Exam 2: Thinking Like an Economist

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) and Panel (b). A shift of the economy's production possibilities frontier from Panel (a) to Panel (b) could be caused by

Table 2-3 Production Possibilities for Footville -Refer to Table 2-3. Which of the following statements is correct?

A macroeconomist, rather than a microeconomist, would study the effects on a market from two firms merging.

Which of the following is not an assumption of the productions possibilities frontier?

Figure 2-14 -Refer to Figure 2-14. The opportunity cost of moving from point B to point A is zero.

Figure 2-16​ -Refer to Figure 2-16. Which of the following statements is true about the opportunity cost of obtaining approximately 20 additional gadgets by moving from point B to point C?

The difference between economists speaking as scientists or policy advisers boil down to the difference between

A demand curve shows the relationship between price and

When income increases the slope of an individual's demand curve, the demand curve

Policymaking in a representative democracy

It is difficult for economists to make observations and develop theories, but it is easy for economists to run experiments to generate data to test their theories.

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

When a production possibilities frontier is bowed outward, the opportunity cost of producing an additional unit of a good

In the circular-flow diagram, another name for goods and services produced by firms is

Figure 2-12 -Refer to Figure 2-12. The shift of the production possibilities frontier from A to B can best be described as

A statement describing how the world is

Economic models omit many details to allow us to see what is truly important.

Figure 2-16​ -Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to

Figure 2-3 -Refer to Figure 2-3. Which shape refers to the markets for goods and services?