Exam 2: Thinking Like an Economist

Figure 2-1 -Refer to Figure 2-1. Harvey receives his first paycheck for working as an ice cream vendor. To which of the arrows does this transaction directly contribute?

Points inside the production possibilities frontier represent feasible levels of production.

Figure 2-20 Relationship Between Years of Education and Annual Income -Refer to Figure 2-20. The graph above is a

When studying the effects of changes in public policy, economists believe that

The Federal Reserve

Sometimes economists disagree because their values differ. Which of the following instances best reflects this source of disagreement?

What type of statement is a prescriptive statement about how the world ought to be?

Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages.

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. Which of the following could result in a movement from point B to point Z?

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

Economic models

Figure 2-17​ -Refer to Figure 2-17. This economy fully employs its resources when it produces 4000 shoes and zero t-shirts.

In addition to advising the president, one duty of the Council of Economic Advisers is to

Figure 2-14 -Refer to Figure 2-14. If this economy uses all its resources in the dishwasher industry, it produces 35 dishwashers and no doghouses.

According to John Maynard Keynes, an economist must possess a rare combination of skills including being a mathematician, historian, statesman, and philosopher.

On a bowed production possibilities frontier, as you move down along the curve

The circular-flow diagram

Figure 2-5 -Refer to Figure 2-5. The opportunity cost of obtaining 40 additional dryers by moving from point D to point C is

Who would be more likely to study the effects of rent control on housing in New York City, a macroeconomist or a microeconomist?

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