Exam 2: Thinking Like an Economist

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 200 to 300

Figure 2-8 -Refer to Figure 2-8.What would be an efficient combination of bathtubs and barrels

What would a macroeconomist NOT study

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of fire trucks from 0 to 200

How did John Maynard Keynes refer to economics

Figure 2-9 -Refer to Figure 2-9.What would you say about the relationship between coffee and hours without sleep

Figure 2-8 -Refer to Figure 2-8.If this economy puts all of its resources into the production of bathtubs,how many could it produce

In economics,what does capital refer to

What happens when a variable on an axis of a graph changes

Suppose an economy produces two goods: food and machines.This economy always operates on its production possibilities frontier.Last year,it produced 65 units of food and 23 machines.This year,it is producing 72 units of food and 25 machines.Which of the following would NOT explain the increase in output

Figure 2-4 -Refer to Figure 2-4.What is the opportunity cost to the economy of getting 30 additional toothbrushes by moving from point A to point D

Figure 2-3 -Refer to Figure 2-3.At which point or points can the economy NOT produce

Who designs tax policy

An economy can produce at any point on or outside the production possibilities frontier,but it cannot produce at points inside the frontier.

Table 2-1 Production Possibilities for Toyland -Refer to Table 2-1.What is the opportunity cost to Toyland of increasing the production of dolls from 100 to 200

In a circular-flow diagram,which flows are involved

An efficient outcome in economics is one in which the economy is conserving the largest possible amount of resources,while still meeting the needs of society.

While the scientific method is applicable to studying natural sciences,it is not useful in studying an economic system.

What are the two basic reasons why economists often appear to give conflicting advice to policymakers

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