Exam 2: Thinking Like an Economist

Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. The slope of the line containing points A and B is

Figure 2-15 -Refer to Figure 2-15. Consider the production possibilities frontier for an economy that produces only sofas and cars. When society moves from point A to point B,

Figure 2-4 -Refer to Figure 2-4. This economy has the ability to produce at which point(s)?

As a substitute for laboratory experiments, economists use evidence available through history's

Figure 2-16​ -Refer to Figure 2-16. It is not possible for this economy to produce at point

The slope of a line that passes through the points (5, 8) and (12, 12) is

If new government regulations designed to protect wetlands remove very productive farmland from production, then the production possibilities frontier will shift inward.

A positive economic statement such as "Pollution taxes decrease the quantity of pollution firms generate"

When two variables move in opposite directions, the curve relating them is

Suppose a nation is currently producing at a point inside its production possibilities frontier. We know that

Figure 2-18 Relationship between Price and Restaurant Meals -Refer to Figure 2-18. A movement from point A to point B is called

Economists sometimes give conflicting advice because

Figure 2-3 -Refer to Figure 2-3. Which of the following is an activity undertaken by the actors in rectangle 2?

If an economy is producing efficiently, then

Figure 2-13 -Refer to Figure 2-13. Which of the following statements is true about point G for this economy?

Figure 2-8 -Refer to Figure 2-8. For this economy, as more and more hammers are produced, the opportunity cost of an additional hammer produced, in terms of nails,

The trade-off between the production of one good and the production of another good can change over time because of technological advances.

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a) and Panel (b). Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a) to Panel (b)?

What you must give up to get something else is called the