Exam 2: Thinking Like an Economist

When economists are trying to help improve the world, they are

Which of the following statements about the circular-flow diagram is correct?

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of burgers from 450 to 750?

Policymaking in a representative democracy

What type of statement is a descriptive statement about how the world is?

Figure 2-14 -Refer to Figure 2-14. Unemployment could cause this economy to produce at point B.

Between the two ordered pairs (3, 6) and (7, 18), the slope is

The decision of which assumptions to make is

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world.

An outcome is said to be efficient if an economy is conserving the largest possible quantity of its scarce resources while still meeting the basic needs of society.

Figure 2-14 Consider the production possibilities curve for a country that can produce sweaters, apples (in bushels), or a combination of the two -Refer to Figure 2-14. If this society moves from point U to point V,

Economists usually have to make do with whatever data the world happens to give them.

Economic models

Figure 2-7 -Refer to Figure 2-7. This economy cannot produce at which point(s)?

The Council of Economic Advisers

Figure 2-13 -Refer to Figure 2-13. One difference between points F and G is that

A demand curve shows the relationship

When economists are trying to explain the world, they are

When a production possibilities frontier is bowed outward, the opportunity cost of one good in terms of the other is constant.