Exam 2: Thinking Like an Economist

Figure 2-6 -Refer to Figure 2-6.A movement from point C to point D could be caused by

Figure 2-2 -Refer to Figure 2-2.The figure represents a circular-flow diagram.If the outer loop represents flows of dollars,then the inner loop includes

The slope of a line is calculated by the

The decision of which assumptions to make is

Figure 2-10 -Refer to Figure 2-10.The curves shown are

A certain production possibilities frontier shows production possibilities for two goods: wheat and shirts.Which of the following concepts can not be illustrated in this model?

Figure 2-7 -Refer to Figure 2-7.Which of the following would most likely have caused the production possibilities frontier to shift outward from A to B?

Which of the following is an example of an economic model?

Which of these statements is a positive statement (as opposed to a normative statement)?

By scientific method we mean

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

An economy is being efficient if it is impossible to produce more of one good without producing less of another.

Figure 2-1 -Refer to Figure 2-1.Which arrow represents the flow of goods and services?

In the circular-flow diagram,

When studying the effects of changes in public policy,economists believe that

In constructing models,economists

The two basic reasons why economists often appear to give conflicting advice to policymakers are differences in

Figure 2-8 -Refer to Figure 2-8.Production is efficient if the economy is producing

The use of the coordinate system allows

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