Exam 2: Thinking Like an Economist

Suppose an economy only produces two goods, robots and ice cream. Last month, the economy produced 10 robots and 200 gallons of ice cream. This month, the same economy produced 15 robots and 240 gallons of ice cream. Which of the following statements could explain this change?

The duties of the Council of Economic Advisers are to advise the president of the United States and to determine U.S. monetary policy.

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Economists usually have to make do with whatever data the world happens to give them.

When economists make normative statements, they are

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Which of the following statements about models is correct?

Figure 2-17​ -Refer to Figure 2-17. The opportunity cost of producing an additional pair of shoes increases as more shoes are produced.

When an economist is asked a question like "why is unemployment higher for teenagers than for older workers?" the economist

Figure 2-5 -Refer to Figure 2-5. Inefficient production is represented by which point(s)?

The field of economics is traditionally divided into two broad subfields,

Historical episodes are not valuable to economists.

Since economists cannot use natural experiments offered by history, they must use carefully constructed laboratory experiments instead.

The slope of a line that passes through the points (20, 30) and (40, 14) is

Which of the following statements is correct about the roles of economists?

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

Economists speaking like policy advisers make

Table 2-6 -Refer to Table 2-6. Consider the production possibilities table for an economy that produces only mobile phones and pizzas. What is the opportunity cost of increasing production of pizzas from 4,000 to 6,000?

Positive statements are descriptive, while normative statements are prescriptive.

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.