Exam 2: Thinking Like an Economist

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of this economy moving from point A to point B is

Figure 2-4 -Refer to Figure 2-4. This economy has the ability to produce at which point(s)?

Almost all economists agree that tariffs and import quotas

In the circular-flow diagram,

Figure 2-3 -Refer to Figure 2-3. What does the arrow going from oval B to rectangle 2 represent in the figure?

Policies such as rent control and trade barriers persist

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point B is called

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

Figure 2-2 -Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. Describe the shape of the production possibilities frontier.

A pie chart is a way to display information regarding two variables.

The Federal Reserve

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of goods and services?

The argument that purchases of minivans cause large families is an example of

Studying which of the following is helpful in learning to think like an economist​?

A demand curve shows the relationship

Economists view normative statements as

The Economic Report of the President