Exam 3: Thinking Like an Economist

The fact that economics developed as an abstract science rather than as a descriptive science like sociology or political science means that it doesn't concentrate on

Y/L is

Economics is a social science rather than a natural science because

Which of the following is included in the more complicated circular flow diagram?

If the level of consumption spending increases and the level of investment spending decreases,

If decision makers spend as much time as they can thinking about the future, and know as much (or more) about the structure and behavior of the economy as the model builder does, economists say they would have

Each of the following is part of the equilibrium condition for balanced growth except

Each of the following is a fundamental step that almost every successful construction of a macroeconomic model follows except

Use the Cobb-Douglas production function to answer this question. Suppose that the efficiency of the labor force is raised to the power 1/2. If nothing else changes and if the efficiency of the labor force grows at 4% per year, then output per worker

Economists use the term opportunity cost to refer to

In the production function, the variable E represents

Each of the following is one of the four dominant concepts of the rhetoric of economics except

The ratio of the economy's stock of capital to its level of output Y will be constant

Each of the following is a type of expectations considered by economists except

Each of the following is one of the four dominant concepts of the rhetoric of economics except

Which of the following is included in the more complicated circular flow diagram?

In the balanced growth equation, represents

The simplified version of the circular flow of economic activity

When economists are trying to analyze the implications of how people act, they will almost always write an equation that represents a

Each of the following is part of an economy's production function except