Exam 2: Thinking Like an Economist

Figure 2-14 -Refer to Figure 2-14. It is possible for this economy to produce 30 doghouses and 20 dishwashers.

When a relevant variable that is not named on either axis changes,

Any point on a country's production possibilities frontier represents a combination of two goods that an economy

The y-coordinate is the

In the circular-flow diagram, which of the following items represents a payment for a factor of production?

The most common data for testing economic theories come from

In the circular-flow diagram,

Historical episodes are not valuable to economists.

Economists may disagree about the validity of alternative positive theories about how the world works.

Economists try to address their subject with a scientist's objectivity.

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

A production possibilities frontier will be bowed outward if some of the economy's resources are better suited to producing one good than another.

In the circular-flow diagram,

In the circular-flow diagram, firms produce goods and services using the factors of production.

The decision of which assumptions to make is

One way to characterize the difference between positive statements and normative statements is as follows:

The slope of a line that passes through the points (10, 15) and (20, 7) is

Figure 2-2 -Refer to Figure 2-2. Boxes A and B of this circular-flow diagram represent

Figure 2-2 -Refer to Figure 2-2. If households are buyers in the markets represented by Box C of this circular-flow diagram, then

The production possibilities frontier provides an illustration of the principle that