Exam 2: Thinking Like an Economist.

Figure 2-17 Relationship Between Years of Education and Annual Income -Refer to Figure 2-17.According to the graph,the correlation between years of education and annual income is

Instead of conducting laboratory experiments to generate data to test their theories,economists often

Economic models are most often composed of diagrams and equations.

A statement describing how the world should be

Economists who are primarily responsible for advising Congress on economic matters work in which agency?

The inner loop of the circular-flow diagram represents the flows of inputs and outputs.Which of the following does not appear on the inner loop?

When economists make normative statements,they are

Economists view normative statements as

Figure 2-11 -Refer to Figure 2-11.Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

The effects of borrowing by the federal government would be studied by a microeconomist rather than a macroeconomist.

In the ordered pair (10,30),10 is the y-coordinate and 30 is the z-coordinate.

When economists are trying to explain the world,they are

In surveys of professional economists,fourteen propositions were endorsed by an overwhelming majority of respondents.

The scientific method is

Historical episodes are not valuable to economists.

If new government regulations designed to protect wetlands remove very productive farmland from production,then the production possibilities frontier will shift inward.

Policies such as rent control and trade barriers persist

Figure 2-8 -Refer to Figure 2-8,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)?

Figure 2-4 -Refer to Figure 2-4.This economy cannot currently produce 30 notepads and 45 lamps because

If a major union goes on strike,then the country would be operating inside its production possibilities frontier.