Exam 2: Thinking Like an Economist.

Economists build economic models by

Figure 2-9 -Refer to Figure 2-9,Panel (a)and Panel (b).Which of the following is not a result of the shift of the economy's production possibilities frontier from Panel (a)to Panel (b)?

In the circular-flow diagram,

Which of the following is not an example of a positive,as opposed to normative,statement?

Figure 2-14 -Refer to Figure 2-14.The opportunity cost of an additional doghouse increases as more doghouses are produced.

The circular-flow diagram explains,in general terms,how the economy is organized and how participants in the economy interact with one another.

Analysis of data on workers and those looking for work is conducted by economists at the

Figure 2-2 -Refer to Figure 2-2.If Box A of this circular-flow diagram represents firms,then which box represents households?

In the circular-flow diagram,which of the following is not a factor of production?

Figure 2-6 -Refer to Figure 2-6.If this economy devotes all of its resources to the production of clocks,then it will produce

In the markets for goods and services in the circular-flow diagram,

Which of the following concepts cannot be illustrated by the production possibilities frontier?

The two loops in the circular-flow diagram represent

The production possibilities frontier is a graph that shows the various combinations of outputs that the economy can possibly produce given the available factors of production and the available production technology.

The production possibilities frontier illustrates

A circular-flow diagram is a model that

Figure 2-3 -Refer to Figure 2-3.Efficient production is represented by which point(s)?

Figure 2-6 -Refer to Figure 2-6.Unemployment could cause this economy to produce at which point(s)?

When an economy is operating inside its production possibilities frontier,we know that

When a relevant variable that is not named on either axis changes,