Exam 2: Thinking Like an Economist

In the circular-flow diagram, factors of production include land, labor, and capital.

The simple circular-flow diagram is a model that includes only some key players in the real economy. Which of the following key players are omitted from the simple circular-flow model?

Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a). To gain 2 tractors by moving from point W to point V, society must sacrifice

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

In the circular-flow diagram,

Graphs such as bar graphs and pie charts are limited in that they

Figure 2-3 -Refer to Figure 2-3. What is flowing from rectangle 1 to oval A?

Economists at which of the following offices help formulate spending plans and regulatory policies?

In the circular-flow diagram, factors of production are the goods and services produced by firms.

Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.

Points on the production possibilities frontier represent efficient levels of production.

Which of the following statements is correct?

The President counts among his economic advisors the Congressional Budget Office.

In the simple circular-flow diagram, who buys the factors of production?

Two variables that have a negative correlation move in opposite directions.

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of land, labor, and capital?

Almost all economists agree that local and state governments should

Which of the following is an example of a capital input?

Figure 2-5 -Refer to Figure 2-5. Inefficient production is represented by which point(s)?

Figure 2-7 -Refer to Figure 2-7. Efficient production is represented by which point(s)?