Exam 2: Thinking Like an Economist

Figure 2-21 -Refer to Figure 2-21. According to the graph, snowstorms

The slope of a fairly flat upward-sloping line will be a

The x-coordinate of an ordered pair specifies the

In conducting their research, economists face an obstacle that not all scientists face; specifically, in economics, it is often impractical to

Economic models are most often composed of diagrams and equations.

The three main factors of production, or categories of inputs, used by firms to produce goods and services are

When economists disagree about whether a policy is fair, they are expressing a difference in

In conducting their research, economists often substitute historical events and historical episodes for

Policies such as rent control and trade barriers persist

In the circular-flow diagram, one loop represents the flow of goods and services, and the other loop represents the flow of factors of production.

The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in

Figure 2-6 -Refer to Figure 2-6. A movement from point H to point K could be caused by

"If all economists were laid end to end, they would not reach a conclusion." Who made this whimsical observation?

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

Economists speaking like policy advisers make

Figure 2-3 -Refer to Figure 2-3. What do the rectangles represent in the figure?

Which of the following trade-offs does the production possibilities frontier illustrate?

Figure 2-9 Panel (a) Panel (b) -Refer to Figure 2-9, Panel (a). The opportunity cost of moving from point K to point L is

Figure 2-7 -Refer to Figure 2-7. If this economy moved from point P to point N, then

The two loops in the circular-flow diagram represent