Exam 2: Thinking Like an Economist

In surveys of professional economists, fourteen propositions were endorsed by an overwhelming majority of respondents.

Figure 2-14 -Refer to Figure 2-14. Unemployment could cause this economy to produce at point B.

In the circular-flow diagram, which of the following items does not flow from firms to households?

In the simple circular-flow diagram, the participants in the economy are

Because almost all economists oppose policies that restrict trade among nations, policymakers do not restrict imports of certain goods.

In economics, graphs serve two purposes: they offer a way to visually express ideas, and they provide a way of finding and interpreting patterns when analyzing economic data.

The Federal Reserve

John Maynard Keynes referred to economics as an easy subject,

Macroeconomics is the study of

In building economic models, economists often omit

Figure 2-7 -Refer to Figure 2-7. In order to reach point L, the economy would have to

Among economic models, the circular-flow diagram is unusual in that it

Which of the following areas of study typifies microeconomics as opposed to macroeconomics?

In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production.

A statement describing how the world should be

Figure 2-14 -Refer to Figure 2-14. This economy fully employs its resources when it produces 35 dishwashers and zero doghouses.

Figure 2-1 -Refer to Figure 2-1. Which arrow represents the flow of spending by households?

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

Which of the following allows you to provide information about the relationship between two variables?

Which of the following statements is (are) correct?