Exam 2: Thinking Like an Economist

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

Production possibilities frontiers are usually bowed outward. This is because

In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called

An example of a price that changes only infrequently is the price of

A model that shows how dollars flow through markets among households and firms is called the

Economists make use of assumptions, some of which are unrealistic, for the purpose of

You know an economist has crossed the line from policy adviser to scientist when he or she

The point where both x and y are zero is known as the

Where can an economy not produce?

In the circular-flow diagram, in the markets for

A relatively steep demand curve indicates that

A survey of professional economists revealed that more than three-fourths of them agreed with fourteen economic propositions. Which of the following is not one of those propositions?

Figure 2-16​ -Refer to Figure 2-16. Which of the following statements is true about the opportunity cost of obtaining approximately 20 additional gadgets by moving from point B to point C?

The design of tax policy is one of the responsibilities of economists who work at the

Irregular fluctuations in economic activity are known as the

In the circular-flow diagram, households and firms are the decision makers.

Economists at the Department of Justice

Figure 2-2 -Refer to Figure 2-2. If the flow of goods and services is part of what is represented by the inner loop of this circular-flow diagram, then

A production possibilities frontier shifts outward when

The argument that purchases of minivans cause large families is an example of