Exam 2: Thinking Like an Economist.

An ordered pair is

Economists face an obstacle that many other scientists do not face.What is that obstacle?

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.Which of the following could result in a movement from point A to point B?

Economists devise theories,collect data,and then analyze these data in an attempt to verify or refute their theories.

"The US should not restrict employers from outsourcing work to foreign countries" is a normative statement.

When two variables have a negative correlation and the x-variable decreases,

Figure 2-15 Relationship between Price and Cups of Coffee -Refer to Figure 2-15.In the ordered pair (4,6)

An assumption an economist might make while studying international trade is

When two variables move in the same direction,the curve relating them is

In a certain economy,toys and greeting cards are produced,and the economy currently operates on its production possibilities frontier.Which of the following events would allow the economy to produce more toys and more greeting cards,relative to the quantities of those goods that are being produced now?

Figure 2-4 -Refer to Figure 2-4.Efficient production is represented by which point(s)?

Which of the following is an example of a normative - as opposed to a positive - statement?

The prairie dog has always been considered a problem for American cattle ranchers.They dig holes that cattle and horses can step in,and they eat grass necessary for cattle.Recently,ranchers have discovered that there is a demand for prairie dogs as pets.In some areas,prairie dogs can sell for as high as $150 each.Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle. Draw a rancher's production possibilities frontier showing increasing opportunity cost of cattle production in terms of prairie dog production.Using a separate graph for each situation,show what would happen to the initial production possibilities frontier in each of the following situations: a.The outcome is efficient,with ranchers choosing to produce equal numbers of cattle and prairie dogs. b.As a protest against the government introducing the gray wolf back into the wild in their state,ranchers decide to withhold 25 percent of the available grassland for grazing. c.The price of prairie dogs increases to $200 each,so ranchers decide to allot additional land for prairie dogs. d.The government grants new leases to ranchers,giving them 10,000 new acres of grassland each for grazing. e.A drought destroys most of the available grass for grazing of cattle,but not for prairie dogs since they also eat plant roots.

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

Table 2-3 Production Possibilities for Libraryland -Refer to Table 2-3.Which of the following statements is correct?

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

Which of the following is not correct?

A model can be accurately described as a

Some,but not all,government economists are employed within the administrative branch of government.Which of the following government agencies employs economists outside of the administrative branch?

In building economic models,economists often omit