Exam 2: Thinking Like an Economist

Indiadesh is a country that produces two goods, textiles and computers. Last year, Indiadesh produced 50,000 textiles and 1300 computers. This year it produced 45,000 textiles and 1100 computers. Given no further information, which of the following events could explain this change?

Duties of the Council of Economic Advisers include

When economists make

Figure 2-3 -Refer to Figure 2-3. Which shape refers to the markets for goods and services?

Economists speaking like scientists make

A macroeconomist, rather than a microeconomist, would study the effects on a market from two firms merging.

A model can be accurately described as a

An assumption an economist might make while studying international trade is

Unemployment causes production levels to be inefficient.

It is possible for an economy to increase its production of both goods if the economy

Table 2-3 Production Possibilities for Footville -Refer to Table 2-3. What is the opportunity cost to Footville of increasing the production of shoes from 400 to 600?

Figure 2-7 -Refer to Figure 2-7. What is the opportunity cost of moving from point M to point L?

The language of economics is

Differences in scientific judgment between economists are similar to all of the following except

Figure 2-17 -Refer to Figure 2-17. The movement from point B to point C could have been caused by

In economics, capital refers to

When two variables have a positive correlation,

A production possibilities frontier has a bowed shape if the opportunity cost is constant at all levels of output.

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

In the circular flow diagram, when Daphne purchases a new mobile phone, she participates in the markets for