Exam 2: Thinking Like an Economist

Use the following demand curve to answer the following questions. a.How would point A be represented as an ordered pair? b.What type of curve is this? c.Does this curve show a positive or negative correlation between price and quantity? d.Compute the slope of D₁ between points A and C. e.What is the slope of D₁ between points C and E? Why would you not have to calculate this answer? f.What is it called if we move from D1 to D2? g.How do you know that the slope of D2 is the same as the slope of D1?

In a circular-flow diagram,

Which of the following statements is true?

In the markets for goods and services,as in the markets for the factors of production,households are buyers and firms are sellers.

You know an economist has crossed the line from scientist to policy adviser when he or she

Figure 2-8 -Refer to Figure 2-8.If this economy moved from point C to point E,

Figure 2-4 -Refer to Figure 2-4.If the economy moves from point A to point D,the opportunity cost is

When economists are trying to explain the world they are acting as scientists,and when they are trying to improve it,they are policymakers.

An example of a price that changes only infrequently is the price of

Figure 2-2 -Refer to Figure 2-2.The figure represents a circular-flow diagram.Andrea regularly buys fruits and vegetables at a grocery store.Michael regularly pays a lawn-care company to mow his lawn.If the flow of fruits and vegetables from the grocery store to Andrea is represented by an arrow from Box C to Box B,then the money paid by Michael to the lawn-care company is represented by an arrow

If Steven's income decreases and,as a result,he chooses to buy fewer bagels per month at each price his demand curve will

In the simple circular-flow diagram,households

In economics,capital refers to

Microeconomics is the study of

A survey of economists revealed that more than three-fourths of them agreed with a number of statements,including which of the following?

Figure 2-4 -Refer to Figure 2-4.The opportunity cost of obtaining 15 additional toasters by moving from point D to point C is

The nation's antitrust laws are enforced by the Department of

A few years ago,economist David Romer wrote a paper in which he analyzed whether professional football teams

Figure 2-10 -Refer to Figure 2-10.The slope of the curve between points A and B is

John Maynard Keynes referred to economics as an easy subject,