Exam 2: Thinking Like an Economist.

Economists acting as scientists make positive statements,while economists acting as policy advisers make normative statements.

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

The circular-flow diagram is a

Which of the following statements best captures the relationship between microeconomics and macroeconomics?

For an economist,the idea of making assumptions is regarded generally as a

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

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

The Council of Economic Advisers

The x-coordinate of an ordered pair specifies the

Economic growth causes a production possibilities frontier to shift outward.

An outcome is said to be efficient if an economy is getting all it can from the scarce resources it has available.

Figure 2-2 -Refer to Figure 2-2.Boxes A and B of this circular-flow diagram represent

If a line passes through the points (20,5)and (10,10),then the slope of the line is 1/2.

If an economy is producing efficiently,then

Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram?

Because almost all economists oppose policies that restrict trade among nations,policymakers do not restrict imports of certain goods.

Figure 2-10 -Refer to Figure 2-10.Which of the following events would explain the shift of the production possibilities frontier from A to B?

The Economic Report of the President

In the markets for goods and services in the circular-flow diagram,households are buyers and firms are sellers.

Figure 2-6 -Refer to Figure 2-6.This economy cannot produce at which point(s)?