Exam 2: Thinking Like an Economist

Table 2-5 Cooki=s (in dazens) Caffe (inguund) 1000 0 800 350 600 650 400 800 200 1000 0 1150 -Refer to Table 2-5. Table 2-5 shows one set of production possibilities. Which of the following combinations of cookies and coffee is not currently attainable but would be attainable if there was an improvement in overall production technology?

When two variables have a positive correlation,

Economists build economic models by

Figure 2-14 -Refer to Figure 2-14. Given the technology available for manufacturing doghouses and dishwashers, this economy does not have enough of the factors of production to support the level of output represented by point C.

Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs.

Economists often find it worthwhile to make assumptions that do not necessarily describe the real world.

Economists at which of the following offices help formulate spending plans and regulatory policies?

Figure 2-16 In the following graph the x-axis shows the number of times a commuter rail train stops at a station per hour and the y-axis shows the number of commuter rail passengers per hour.Commuter Rail Passengers by Frequency of Service -Refer to Figure 2-16. Which of the following conclusions should not be drawn from observing this graph?

Figure 2-14 -Refer to Figure 2-14. Point B represents an inefficient outcome for this economy.

Which of the following concepts cannot be illustrated by the production possibilities frontier?

Figure 2-4 -Refer to Figure 2-4. It is possible for this economy to produce

Economists believe that production possibilities frontiers

Production is efficient if the economy is producing at a point

In the markets for the factors of production in the circular-flow diagram,

Evaluating normative statements involves values as well as facts.

The country of Aceland produces two goods, televisions and computers. Last year, it produced 200 televisions and 500 computers. This year, it produced 250 televisions and 600 computers. Given no other information, which of the following events could not explain this change?

When economists are trying to explain the world, they are scientists, and when they are trying to help improve the world, they are policy advisers.

In the past, environmentalists thought of economics as a method of maximizing profits. Presently,

Which of the following statements applies to economics, as well as to other sciences such as physics?

Figure 2-7 -Refer to Figure 2-7. Inefficient production is represented by which point(s)?