Exam 2: Thinking Like an Economist

Which of these terms are used interchangeably?

Economists face an obstacle that many other scientists do not face. What is that obstacle?

Home is a country that produces two goods, pears and cellular phones. Last year, Home produced 450 bushels of pears and 1050 cellular phones. This year it produced 450 bushels of pears and 2000 cellular phones. Given no other information, which of the following events could explain this change?

Figure 2-9 -Refer to Figure 2-9, Panel (a). Production at point B is

In the ordered pair (17, 75), 17 is the

The slope of a horizontal line is infinite, and the slope of a vertical line is zero.

Figure 2-4 -Refer to Figure 2-4. Inefficient production is represented by which point(s)?

Figure 2-13 -Refer to Figure 2-13. Cups of coffee per day and the hours that someone can go without sleep appear to have

A relatively flat demand curve indicates that

Points on the production possibilities frontier represent efficient levels of production.

Figure 2-3 -Refer to Figure 2-3. At which point is this economy producing its maximum possible quantity of pans?

The production possibilities frontier is a graph that shows the various combinations of output that an economy can possibly produce given the available factors of production and

Economic models

While the scientific method is applicable to studying natural sciences, it is not applicable to studying a nation's economy.

The two loops in the circular-flow diagram represent