Exam 2: Thinking Like an Economist

Deciding that A causes B when in fact B causes A is a mistake called omitted variable bias.

President Ronald Reagan once joked that a Trivial Pursuit game designed for economists would

The first number in any ordered pair is

The scientific method is applicable to studying

Evaluating normative statements involves values as well as facts.

Figure 2-16 -Refer to Figure 2-16. The graph shown is known as a

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. As the economy moves from point A to point D, is the opportunity cost of cars increasing, constant, or decreasing?

Figure 2-16 -Refer to Figure 2-16. Cups of coffee per day and the hours that someone can go without sleep appear to have

The circular flow model is not used anymore because it fails to perfectly replicate real world situations.

Which of the following is an example of a normative, as opposed to positive, statement?

The president of the United States receives tax policy advice from economists in the

The ordered pair that represents the origin on a graph is

When two variables have a positive correlation,

In the circular-flow diagram, which of the following items flows from households to firms through the markets for goods and services?

The opportunity cost of something is what you give up to get it.

Figure 2-17 -Refer to Figure 2-17. The slope of the curve between points A and B is

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

In the ordered pair (20, 30), 20 is the

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

Figure 2-1 -Refer to Figure 2-1. Raymond buys a refrigerator for his new home. To which of the arrows does this transaction directly contribute?