how much of each good is being produced.

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

If a line passes through the points (20,5) and (10,10), then the slope of the line is 1/2.

In the circular-flow diagram, households and firms are the decision makers.

Figure 2-3 -Refer to Figure 2-3. What do the rectangles represent in the figure?

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a). Production at point K is

A macroeconomist - as opposed to a microeconomist - might study the effect of

Figure 2-17 -Refer to Figure 2-17. The curves shown are

Which of the following areas of study typifies macroeconomics as opposed to microeconomics?

Economists believe that production possibilities frontiers are often bowed because

When economists make positive statements, they are

Figure 2-13 -Refer to Figure 2-13. Which of the following combinations of points are both efficient and attainable for this economy?

The production possibilities frontier is used to illustrate some basic economic ideas, including

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. According to the graph, the correlation between years of education and annual income is

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C is a(n)

What type of statement is a descriptive statement about how the world is?

Policies such as rent control and trade barriers persist in spite of the fact that economists are virtually united in their opposition to such policies, probably because

Identify each of the following topics as being part of microeconomics or macroeconomics: a.the impact of a change in consumer income on the purchase of luxury automobiles b.the effect of a change in the price of Coke on the purchase of Pepsi c.the impact of a war in the Middle East on the rate of inflation in the United States d.factors influencing the rate of economic growth e.factors influencing the demand for tractors f. the impact of tax policy on national saving g. the effect of pollution taxes on the U.S. copper industry h. the degree of competition in the cable television industry i. the effect of a balanced-budget amendment on economic stability j. the impact of deregulation on the savings and loan industry