Exam 2: Thinking Like an Economist

In principle,we can

In the markets for goods and services,

In the markets for the factors of production,

Figure 2-4 -Refer to Figure 2-4.Suppose the economy is producing at point B.Which of the following statements would best explain this situation?

A model can be accurately described as a

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

If an economy is producing efficiently,then

John Maynard Keynes believed the ideas of economists to be

For economists,statements about the world are of two types:

Sometimes economists disagree because their scientific judgments differ.Which of the following instances best reflects this source of disagreement?

Policies such as rent control and import quotas persist in spite of the fact that economists are virtually united in their opposition to such policies,probably because

Which of the following statements about models is correct?

Which of these statements about economic models is correct?

Economists,like mathematicians,physicists,and psychologists,

Economists make use of assumptions,some of which are unrealistic,for the purpose of

In a simple circular-flow diagram,the two types of markets in which households and firms interact are the markets for goods and services and the markets for factors of production.

Economists consider normative statements to be

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

Economists make assumptions in order to

In building economic models,economists often omit