Exam 2: Thinking Like an Economist

Table 2-4 Production Possibilities for Picnicland -Refer to Table 2-4. What is the opportunity cost to Picnicland of increasing the production of hotdogs from 450 to 900?

Which of the following is not correct?

When two variables have a negative correlation,

Figure 2-17​ -Refer to Figure 2-17. Point B represents an inefficient outcome for this economy.

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. What is the opportunity cost of moving from point T to point R?

The country of Gerance produces two goods, cars and wine. Last year, it produced 1,000 cars and 15,000 cases of wine. This year, it produced 1,300 cars and 20,000 cases of wine. Given no other information, which of the following events could not explain this change?

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

The concept of slope can be used to answer questions about how much one variable responds to changes in another variable.

When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in

The difference between economists speaking as scientists or policy advisers boil down to the difference between

The opportunity cost of obtaining more of one good is shown on the production possibilities frontier as the

Figure 2-2 -Refer to Figure 2-2. Devin works as an attorney for a corporation and is paid a salary in exchange for the legal services he performs. Juan owns office buildings and rents his buildings to companies in exchange for rent payments. If Devin's income is represented by a flow of dollars from Box D to Box B of this circular-flow diagram, then Juan's income is represented by a flow of dollars

When a government program is justified not on its merits but on the number of jobs it will create,

When economists are trying to explain the world, they are scientists. When they are trying to improve it, they are

A duty of economists at the Department of Labor is to

Figure 2-10 Panel (a) Panel (b) -Refer to Figure 2-10, Panel (a). Production is

Figure 2-16​ -Refer to Figure 2-16. Suppose this economy is producing at point B. Which of the following statements would best explain this situation?

A technological advance in the production of the first good increases the opportunity cost of the first good in terms of the second good.

Figure 2-22 -Refer to Figure 2-22. Is a move from point A to point B considered a shift of the curve or a movement along the curve?

When two variables move in opposite directions, the curve relating them is upward sloping, and we say the variables are positively related.