Exam 2: Thinking Like an Economist

When a production possibilities frontier is bowed outward, the opportunity cost of the second good in terms of the first good increases as more of the second good is produced.

Which of the following is not correct?

Figure 2-6 -Refer to Figure 2-6. If this economy devotes all of its resources to the production of blankets, then it will produce

The y-coordinate of an ordered pair specifies the

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?

Congressman Dearmark justified spending $3 million on a new entertainment complex in his district because it will create 450 new jobs for his residents. As a student of economics, you know that

Figure 2-16​ -Refer to Figure 2-16. Inefficient production is represented by which point(s)?

Table 2-5 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following combinations of corn and wheat is not currently attainable but would be attainable if there was an improvement in overall production technology?

Positive statements are not

Economists at the U.S. Department of the Treasury help design U.S. coins and paper money.

Economists at the Department of the Treasury

Which of the following is correct?

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. Senator Smith observes the graph and concludes that people who earn higher incomes attend school for more years. Senator Jones observes the graph and concludes that people who attend school for more years earn higher incomes. Who is correct?

John Maynard Keynes described economics as an easy subject at which very few excel. Which of the following is not one of the reasons Keynes gave for why so few people excel at the study of economics?

Figure 2-5 -Refer to Figure 2-5. It is possible for this economy to produce

Figure 2-11 -Refer to Figure 2-11. Which of the following events would explain the shift of the production possibilities frontier from A to B?

Economists believe that production possibilities frontiers rarely have a bowed shape.

The production possibilities frontier shows the opportunity cost of one good as measured in terms of the other good.

Figure 2-5 -Refer to Figure 2-5. This economy cannot currently produce 70 washers and 70 dryers because

Microeconomics and macroeconomics are closely intertwined.